Cover
Cover | 12 Months Ended |
Dec. 31, 2023 shares | |
Entity Addresses [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Period End Date | Dec. 31, 2023 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2023 |
Current Fiscal Year End Date | --12-31 |
Entity Registrant Name | INTERCURE LTD. |
Entity Central Index Key | 0001857030 |
Entity Incorporation, State or Country Code | L3 |
Entity Address, Address Line One | 85 Medinat ha-Yehudim Street |
Entity Address, City or Town | Herzliya |
Entity Address, Country | IL |
Entity Address, Postal Zip Code | 4676670 |
Title of 12(b) Security | Ordinary Shares |
Trading Symbol | INCR |
Security Exchange Name | NASDAQ |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | true |
Elected Not To Use the Extended Transition Period | false |
Document Accounting Standard | International Financial Reporting Standards |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 45,572,689 |
ICFR Auditor Attestation Flag | false |
Document Financial Statement Error Correction [Flag] | true |
Document Financial Statement Restatement Recovery Analysis [Flag] | false |
Auditor Firm ID | 1057 |
Auditor Name | Somekh Chaikin |
Auditor Location | Tel-Aviv, Israel |
Business Contact [Member] | |
Entity Addresses [Line Items] | |
Entity Address, Address Line One | 85 Medinat ha-Yehudim Street |
Entity Address, City or Town | Herzliya |
Entity Address, Country | IL |
Entity Address, Postal Zip Code | 4676670 |
City Area Code | +972 |
Local Phone Number | 77 460 5012 |
Contact Personnel Name | Amos Cohen |
Contact Personnel Email Address | Amos@intercure.co |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - ILS (₪) ₪ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | ₪ 101,139 | ₪ 232,589 |
Restricted cash | 9,660 | 13,907 |
Trade receivables, net | 60,411 | 36,919 |
Other receivables | 141,116 | 97,375 |
Inventory | 105,469 | 140,133 |
Biological assets | 822 | 6,365 |
Financial assets measured at fair value through profit or loss | 187 | 205 |
Total Current assets | 418,804 | 527,493 |
Non-current assets | ||
Other receivables | 4,207 | |
Property, plant and equipment and right-of-use asset | 97,473 | 103,133 |
Goodwill | 221,080 | 284,181 |
Loan measured at fair value through profit or loss | 18,447 | |
Deferred tax assets | 24,681 | 20,635 |
Financial assets measured at fair value through profit or loss | 1,922 | 2,565 |
Total Non-current assets | 367,810 | 410,514 |
Total assets | 786,614 | 958,007 |
Current liabilities | ||
Short term loans and current maturities | 88,194 | 126,935 |
Trade payables | 78,440 | 126,067 |
Other payables | 55,152 | 48,397 |
Contingent consideration | 4,082 | 10,230 |
Short term loans from non-controlling interest | 1,090 | |
Total Current liabilities | 225,868 | 312,719 |
Non-current liabilities | ||
Long term loans | 82,202 | 99,684 |
Liabilities in respect of employee benefits | 841 | 1,025 |
Lease liability | 20,641 | 23,102 |
Total Non-current liabilities | 103,684 | 123,811 |
Total liabilities | 329,552 | 436,530 |
Equity | ||
Share capital, premium and other reserves | 643,158 | 632,025 |
Capital reserve for transactions with controlling shareholder | 2,388 | 2,388 |
Capital reserve for transactions with non-controlling interests | 13,561 | |
Receipts on account of shares | 8,541 | |
Accumulated losses | (203,995) | (141,649) |
Equity attributable to owners of the Company | 455,112 | 501,305 |
Non-controlling interests | 1,950 | 20,172 |
Total equity | 457,062 | 521,477 |
Total equity and liabilities | ₪ 786,614 | ₪ 958,007 |
Consolidated Statements of Prof
Consolidated Statements of Profit or Loss and Other Comprehensive Income - ILS (₪) ₪ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Profit or loss [abstract] | |||
Revenue | ₪ 355,553 | ₪ 388,684 | ₪ 219,677 |
Cost of revenue before fair value adjustments | 247,214 | 229,727 | 123,688 |
Gross income before impact of changes in fair value | 108,339 | 158,957 | 95,989 |
Unrealized changes to fair value adjustments of biological assets | 261 | 13,054 | 6,574 |
Loss from fair value changes realized in the current year | 3,505 | 16,928 | 11,432 |
Gross profit | 105,095 | 155,083 | 91,131 |
Research and development expenses | 388 | 632 | 1,235 |
General and administrative expenses | 42,610 | 36,082 | 27,206 |
Sales and marketing expenses | 53,269 | 56,533 | 23,214 |
Other expenses (income), net | 47,138 | 2,128 | 2,971 |
Changes in the fair value of financial assets through profit or loss, net | 665 | 174 | 1,868 |
Share based payments | 2,592 | 8,907 | 6,452 |
Operating profit (loss) | (41,567) | 50,627 | 28,185 |
Financing income | 5,883 | 8,170 | 130 |
Financing expenses | 25,601 | 14,955 | 9,581 |
Financing expenses, net | 19,718 | 6,785 | 9,451 |
Profit (loss) before taxes on income | (61,285) | 43,842 | 18,734 |
Tax expense | (2,248) | (93) | (11,441) |
Total comprehensive profit (loss) for the year | (63,533) | 43,749 | 7,293 |
Attribution of net profit (loss) for the year: | |||
To the Company’s shareholders | (61,959) | 44,819 | 4,690 |
To non-controlling interests | (1,574) | (1,070) | 2,603 |
Total | ₪ (63,533) | ₪ 43,749 | ₪ 7,293 |
Earnings per share | |||
Basic earnings (loss) | ₪ (1.36) | ₪ 0.99 | ₪ 0.12 |
Diluted earnings (loss) | ₪ (1.36) | ₪ 0.99 | ₪ 0.11 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - ILS (₪) ₪ in Thousands | Issued capital [member] | Capital reserve [member] | Capital Reserve With Non Controlling Interest [member] | Receipts on Account of Shares [Member] | Retained earnings [member] | Equity attributable to owners of parent [member] | Non-controlling interests [member] | Total |
As of January 1, 2021 at Dec. 31, 2020 | ₪ 452,259 | ₪ 2,388 | ₪ 11,017 | ₪ (191,158) | ₪ 274,506 | ₪ 17,603 | ₪ 292,109 | |
IfrsStatementLineItems [Line Items] | ||||||||
Profit for the year | 4,690 | 4,690 | 2,603 | 7,293 | ||||
Exercise of share options (Note 18D,F,G) | 10,974 | (2,476) | 8,498 | 8,498 | ||||
Share-based payment (Note 18O) | 6,452 | 6,452 | 6,452 | |||||
Issuance of shares, net (Note 18C) | 136,506 | 136,506 | 136,506 | |||||
Issuance of shares in respect with acquisitions (Note 18H) | 17,376 | 17,376 | 1,178 | 18,554 | ||||
As of December 31, 2021 at Dec. 31, 2021 | 623,567 | 2,388 | 8,541 | (186,468) | 448,028 | 21,384 | 469,412 | |
IfrsStatementLineItems [Line Items] | ||||||||
Profit for the year | 44,819 | 44,819 | (1,070) | 43,749 | ||||
Share-based payment (Note 18O) | 8,907 | 8,907 | 8,907 | |||||
Acquisitions of subsidiaries (Note 8) | (142) | (142) | ||||||
Settlement in cash of an obligation to issue shares | (449) | (449) | (449) | |||||
As of December 31, 2021 at Dec. 31, 2022 | 632,025 | 2,388 | 8,541 | (141,649) | 501,305 | 20,172 | 521,477 | |
IfrsStatementLineItems [Line Items] | ||||||||
Profit for the year | (61,959) | (61,959) | (1,574) | (63,533) | ||||
De-recognition of non-controlling interests (Note 16(6)) | 13,561 | 13,561 | (13,561) | |||||
Dividends to non-controlling interests in subsidiaries | (3,474) | (3,474) | ||||||
Attribution of loss from non-controlling interest (Note 2C) | (387) | (387) | 387 | |||||
Exercise of share options (Note 18D,F,G) | 8,541 | (8,541) | ||||||
Share-based payment (Note 18O) | 2,592 | 2,592 | 2,592 | |||||
As of December 31, 2021 at Dec. 31, 2023 | ₪ 643,158 | ₪ 2,388 | ₪ 13,561 | ₪ (203,995) | ₪ 455,112 | ₪ 1,950 | ₪ 457,062 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flow - ILS (₪) ₪ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities | |||
Profit (loss) for the year | ₪ (63,533) | ₪ 43,749 | ₪ 7,293 |
Taxes paid | (7,611) | (7,971) | (11,796) |
Adjustments required to present cash flows from operating activities (A) | 17,513 | 15,489 | 34,638 |
Net cash provided by (used in) operating activities | (53,631) | 51,267 | 30,135 |
Cash flows from investing activities | |||
Purchase of property, plant and equipment | (2,619) | (19,742) | (14,028) |
Loans granted (Note 12B) | (5,159) | (95,226) | (7,342) |
Increase in restricted cash | (60) | (20,000) | |
Decrease in restricted cash | 4,650 | 7,404 | |
Payment of deferred consideration for acquisitions | (9,876) | ||
Acquisition of Subsidiaries, net of cash acquired (Note 8) | 1,560 | (19,094) | |
Grant of loan measured at fair value through profit or loss (Note 8) | (20,000) | ||
Settlement of obligation to issue shares | (449) | ||
Investment in assets measured at fair value through profit or loss | (1,246) | ||
Repayment of loans granted | 11,291 | ||
Proceeds from sales of property, plant and equipment | 25 | ||
Interest received | 845 | ||
Payments of contingent consideration | (4,200) | (6,168) | (3,500) |
Net cash provided by (used in) investing activities | 4,773 | (142,497) | (65,210) |
Cash flows from financing activities | |||
Proceeds from issuance of shares as part of private issuance, net | 128,730 | ||
Exercise of share options (Note 18) | 8,498 | ||
Lease payments | (4,713) | (3,883) | (2,574) |
Receipt of loans from banks | 62,726 | 263,474 | 75,458 |
Repayment of loans from banks | (119,919) | (120,521) | (3,416) |
Repayment of loan from related party | (76) | (1,340) | (3,640) |
Interest paid | (20,907) | (17,284) | (5,116) |
Net cash provided by (used in) financing activities | (82,889) | 120,446 | 197,940 |
Increase (decrease) in cash and cash equivalents | (131,747) | 29,216 | 162,865 |
Exchange differences in respect of balances of cash and cash equivalents | 297 | 7,156 | (4,536) |
Balance of cash and cash equivalents at beginning of year | 232,589 | 196,217 | 37,888 |
Balance of cash and cash equivalents at end of year | 101,139 | 232,589 | 196,217 |
Adjustments to items in the Consolidated Statements of Profit or Loss and Other Comprehensive Income: | |||
Impairment losses on property, plant and equipment | 4,589 | ||
Impairment losses on goodwill | 63,101 | ||
Changes in loan measured at fair value through profit or loss | 2,330 | ||
Depreciation | 13,166 | 11,699 | 7,393 |
Share-based payment (Note 18O) | 2,592 | 8,907 | 6,452 |
Changes in the fair value of financial assets through profit or loss, net | 661 | 172 | 1,868 |
Finance expenses, net | 19,718 | 6,785 | 9,451 |
Remeasurement of contingent consideration | 1,067 | (9,567) | |
Tax expense | 2,248 | 93 | 11,441 |
Loss on sale of property, plant and equipment | 412 | ||
Changes in loan from non controlling interest | (1,014) | ||
Change in liabilities in respect of employee benefits, net | (184) | 418 | (314) |
Total Adjustments of comprehensive income | 108,686 | 18,507 | 36,291 |
Changes in assets and liabilities items: | |||
Decrease (increase) in trade receivables | (23,492) | (18,286) | 8,391 |
Decrease (increase) in other receivables | (64,918) | 35,035 | (4,338) |
Increase (decrease) in inventory | 34,664 | (75,189) | (15,475) |
Increase (decrease) in biological assets | 5,543 | (799) | (2,413) |
Increase (decrease) in trade payables | (47,627) | 57,033 | 2,787 |
Increase (decrease) in other payables | 4,657 | (812) | 9,395 |
Total of changes in assets and liabilities | (91,173) | (3,018) | (1,653) |
Total Adjustments to reconcile profit (loss) | 17,513 | 15,489 | 34,638 |
Acquisition of subsidiary, net of cash against share issuance (Note 8) | 17,376 | ||
Purchase of property, plant and equipment | 7,364 | ||
Additions to right-of-use assets | 2,976 | ||
De-recognition of non-controlling interests (Note 16(6)) | 13,561 | ||
Trade and other receivables | (1,936) | 20,927 | |
Inventory and biological assets | (2,631) | 22,788 | |
Property, plant, equipment and right-of-use asset | (1,934) | 6,268 | |
Trade and other payables | 7,907 | (51,053) | |
Short term loan | 4,286 | (4,265) | |
Short term loan to related parties | (2,598) | (5,119) | |
Lease liability | (2,650) | ||
Goodwill | (15,882) | 68,005 | |
Issuance of shares | (17,376) | ||
Non-controlling interests | (142) | 9,043 | |
Contingent consideration | 10,185 | (18,668) | |
Deferred consideration | 4,352 | (9,862) | |
Deferred tax assets (liabilities) | 1,056 | ||
Financial assets measured at fair value through profit or loss | (47) | ||
Total acquisition of subsidiary, net of cash | ₪ 1,560 | ₪ (19,094) |
General
General | 12 Months Ended |
Dec. 31, 2023 | |
General | |
General | Note 1 - A. The Company’s activity Intercure Ltd. (hereinafter: the “Company”) is a public company which is listed on the Tel Aviv Stock Exchange and Nasdaq, domiciled in Israel. Its offices are located in Herzliya. The Company is engaged in the medical cannabis sector mainly through its holdings of the entirely issued and paid-up capital of Canndoc Ltd. (hereinafter: “Canndoc”), Pharmazone Ltd. (hereinafter: “Pharmazone”) and Cannolam Ltd. The Company also has additional holdings in the biomed sector. Canndoc: The Company holds 100 Canndoc has partnered with Kibbutz Beit HaEmek and Kibbuutz Nir-Oz (the “Kibbutzim”) for the purpose of breeding, cultivating and harvesting of pharmaceutical-grade cannabis. Until the end of 2022, the activities of these collaborative arrangements with the Kibbutzim were not conducted through separate legal entities and therefore the Company recognized its share in the assets, liabilities and results of operations of each activity according to the Company’s rights and obligations according to the contractual agreements with the Kibbutzim. On January 1, 2023, Separate legal entities were established, and from this date, the activity of the Kibbutzim is executed under these entities. The Company, through Canndoc, is engaged in research, marketing, cultivation, production and distribution of medical cannabis products in Israel and around the world. Cannolam: On May 14, 2021, the Company’s board of directors approved the engagement in a series of agreements for the acquisition of a 50.1 100 Pharmazone: On May 18, 2022, the Company’s board of directors approved the engagement in a series of agreements for the acquisition of a 100 Note 1 - General Other Holdings: During 2022, the Company engaged in a series of agreements for the acquisition or opening of 6 pharmacies. See also Note 8. Investments in the biomed sector: The Company invested in two companies in the biomed sector: F.O.R.E Biotherapeutics Ltd. (formerly known as NovellusDX Ltd., hereinafter: “Fore”) and Cavnox Ltd. (hereinafter: “Cavnox”). For additional details regarding investments in the biomed sector, see Note 11. B. Other Significant Events During the Reporting Period 1. On January 3, 2021, the Company engaged in a merger agreement (hereinafter: the “Prior Agreement”) with Subversive Real Estate Acquisition REIT LP, a third party unrelated to the Company and/or to its controlling shareholders, which is listed on the Canadian stock exchange NEO (NEO:SVX.U). On February 9, 2021, the parties engaged in an amended and definitive agreement with Subversive Real Estate Acquisition REIT LP (formerly Subversive Real Estate Acquisition REIT LP) (“SVX”) a special purpose acquisition company (SPAC), pursuant to which the Company, through a wholly-owned subsidiary, will acquire all of the outstanding limited partnership units of SVX in exchange for the issuance of the company ordinary shares by way of a plan of arrangement (the “SPAC Transaction”). Concurrently with the SPAC Transaction, Subversive conducted a non-brokered private placement of 5.0 50 162 15,650,280 15,650,280 5,243,616 13.00 5,243,616 Note 1 - General Since the subversive’s sponsors shares were an integral part of the transaction with the SPAC and constituted a conditional issue for the amount of funds raised in the transaction and its success, the shares issue is presented together with all of SPAC units holders and PIPE investors and not in fair value. Total funds raised from the SPAC Transaction, after redemptions, and the private placement equaled approximately NIS 182 8.4 Since Subversive was not considered a business, as defined by IFRS 3, the Company recorded the SPAC Transaction proceeds as a respective increase in equity. On April 23, 2021, the Company shares were listed on the TSX and the first trade of the common shares on the TSX occurred on April 26, 2021. On September 1, 2021, the Company shares were listed and the first trade of the ordinary shares on the Nasdaq Global Market under the ticker symbol “INCR”. On August 14, 2023, the Company’s common shares were delisted from trading on the TSX, following approval by the TSX of the Company’s request. 2. Following the brutal attacks on Israel, the mobilization of army reserves and the Government declaring a state of war (“Iron Swords” war) in October 2023, there was a decrease in Israel’s economic and business activity. The security situation has led, inter alia, to a disruption in the chain of supply and production, a decrease in the volume of national transportation, a shortage in manpower as well as a decrease in the value of financial assets and a rise in the exchange rate of foreign currencies in relation to the New Israeli Shekel. Since the beginning of the war, the Southern facility has been damaged, including its Inventory, property, plant and equipment and biological assets. In addition, the southern facility has been designated by the Israeli authorities as a closed military area and there is a limited access to the site. As of this date, the Company has begun the process of restoring the Southern facility. The Company is working diligently with the Tax authorities to obtain full compensation for the damages caused to the Company. As of December 31, 2023, the Company submitted applications to the Tax authorities to receive compensations in the amount of NIS 81 5 2 Note 1 - General 3. On February 16, 2022, the Company engaged in an agreement with Cann Pharmaceutical Ltd. (“Better”), an Israeli medical cannabis multi-national operator known as “Better” to acquire 100 35 10 4. On March 1, 2022, the company signed a definitive agreement (hereinafter: “Agreement”) with Altman Health LP (“Altman Health”), the market leader of OTC and nutritional supplements in over 1,700 points of sale, including all major pharmacies across Israel. A new company will be formed that will focus on the new Israeli CBD product market, following the Israeli Minister of Health’s announcement On February 28, 2022, that CBD will be removed from the Dangerous Drugs Act. 5. On April 26, 2023, a lawsuit was filed against the Company in Tel Aviv-Jaffa District Court in Israel by minority shareholders of Cannolam. The lawsuit relates to disagreements concerning the ongoing management of Cannolam. Regarding the lawsuit, see Note 16(6). C. Definitions: In these consolidated financial statements: Company - Intercure Ltd. Group - The Company and its subsidiaries. Related Parties - As defined in IAS 24. USD - U.S. dollars. NIS New Israeli shekel. Subsidiaries - Companies which are controlled by the Company (as defined in IFRS 10), directly or indirectly, and whose financial statements are fully consolidated with the Company’s reports. Investee companies - Subsidiaries and companies, including a partnership or joint venture, the Company’s investment in which is stated, directly or indirectly, on the equity basis. Controlling shareholder - As defined under the Israeli Companies Law. |
Material Accounting Policies
Material Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Material Accounting Policies | |
Material Accounting Policies | Note 2 - Material Accounting Policies Framework for preparation of the financial statements The accounting policy described below was applied in the financial statements consistently, in all of the presented periods, unless specified otherwise. A. Presentation basis of the financial statements The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) as issued by the International Accounting Standards Board (IASB). The Company’s financial statements are prepared on a historical cost basis, except for financial and biological assets measured at fair value through profit or loss and contingent consideration. In its preparation of the financial statements, management is required to use material accounting estimates. Management is also required to exercise discretion in the process of applying the material accounting policies. The issues which require significant discretion and the use of estimates, which have a significant impact on the amounts which were recognized in the financial statements, are specified in Note 3. Actual results may differ significantly from the estimates and assumptions which were used by Company management. B. Functional and presentation currency These consolidated financial statements are presented in NIS, which is the Company’s functional currency, and have been rounded to the nearest thousand, except when otherwise indicated. The NIS is the currency that represents the principal economic environment in which the Company operates. Note 2 - Material Accounting Policies C. Basis of consolidation Non-controlling interests Non-controlling interests comprise the equity of a subsidiary that cannot be attributed, directly or indirectly, to the parent company. Measurement of non-controlling interests on the date of the business combination As of December 31, 2023, the non-controlling interests balance contain non-controlling interests that were measured at the date of the business combinations at their proportionate interest in the identifiable assets and liabilities of the acquiree. Allocation of profit or loss and other comprehensive income to the shareholders Profit or loss and any part of other comprehensive income are allocated to the owners of the Company and the non-controlling interests. Total profit or loss and other comprehensive income is allocated to the owners of the Company and the non-controlling interests even if the result is a negative balance of non-controlling interests. Regarding the separate legal entities that were established with the Kibbutzim and in accordance with the agreements between the parties, in case of losses, the Company will be the only one to bear the full losses. Joint operations In joint operations the parties that have joint control of the arrangement have rights to the assets and obligations for the liabilities relating to the arrangement. The Company recognizes in relation to its interest its share of the assets, liabilities, revenues and expenses of the joint operation. Note 2 - Material Accounting Policies D. Contingent consideration The consideration transferred as part of business combinations includes the fair value of any contingent consideration. After the acquisition date, the Company recognizes changes in the fair value of contingent consideration classified as a financial liability in profit or loss. E. Biological assets In accordance with IAS 41, the Company measures biological assets which are mostly comprised of medical cannabis plants and agricultural produce at fair value less selling costs until harvesting. The Company’s estimates are based on sales data in the last 12 months activity deducted from sales costs in accordance with its production and sales agreements. This value is used as the cost basis of inventory after the harvest. Profit or loss due to changes in fair value less selling costs are included under the Company’s profit / loss in the year when they materialized. Growing costs in respect of the biological assets are capitalized to the cost of the biological assets. When calculating the fair value of a biological asset, the Company is required to use various estimates and approximations, including, inter alia, estimates regarding the growth stage of the seedlings until the harvest date, harvesting costs, selling costs, costs associated with oil extraction and packaging of finished products, estimates regarding the selling price of the Company’s products, and estimates of materials lost in process. Changes in these assumptions may result in significant changes in the value of the biological asset, the value of inventory, and the cost of sales, as well as in the fair value component in respect of the biological asset. F. Inventory Inventory is measured as the lower of either cost or net realizable value. The cost of purchased inventory is determined on a first in – first out (FIFO) basis. The Company classifies the cannabis agricultural produce from a biological asset to inventory when harvesting, according to the fair value less selling costs on that date. This value serves as the cost basis of inventory. Processing costs and other additional costs which materialize in the process of bringing the inventory to its current location and condition are added to the cost of inventory. Net realizable value represents the estimated selling price in the ordinary course of business, less estimated costs to Note 2 - Material Accounting Policies G. Revenue recognition Revenue from contracts with customers is recognized in the statement of income when the control of the asset or of the service has been transferred to the customer. The control transfer date is generally the date of delivery to the customer. Revenue is measured and recognized according to the fair value of the proceeds which are expected to be received in accordance with the contract terms, less amounts which have been collected for third parties (e.g., taxes). Revenue is recognized in the statements of profit or loss up to the extent to which are expected to flow to the Company, and the revenue and costs, if relevant, are reliably measurable. When determining the amount of revenue from contracts with customers, the Company evaluates whether it functions as a primary provider, or as an agent in the contract. Revenue is recognized to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur. Therefore, the amount of revenue recognized is adjusted for expected credits and returns which are estimated based on historical data and past experience. The Company estimates credits and returns according to the rate of actual credits and returns from total sales multiplied by the sales in the last quarter. Product sales In retail sales that are made through pharmacies owned by the Company, control is transferred at a point in time that the products are sold to the end customer. In wholesale sales, control is transferred at a point in time that the products are sold to pharmacies that aren’t under the Company’s control. In cases where the products are transferred to the distributor and held by them in consignment until their sale by the distributor to a third party which constitutes the end customer, the Company recognizes revenue from their sale on the date when they are sold by the distributor to the third party. Note 2 - Material Accounting Policies H. Property, plant and equipment Depreciation is calculated in equal annual rates according to the straight line method, throughout the asset’s useful lifetime, as follows: Schedule of Depreciation Rate % Machinery and equipment 7 15 Computers 33 Buildings and greenhouses 10 Bearer plants 7 Cannabis genetics (bearer plants) that were purchased are depreciated when they are in the location and condition necessary for it to be capable of operating in the manner intended by management. I. Goodwill The cash-generating unit to which the goodwill is allocated for the purpose of goodwill impairment test is the Company’s Cannabis segment, which represents the lowest level within the Company at which the goodwill is monitored for internal management purposes. J. Impairment Non-financial assets Timing of impairment testing The carrying amounts of the Group’s non-financial assets, other than biological assets, inventories and deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. Once a year, on December 31, or more frequently if there are indications of impairment, the Group estimates the recoverable amount of each cash generating unit that contains goodwill, or intangible assets that have indefinite useful lives or are unavailable for use. See also Note 3 and Note 8. Note 2 - Material Accounting Policies K. Income tax expense Deferred taxes Deferred tax assets are recognized for unused carryforward tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilized. The Company determines the amount of deferred tax assets that can be recognized based upon three-years taxable income forecast which carryforward losses can be offset. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized. Deferred tax assets that were not recognized are reevaluated at each reporting date and recognized if it has become probable that future taxable profits will be available against which they can be utilized. L. Financing income and expenses Foreign currency gains and losses on financial assets and financial liabilities are reported on a net basis as either financing income or financing expenses depending on whether foreign currency movements are in a net gain or net loss position. In the statements of cash flows, interest paid is presented as part of cash flows from financing activities. Note 2 - Material Accounting Policies M. Financial instruments 1. Financial assets Financial assets are measured on the date of initial recognition at fair value plus transaction costs which are directly attributable to the acquisition of the financial asset, except in case of a financial asset measured at fair value through profit or loss, for which the transaction costs are carried to the statement of income. The Company classifies and measures the debt instruments in its financial statements based on the following criteria: (A) The Company’s business model for the management of financial assets; and (B) The characteristics of the financial asset’s contractual cash flows. The Company has investments in financial assets measured at fair value through profit or loss (see also Note 7, Note 8 and Note 11) and other debt instruments measured at amortized cost. 2. Impairment of financial assets The Company evaluates, on each reporting date, the loss provision in respect of financial debt instruments which are not measured at fair value through profit or loss. The Company distinguishes between two situations involving recognition of a loss provision. A) Debt instruments whose credit quality has not significantly deteriorated since the initial recognition date, or cases involving low credit risk – the loss provision which will be recognized in respect of that debt instrument will take into account expected credit loss during the 12 month period after the reporting date; or B) Debt instruments whose credit quality has significantly deteriorated since the initial recognition date, and cases involving credit risk which is not low – the loss provision which will be recognized will take into account expected credit losses throughout the instrument’s remaining lifetime. Note 2 - Material Accounting Policies The Company applies the expedient, which was determined in the standard, according to which it assumes that a debt instrument’s credit risk has not significantly increased since the initial recognition date if it was determined, on the reporting date, that the instrument’s credit risk is low, for example, when the instrument has an external rating of “investment grade”. Impairment in respect of debt instruments which are measured at amortized cost is carried to the statement of income against a provision. The Company has also financial assets with short credit periods, such as trade receivables, to which it is entitled to apply the expedient specified in the model, i.e., the Company will measure the loss provision in an amount equal to the expected credit losses throughout the instrument’s entire lifetime. The Company chose to adopt the expedient in respect of those financial assets. Financial assets at amortized cost are subsequently measured at amortized cost using the effective interest method. The amortized cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss. 3. Financial liabilities measured at amortized cost The financial liabilities measured at amortized cost include mainly loans and borrowings from banks, bank overdrafts, finance lease liabilities, and trade and other payables. N. Fair value measurement All assets and liabilities which are measured at fair value, or whose fair value was disclosed, are divided into categories in the fair value hierarchy, based on the lowest level of inputs which is significant to the measurement of fair value in its entirety: Level 1: Quoted prices (without adjustments) in an active market of identical assets and liabilities (See Note 7). Level 2: Inputs which are not quoted prices which are included in level 1, which are directly or indirectly observable. Level 3: Inputs which are not based on observable market data, as described in Note 6 – Biological Assets, and Note 11 – Investments in financial assets measured at fair value through profit or loss (investments in companies in the biomed sector). Note 2 - Material Accounting Policies O. Government grants Government grants are recognized initially at fair value when there is reasonable assurance that they will be received and the Company will comply with the conditions associated with the grant. Unconditional government grants are recognized when the Company is entitled to receive them. Grants that compensate the Company for expenses incurred are presented as a deduction from the corresponding expense. When a grant cannot be associated with a specific expense because it is granted for loss of profits, it is classified as Other expenses (income), net in the Consolidated Statements of Profit or Loss. P. Provisions A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability without adjustment for the Company’s credit risk. The carrying amount of the provision is adjusted each period to reflect the time that has passed and the amount of the adjustment is recognized as a financing expense. The Company recognizes a reimbursement asset if, and only if, it is virtually certain that the reimbursement will be received if the Company settles the obligation. The amount recognized in respect of the reimbursement does not exceed the amount of the provision. Q. Leases Leased assets and lease liabilities The Company has elected to apply the practical expedient by which short-term leases of up to one year and/or leases in which the underlying asset has a low value, are accounted for such that lease payments are recognized in profit or loss on a straight-line basis, over the lease term, without recognizing an asset and/or liability in the statement of financial position. The lease term The lease term is the non-cancellable period of the lease plus periods covered by an extension or termination option if it is reasonably certain that the lessee will or will not exercise the option, respectively. The Company anticipates exercising extension options due to the significance of the underlying asset to the Company’s operation and the Company’s past experience with similar leases. Note 2 - Material Accounting Policies Depreciation of right-of-use asset After lease commencement, a right-of-use asset is measured on a cost basis less accumulated depreciation and accumulated impairment losses and is adjusted for re-measurements of the lease liability. Depreciation is calculated on a straight-line basis over the useful life or contractual lease period, whichever earlier, as follows: ☐ Buildings 5 10 Subleases In leases where the Group subleases the underlying asset, the Group examines whether the sublease is a finance lease or operating lease with respect to the right-of-use received from the head lease. The Group examined the subleases existing on the date of initial application based on the remaining contractual terms at that date. R. Reclassification Comparative amounts were reclassified, which resulted in NIS 20,000 This reclassification did not have any effect on the profit (loss) for the year. Note 2 - Material Accounting Policies S. New standards, amendments to standards and interpretations not yet adopted Standard/interpretation/ The requirements Effective date and transitional amendment of the publication provisions Effects Amendment to IAS 1, Presentation of Financial Statements: Classification of Liabilities as Current or Non-Current and subsequent amendment: Non-Current Liabilities with Covenants The Amendment, together with the subsequent amendment to IAS 1 (see hereunder) replaces certain requirements for classifying liabilities as current or non-current. According to the Amendment, a liability will be classified as non-current when the entity has the right to defer settlement for at least 12 months after the reporting period, and it “has substance” and is in existence at the end of the reporting period. According to the subsequent amendment, as published in October 2022, covenants with which the entity must comply after the reporting date, do not affect classification of the liability as current or non-current. Additionally, the subsequent amendment adds disclosure requirements for liabilities subject to covenants within 12 months after the reporting date, such as disclosure regarding the nature of the covenants, the date they need to be complied with and facts and circumstances that indicate the entity may have difficulty complying with the covenants. Furthermore, the Amendment clarifies that the conversion option of a liability will affect its classification as current or non-current, other than when the conversion option is recognized as equity. The Amendment and subsequent amendment are effective for reporting periods beginning on or after January 1, 2024 with earlier application being permitted. The Amendment and subsequent amendment are applicable retrospectively, including an amendment to comparative data. The Group is examining the effects of the Amendment on the financial statements with no plans for early adoption. Note 2 - Material Accounting Policies T. Initial application of new standards, amendments to standards and interpretations Standard/amendment/ The requirements Effective date and interpretation of the publication transitional provisions Effects Amendment to IAS 1, Presentation of Financial Statements: “Disclosure of Accounting Policies.” According to the amendment, companies must provide disclosure of their material The amendment to IAS 1 also clarifies that accounting policy information is expected to be material if, without it, the users of the financial statements would be unable to understand other material information in the financial statements. The amendment also clarifies that immaterial accounting policy information need not be disclosed. The amendment is initially applied in the annual financial statements for 2023. As a result of applying the Amendment, the extent of the accounting policy disclosure provided in the financial statements for 2023 was reduced and adjusted according to the Company’s specific circumstances. Note 2 - Material Accounting Policies Standard/amendment/ The requirements of Effective date and interpretation the publication transitional provisions Effects Amendment to IAS 12, Income Taxes: Deferred Tax related to Assets and Liabilities arising from a Single Transaction The Amendment narrows the scope of the exemption from recognizing deferred taxes as a result of temporary differences created at the initial recognition of assets and/or liabilities, so that it does not apply to transactions that give rise to equal and offsetting temporary differences. As a result, companies will need to recognize a deferred tax asset or a deferred tax liability for these temporary differences at the initial recognition of transactions that give rise to equal and offsetting temporary differences, such as lease transactions and provisions for decommissioning and restoration. The Amendment is effective for annual periods beginning on or after January 1, 2023. For deferred taxes arising from leases and decommissioning and restoration liabilities, the Amendment is applied by amending the opening balance of retained earnings for the earliest comparative data presented. Application of the Amendment did not have a material effect on the financial statements. |
Significant Accounting Estimate
Significant Accounting Estimates and Approximations: | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
Significant Accounting Estimates and Approximations: | Note 3 - Significant Accounting Estimates and Approximations: In the preparation of the financial statements, management is required to make use of estimates and assumptions which affect the implementation of the accounting policy and the reported amounts of assets, liabilities, income and expenses, regarding which there is a significant risk of the performance of significant adjustments to the carrying amounts of assets and liabilities during the next fiscal year. Changes in accounting estimates are applied during the period when the estimate was changed. In the process of applying the Material accounting policies in the financial statements, the Group exercised discretion and took into account considerations regarding the following matters, which have a significant impact on the amounts which were recognized in the financial statements: Determination of the fair value of biological assets The fair value of biological assets and the cost of inventory on the harvest date is determined based on the overall estimates of management (key assumptions – expected selling price according to the determined arrangements, completion and processing costs, percentage of mature plants), changes in assumptions used to measure fair value may affect the fair value of biological assets. Goodwill For the purpose of determining whether impairment of goodwill has occurred, Company management estimates the value in use of cash-generating units to which goodwill has been allocated. For all the periods presented in these financial statements – The recoverable amount was estimated to be higher than the carrying amount of the unit, and no provision for impairment was required. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Dec. 31, 2023 | |
Cash And Cash Equivalents | |
Cash and Cash Equivalents | Note 4 – Cash and Cash Equivalents Schedule of Cash and Cash Equivalents 2023 2022 December 31 2023 2022 NIS in thousands Cash 94,819 192,351 Short term deposits 6,320 40,238 Total cash and cash equivalents 101,139 232,589 The currencies in which balances of cash and cash equivalents are denominated, or to which they are linked, are: 2023 2022 December 31 2023 2022 NIS in thousands EURO 24 - USD 293 17,302 NIS 100,822 215,287 Total cash and cash equivalents 101,139 232,589 |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2023 | |
Schedule Of Inventory | |
Inventory | Note 5 – Inventory Inventory is comprised of finished goods of dry packaged or rolled medical cannabis and cannabis oil, as well as the outputs of processing procedures, which include, inter alia, agricultural produce which has been transferred from biological assets, where the procedure of processing into finished goods has not yet been completed. Schedule of Inventory 2023 2022 December 31 2023 2022 NIS in thousands Finished goods 60,468 50,140 Goods in process and dried inflorescence 45,001 89,993 Total inventory 105,469 140,133 |
Biological Assets
Biological Assets | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of detailed information about biological assets [abstract] | |
Biological Assets | Note 6 – Biological Assets (1) Fair value hierarchy The table hereunder presents the biological assets that are measured at fair value, using a valuation method according to the fair value levels. Schedule of Fair Value Assets Level 1 Level 2 Level 3 Total December 31, 2023 Level 1 Level 2 Level 3 Total NIS thousands NIS thousands NIS thousands NIS thousands Biological Assets - - 822 822 Level 1 Level 2 Level 3 Total December 31, 2022 Level 1 Level 2 Level 3 Total NIS thousands NIS thousands NIS thousands NIS thousands Biological Assets - - 6,365 6,365 As stated in Note 2E above, the Company measures biological assets (level 3), which are mostly comprised of medical cannabis plants and agricultural produce, at fair value less selling costs up to the point of harvest. This value serves as the cost basis of inventory after the harvest. The Company’s biological assets are primarily comprised of medical cannabis seedlings and medical cannabis. Presented below are the changes in biological assets during the reporting period: Schedule of Changes in Biological Assets 2023 2022 NIS in thousands Balance as of January 1 6,365 5,566 Costs of growing medical cannabis plants 57,496 79,131 Change in fair value less selling costs 261 13,054 Damaged (See Note 1(2) and Note 12B) (8,885 ) - Transfer to inventory (54,415 ) (91,386 ) Balance as of December 31 822 6,365 Note 6 – Biological Assets Disclosure regarding assumptions which were used to estimate the net fair value of biological assets A. below are the main assumptions used: Schedule of Assumptions in Biological Assets 31/12/2023 31/12/2022 Net growing area (in thousands of square meters) 10.5 10.5 Estimate net yield as of the reporting date (tons) (1) 0.2 1.9 Estimated net selling price (NIS per gram) (2) 16.9 17.4 Estimated growing cycle length (in weeks) (3) 13 13 Estimated growing cycle completion rate (in percent) (4) 38 % 28 % Proportion of plants which do not reach the harvesting stage (5) 3 % 3 % (1) According to the number of seedlings as of the end of the reporting period (2) According to the price range of the Company’s existing products as of the end of the reporting period (3) In accordance with the Company’s experience, and according to the strains which exist as of the reporting date (4) By planting date vs. growing cycle length (5) According to the final product net weight B. Below is a sensitivity analysis on the fair value of the biological assets (in NIS thousands) in respect of a 10% increase in each of the following variables: Schedule of Sensitivity Analysis of Biological Assets 31/12/2023 31/12/2022 Average selling price 100 769 Proportion of oil products 1 18 Proportion of plants which do not reach the harvesting 2 (20 ) |
Investments in Financial Assets
Investments in Financial Assets Measured at Fair Value Through Profit or Loss: | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
Investments in Financial Assets Measured at Fair Value Through Profit or Loss: | Note 7 – Investments in Financial Assets Measured at Fair Value Through Profit or Loss: As of December 31, 2023 and as of December 31, 2022, the Company holds 3,840,617 0.70 As of the end of the reporting period, the Controlling Shareholder holds 23.54 The fair value of these shares as of the end of the reporting period was based on the quoted share price (level 1) as XTL is a publicly traded company listed in the Nasdaq and Tel-Aviv stock exchange, see also Note 12B. |
Investment in Subsidiaries
Investment in Subsidiaries | 12 Months Ended |
Dec. 31, 2023 | |
Investment In Subsidiaries | |
Investment in Subsidiaries | Note 8 – Investment in Subsidiaries The Company has three main subsidiaries, all in the cannabis sector: Canndoc, Pharmazone, and Cannolam, which are wholly owned ( 100 A. Regarding the completion of the acquisition of 100 B. Subsidiaries – Other Acquisitions Acquisitions in 2021 Details in respect of subsidiaries A. In January 2021, the Company engaged, through Cannolam, in an agreement to purchase pharmacies located in Ashdod and Herzliya. B. In March 2021, the Company acquired, through Cannolam, four pharmacies located in Dimona (51%), Tel Aviv (100%), Kfar Hasidim (100%) and Ashdod (51%). C. On May 18, 2021, the Company acquired 100% of “Pharmazone” trading house, “Doron” pharmacy and “Ahuza” pharmacy located in Raanana. D. On June 3, 2021, the Company acquired, through Cannolam, 51% of “Kineret” – pharmacy located in Kfar Saba. E. On July 6, 2021, the Company engaged in an agreement to purchase, through Cannolam, “Green-Zone” – pharmacy located in Yokneam. Note 8 – Investment in Subsidiaries: F. On July 6, 2021, the Company engaged in an agreement to purchase “Green-Log” – wholesaler located in Yokneam. G. On August 5, 2021, the Company engaged in an agreement to purchase “My Club” pharmacy located in Em Haderech. H. On August 8, 2021, the Company engaged in an agreement to purchase 51% of “Club Pharm Shely” pharmacy located in Binyamina. I. On August 11, 2021, the company engaged in an agreement to purchase 3 pharmacies (“Max Pharm Rishon”, “Max Pharm Holon” and another one in Petah Tikva) and consulting center from Cannomed Medical Cannabis Industries Ltd. All of the pharmacies acquired are licensed to sell medical cannabis. Petah Tikva pharmacy is in the process of getting licensed. J. On October 20, 2021, the company engaged in an agreement to purchase 51% of “Maayan Haim” pharmacy located in Bet Dagan which has a license to sell Medical cannabis. Measurement of fair values Presented hereunder is information regarding the techniques the Group used to measure the fair value of the assets and liabilities recognized as a result of the business combination: A. Contingent consideration in business combination See Note 2 on financial instruments regarding measurement of the fair value of contingent consideration in a business combination. As of December 31, 2021, 2022 and 2023, the Group has NIS 15,780 5,060 818 New information was obtained within one year from the acquisition date about facts and circumstances that had existed at the acquisition date. Therefore, the Company adjusted the relevant amounts that were recognized at the time of the acquisition. The adjustment did not have a material effect on the financial statements. B. Presented below is the fair value, as of the acquisition’s date, of the transferred consideration: Schedule of Transferred Consideration NIS in thousands Consideration paid in cash 24,304 Payable in respect of shares 17,376 Deferred consideration in cash 9,862 Contingent consideration 18,668 Non-controlling interests 1,178 Transferred consideration 71,388 C. Net cash flow in the acquisition Schedule of Acquisition of Cash Flows NIS in thousands Consideration paid in cash (24,304 ) Less – acquired cash and cash equivalents 5,210 Total (19,094 ) D. Amounts recognized on the acquisition date in respect of assets and liabilities: Schedule of Amounts Recognized on Acquisition NIS in thousands Cash and cash equivalents 5,210 Restricted cash 586 Trade and other receivables 20,452 Deferred tax assets 1,056 Inventory 22,788 Property, plant and equipment and right-of-use asset 6,267 Goodwill 329 Short term loans (699 ) Current maturities (93 ) Trade and other payable (50,670 ) Financial liabilities (3,583 ) Loan from non-controlling interest (5,119 ) Liabilities in respect of employee benefits (383 ) Lease liability (2,650 ) Total identifiable net assets (6,509 ) E. Goodwill The cost of the business combination embedded payment in respect of the control premium for the acquisition of The Subsidiaries. Additionally, the consideration which was paid in the business combination included amounts associated with the expected benefits from synergy (collaboration), growth in revenue, and future developments in the Subsidiaries operating market. These benefits are not recognized separately from goodwill, since the future economic benefits which are expected to arise from them are not reliably measurable. All of the above led to the recognition of goodwill in the amount of NIS 67,690 Note 8 – Investment in Subsidiaries: The goodwill is attributable mainly to the skills and technical talent of the acquiree’s work force, and the synergies expected to be achieved from integrating the company into the group’s existing regular business. F. Non-controlling interests The total sum of non-controlling interests in the Subsidiaries which was recognized on the acquisitions date is NIS 9,043 G. Impact of the acquisition on the Company’s results Total revenue for the consolidation period ended December 31, 2021 includes approximately NIS 54,609 Additionally, total comprehensive profit for the consolidation period ended December 31, 2021 includes profit of approximately NIS 3,153 Had the acquisition taken place at the beginning of the twelve-month period ended December 31, 2021, the total revenue of the acquired subsidiaries would have been NIS 162,164 thousand, and the acquired subsidiaries loss would have NIS 3,068 thousand. Acquisition-related costs The group incurred acquisition-related costs of NIS 356 Acquisitions in 2022 Details in respect of subsidiaries A. On January 19, 2022, the Company engaged in an agreement to purchase 51% of “Orni” pharmacy located in Tel Aviv. B. On February 5, 2022, the Company engaged in an agreement to purchase 100% of “Maayan Haim” pharmacy located in Ashdod. C. On April 24, 2022, the Company engaged in an agreement to purchase 51% of “Amidar” pharmacy located in Naharia. D. On July 27, 2022, the Company engaged in an agreement to purchase 51% of “Refua Center” pharmacy located in Bnei Brak. E. In October 2022, the Company purchase 51% of “Amirim Pharm” pharmacy located in Hadera. Note 8 – Investment in Subsidiaries: Measurement of fair values Presented hereunder is information regarding the techniques the Group used to measure the fair value of the assets and liabilities recognized as a result of the business combination: A. Contingent consideration in business combination See Note 2 on financial instruments regarding measurement of the fair value of contingent consideration in a business combination. As of December 31, 2022, and 2023, the Group has NIS 5,170 3,264 If new information is obtained within one year from the acquisition date about facts and circumstances that existed at the acquisition date, the Group will retrospectively adjust the relevant amounts that were recognized at the time of the acquisition. B. Presented below is the fair value, as of the acquisitions dates, of the transferred consideration: NIS in thousands Consideration paid in cash - Deferred consideration in cash 4,352 Contingent consideration 10,185 Non-controlling interests (142 ) Transferred consideration 14,395 C. Net cash flow in the acquisition NIS in thousands Consideration paid in cash - Less – acquired cash and cash equivalents 1,560 Total 1,560 D. Amounts recognized on the acquisition date in respect of assets and liabilities: NIS in thousands Cash and cash equivalents 1,560 Restricted cash 196 Financial assets measured at fair value through profit or loss 47 Trade and other receivables 1,936 Inventory 2,631 Property, plant and equipment and right-of-use asset 1,934 Goodwill 150 Overdraft (1,170 ) Current maturities (75 ) Trade and other payable (7,524 ) Financial liabilities (3,237 ) Loan to non-controlling interest 2,598 Liabilities in respect of employee benefits (383 ) Total identifiable net assets (1,337 ) Note 8 – Investment in Subsidiaries: E. Goodwill The cost of the business combination embedded payment in respect of the control premium for the acquisition of The Subsidiaries. Additionally, the consideration which was paid in the business combination included amounts associated with the expected benefits from synergy (collaboration), growth in revenue, and future developments in the Subsidiaries operating market. These benefits are not recognized separately from goodwill, since the future economic benefits which are expected to arise from them are not reliably measurable. All of the above led to the recognition of goodwill in the amount of NIS 15,882 The goodwill is attributable mainly to the skills and technical talent of the acquiree’s work force, and the synergies expected to be achieved from integrating the company into the group’s existing regular business. F. Non-controlling interests The total sum of non-controlling interests in the Subsidiaries which was recognized on the acquisitions date is NIS 142 G. Impact of the acquisition on the Company’s results Total revenue for the consolidation period ended December 31, 2022 includes approximately NIS 22,460 Additionally, total comprehensive profit for the consolidation period ended December 31, 2022 includes profit of approximately NIS 378 Had the acquisition taken place at the beginning of the twelve-month period ended December 31, 2022, the total revenue of the acquired subsidiaries would have been NIS 34,876 Acquisition-related costs The group incurred acquisition-related costs of NIS 625 C. Investment in associate During 2023 the Company established two companies in Eilat, pharmacy and trading house, with a business partner (hereinafter: “the associates”). The Company holds 50% of the associates’ shares and has an option to obtain control on these associates. As of December 31, 2023, the Company granted a loan in the amount of NIS 2.5 4.2 4.3 The associates had incurred losses in the amount of NIS 0.1 Note 8 – Investment in Subsidiaries: D. Joint operations On December 19, 2022, the Company entered into a partnership agreement with Praetorian Global, Inc. the parent company of the cannabis brand, “Binske” to grant InterCure an exclusive right to cultivate, manufacture, market, and distribute Binske-branded products in major global pharmaceutical markets including Israel, Germany, Australia, UK and others. On December 30, 2022, the Company engaged in an agreement with a Business partner to establish a 50/50 partnership in order to produce the Binske products, the agreement included an investment by each partner of up to NIS 40 20 20 3 As of December 31, 2023, the partnership total asset balance is NIS 40.7 19.2 36.9 21.6 18.4 2.4 0.9 |
Property, Plant and Equipment a
Property, Plant and Equipment and right of use assets | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Property, Plant and Equipment and right of use assets | Note 9 – Property, Plant and Equipment and right of use assets Schedule of Property, Plant and Equipment and Right of use assets 2023 Computers Right-of-use asset Machinery Buildings Total NIS in thousands Cost Balance as of January 1, 2023 6,813 33,770 15,605 70,132 126,320 Disposals - (711 ) (55 ) (870 ) (1,636 ) Additions during the year 789 2,976 257 8,937 12,959 Balance as of December 31, 2023 7,602 36,035 15,807 78,199 137,643 Less accumulated depreciation and impairment losses Balance as of January 1, 2023 1,490 7,364 3,131 11,202 23,187 Disposals - (284 ) (41 ) (447 ) (772 ) Impairment loss - - 916 3,673 4,589 Additions during the year 1,490 4,982 1,797 4,897 13,166 Balance as of December 31, 2023 2,980 12,062 5,803 19,325 40,170 Property, plant and equipment, net, as of December 31, 2023 4,622 23,973 10,004 58,874 97,473 Note 9 – Property, Plant and Equipment and right of use assets : 2022 Computers Right-of-use asset Machinery Buildings Total NIS in thousands Cost Balance as of January 1, 2022 3,961 27,115 8,123 58,798 97,997 Acquisitions as part of business combination 165 - 22 1,747 1,934 Additions during the year 2,687 6,655 7,460 9,587 26,389 Balance as of December 31, 2022 6,813 33,770 15,605 70,132 126,320 Less accumulated depreciation Balance as of January 1, 2022 729 3,146 1,358 6,255 11,488 Additions during the year 761 4,218 1,773 4,947 11,699 Balance as of December 31, 2022 1,490 7,364 3,131 11,202 23,187 Property, plant and equipment, net, as of December 31, 2022 5,323 26,406 12,474 58,930 103,133 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
Goodwill | Note 10 – Goodwill A. Movement in carrying amount Schedule of Goodwill Goodwill NIS thousands Balance as at December 31, 2022 284,181 Impairment loss (63,101 ) Balance as at December 31, 2023 221,080 B. Goodwill impairment testing In order to test the impairment of goodwill, the goodwill was allocated to the Cannabis segment (See Note 2I). The recoverable amount of the cash-generating unit was based on its value in use and was determined by discounting the future cash flows to be generated from the continuing use of the unit with the assistance of independent valuers. The carrying amount of the unit was determined to be higher than its recoverable amount of NIS 390,936 63,101 Note 10 – Goodwill: C. Key assumptions used in calculation of recoverable amount The key assumptions used in the calculation of recoverable amounts are as follows: (1) Discount rate The after-tax discount rate was 16.5 7 9.65 The after-tax discount rate is based on the risk-free rate for 15-year debentures issued by the government in the relevant market, and adjusted for a risk premium. (2) Terminal value growth rate A cash flows forecast for 5 years was included in the discounted cash flow model. The long-term growth rate was 3.5 D. Sensitivity to changes in assumptions Below are the effects of the changes in the key assumptions on the recoverable amount: (1) Discount rate An increase in the discount rate of 1% will affect the calculation of the unit’s value in use so that it will decrease to NIS 352,232 39 (2) Terminal value growth rate A decrease in the terminal value growth rate of 1% will affect the calculation of the unit’s value in use so that it will decrease to NIS 368,352 23 |
Investment in Assets Measured a
Investment in Assets Measured at Fair Value through Profit or Loss | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of fair value measurement of assets [abstract] | |
Investment in Assets Measured at Fair Value through Profit or Loss | Note 11 – Investment in Assets Measured at Fair Value through Profit or Loss The Company’s investments in biomed companies are revalued at fair value through profit and loss. The fair value is determined according to valuations, which are mostly performed using the OPM method. Schedule of Investment in Assets Measured at Fair Value through Profit or Loss 2023 2022 December 31 2023 2022 NIS in thousands Fair value of the investment in Fore (A) 1,922 1,600 Fair value of the investment in Cavnox (B) - 965 Fair value of the investment 1,922 2,565 Note 11 – Investment in Assets Measured at Fair Value through Profit or Loss: A. F.O.R.E Biotherapeutics Ltd. (“Fore”) In 2015 the Company signed an investment agreement together with the PontifaVenture Capital and additional investors, for an investment in F.O.R.E Biotherapeutics Ltd. (formerly known as NovellusDX Ltd.) (hereinafter: the “Agreement” and “Fore”). Fore is developing an innovative technology which is intended to significantly improve the results of treatment of patients suffering from various types of cancer, using designated biological drugs (hereinafter: the “Product”). In October 2022, Fore had an investment round. The Company chose not to participate and as a result was diluted from 0.44 0.11 In August 2023, Fore had another investment round of series D convertible preferred stock and raised USD 40 0.11 0.03 As of December 31, 2023, the Company’s stake in Fore is approximately 0.03 0.03 B. Cavnox Ltd. (“Cavnox”) In October 2021, the Company signed an investment agreement with Cavnox Ltd. (hereinafter: “Cavnox”), a private Israeli company that was established on the basis of knowledge developed at the Technion Institute for Research and Development Ltd. Which relates to cannabis-based treatment for various types of cancer. The Company invested in Cavnox a total of USD 300 As of December 31, 2023, the fair value of Cavnox according to the valuation is immaterial. Therefore, the Company recorded a loss in the amount of NIS 965 |
Receivables and Payables
Receivables and Payables | 12 Months Ended |
Dec. 31, 2023 | |
Trade and other receivables [abstract] | |
Receivables and Payables | Note 12 – Receivables and Payables A. Trade receivables: Schedule of Trade Receivables 2023 2022 December 31 2023 2022 NIS in thousands Open accounts * 65,820 34,841 Credit cards receivable 1,634 3,725 Provision for discount (1,858 ) (753 ) Provision for doubtful debts (5,185 ) (894 ) trade receivables 60,411 36,919 * For additional information, please see Note 13A(2) regarding factoring. Schedule of Other Receivables B. Other receivables: 2023 2022 December 31 2023 2022 NIS in thousands Institutions (A) 61,325 6,384 Prepaid expenses 1,285 3,132 Prepayments to suppliers 29,464 1,212 Loans to non-related parties, net (B) 40,532 64,352 Receivables revenue 713 3,840 Loans to related parties 3,416 16,087 Others 4,381 2,368 Other Receivables 141,116 97,375 (A) As of December 31, 2023, the Company received compensation from the Tax authorities due to Iron Swords in a total amount of NIS 31.1 57.3 56 30 57 (B) The balance as of December 31, 2023, is comprised mainly of debts and loans provided to non-related parties as part of mergers and acquisitions processes which did not materialize and were not completed, net of respective provision for impairment. Debts and loans of approximately NIS 43.5 12.2 Schedule of Provision for Impairment Balance before provision for impairment 52,761 Provision for impairment (12,229 ) Balance after provision for impairment 40,532 C. Other payables: Schedule of Other Payables 2023 2022 December 31 2023 2022 NIS in thousands Accrued expenses 6,386 3,857 Institutions 27,351 21,236 Payroll and related liabilities 6,113 6,732 Deferred revenues - 8,060 Short term Lease liability 4,640 4,349 Advanced payments - 66 Deferred consideration due to acquisitions 4,080 4,080 Contingent liability (Note 16) 6,123 - Others 459 17 Other Payables 55,152 48,397 |
Financial Instruments and Manag
Financial Instruments and Management of Financial Risks | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of detailed information about financial instruments [abstract] | |
Financial Instruments and Management of Financial Risks | Note 13 – Financial Instruments and Management of Financial Risks A. Financial risk factors The Company’s activity exposes it to various financial risks, such as market risks (foreign currency risk, interest rate risk and price risk), credit risk and liquidity risk. The Company’s overall risk management plan focuses on activities to minimize possible negative effects on the Company’s financial performance. 1) Market risks: B. Foreign currency risk The carrying amounts of the Group’s financial assets and liabilities which are denominated in foreign currency are as follows: Disclosure Of Foreign Currency Financial Assets And Liabilities 2023 2022 2023 2022 Assets Liabilities As of December 31 As of December 31 2023 2022 2023 2022 NIS in thousands NIS in thousands NIS in thousands NIS in thousands Cash – EURO 24 - - - Cash – USD 293 17,302 541 - Cash 293 17,302 541 - Investment in Fore – USD 1,922 1,600 - - Investment in Cavnox – USD - 965 - - Investment - 965 - - Other receivables – USD 1,111 2,899 - - Trade payables – USD - - 13,380 11,267 Trade payables – CAD - - 921 208 Trade - - 921 208 C. Price risk The Company has invested in marketable shares listed on a stock exchange, which are classified as financial assets in respect of which the Group is exposed to risk due to volatility in the security’s price, which is determined based on market prices on the Stock Exchange. The balance of these investments in the financial statements as of December 31, 2023 is NIS 187 2) Credit risk Cash and cash equivalents: Credit risk arises in respect of cash and cash equivalents. The Company engaged with banking corporations which have been given minimum independent ratings of AA. Customer debt: The terms of customer credit are up to end of month + 90 59 7 Note 13 – Financial Instruments and Management of Financial Risks: 3) Liquidity risk: The Company evaluates the risk of cash shortage using monthly budgets. The following table presents the repayment periods of the Group’s financial liabilities, in accordance with their contractual terms, by undiscounted amounts (including payments in respect of interest): As of December 31, 2023: Schedule of Financial Liabilities Contractual Terms, by Undiscounted Amounts Up to one year One year or more Total NIS in thousands Credit from banking corporations ** 88,194 82,202 170,396 Trade payables and other payables 128,952 - 128,952 Lease liability (1) 4,640 20,641 25,281 Total financial liabilities undiscounted amount 221,786 102,843 324,629 As of December 31, 2022: Up to one year One year or more Total NIS in thousands Credit from banking corporations ** 126,935 99,684 226,619 Trade payables and other payables 174,463 - 174,463 Lease liability (1) 4,349 23,102 27,451 Short term loan from related party 1,090 - 1,090 Total Financial Liabilities Undiscounted Amount 306,837 122,786 429,623 ** The Company is in compliance with the required financial covenants. Therefore, the liabilities are presented under non-current liabilities. (1) The company has lease agreements for the company’s offices in Herzliya and for the pharmacies located throughout Israel. The term of the lease agreements ends between 2025 – 2036, depending on the location. D. Change in interest curves and inflation expectations As from 2021 inflation rates in Israel and the world have been rising – in 2021 the rate of change in the Consumer Price Index in Israel increased, an increase that continued also in 2023. Along with the worldwide rise in prices, central banks around the world decided to raise interest rates with the aim of curbing rising prices. The changes in interest rates had some effect on items in the financial statements as the company has loans of NIS 170 Note 13 – Financial Instruments and Management of Financial Risks: B. Disclosure of fair value The following table presents the Company’s financial assets and financial liabilities which are measured at fair value as of December 31, 2023: Schedule of Financial Assets measured in Fair Value Level 1 Level 2 Level 3 Total NIS in thousands Assets: Financial assets measured at fair value through profit or loss: Investments in investees 53 - 1,922 1,974 Investment in XTL stocks 134 - - 135 Total assets 187 - 1,922 2,109 The following table presents the Company’s financial assets and financial liabilities which are measured at fair value as of December 31, 2022: Level 1 Level 2 Level 3 Total NIS in thousands Assets: Financial assets measured at fair value through profit or loss: Investments in investees 48 - 2,565 2,613 Investment in XTL stocks 157 - - 157 Total assets 205 - 2,565 2,770 Financial assets The Company has investments in investees measured at fair value through profit or loss. The fair value of the investments in these investees as of December 31, 2023 amounted to a total of NIS 2,109 In accordance with the valuation of the investment, the fair value of shares was estimated according to the Options Pricing Model (OPM) method. In this method the Company’s aggregate equity value is allocated to the underlying equity securities. For details regarding the fair value of the investment in XTL shares, see Note 7 above. Note 13 – Financial Instruments and Management of Financial Risks: Changes in financial instruments whose fair value measurement was classified at level 3: Schedule of Financial Assets Measured at Fair Value through Profit or Loss Financial assets measured at fair value through profit or loss in 2023 2022 NIS in thousands Opening balance 2,565 2,565 Loss which was recognized in the statement of income (643 ) - Closing balance 1,922 2,565 C. Sensitivity analysis to changes in market factors: The following table specifies the sensitivity to an increase or decrease of 1.5% in the relevant exchange rate. This metric represents the estimate of management regarding reasonably possible changes to the exchange rate. The sensitivity analysis includes current balances of monetary items denominated in foreign currency, and adjusts the translation thereof at the end of the period to a change of 1.5% in foreign currency rates. Schedule of Sensitivity Analysis in Profit or Loss in Foreign Currency Impact of the USD As of December 31 2023 NIS in thousands Profit or loss 185 |
Lease liability
Lease liability | 12 Months Ended |
Dec. 31, 2023 | |
Lease liabilities [abstract] | |
Lease liability | Note 14 – Lease liability Maturity analysis of the Group’s lease liabilities Schedule of Maturity Analysis of Lease Liabilities December 31, 2023 NIS thousands Less than one year 4,640 One to five years 12,133 More than five years 8,508 Total 25,281 Current maturities of lease liability 4,640 Long-term lease liability 20,641 Payments of lease liabilities 4,713 Amounts recognized in profit or loss Schedule of Recognized Profit or Loss 2023 2022 2021 NIS thousands NIS thousands NIS thousands Interest expenses on lease liability 726 719 480 Variable lease payments not included in the measurement of the lease liability 1,330 988 2,574 Total 2,056 1,707 3,054 |
Taxes on Income
Taxes on Income | 12 Months Ended |
Dec. 31, 2023 | |
Major components of tax expense (income) [abstract] | |
Taxes on Income | Note 15 – Taxes on Income A. Tax rates applicable to the Company The corporate tax rate has been 23 B. Tax assessments In accordance with the agreement with the tax authorities, the Company has tax assessments that are considered as final up to and including the tax year 2014. C. Carryforward tax losses and other temporary differences The Company has business losses and capital losses for tax purposes which are carried forward to future years and which amount to, as of December 31, 2023, a total of approximately NIS 86,725 D. Deferred taxes The Company recorded deferred tax in the amount of NIS 27,523 119,664 (1) Recognized deferred tax assets and liabilities Deferred taxes are calculated according to the tax rate anticipated to be in effect on the date of reversal as stated above. The movement in deferred tax assets and liabilities is attributable to the following items: Schedule of Deferred Tax Assets and Liabilities Balance of deferred tax asset (liability) as at January 1, 2023 20,635 Deferred tax asset liability, beginning balance 20,635 Changes recognized in biological assets 1,275 Changes recognized in carryforward tax losses 1,786 Other changes 985 Balance of deferred tax asset (liability) as at December 31, 2023 24,681 Deferred tax asset liability, ending balance 24,681 E. Current taxes The Company recorded a provision for current taxes in the amount of NIS 7,627 F. Taxes on income which are included in the statements of profit or loss. For the year ended December 31 Schedule of Components of Taxes 2023 2022 2021 NIS in thousands NIS in thousands NIS in thousands Current tax expense 6,294 17,708 10,467 Deferred tax (income) (4,046 ) (17,615 ) 974 Total tax expense 2,248 93 11,441 Note 15 – Taxes on Income: G. A reconciliation between the theoretical tax on earnings before income and tax expenses for the year ended December 31 Schedule of Reconciliation Between Tax on Earnings Before Income and Tax Expenses 2023 2022 2021 NIS in thousands Loss (Profit) before taxes on income 61,285 (43,842 ) (18,734 ) tax rate 23 % 23 % 23 % Total tax benefit (expense) at applicable tax rate 14,096 (10,084 ) (4,309 ) Nondeductible expenses (482 ) (2,999 ) (419 ) Nondeductible Share-based payment (596 ) (2,049 ) (1,484 ) Creation of deferred taxes for tax losses from previous years for which deferred taxes were not created in the past - 12,837 (2,709 ) Change in temporary differences for which deferred taxes are not recognized 529 (1,075 ) Impairment losses on goodwill (14,513 ) - - Other permanent differences (1,282 ) 3,277 (2,520 ) Income tax benefit (expense) (2,248 ) (93 ) (11,441 ) |
Commitments, Charges and Contin
Commitments, Charges and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of contingent liabilities [abstract] | |
Commitments, Charges and Contingent Liabilities | Note 16 – Commitments, Charges and Contingent Liabilities A. Engagements 1. Canndoc has an advanced propagation and growing facility which is located in Kibbutz Beit HaEmek, in which it develops and grows a wide variety of unique strains of medical cannabis (hereinafter: the “Northern Facility”). As of the reporting date, the northern facility is spread over an area of approximately 5 dunams, whereby Canndoc has the right of first refusal regarding an option to expand the area of the northern facility to a total area of approximately 16 dunams. The northern facility includes a greenhouse for propagating, growing and florescence, as well as a processing facility and operational areas. During the reporting period, Canndoc performed extension, upgrade and adjustment works on the northern facility, for the purpose of ensuring the northern facility’s compliance with the high-quality standards required to export from Israel and adjusting the quality of the products to the level required in Israel and in the target countries. The performance of the upgrade works was concluded in the fourth quarter of 2019; On May 21, 2020, an addendum to the agreement was signed, which formalized, inter alia, the investment in the Company’s facility in Beit HaEmek. On January 1, 2023, a separate legal entity was established, and from this date, the activity of the Northern Facility is executed under this entity. Note 16 – Commitments, Charges and Contingent Liabilities 2. On April 23, 2019, Canndoc signed a binding agreement with an Israeli corporation which holds agricultural areas in Kibbutz Nir Oz, in the Western Negev, for the construction of a production complex with maximum production potential of up to 88 tons of medical cannabis per year, which will operate in addition to the northern facility (hereinafter: the “Southern Site”). During 2021, the Company completed the investment in the construction of facilities for the purpose of growing and production of inventory. On May 26, 2020, Canndoc announced the receipt of a license from the medical cannabis unit at the ministry of health (the “medical cannabis unit”), for the engagement in and holding of a dangerous drug, in accordance with sections 6 and 7 of the dangerous drugs ordinance (new version), 5733-1973, for the propagation and growing of cannabis plants, and the processing of inflorescence and plants under imc-gap quality conditions, in Canndoc’s growing facility in southern Israel (hereinafter: the “southern site”), in a commercial scope of approximately 24,500 plants in parallel, as set forth in the growing license (hereinafter: the “growing license”). In accordance with the standard practice, the license is conditional on completing the construction of a post-harvest processing facility, and receipt of full IMC-GAP certification. On December 24, 2020, Canndoc announced that it had received a permanent license from the medical cannabis unit. During the reporting year of the financial statements, Canndoc has begun commercial growing in the southern facility. On January 1, 2023, a separate legal entity was established, and from this date, the activity of the Northern Facility is executed under this entity. B. Contingent liabilities 2. On August 19, 2019, a motion was filed with the District Court of Tel Aviv-Yafo against 17 companies which are engaged in the medical cannabis production and growing segment, or which hold plants for the production of cannabis products, including Canndoc, to approve a claim as a class action (the “Motion”), asserting the provision of drugs to patients in poor condition (as alleged in the motion), in a manner which constitutes prohibited discrimination, as stated in the Equal Rights for Persons with Disabilities Law, 5758-1998, as well as activities within the framework of a restrictive arrangement, in a manner which breaches the provisions of the Economic Competition Law, 5748-1988 due to the allegedly defective marking of the product components, while restricting the quantity and/or quality and/or type of the provided services. The claimed sum amounts to NIS 686 On July 14, 2021, The Court recommended that the parties negotiate independently in order to avoid litigation, and if negotiations fail, then begin mediation proceedings. The parties agreed to follow the Court’s recommendations. The negotiations between the parties have not yet begun. On March 14, 2022 the applicant filed a request to amend the application for approval of a class action (“the request for amendment”). A copy of the amended request for the approval a class action was not attached to the request for amendment. The judge has disqualified herself from hearing the case, and therefore, the case will be redirected. Note 16 – Commitments, Charges and Contingent Liabilities On June 21, 2022, the company responded to the request for amendment. On September 12, 2022 the court partially granted the request for amendment, and ordered the applicant to submit an amended request for approval, after which the company’s response to the amended request for approval will be submitted. On November 27, 2022, the applicant submitted the amended application for approval of the motion (“the amended motion”). On February 8, 2023, the Company submitted its response to the Application for approval of a class action. The Company argued that the IMCA clarification from April 2020 is a declarative clarification that meant to clarify its previous instructions regarding the method that the Company should mark the concentration of active ingredients in their products. On March 16, 2023, the Company submitted its deposition. On April 20, 2023, the Company submitted a request to delete new evidence and clauses from the applicant response. On April 27, 2023, a preliminary hearing was held, and an evidentiary hearing was scheduled for October 22, 2023, and November 5, 2023. On July 4, 2023, the companies and the plaintiff submitted an agreed request to withdraw the motion filed by the plaintiff to certify such claim as class action. Based on the agreed request submitted by the parties, on July 24, 2023 the court determined that all the Companies together would pay the plaintiff a minor compensation in the amount of 70 685 40 3. On December 8, 2020, a third party with whom Canndoc is engaged in a medical cannabis growing agreement (hereinafter: the “Plaintiff” and the “Agreement”, respectively) filed with the Magistrate’s Court of Kfar Sabba a summary procedure claim in the amount of NIS 2,271,310 7,360,867 Note 16 – Commitments, Charges and Contingent Liabilities As part of the counterclaim, Canndoc asserts that Plaintiff must compensate it for damages caused by, among others, loss of profits, work performed on the goods and Infringement of proprietary rights. In response to the counterclaim, Plaintiff submitted a statement of defense on November 20, 2022. A preliminary hearing was held on December 5, 2022, and the court decided to refer the parties to another mediation attempt to conclude both proceedings. After the mediation meeting failed, the parties returned to court. On March 29, 2023, an evidentiary hearing took place, at which each party’s witnesses were cross-examined. As a result of discussions that took place between the parties, the parties agreed to return to mediation, in order to conclude the disputes in a mediation settlement. The court was informed of the mediation efforts. As a result of mediation between the parties, on June 7, 2023, the parties reached a confidential mediation agreement that settled the case between them. 4. On July 27, 2022 Cantek Group companies (the “Companies”) filed a request for a debt settlement with their creditors, and for a stay of proceedings order in accordance with the Insolvency and Economic Rehabilitation Law, all as a result of large debts accumulated by the group of companies. On July 31, 2022, the court issued a stay of proceedings order against the Companies and appointed a settlement manager to assist in settling the debts of the Companies. Intercure and Canndoc filed a debt claim against the Companies in September 2022 totaling 3,501,659 A creditors gathering headed by the settlement manager of the Companies was held on November 16, 2022, to approve a proposed debt settlement that had been proposed by the Companies itself, but Intercure objected to the proposed settlement, as it treated the creditors of the entire Companies the same, disregarding the different entities within the Companies, its different creditors and their securities. The proposed settlement would have adversely affected Intercure’s status Due to Intercure’s opposition to the proposed settlement, the debt settlement did not pass by the required majority. Upon the failure of the settlement, negotiations between the settlement manager and Intercure were conducted, and it was agreed that the assets of one of the Cantek Group companies of which Intercure is a creditor will be used by the creditors of that company only, rather than creating a single economic entity. The settlement manager is working to regulate the registration of the rights of the relevant company from the Cantek Group on one real estate asset which will enable its sale within the creditor arrangement approved by the court. Note 16 – Commitments, Charges and Contingent Liabilities According to the information provided to us by the settlement manager, in the near future the registration of the rights will be regulated and the sale of the rights of the relevant company from the Cantek Group will be carried out. The proceeds received from this sale will be used for distribution to the creditors of the relevant company from the Cantek Group as stipulated in request 57 for the insolvency case in the title. In addition, these days the settlement manager is examining the debt claims submitted on behalf of Cantek Group creditors and in the near future he will decide on these debt claims, including the debt claim submitted on behalf of Intercure and Canndoc. Subject to the settlement manager’s decision, the Company estimates the chance that most of Intercure’s debt will be repaid within the proposed settlement is higher than the chance that it won’t be repaid. 5. On January 31, 2023, the agreement with Cann Pharmaceutical Ltd. (hereinafter: Cann) to acquire 100% On February 14, 2023, the Company filed a statement of claim (“SoC”) against Cann with the Tel-Aviv Magistrate Court. In the SoC, the Company argues that Cann owes the Company a NIS 7,875,189 100 In the counterclaim Cann argues that it suffered damages due to the alleged sabotaging of the merger transaction carried out by all of the defendants. Cann requests the court to order the completion of the merger transaction. It also provides two alternate requests: 1. Compensate Cann in the amount of USD 35,000,000 On February 7, 2024 the defendant’s statement of Defense to the counterclaim was submitted. In its detailed statement of defense, the Company addressed Cann’s claims, while demonstrating to the court why the counterclaim against the company is unfounded. See Note 12B. At this early and preliminary stage of the case, it is not possible to estimate the claim’s chances. See Note 12. Note 16 – Commitments, Charges and Contingent Liabilities 6. On April 16, 2023, Intercure filed a request for an order to initiate proceedings against Umana Pharmacies (“Umana”) in light of a debt of approximately NIS 8,000,000 On April 17, 2023, the court issued its decision, setting a hearing for July 2, 2023, on the request for an order to open the proceedings, as well as deadlines for responses by the parties. After negotiations between the parties were conducted, Umana and Intercure signed an agreement to reschedule the debt of Umana to Intercure. The parties undertook to keep the content of the settlement under complete confidentiality. In accordance with this agreement, on May 24, 2023, the parties submitted an agreed request to withdraw the motion to initiate insolvency proceedings against Umana and the court approved this request. 7. A lawsuit was filed on April 24, 2023, by the companies Cannolam Ltd. And Cannolam Retail Ltd. (together, the “Plaintiffs”) against Intercure itself and against four other defendants, Pharmazone Pharmacy Ltd., Canndoc Ltd., Doron pharmacy Ltd., and Ahuza Pharmacy D.Y. Ltd, after disputes arose between the Company (and its related companies) and minority shareholders of its subsidiary Cannolam. During a hearing held in court in this proceeding on June 15, 2023, the parties agreed to initiate an arbitration proceeding. The parties’ agreement to initiate an arbitration procedure was validated by the court. The Company and its related companies submitted a claim for repayment of debts owed by Cannolam to the Company and its related companies in the amount of tens of millions. The minority shareholders filed a counterclaim for repayment of the debts owed by the Company to Cannolam and to themselves. The parties submitted their Statements of defense, and on July 20, 2023, a hearing was held before the arbitrator. Pursuant to the company’s press release filed on October 31 ST However, the minority shareholders claimed that regardless of the fact that they chose not to pay the debts determined by the arbitrator as part of the arbitration and, therefore, according to the agreement each party goes its own way, they are still deserving the sum of NIS 3 Note 16 – Commitments, Charges and Contingent Liabilities As a result, as of September 18,2023, the Company hold 100% 2,076 At this early and preliminary stage of the case, it is not possible to estimate the claim’s chances. 8. A Statement of claim was filed by Geffen Residence & Renewal (former: Cannomed Medical Cannabis Industries Ltd.) (“Geffen”) with the Tel-Aviv district court on March 6, 2023. According to Geffen, Intercure fundamentally breached the purchase agreement signed between the parties in 2021. It is alleged that Intercure has failed to pay Geffen the full consideration under the agreement. The position of Intercure is that the agreement was breached by Geffen after it gave Intercure false representations under the agreement and did not meet the closing condition that was stipulated in the contract regarding Petach-Tikva pharmacy which did not receive medical cannabis license and accordingly the acquisition was not materialized. The Company’s Statement of Defense (“SoD”) was submitted on August 3, 2023, together with the Company’s counterclaim for over NIS 1,000,000 At this early and preliminary stage of the case, it is not possible to estimate the claim’s chances. In light of the above, a provision in respect of the motion was not included in the Company’s financial statements. Note 16 – Commitments, Charges and Contingent Liabilities 9. On April 17, 2023, the applicants filed a request for approval of a class action lawsuit against medical cannabis companies, including Intercure Ltd. And Canndoc Ltd. (“the Approval Request”). The main claim in the Approval Request is that the medical cannabis companies advertise their medical cannabis products. The court was requested in the Approval Request to determine that the representative class will consist of “any consumer of licensed cannabis and any consumer of unlicensed cannabis starting from the year 2020.” The claimed compensation in the Approval Request amounts to NIS 420,000,000 42,000,000 84,000,000 In the Approval Request, the applicants argue that the actions of the respondents constitute criminal offenses under the Dangerous Drugs Ordinance [New Version] -1973, and the Prohibition of Advertising and Restriction on the Marketing of Tobacco Products and Smoking, 5743-1983, seemingly making the respondents criminal organizations as defined in the Combating Criminal Organizations Law, 5763-2003. The applicants also claim violations of consumer-business relations contrary to the General Contract Law, Consumer Protection Laws, and unjust enrichment principles. On July 20, 2023, the respondents filed a request to dismiss the Approval Request. On December 11, 2023, a preliminary hearing was held before the court, during which the court addressed all the difficulties arising from the request for approval. On January 10, 2024 the applicants submitted their responses to the cannabis companies request to dismiss the Approval Request. The applicants also submitted to the court a motion seeking amendments to the approval request. On February 20, 2024, the cannabis companies responded to the motion to amend the Approval Request and claimed that the court should reject the motion. A pre-trial conference has been scheduled for June 26, 2024. At this early and preliminary stage of the case, it is not possible to estimate the claim’s chances. In light of the above, a provision in respect of the motion was not included in the Company’s financial statements. 10. Based on the Company’s estimations and legal advice from its advisors with respect to the aforementioned claims, the company recorded a provision in the amount of NIS 6,123 thousand (see Note 12(C)). |
Long term loans
Long term loans | 12 Months Ended |
Dec. 31, 2023 | |
Long term loans | Note 17 – Long term loans Schedule of Long term Loans A. Composition of long term loans from banks: NIS in thousands Long-term credit from banks 82,202 Current maturities of long-term loans 50,266 Long term loans from banks 132,468 B. Information on material loans Schedule of Information on Material Loans Original loan Interest Loans amount Rate Period (years) December 31, 2023 December 31, 2022 NIS thousands NIS thousands Long-term material loans from bank 146,000 Prime rate plus a spread of 1.5% - 2.56% 1.5-5 113,471 107,471 Less current maturities (44,762 ) (26,202 ) Total 68,709 81,269 |
Equity
Equity | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of classes of share capital [abstract] | |
Equity | Note 18 – Equity A. Composition of share capital: Schedule of Composition of Share Capital December 31 December 31 2023 2022 2023 2022 Registered Issued and paid-up Ordinary shares with no par value 100,000,000 100,000,000 45,572,690 45,572,689 B. On January 26, 2021, the Company’s board of directors approved, subject to the publication and approval of the outline, the allocation of 3,831,949 C. At the closing of the SPAC transaction, which occurred on April 23, 2021, the company issued 15,650,280 D. On April 27, 2021, the Company issued to Mr. Alexander Rabinovich, CEO, 224,756 224,756 2,150,919 3,594 Note 18 – Equity E. On August 30, 2021, the Company’s board of directors authorized management to offer a total of up to 340,170 0.8% F. In November 2021, an employee exercised 10,103 18.38 G. During 2021, four institutional investors exercised 240,972 19.58 240,972 H. During 2021, the Company engaged in several acquisitions. As a result of the acquisitions the company has committed to issue ordinary shares, as part of the acquisitions considerations, equal to NIS 17.3 During 2021, the Company allocated 139,966 During 2022, the Company allocated 438,745 I. On May 15, 2022, the Company’s board of directors authorized management to offer a total of up to 596,937 1.3% J. On September 15, 2022, the company held an annual Special General Meeting of Shareholders, that approved an extension of the exercise period for 1,030,325 3 December 31, 2026 K. On November 14, 2022, the Company’s board of directors authorized management to offer a total of up to 287,131 L. In August 2023, 1,631,708 M. Rights associated with shares: Each share gives its owner the right to participate and to vote in the general meetings (each share has one voting right), and the right to receive dividends and/or bonus shares. Note 18 – Equity N. Share-based payment transactions: Expense recognized in the financial statements The expense which was recognized in the financial statements for received services is presented in the following table: Schedule of Share-based Payment Expenses For the year ended December 31 2023 2022 2021 NIS in thousands Total expenses recognized from share-based payment transactions 2,592 8,907 6,452 Options plan: On March 31, 2015, the Company’s board of directors resolved to adopt a new plan for the allocation of shares and options to employees, directors and consultants (the “2015 Options Plan”). Presented below are the main terms of the 2015 options plan: ● In accordance with the 2015 options plan, options or shares will be allocated to the Company’s employees in accordance with section 102 of the Income Tax Ordinance (New Version), 5721-1961 (hereinafter: the “Income Tax Ordinance”), in accordance with the trustee track or the non-trustee track. Options will be allocated to consultants, service providers, controlling shareholders or any other entity other than Company employees in accordance with section 3(I) of the Income Tax Ordinance only. ● The exercise price of each share option will be determined by the board of directors in its exclusive discretion, in accordance with the provisions of the law, and subject to guidelines which will be recommended by the committee from time to time. On July 7, 2022, the Company’s board of directors resolved to adopt a new plan for the allocation of shares and options to employees, directors, and consultants (the “2022 Options Plan”). Presented below are the main terms of the 2022 options plan: ● In accordance with the 2022 options plan, options or shares will be allocated to the Company’s employees in accordance with section 102 of the Income Tax Ordinance (New Version), 5721-1961 (hereinafter: the “Income Tax Ordinance”), in accordance with the trustee track or the non-trustee track. Options will be allocated to consultants, service providers, controlling shareholders or any other entity other than Company employees in accordance with section 3(I) of the Income Tax Ordinance only. ● The exercise price of each share option will be approved by the board of directors in its exclusive discretion, in accordance with the provisions of the law, and subject to guidelines which will be recommended by the committee from time to time. Note 18 – Equity Changes in share options during the year Presented below is a table listing the number of share options, the weighted average of their exercise prices, and the changes which were made to the employee options plans during the current year: Schedule of Share Options Activity 2023 2022 2021 Number of options Weighted average exercise price Number of options Weighted average exercise price Number of options Weighted average exercise price NIS NIS NIS Share options at beginning of year 3,402,113 11.44 2,257,753 17.06 1,199,791 15.40 Share options which were granted during the year - - 1,344,068 20.25 1,201,426 18.88 Share options which were forfeited during the year 278,491 15.24 128,438 6.90 132,688 18.38 Share options which expired during the year 103,791 6.87 71,270 4.84 674 18.38 Share options which were exercised during the year - - - - 10,103 18.38 Share options at end of year 3,019,831 11.59 3,402,113 11.44 2,257,753 17.06 Exercisable share options at year end 2,386,907 9.14 1,923,260 6.86 1,413,615 15.90 |
Expenses
Expenses | 12 Months Ended |
Dec. 31, 2023 | |
Expenses by nature [abstract] | |
Expenses | Note 19 – Expenses A. Cost of revenue Schedule of Cost of Revenue 2022 2021 2020 For the year ended December 31 2023 2022 2021 NIS in thousands Payroll and associated expenses 8,401 6,567 11,605 Farm operating expenses 12,132 13,673 20,407 Purchases 240,765 282,029 115,952 Depreciation 5,295 4,780 3,163 Changes in inventory (19,379 ) (77,322 ) (27,439 ) Total cost of revenue 247,214 229,727 123,688 Note 19 – Expenses B. General and administrative expenses: Schedule of General and Administrative Expenses For the year ended December 31 2023 2022 2021 NIS in thousands Payroll and associated expenses 10,329 10,960 8,673 Consulting and professional expenses 8,555 7,759 4,686 Directors’ fees 431 821 567 Insurance 1,749 2,147 2,661 Rent and maintenance 5,958 5,997 2,837 Provision for doubtful debts 4,363 (20 ) 477 Fees 680 302 337 Depreciation 7,871 4,224 2,931 Other 2,674 3,892 4,037 Total General and administrative expense 42,610 36,082 27,206 C. Sales and Marketing: Schedule of Sales and Marketing Expenses For the year ended December 31 2023 2022 2021 NIS in thousands Payroll and associated expenses 31,332 36,225 15,053 Commission distribution 14,834 5,597 5,624 Other 7,103 14,711 2,537 Total Sales and marketing expenses 53,269 56,533 23,214 Note 19 – Expenses D. Other expenses (income): Schedule of Other Expenses (Income) For the year ended December 31 A. Other income 2023 2022 2021 NIS in thousands Remeasurement of contingent consideration 897 10,572 - Government reimbursements (Note 1(2) and Note 12B(A)) 30,080 - - Remeasurement of provision for impairment 1,277 - - Other 1,632 300 860 Total other income 33,886 10,872 860 B. Other expenses For the year ended December 31 2023 2022 2021 NIS in thousands Remeasurement of contingent consideration 1,964 - - Impairment losses on goodwill 63,101 - - Impairment losses on Property, plant and equipment 4,589 - - Changes in loan measured at fair value through profit or loss 2,330 - - Issuance expenses - - 3,504 Provision for impairment (See Note 12B) - 11,729 - Other 9,040 1,271 327 Total Other expenses 81,024 13,000 3,831 |
Finance income
Finance income | 12 Months Ended |
Dec. 31, 2023 | |
Finance Income | |
Finance income | Note 20 – Finance income Schedule of Finance income For the year ended December 31 2023 2022 2021 NIS in thousands Income from deposits 5,301 844 130 Interest in respect of loan from related party 74 - - Exchange differences 508 7,326 - Total finance income 5,883 8,170 130 |
Finance expenses
Finance expenses | 12 Months Ended |
Dec. 31, 2023 | |
Finance Expenses | |
Finance expenses | Note 21 – Finance expenses Schedule of Finance Expenses For the year ended December 31 2023 2022 2021 NIS in thousands Interest in respect of loan from related party - - 43 Expenses in respect of fees and interest 23,493 14,059 4,627 Exchange differences 554 - 4,536 Interest expense in respect of lease liability 726 630 375 Other 828 266 - Total finance expenses 25,601 14,955 9,581 |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Profit or loss [abstract] | |
Earnings (Loss) Per Share | Note 22 – Earnings (Loss) Per Share Details regarding the number of shares in the calculation of profit or (loss) per share Schedule of Calculation of Loss Per Share For the year ended December 31 2023 2022 2021 Profit (loss) Profit (loss) Profit (loss) Weighted number of shares NIS in thousands Weighted number of shares NIS in thousands Weighted number of shares NIS in thousands Number of shares and profit (loss) for calculating basic profit (loss) per share 45,572,689 (61,959 ) 45,352,601 44,819 38,492,600 (4,690 ) Options which could potentially be dilutive in the future, antidilutive in 2023, 2022 and 2021 - 54,271 2,346,532 |
Balances and Transactions with
Balances and Transactions with Related Parties | 12 Months Ended |
Dec. 31, 2023 | |
Outstanding balances for related party transactions [abstract] | |
Balances and Transactions with Related Parties | Note 23 - Balances and Transactions with Related Parties Schedule of Transactions Between Related Parties A. Balances with related parties (consolidated) Composition: 2023 2022 December 31 2023 2022 NIS in thousands Other receivables (Note 12B) 3,429 16,087 (1) Loans from related party Following the acquisition of Canndoc and the appointment of Mr. Avner Barak as a director in the Company, a loan from Mr. Avner Barak to Canndoc in the amount of NIS 718 Note 23 - Balances and Transactions with Related Parties: B. Transactions with related parties Schedule of Employed and Non Employed Employment Benefits 1. Benefits in respect of the employment of key management personnel (including directors) (*) who are employed in the Company: For the year ended December 31 2023 2022 2021 Amount Amount Amount Number of people NIS in thousands Number of people NIS in thousands Number of people NIS in thousands Short-term employee benefits 4 2,628 4 2,198 3 946 Management fees 1 781 1 675 1 606 Share-based payment 4 1,346 4 6,362 1 3,023 4 4,755 4 9,235 3 4,575 (*) The key management personnel include the Chairman of the Board, the Company’s CEO, CFO and the COO 2. Benefits in respect of key management personnel (including directors) who are not employees of the Company: For the year ended December 31 2023 2022 2021 Amount Amount Amount Number of people NIS in thousands Number of people NIS in thousands Number of people NIS in thousands Management fees 4 518 4 739 3 550 Share-based payment - - 3 14 3 48 4 518 4 753 3 598 (*) The key management personnel who are not employees of the Company include one director, two outside directors, and one independent director. 3. Payroll and associated expenses of related party The total sum of payroll and associated expenses which was recognized in Sales and Marketing is NIS 366 Note 23 - Balances and Transactions with Related Parties: 4. Rental Income - sublease agreement with companies related to the related party The subsidiary Canndoc leases an office floor, and subleases part of the floor to three companies related to the controlling shareholder. Revenue of NIS 205 291 |
Operating Segments
Operating Segments | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of geographical areas [abstract] | |
Operating Segments | Note 24 - Operating Segments Operating segments are reported according to the same basis of internal reports that are regularly reviewed by the Company’s Chief Operating Decision Maker, who is responsible for allocating resource to the Company’s operating segments and assessing their performance. The Company has 2 operating segments: (A) Investments in portfolio companies in the biomed sector, and (B) Investments in the medical cannabis sector. A. Investments in portfolio companies in the biomed sector: the Company has investments in XTL, Cavnox and Fore. These investments are measured at fair value through profit or loss. See Note 11. Presented below are financial data regarding the segment: Schedule of Financial Data Regarding Segment 2023 2022 NIS in thousands Loss from investment in XTL 22 174 Loss from investment in Cavnox 965 - Gain from investment in Fore (322 ) - Gain (Loss) from investment 665 174 2023 2022 NIS in thousands Fair value of the investment in XTL 134 156 Fair value of the investment in Cavnox - 965 Fair value of the investment in Fore 1,922 1,600 Fair value of the investment 2,056 2,721 B. Investments in the medical cannabis sector: Canndoc, Cannolam, Pharmazone and other investments as described in Note 8. The Company’s Chief Operating Decision Maker (the CEO) reviews the financial results as a single business unit. Note 24 - Operating Segments: Operating segment data: Reconciliation of operating segment data include addition of assets and liabilities which were not attributed to segments. Schedule of Operating Segments Cannabis segment Biomed segment Reconciliations Total NIS in thousands Cannabis segment Biomed segment Reconciliations Total Year ended December 31, 2023 External revenue 355,553 - - 355,553 Segment profit (loss) 44,460 (665 ) - 43,795 General and administrative expenses not attributable to segments (38,224 ) Other expenses, net (47,138 ) Operating Loss (41,567 ) Segment assets 755,209 2,056 29,349 786,614 Segment liabilities 392,381 - (62,829 ) 329,552 Cannabis segment Biomed segment Reconciliations Total NIS in thousands Cannabis segment Biomed segment Reconciliations Total Year ended December 31, 2022 External revenue 388,684 - - 388,684 Segment profit (loss) 68,552 (174 ) - 68,378 General and administrative expenses not attributable to segments (15,623 ) Other expenses, net (2,128 ) Operating Profit 50,627 Segment assets 886,184 2,770 69,053 958,007 Segment liabilities 526,285 - (89,755 ) 436,530 Cannabis segment Biomed segment Reconciliations Total NIS in thousands Cannabis segment Biomed segment Reconciliations Total Year ended December 31, 2021 External revenue 219,677 - - 219,677 Segment profit (loss) 44,646 (1,868 ) - 42,778 General and administrative expenses not attributable to segments (11,620 ) Other expenses, net (2,971 ) Operating Profit 28,187 Segment assets 551,435 2,895 131,994 686,324 Segment liabilities 132,562 - 94,571 227,133 Note 24 - Operating Segments: Major customers Revenues from one customer of the cannabis segment represents approximately NIS 42 41 22 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of non-adjusting events after reporting period [abstract] | |
Subsequent Events | Note 25 - Subsequent Events A. On January 31, 2024, the Company entered into share purchase agreement (the “Agreement”) with the shareholders of Leon Pharm Ltd. (the “Sellers”, and “Leon Pharm”, respectively) to purchase Leon Pharm, a leading, Israel-based pharmacy chain specializing in dispensing medical cannabis in Israel, by way of a share purchase of all of the issued and outstanding share capital of Leon Pharm (the “Transaction”). The Transaction is expected to close upon the fulfillment of certain closing conditions, including, among other things, the approval of the Israel Medical Cannabis Agency (IMCA) and the Israel Competition Authority. B. In March 2024, the Company signed an agreement to end the engagement between the Company and the minority interest shareholders of “Maayan Haim” pharmacy, which was signed in October 2021. As a result, the Company will return Maayan Haim’s shares, and as of March 25, 2024, Maayan Haim will no longer be controlled by the Company. |
Material Accounting Policies (P
Material Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Material Accounting Policies | |
Presentation basis of the financial statements | A. Presentation basis of the financial statements The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) as issued by the International Accounting Standards Board (IASB). The Company’s financial statements are prepared on a historical cost basis, except for financial and biological assets measured at fair value through profit or loss and contingent consideration. In its preparation of the financial statements, management is required to use material accounting estimates. Management is also required to exercise discretion in the process of applying the material accounting policies. The issues which require significant discretion and the use of estimates, which have a significant impact on the amounts which were recognized in the financial statements, are specified in Note 3. Actual results may differ significantly from the estimates and assumptions which were used by Company management. |
Functional and presentation currency | B. Functional and presentation currency These consolidated financial statements are presented in NIS, which is the Company’s functional currency, and have been rounded to the nearest thousand, except when otherwise indicated. The NIS is the currency that represents the principal economic environment in which the Company operates. Note 2 - Material Accounting Policies |
Basis of consolidation | C. Basis of consolidation Non-controlling interests Non-controlling interests comprise the equity of a subsidiary that cannot be attributed, directly or indirectly, to the parent company. Measurement of non-controlling interests on the date of the business combination As of December 31, 2023, the non-controlling interests balance contain non-controlling interests that were measured at the date of the business combinations at their proportionate interest in the identifiable assets and liabilities of the acquiree. Allocation of profit or loss and other comprehensive income to the shareholders Profit or loss and any part of other comprehensive income are allocated to the owners of the Company and the non-controlling interests. Total profit or loss and other comprehensive income is allocated to the owners of the Company and the non-controlling interests even if the result is a negative balance of non-controlling interests. Regarding the separate legal entities that were established with the Kibbutzim and in accordance with the agreements between the parties, in case of losses, the Company will be the only one to bear the full losses. Joint operations In joint operations the parties that have joint control of the arrangement have rights to the assets and obligations for the liabilities relating to the arrangement. The Company recognizes in relation to its interest its share of the assets, liabilities, revenues and expenses of the joint operation. Note 2 - Material Accounting Policies |
Contingent consideration | D. Contingent consideration The consideration transferred as part of business combinations includes the fair value of any contingent consideration. After the acquisition date, the Company recognizes changes in the fair value of contingent consideration classified as a financial liability in profit or loss. |
Biological assets | E. Biological assets In accordance with IAS 41, the Company measures biological assets which are mostly comprised of medical cannabis plants and agricultural produce at fair value less selling costs until harvesting. The Company’s estimates are based on sales data in the last 12 months activity deducted from sales costs in accordance with its production and sales agreements. This value is used as the cost basis of inventory after the harvest. Profit or loss due to changes in fair value less selling costs are included under the Company’s profit / loss in the year when they materialized. Growing costs in respect of the biological assets are capitalized to the cost of the biological assets. When calculating the fair value of a biological asset, the Company is required to use various estimates and approximations, including, inter alia, estimates regarding the growth stage of the seedlings until the harvest date, harvesting costs, selling costs, costs associated with oil extraction and packaging of finished products, estimates regarding the selling price of the Company’s products, and estimates of materials lost in process. Changes in these assumptions may result in significant changes in the value of the biological asset, the value of inventory, and the cost of sales, as well as in the fair value component in respect of the biological asset. |
Inventory | F. Inventory Inventory is measured as the lower of either cost or net realizable value. The cost of purchased inventory is determined on a first in – first out (FIFO) basis. The Company classifies the cannabis agricultural produce from a biological asset to inventory when harvesting, according to the fair value less selling costs on that date. This value serves as the cost basis of inventory. Processing costs and other additional costs which materialize in the process of bringing the inventory to its current location and condition are added to the cost of inventory. Net realizable value represents the estimated selling price in the ordinary course of business, less estimated costs to Note 2 - Material Accounting Policies |
Revenue recognition | G. Revenue recognition Revenue from contracts with customers is recognized in the statement of income when the control of the asset or of the service has been transferred to the customer. The control transfer date is generally the date of delivery to the customer. Revenue is measured and recognized according to the fair value of the proceeds which are expected to be received in accordance with the contract terms, less amounts which have been collected for third parties (e.g., taxes). Revenue is recognized in the statements of profit or loss up to the extent to which are expected to flow to the Company, and the revenue and costs, if relevant, are reliably measurable. When determining the amount of revenue from contracts with customers, the Company evaluates whether it functions as a primary provider, or as an agent in the contract. Revenue is recognized to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur. Therefore, the amount of revenue recognized is adjusted for expected credits and returns which are estimated based on historical data and past experience. The Company estimates credits and returns according to the rate of actual credits and returns from total sales multiplied by the sales in the last quarter. Product sales In retail sales that are made through pharmacies owned by the Company, control is transferred at a point in time that the products are sold to the end customer. In wholesale sales, control is transferred at a point in time that the products are sold to pharmacies that aren’t under the Company’s control. In cases where the products are transferred to the distributor and held by them in consignment until their sale by the distributor to a third party which constitutes the end customer, the Company recognizes revenue from their sale on the date when they are sold by the distributor to the third party. Note 2 - Material Accounting Policies |
Property, plant and equipment | H. Property, plant and equipment Depreciation is calculated in equal annual rates according to the straight line method, throughout the asset’s useful lifetime, as follows: Schedule of Depreciation Rate % Machinery and equipment 7 15 Computers 33 Buildings and greenhouses 10 Bearer plants 7 Cannabis genetics (bearer plants) that were purchased are depreciated when they are in the location and condition necessary for it to be capable of operating in the manner intended by management. |
Goodwill | I. Goodwill The cash-generating unit to which the goodwill is allocated for the purpose of goodwill impairment test is the Company’s Cannabis segment, which represents the lowest level within the Company at which the goodwill is monitored for internal management purposes. |
Impairment | J. Impairment Non-financial assets Timing of impairment testing The carrying amounts of the Group’s non-financial assets, other than biological assets, inventories and deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. Once a year, on December 31, or more frequently if there are indications of impairment, the Group estimates the recoverable amount of each cash generating unit that contains goodwill, or intangible assets that have indefinite useful lives or are unavailable for use. See also Note 3 and Note 8. Note 2 - Material Accounting Policies |
Income tax expense | K. Income tax expense Deferred taxes Deferred tax assets are recognized for unused carryforward tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilized. The Company determines the amount of deferred tax assets that can be recognized based upon three-years taxable income forecast which carryforward losses can be offset. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized. Deferred tax assets that were not recognized are reevaluated at each reporting date and recognized if it has become probable that future taxable profits will be available against which they can be utilized. |
Financing income and expenses | L. Financing income and expenses Foreign currency gains and losses on financial assets and financial liabilities are reported on a net basis as either financing income or financing expenses depending on whether foreign currency movements are in a net gain or net loss position. In the statements of cash flows, interest paid is presented as part of cash flows from financing activities. Note 2 - Material Accounting Policies |
Financial instruments | M. Financial instruments 1. Financial assets Financial assets are measured on the date of initial recognition at fair value plus transaction costs which are directly attributable to the acquisition of the financial asset, except in case of a financial asset measured at fair value through profit or loss, for which the transaction costs are carried to the statement of income. The Company classifies and measures the debt instruments in its financial statements based on the following criteria: (A) The Company’s business model for the management of financial assets; and (B) The characteristics of the financial asset’s contractual cash flows. The Company has investments in financial assets measured at fair value through profit or loss (see also Note 7, Note 8 and Note 11) and other debt instruments measured at amortized cost. 2. Impairment of financial assets The Company evaluates, on each reporting date, the loss provision in respect of financial debt instruments which are not measured at fair value through profit or loss. The Company distinguishes between two situations involving recognition of a loss provision. A) Debt instruments whose credit quality has not significantly deteriorated since the initial recognition date, or cases involving low credit risk – the loss provision which will be recognized in respect of that debt instrument will take into account expected credit loss during the 12 month period after the reporting date; or B) Debt instruments whose credit quality has significantly deteriorated since the initial recognition date, and cases involving credit risk which is not low – the loss provision which will be recognized will take into account expected credit losses throughout the instrument’s remaining lifetime. Note 2 - Material Accounting Policies The Company applies the expedient, which was determined in the standard, according to which it assumes that a debt instrument’s credit risk has not significantly increased since the initial recognition date if it was determined, on the reporting date, that the instrument’s credit risk is low, for example, when the instrument has an external rating of “investment grade”. Impairment in respect of debt instruments which are measured at amortized cost is carried to the statement of income against a provision. The Company has also financial assets with short credit periods, such as trade receivables, to which it is entitled to apply the expedient specified in the model, i.e., the Company will measure the loss provision in an amount equal to the expected credit losses throughout the instrument’s entire lifetime. The Company chose to adopt the expedient in respect of those financial assets. Financial assets at amortized cost are subsequently measured at amortized cost using the effective interest method. The amortized cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss. 3. Financial liabilities measured at amortized cost The financial liabilities measured at amortized cost include mainly loans and borrowings from banks, bank overdrafts, finance lease liabilities, and trade and other payables. |
Fair value measurement | N. Fair value measurement All assets and liabilities which are measured at fair value, or whose fair value was disclosed, are divided into categories in the fair value hierarchy, based on the lowest level of inputs which is significant to the measurement of fair value in its entirety: Level 1: Quoted prices (without adjustments) in an active market of identical assets and liabilities (See Note 7). Level 2: Inputs which are not quoted prices which are included in level 1, which are directly or indirectly observable. Level 3: Inputs which are not based on observable market data, as described in Note 6 – Biological Assets, and Note 11 – Investments in financial assets measured at fair value through profit or loss (investments in companies in the biomed sector). Note 2 - Material Accounting Policies |
Government grants | O. Government grants Government grants are recognized initially at fair value when there is reasonable assurance that they will be received and the Company will comply with the conditions associated with the grant. Unconditional government grants are recognized when the Company is entitled to receive them. Grants that compensate the Company for expenses incurred are presented as a deduction from the corresponding expense. When a grant cannot be associated with a specific expense because it is granted for loss of profits, it is classified as Other expenses (income), net in the Consolidated Statements of Profit or Loss. |
Provisions | P. Provisions A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability without adjustment for the Company’s credit risk. The carrying amount of the provision is adjusted each period to reflect the time that has passed and the amount of the adjustment is recognized as a financing expense. The Company recognizes a reimbursement asset if, and only if, it is virtually certain that the reimbursement will be received if the Company settles the obligation. The amount recognized in respect of the reimbursement does not exceed the amount of the provision. |
Leases | Q. Leases Leased assets and lease liabilities The Company has elected to apply the practical expedient by which short-term leases of up to one year and/or leases in which the underlying asset has a low value, are accounted for such that lease payments are recognized in profit or loss on a straight-line basis, over the lease term, without recognizing an asset and/or liability in the statement of financial position. The lease term The lease term is the non-cancellable period of the lease plus periods covered by an extension or termination option if it is reasonably certain that the lessee will or will not exercise the option, respectively. The Company anticipates exercising extension options due to the significance of the underlying asset to the Company’s operation and the Company’s past experience with similar leases. Note 2 - Material Accounting Policies Depreciation of right-of-use asset After lease commencement, a right-of-use asset is measured on a cost basis less accumulated depreciation and accumulated impairment losses and is adjusted for re-measurements of the lease liability. Depreciation is calculated on a straight-line basis over the useful life or contractual lease period, whichever earlier, as follows: ☐ Buildings 5 10 Subleases In leases where the Group subleases the underlying asset, the Group examines whether the sublease is a finance lease or operating lease with respect to the right-of-use received from the head lease. The Group examined the subleases existing on the date of initial application based on the remaining contractual terms at that date. |
Reclassification | R. Reclassification Comparative amounts were reclassified, which resulted in NIS 20,000 This reclassification did not have any effect on the profit (loss) for the year. Note 2 - Material Accounting Policies |
New standards, amendments to standards and interpretations not yet adopted | S. New standards, amendments to standards and interpretations not yet adopted Standard/interpretation/ The requirements Effective date and transitional amendment of the publication provisions Effects Amendment to IAS 1, Presentation of Financial Statements: Classification of Liabilities as Current or Non-Current and subsequent amendment: Non-Current Liabilities with Covenants The Amendment, together with the subsequent amendment to IAS 1 (see hereunder) replaces certain requirements for classifying liabilities as current or non-current. According to the Amendment, a liability will be classified as non-current when the entity has the right to defer settlement for at least 12 months after the reporting period, and it “has substance” and is in existence at the end of the reporting period. According to the subsequent amendment, as published in October 2022, covenants with which the entity must comply after the reporting date, do not affect classification of the liability as current or non-current. Additionally, the subsequent amendment adds disclosure requirements for liabilities subject to covenants within 12 months after the reporting date, such as disclosure regarding the nature of the covenants, the date they need to be complied with and facts and circumstances that indicate the entity may have difficulty complying with the covenants. Furthermore, the Amendment clarifies that the conversion option of a liability will affect its classification as current or non-current, other than when the conversion option is recognized as equity. The Amendment and subsequent amendment are effective for reporting periods beginning on or after January 1, 2024 with earlier application being permitted. The Amendment and subsequent amendment are applicable retrospectively, including an amendment to comparative data. The Group is examining the effects of the Amendment on the financial statements with no plans for early adoption. Note 2 - Material Accounting Policies T. Initial application of new standards, amendments to standards and interpretations Standard/amendment/ The requirements Effective date and interpretation of the publication transitional provisions Effects Amendment to IAS 1, Presentation of Financial Statements: “Disclosure of Accounting Policies.” According to the amendment, companies must provide disclosure of their material The amendment to IAS 1 also clarifies that accounting policy information is expected to be material if, without it, the users of the financial statements would be unable to understand other material information in the financial statements. The amendment also clarifies that immaterial accounting policy information need not be disclosed. The amendment is initially applied in the annual financial statements for 2023. As a result of applying the Amendment, the extent of the accounting policy disclosure provided in the financial statements for 2023 was reduced and adjusted according to the Company’s specific circumstances. Note 2 - Material Accounting Policies Standard/amendment/ The requirements of Effective date and interpretation the publication transitional provisions Effects Amendment to IAS 12, Income Taxes: Deferred Tax related to Assets and Liabilities arising from a Single Transaction The Amendment narrows the scope of the exemption from recognizing deferred taxes as a result of temporary differences created at the initial recognition of assets and/or liabilities, so that it does not apply to transactions that give rise to equal and offsetting temporary differences. As a result, companies will need to recognize a deferred tax asset or a deferred tax liability for these temporary differences at the initial recognition of transactions that give rise to equal and offsetting temporary differences, such as lease transactions and provisions for decommissioning and restoration. The Amendment is effective for annual periods beginning on or after January 1, 2023. For deferred taxes arising from leases and decommissioning and restoration liabilities, the Amendment is applied by amending the opening balance of retained earnings for the earliest comparative data presented. Application of the Amendment did not have a material effect on the financial statements. |
Material Accounting Policies (T
Material Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Material Accounting Policies | |
Schedule of Depreciation Rate | Depreciation is calculated in equal annual rates according to the straight line method, throughout the asset’s useful lifetime, as follows: Schedule of Depreciation Rate % Machinery and equipment 7 15 Computers 33 Buildings and greenhouses 10 Bearer plants 7 |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Cash And Cash Equivalents | |
Schedule of Cash and Cash Equivalents | Schedule of Cash and Cash Equivalents 2023 2022 December 31 2023 2022 NIS in thousands Cash 94,819 192,351 Short term deposits 6,320 40,238 Total cash and cash equivalents 101,139 232,589 The currencies in which balances of cash and cash equivalents are denominated, or to which they are linked, are: 2023 2022 December 31 2023 2022 NIS in thousands EURO 24 - USD 293 17,302 NIS 100,822 215,287 Total cash and cash equivalents 101,139 232,589 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Schedule Of Inventory | |
Schedule of Inventory | Schedule of Inventory 2023 2022 December 31 2023 2022 NIS in thousands Finished goods 60,468 50,140 Goods in process and dried inflorescence 45,001 89,993 Total inventory 105,469 140,133 |
Biological Assets (Tables)
Biological Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of detailed information about biological assets [abstract] | |
Schedule of Fair Value Assets | The table hereunder presents the biological assets that are measured at fair value, using a valuation method according to the fair value levels. Schedule of Fair Value Assets Level 1 Level 2 Level 3 Total December 31, 2023 Level 1 Level 2 Level 3 Total NIS thousands NIS thousands NIS thousands NIS thousands Biological Assets - - 822 822 Level 1 Level 2 Level 3 Total December 31, 2022 Level 1 Level 2 Level 3 Total NIS thousands NIS thousands NIS thousands NIS thousands Biological Assets - - 6,365 6,365 |
Schedule of Changes in Biological Assets | The Company’s biological assets are primarily comprised of medical cannabis seedlings and medical cannabis. Presented below are the changes in biological assets during the reporting period: Schedule of Changes in Biological Assets 2023 2022 NIS in thousands Balance as of January 1 6,365 5,566 Costs of growing medical cannabis plants 57,496 79,131 Change in fair value less selling costs 261 13,054 Damaged (See Note 1(2) and Note 12B) (8,885 ) - Transfer to inventory (54,415 ) (91,386 ) Balance as of December 31 822 6,365 |
Schedule of Assumptions in Biological Assets | Schedule of Assumptions in Biological Assets 31/12/2023 31/12/2022 Net growing area (in thousands of square meters) 10.5 10.5 Estimate net yield as of the reporting date (tons) (1) 0.2 1.9 Estimated net selling price (NIS per gram) (2) 16.9 17.4 Estimated growing cycle length (in weeks) (3) 13 13 Estimated growing cycle completion rate (in percent) (4) 38 % 28 % Proportion of plants which do not reach the harvesting stage (5) 3 % 3 % (1) According to the number of seedlings as of the end of the reporting period (2) According to the price range of the Company’s existing products as of the end of the reporting period (3) In accordance with the Company’s experience, and according to the strains which exist as of the reporting date (4) By planting date vs. growing cycle length (5) According to the final product net weight |
Schedule of Sensitivity Analysis of Biological Assets | Schedule of Sensitivity Analysis of Biological Assets 31/12/2023 31/12/2022 Average selling price 100 769 Proportion of oil products 1 18 Proportion of plants which do not reach the harvesting 2 (20 ) |
Investment in Subsidiaries (Tab
Investment in Subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investment In Subsidiaries | |
Schedule of Transferred Consideration | Schedule of Transferred Consideration NIS in thousands Consideration paid in cash 24,304 Payable in respect of shares 17,376 Deferred consideration in cash 9,862 Contingent consideration 18,668 Non-controlling interests 1,178 Transferred consideration 71,388 NIS in thousands Consideration paid in cash - Deferred consideration in cash 4,352 Contingent consideration 10,185 Non-controlling interests (142 ) Transferred consideration 14,395 |
Schedule of Acquisition of Cash Flows | Schedule of Acquisition of Cash Flows NIS in thousands Consideration paid in cash (24,304 ) Less – acquired cash and cash equivalents 5,210 Total (19,094 ) NIS in thousands Consideration paid in cash - Less – acquired cash and cash equivalents 1,560 Total 1,560 |
Schedule of Amounts Recognized on Acquisition | Schedule of Amounts Recognized on Acquisition NIS in thousands Cash and cash equivalents 5,210 Restricted cash 586 Trade and other receivables 20,452 Deferred tax assets 1,056 Inventory 22,788 Property, plant and equipment and right-of-use asset 6,267 Goodwill 329 Short term loans (699 ) Current maturities (93 ) Trade and other payable (50,670 ) Financial liabilities (3,583 ) Loan from non-controlling interest (5,119 ) Liabilities in respect of employee benefits (383 ) Lease liability (2,650 ) Total identifiable net assets (6,509 ) NIS in thousands Cash and cash equivalents 1,560 Restricted cash 196 Financial assets measured at fair value through profit or loss 47 Trade and other receivables 1,936 Inventory 2,631 Property, plant and equipment and right-of-use asset 1,934 Goodwill 150 Overdraft (1,170 ) Current maturities (75 ) Trade and other payable (7,524 ) Financial liabilities (3,237 ) Loan to non-controlling interest 2,598 Liabilities in respect of employee benefits (383 ) Total identifiable net assets (1,337 ) |
Property, Plant and Equipment_2
Property, Plant and Equipment and right of use assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Schedule of Property, Plant and Equipment and Right of use assets | Schedule of Property, Plant and Equipment and Right of use assets 2023 Computers Right-of-use asset Machinery Buildings Total NIS in thousands Cost Balance as of January 1, 2023 6,813 33,770 15,605 70,132 126,320 Disposals - (711 ) (55 ) (870 ) (1,636 ) Additions during the year 789 2,976 257 8,937 12,959 Balance as of December 31, 2023 7,602 36,035 15,807 78,199 137,643 Less accumulated depreciation and impairment losses Balance as of January 1, 2023 1,490 7,364 3,131 11,202 23,187 Disposals - (284 ) (41 ) (447 ) (772 ) Impairment loss - - 916 3,673 4,589 Additions during the year 1,490 4,982 1,797 4,897 13,166 Balance as of December 31, 2023 2,980 12,062 5,803 19,325 40,170 Property, plant and equipment, net, as of December 31, 2023 4,622 23,973 10,004 58,874 97,473 Note 9 – Property, Plant and Equipment and right of use assets : 2022 Computers Right-of-use asset Machinery Buildings Total NIS in thousands Cost Balance as of January 1, 2022 3,961 27,115 8,123 58,798 97,997 Acquisitions as part of business combination 165 - 22 1,747 1,934 Additions during the year 2,687 6,655 7,460 9,587 26,389 Balance as of December 31, 2022 6,813 33,770 15,605 70,132 126,320 Less accumulated depreciation Balance as of January 1, 2022 729 3,146 1,358 6,255 11,488 Additions during the year 761 4,218 1,773 4,947 11,699 Balance as of December 31, 2022 1,490 7,364 3,131 11,202 23,187 Property, plant and equipment, net, as of December 31, 2022 5,323 26,406 12,474 58,930 103,133 |
Investment in Assets Measured_2
Investment in Assets Measured at Fair Value through Profit or Loss (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of fair value measurement of assets [abstract] | |
Schedule of Investment in Assets Measured at Fair Value through Profit or Loss | The Company’s investments in biomed companies are revalued at fair value through profit and loss. The fair value is determined according to valuations, which are mostly performed using the OPM method. Schedule of Investment in Assets Measured at Fair Value through Profit or Loss 2023 2022 December 31 2023 2022 NIS in thousands Fair value of the investment in Fore (A) 1,922 1,600 Fair value of the investment in Cavnox (B) - 965 Fair value of the investment 1,922 2,565 Note 11 – Investment in Assets Measured at Fair Value through Profit or Loss: A. F.O.R.E Biotherapeutics Ltd. (“Fore”) In 2015 the Company signed an investment agreement together with the PontifaVenture Capital and additional investors, for an investment in F.O.R.E Biotherapeutics Ltd. (formerly known as NovellusDX Ltd.) (hereinafter: the “Agreement” and “Fore”). Fore is developing an innovative technology which is intended to significantly improve the results of treatment of patients suffering from various types of cancer, using designated biological drugs (hereinafter: the “Product”). In October 2022, Fore had an investment round. The Company chose not to participate and as a result was diluted from 0.44 0.11 In August 2023, Fore had another investment round of series D convertible preferred stock and raised USD 40 0.11 0.03 As of December 31, 2023, the Company’s stake in Fore is approximately 0.03 0.03 B. Cavnox Ltd. (“Cavnox”) In October 2021, the Company signed an investment agreement with Cavnox Ltd. (hereinafter: “Cavnox”), a private Israeli company that was established on the basis of knowledge developed at the Technion Institute for Research and Development Ltd. Which relates to cannabis-based treatment for various types of cancer. The Company invested in Cavnox a total of USD 300 As of December 31, 2023, the fair value of Cavnox according to the valuation is immaterial. Therefore, the Company recorded a loss in the amount of NIS 965 |
Receivables and Payables (Table
Receivables and Payables (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Trade and other receivables [abstract] | |
Schedule of Trade Receivables | Schedule of Trade Receivables 2023 2022 December 31 2023 2022 NIS in thousands Open accounts * 65,820 34,841 Credit cards receivable 1,634 3,725 Provision for discount (1,858 ) (753 ) Provision for doubtful debts (5,185 ) (894 ) trade receivables 60,411 36,919 * For additional information, please see Note 13A(2) regarding factoring. |
Schedule of Other Receivables | Schedule of Other Receivables B. Other receivables: 2023 2022 December 31 2023 2022 NIS in thousands Institutions (A) 61,325 6,384 Prepaid expenses 1,285 3,132 Prepayments to suppliers 29,464 1,212 Loans to non-related parties, net (B) 40,532 64,352 Receivables revenue 713 3,840 Loans to related parties 3,416 16,087 Others 4,381 2,368 Other Receivables 141,116 97,375 (A) As of December 31, 2023, the Company received compensation from the Tax authorities due to Iron Swords in a total amount of NIS 31.1 57.3 56 30 57 (B) The balance as of December 31, 2023, is comprised mainly of debts and loans provided to non-related parties as part of mergers and acquisitions processes which did not materialize and were not completed, net of respective provision for impairment. Debts and loans of approximately NIS 43.5 12.2 |
Schedule of Provision for Impairment | Schedule of Provision for Impairment Balance before provision for impairment 52,761 Provision for impairment (12,229 ) Balance after provision for impairment 40,532 |
Schedule of Other Payables | Schedule of Other Payables 2023 2022 December 31 2023 2022 NIS in thousands Accrued expenses 6,386 3,857 Institutions 27,351 21,236 Payroll and related liabilities 6,113 6,732 Deferred revenues - 8,060 Short term Lease liability 4,640 4,349 Advanced payments - 66 Deferred consideration due to acquisitions 4,080 4,080 Contingent liability (Note 16) 6,123 - Others 459 17 Other Payables 55,152 48,397 |
Financial Instruments and Man_2
Financial Instruments and Management of Financial Risks (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of detailed information about financial instruments [abstract] | |
Disclosure Of Foreign Currency Financial Assets And Liabilities | The carrying amounts of the Group’s financial assets and liabilities which are denominated in foreign currency are as follows: Disclosure Of Foreign Currency Financial Assets And Liabilities 2023 2022 2023 2022 Assets Liabilities As of December 31 As of December 31 2023 2022 2023 2022 NIS in thousands NIS in thousands NIS in thousands NIS in thousands Cash – EURO 24 - - - Cash – USD 293 17,302 541 - Cash 293 17,302 541 - Investment in Fore – USD 1,922 1,600 - - Investment in Cavnox – USD - 965 - - Investment - 965 - - Other receivables – USD 1,111 2,899 - - Trade payables – USD - - 13,380 11,267 Trade payables – CAD - - 921 208 Trade - - 921 208 |
Schedule of Financial Liabilities Contractual Terms, by Undiscounted Amounts | Schedule of Financial Liabilities Contractual Terms, by Undiscounted Amounts Up to one year One year or more Total NIS in thousands Credit from banking corporations ** 88,194 82,202 170,396 Trade payables and other payables 128,952 - 128,952 Lease liability (1) 4,640 20,641 25,281 Total financial liabilities undiscounted amount 221,786 102,843 324,629 As of December 31, 2022: Up to one year One year or more Total NIS in thousands Credit from banking corporations ** 126,935 99,684 226,619 Trade payables and other payables 174,463 - 174,463 Lease liability (1) 4,349 23,102 27,451 Short term loan from related party 1,090 - 1,090 Total Financial Liabilities Undiscounted Amount 306,837 122,786 429,623 ** The Company is in compliance with the required financial covenants. Therefore, the liabilities are presented under non-current liabilities. (1) The company has lease agreements for the company’s offices in Herzliya and for the pharmacies located throughout Israel. The term of the lease agreements ends between 2025 – 2036, depending on the location. |
Schedule of Financial Assets measured in Fair Value | The following table presents the Company’s financial assets and financial liabilities which are measured at fair value as of December 31, 2023: Schedule of Financial Assets measured in Fair Value Level 1 Level 2 Level 3 Total NIS in thousands Assets: Financial assets measured at fair value through profit or loss: Investments in investees 53 - 1,922 1,974 Investment in XTL stocks 134 - - 135 Total assets 187 - 1,922 2,109 The following table presents the Company’s financial assets and financial liabilities which are measured at fair value as of December 31, 2022: Level 1 Level 2 Level 3 Total NIS in thousands Assets: Financial assets measured at fair value through profit or loss: Investments in investees 48 - 2,565 2,613 Investment in XTL stocks 157 - - 157 Total assets 205 - 2,565 2,770 |
Schedule of Financial Assets Measured at Fair Value through Profit or Loss | Changes in financial instruments whose fair value measurement was classified at level 3: Schedule of Financial Assets Measured at Fair Value through Profit or Loss Financial assets measured at fair value through profit or loss in 2023 2022 NIS in thousands Opening balance 2,565 2,565 Loss which was recognized in the statement of income (643 ) - Closing balance 1,922 2,565 |
Schedule of Sensitivity Analysis in Profit or Loss in Foreign Currency | Schedule of Sensitivity Analysis in Profit or Loss in Foreign Currency Impact of the USD As of December 31 2023 NIS in thousands Profit or loss 185 |
Lease liability (Tables)
Lease liability (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Lease liabilities [abstract] | |
Schedule of Maturity Analysis of Lease Liabilities | Maturity analysis of the Group’s lease liabilities Schedule of Maturity Analysis of Lease Liabilities December 31, 2023 NIS thousands Less than one year 4,640 One to five years 12,133 More than five years 8,508 Total 25,281 Current maturities of lease liability 4,640 Long-term lease liability 20,641 Payments of lease liabilities 4,713 |
Schedule of Recognized Profit or Loss | Amounts recognized in profit or loss Schedule of Recognized Profit or Loss 2023 2022 2021 NIS thousands NIS thousands NIS thousands Interest expenses on lease liability 726 719 480 Variable lease payments not included in the measurement of the lease liability 1,330 988 2,574 Total 2,056 1,707 3,054 |
Taxes on Income (Tables)
Taxes on Income (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Major components of tax expense (income) [abstract] | |
Schedule of Deferred Tax Assets and Liabilities | The movement in deferred tax assets and liabilities is attributable to the following items: Schedule of Deferred Tax Assets and Liabilities Balance of deferred tax asset (liability) as at January 1, 2023 20,635 Deferred tax asset liability, beginning balance 20,635 Changes recognized in biological assets 1,275 Changes recognized in carryforward tax losses 1,786 Other changes 985 Balance of deferred tax asset (liability) as at December 31, 2023 24,681 Deferred tax asset liability, ending balance 24,681 |
Schedule of Components of Taxes | Schedule of Components of Taxes 2023 2022 2021 NIS in thousands NIS in thousands NIS in thousands Current tax expense 6,294 17,708 10,467 Deferred tax (income) (4,046 ) (17,615 ) 974 Total tax expense 2,248 93 11,441 |
Schedule of Reconciliation Between Tax on Earnings Before Income and Tax Expenses | Schedule of Reconciliation Between Tax on Earnings Before Income and Tax Expenses 2023 2022 2021 NIS in thousands Loss (Profit) before taxes on income 61,285 (43,842 ) (18,734 ) tax rate 23 % 23 % 23 % Total tax benefit (expense) at applicable tax rate 14,096 (10,084 ) (4,309 ) Nondeductible expenses (482 ) (2,999 ) (419 ) Nondeductible Share-based payment (596 ) (2,049 ) (1,484 ) Creation of deferred taxes for tax losses from previous years for which deferred taxes were not created in the past - 12,837 (2,709 ) Change in temporary differences for which deferred taxes are not recognized 529 (1,075 ) Impairment losses on goodwill (14,513 ) - - Other permanent differences (1,282 ) 3,277 (2,520 ) Income tax benefit (expense) (2,248 ) (93 ) (11,441 ) |
Long term loans (Tables)
Long term loans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Schedule of Long term Loans | Schedule of Long term Loans A. Composition of long term loans from banks: NIS in thousands Long-term credit from banks 82,202 Current maturities of long-term loans 50,266 Long term loans from banks 132,468 |
Schedule of Information on Material Loans | B. Information on material loans Schedule of Information on Material Loans Original loan Interest Loans amount Rate Period (years) December 31, 2023 December 31, 2022 NIS thousands NIS thousands Long-term material loans from bank 146,000 Prime rate plus a spread of 1.5% - 2.56% 1.5-5 113,471 107,471 Less current maturities (44,762 ) (26,202 ) Total 68,709 81,269 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of classes of share capital [abstract] | |
Schedule of Composition of Share Capital | Schedule of Composition of Share Capital December 31 December 31 2023 2022 2023 2022 Registered Issued and paid-up Ordinary shares with no par value 100,000,000 100,000,000 45,572,690 45,572,689 |
Schedule of Share-based Payment Expenses | The expense which was recognized in the financial statements for received services is presented in the following table: Schedule of Share-based Payment Expenses For the year ended December 31 2023 2022 2021 NIS in thousands Total expenses recognized from share-based payment transactions 2,592 8,907 6,452 |
Schedule of Share Options Activity | Presented below is a table listing the number of share options, the weighted average of their exercise prices, and the changes which were made to the employee options plans during the current year: Schedule of Share Options Activity 2023 2022 2021 Number of options Weighted average exercise price Number of options Weighted average exercise price Number of options Weighted average exercise price NIS NIS NIS Share options at beginning of year 3,402,113 11.44 2,257,753 17.06 1,199,791 15.40 Share options which were granted during the year - - 1,344,068 20.25 1,201,426 18.88 Share options which were forfeited during the year 278,491 15.24 128,438 6.90 132,688 18.38 Share options which expired during the year 103,791 6.87 71,270 4.84 674 18.38 Share options which were exercised during the year - - - - 10,103 18.38 Share options at end of year 3,019,831 11.59 3,402,113 11.44 2,257,753 17.06 Exercisable share options at year end 2,386,907 9.14 1,923,260 6.86 1,413,615 15.90 |
Expenses (Tables)
Expenses (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Expenses by nature [abstract] | |
Schedule of Cost of Revenue | Schedule of Cost of Revenue 2022 2021 2020 For the year ended December 31 2023 2022 2021 NIS in thousands Payroll and associated expenses 8,401 6,567 11,605 Farm operating expenses 12,132 13,673 20,407 Purchases 240,765 282,029 115,952 Depreciation 5,295 4,780 3,163 Changes in inventory (19,379 ) (77,322 ) (27,439 ) Total cost of revenue 247,214 229,727 123,688 |
Schedule of General and Administrative Expenses | Schedule of General and Administrative Expenses For the year ended December 31 2023 2022 2021 NIS in thousands Payroll and associated expenses 10,329 10,960 8,673 Consulting and professional expenses 8,555 7,759 4,686 Directors’ fees 431 821 567 Insurance 1,749 2,147 2,661 Rent and maintenance 5,958 5,997 2,837 Provision for doubtful debts 4,363 (20 ) 477 Fees 680 302 337 Depreciation 7,871 4,224 2,931 Other 2,674 3,892 4,037 Total General and administrative expense 42,610 36,082 27,206 |
Schedule of Sales and Marketing Expenses | Schedule of Sales and Marketing Expenses For the year ended December 31 2023 2022 2021 NIS in thousands Payroll and associated expenses 31,332 36,225 15,053 Commission distribution 14,834 5,597 5,624 Other 7,103 14,711 2,537 Total Sales and marketing expenses 53,269 56,533 23,214 |
Schedule of Other Expenses (Income) | Schedule of Other Expenses (Income) For the year ended December 31 A. Other income 2023 2022 2021 NIS in thousands Remeasurement of contingent consideration 897 10,572 - Government reimbursements (Note 1(2) and Note 12B(A)) 30,080 - - Remeasurement of provision for impairment 1,277 - - Other 1,632 300 860 Total other income 33,886 10,872 860 B. Other expenses For the year ended December 31 2023 2022 2021 NIS in thousands Remeasurement of contingent consideration 1,964 - - Impairment losses on goodwill 63,101 - - Impairment losses on Property, plant and equipment 4,589 - - Changes in loan measured at fair value through profit or loss 2,330 - - Issuance expenses - - 3,504 Provision for impairment (See Note 12B) - 11,729 - Other 9,040 1,271 327 Total Other expenses 81,024 13,000 3,831 |
Finance income (Tables)
Finance income (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Finance Income | |
Schedule of Finance income | Schedule of Finance income For the year ended December 31 2023 2022 2021 NIS in thousands Income from deposits 5,301 844 130 Interest in respect of loan from related party 74 - - Exchange differences 508 7,326 - Total finance income 5,883 8,170 130 |
Finance expenses (Tables)
Finance expenses (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Finance Expenses | |
Schedule of Finance Expenses | Schedule of Finance Expenses For the year ended December 31 2023 2022 2021 NIS in thousands Interest in respect of loan from related party - - 43 Expenses in respect of fees and interest 23,493 14,059 4,627 Exchange differences 554 - 4,536 Interest expense in respect of lease liability 726 630 375 Other 828 266 - Total finance expenses 25,601 14,955 9,581 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Profit or loss [abstract] | |
Schedule of Calculation of Loss Per Share | Details regarding the number of shares in the calculation of profit or (loss) per share Schedule of Calculation of Loss Per Share For the year ended December 31 2023 2022 2021 Profit (loss) Profit (loss) Profit (loss) Weighted number of shares NIS in thousands Weighted number of shares NIS in thousands Weighted number of shares NIS in thousands Number of shares and profit (loss) for calculating basic profit (loss) per share 45,572,689 (61,959 ) 45,352,601 44,819 38,492,600 (4,690 ) Options which could potentially be dilutive in the future, antidilutive in 2023, 2022 and 2021 - 54,271 2,346,532 |
Balances and Transactions wit_2
Balances and Transactions with Related Parties (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Outstanding balances for related party transactions [abstract] | |
Schedule of Transactions Between Related Parties | Schedule of Transactions Between Related Parties A. Balances with related parties (consolidated) Composition: 2023 2022 December 31 2023 2022 NIS in thousands Other receivables (Note 12B) 3,429 16,087 |
Schedule of Employed and Non Employed Employment Benefits | Schedule of Employed and Non Employed Employment Benefits 1. Benefits in respect of the employment of key management personnel (including directors) (*) who are employed in the Company: For the year ended December 31 2023 2022 2021 Amount Amount Amount Number of people NIS in thousands Number of people NIS in thousands Number of people NIS in thousands Short-term employee benefits 4 2,628 4 2,198 3 946 Management fees 1 781 1 675 1 606 Share-based payment 4 1,346 4 6,362 1 3,023 4 4,755 4 9,235 3 4,575 (*) The key management personnel include the Chairman of the Board, the Company’s CEO, CFO and the COO 2. Benefits in respect of key management personnel (including directors) who are not employees of the Company: For the year ended December 31 2023 2022 2021 Amount Amount Amount Number of people NIS in thousands Number of people NIS in thousands Number of people NIS in thousands Management fees 4 518 4 739 3 550 Share-based payment - - 3 14 3 48 4 518 4 753 3 598 (*) The key management personnel who are not employees of the Company include one director, two outside directors, and one independent director. |
Operating Segments (Tables)
Operating Segments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of geographical areas [abstract] | |
Schedule of Financial Data Regarding Segment | Presented below are financial data regarding the segment: Schedule of Financial Data Regarding Segment 2023 2022 NIS in thousands Loss from investment in XTL 22 174 Loss from investment in Cavnox 965 - Gain from investment in Fore (322 ) - Gain (Loss) from investment 665 174 2023 2022 NIS in thousands Fair value of the investment in XTL 134 156 Fair value of the investment in Cavnox - 965 Fair value of the investment in Fore 1,922 1,600 Fair value of the investment 2,056 2,721 |
Schedule of Operating Segments | Reconciliation of operating segment data include addition of assets and liabilities which were not attributed to segments. Schedule of Operating Segments Cannabis segment Biomed segment Reconciliations Total NIS in thousands Cannabis segment Biomed segment Reconciliations Total Year ended December 31, 2023 External revenue 355,553 - - 355,553 Segment profit (loss) 44,460 (665 ) - 43,795 General and administrative expenses not attributable to segments (38,224 ) Other expenses, net (47,138 ) Operating Loss (41,567 ) Segment assets 755,209 2,056 29,349 786,614 Segment liabilities 392,381 - (62,829 ) 329,552 Cannabis segment Biomed segment Reconciliations Total NIS in thousands Cannabis segment Biomed segment Reconciliations Total Year ended December 31, 2022 External revenue 388,684 - - 388,684 Segment profit (loss) 68,552 (174 ) - 68,378 General and administrative expenses not attributable to segments (15,623 ) Other expenses, net (2,128 ) Operating Profit 50,627 Segment assets 886,184 2,770 69,053 958,007 Segment liabilities 526,285 - (89,755 ) 436,530 Cannabis segment Biomed segment Reconciliations Total NIS in thousands Cannabis segment Biomed segment Reconciliations Total Year ended December 31, 2021 External revenue 219,677 - - 219,677 Segment profit (loss) 44,646 (1,868 ) - 42,778 General and administrative expenses not attributable to segments (11,620 ) Other expenses, net (2,971 ) Operating Profit 28,187 Segment assets 551,435 2,895 131,994 686,324 Segment liabilities 132,562 - 94,571 227,133 |
General (Details Narrative)
General (Details Narrative) ₪ / shares in Units, $ / shares in Units, ₪ in Thousands, $ in Millions | 12 Months Ended | ||||||||||
Sep. 15, 2023 | Feb. 16, 2022 USD ($) $ / shares | May 14, 2020 | Dec. 31, 2023 USD ($) | Dec. 31, 2023 ILS (₪) ₪ / shares shares | Dec. 31, 2022 ILS (₪) shares | Dec. 31, 2021 ILS (₪) shares | Jan. 31, 2023 | Oct. 13, 2021 shares | May 18, 2021 | Apr. 23, 2021 shares | |
IfrsStatementLineItems [Line Items] | |||||||||||
Number of shares issued | shares | 438,745 | 139,966 | |||||||||
Issue of equity | ₪ 136,506 | ||||||||||
Other receivables | ₪ 141,116 | ₪ 97,375 | |||||||||
Inventories | 81,000 | ||||||||||
Loss of profits from property, plant and equipment | 4,589 | ||||||||||
Cann pharmaceutical ltd [member] | |||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||
Percentage of voting equity interests acquired | 100% | 100% | |||||||||
Issue of equity | $ | $ 35 | ||||||||||
Price per share | $ / shares | $ 10 | ||||||||||
Biological assets [member] | |||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||
Loss of profits from property, plant and equipment | 5,000 | ||||||||||
Pharmacies [member] | |||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||
Loss of profits from property, plant and equipment | ₪ 2,000 | ||||||||||
Private placements [member] | |||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||
Number of shares issued | shares | 5,000,000 | ||||||||||
Ordinary shares [member] | |||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||
Number of shares issued and fully paid | shares | 45,572,690 | 45,572,689 | |||||||||
Canndoc ltd [member] | |||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||
Proportion of ownership interest in subsidiary | 100% | 100% | |||||||||
Cannolam ltd [member] | |||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||
Proportion of ownership interest in subsidiary | 100% | 50.10% | |||||||||
Pharmazone ltd [member] | |||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||
Percentage of voting equity interests acquired | 100% | ||||||||||
SPAC transaction [member] | |||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||
Issue of equity | $ 50 | ₪ 162,000 | |||||||||
Other receivables | ₪ 8,400 | ||||||||||
SPAC transaction [member] | Private placements [member] | |||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||
Other receivables | ₪ 182,000 | ||||||||||
SPAC transaction [member] | Ordinary shares [member] | |||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||
Number of shares issued | shares | 15,650,280 | 15,650,280 | |||||||||
Number of shares issued and fully paid | shares | 5,243,616 | ||||||||||
Price per share | ₪ / shares | ₪ 13 | ||||||||||
SPAC transaction [member] | Forfeiture ordinary shares [member] | |||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||
Number of shares issued but not fully paid | shares | 5,243,616 |
Schedule of Depreciation Rate (
Schedule of Depreciation Rate (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Machinery [member] | Bottom of range [member] | |
IfrsStatementLineItems [Line Items] | |
Depreciation rate | 7% |
Machinery [member] | Top of range [member] | |
IfrsStatementLineItems [Line Items] | |
Depreciation rate | 15% |
Computer equipment [member] | |
IfrsStatementLineItems [Line Items] | |
Depreciation rate | 33% |
Land and buildings [member] | |
IfrsStatementLineItems [Line Items] | |
Depreciation rate | 10% |
Bearer plants [member] | |
IfrsStatementLineItems [Line Items] | |
Depreciation rate | 7% |
Material Accounting Policies (D
Material Accounting Policies (Details Narrative) - ILS (₪) ₪ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
IfrsStatementLineItems [Line Items] | ||
Assets held for sale current | ₪ 20,000 | |
Buildings [member] | Bottom of range [member] | ||
IfrsStatementLineItems [Line Items] | ||
Useful life measured as period of time, property, plant and equipment | 5 years | |
Buildings [member] | Top of range [member] | ||
IfrsStatementLineItems [Line Items] | ||
Useful life measured as period of time, property, plant and equipment | 10 years |
Schedule of Cash and Cash Equiv
Schedule of Cash and Cash Equivalents (Details) - ILS (₪) ₪ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||||
Cash | ₪ 94,819 | ₪ 192,351 | ||
Short term deposits | 6,320 | 40,238 | ||
Total cash and cash equivalents | 101,139 | 232,589 | ₪ 196,217 | ₪ 37,888 |
NIS | 101,139 | 232,589 | ₪ 196,217 | ₪ 37,888 |
Euro Member Countries, Euro | ||||
IfrsStatementLineItems [Line Items] | ||||
Total cash and cash equivalents | 24 | |||
NIS | 24 | |||
United States of America, Dollars | ||||
IfrsStatementLineItems [Line Items] | ||||
Total cash and cash equivalents | 293 | 17,302 | ||
NIS | 293 | 17,302 | ||
Israel, New Shekels | ||||
IfrsStatementLineItems [Line Items] | ||||
Total cash and cash equivalents | 100,822 | 215,287 | ||
NIS | ₪ 100,822 | ₪ 215,287 |
Schedule of Inventory (Details)
Schedule of Inventory (Details) - ILS (₪) ₪ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule Of Inventory | ||
Finished goods | ₪ 60,468 | ₪ 50,140 |
Goods in process and dried inflorescence | 45,001 | 89,993 |
Total inventory | ₪ 105,469 | ₪ 140,133 |
Schedule of Fair Value Assets (
Schedule of Fair Value Assets (Details) - ILS (₪) ₪ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
IfrsStatementLineItems [Line Items] | |||
Biological Assets | ₪ 822 | ₪ 6,365 | ₪ 5,566 |
Level 1 of fair value hierarchy [member] | |||
IfrsStatementLineItems [Line Items] | |||
Biological Assets | |||
Level 2 of fair value hierarchy [member] | |||
IfrsStatementLineItems [Line Items] | |||
Biological Assets | |||
Level 3 of fair value hierarchy [member] | |||
IfrsStatementLineItems [Line Items] | |||
Biological Assets | ₪ 822 | ₪ 6,365 |
Schedule of Changes in Biologic
Schedule of Changes in Biological Assets (Details) - ILS (₪) ₪ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of detailed information about biological assets [abstract] | ||
Balance as of January 1 | ₪ 6,365 | ₪ 5,566 |
Costs of growing medical cannabis plants | 57,496 | 79,131 |
Change in fair value less selling costs | 261 | 13,054 |
Damaged (See Note 1(2) and Note 12B) | (8,885) | |
Transfer to inventory | (54,415) | (91,386) |
Balance as of December 31 | ₪ 822 | ₪ 6,365 |
Schedule of Assumptions in Biol
Schedule of Assumptions in Biological Assets (Details) | 12 Months Ended | ||
Dec. 31, 2023 T ₪ / shares | Dec. 31, 2022 T ₪ / shares | ||
Disclosure of detailed information about biological assets [abstract] | |||
Net growing area (in thousands of square meters) | 10.5 | 10.5 | |
Estimate net yield as of the reporting date (tons) | T | [1] | 0.2 | 1.9 |
Estimated net selling price (NIS per gram) | ₪ / shares | [2] | ₪ 16.9 | ₪ 17.4 |
Estimated growing cycle length (in weeks) (4) | [3] | 91 days | 91 days |
Estimated growing cycle completion rate (in percent) | [4] | 38 | 28 |
Proportion of plants which do not reach the harvesting stage | [5] | 3 | 3 |
[1]According to the number of seedlings as of the end of the reporting period[2]According to the price range of the Company’s existing products as of the end of the reporting period[3]In accordance with the Company’s experience, and according to the strains which exist as of the reporting date[4]By planting date vs. growing cycle length[5]According to the final product net weight |
Schedule of Sensitivity Analysi
Schedule of Sensitivity Analysis of Biological Assets (Details) - ILS (₪) ₪ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of detailed information about biological assets [abstract] | ||
Average selling price | ₪ 100 | ₪ 769 |
Proportion of oil products | 1 | 18 |
Proportion of plants which do not reach the harvesting | ₪ 2 | ₪ (20) |
Investments in Financial Asse_2
Investments in Financial Assets Measured at Fair Value Through Profit or Loss: (Details Narrative) - XTL biopharmaceuticals ltd [member] - shares | Dec. 31, 2023 | Dec. 31, 2022 |
IfrsStatementLineItems [Line Items] | ||
Shares hold | 3,840,617 | 3,840,617 |
Issued and paid up percentage | 0.70% | 0.70% |
Controlling shareholders holds percentage | 23.54% | 23.54% |
Schedule of Transferred Conside
Schedule of Transferred Consideration (Details) - ILS (₪) ₪ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
IfrsStatementLineItems [Line Items] | ||
Consideration paid in cash | ||
Deferred consideration in cash | 4,352 | |
Contingent consideration | 10,185 | |
Non-controlling interests | 142 | |
Transferred consideration | 14,395 | |
Non-controlling interests | ₪ (142) | |
Cannolam ltd [member] | ||
IfrsStatementLineItems [Line Items] | ||
Consideration paid in cash | ₪ 24,304 | |
Payable in respect of shares | 17,376 | |
Deferred consideration in cash | 9,862 | |
Contingent consideration | 18,668 | |
Non-controlling interests | 1,178 | |
Transferred consideration | 71,388 | |
Non-controlling interests | ₪ (1,178) |
Schedule of Acquisition of Cash
Schedule of Acquisition of Cash Flows (Details) - ILS (₪) ₪ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Investment In Subsidiaries | ||
Consideration paid in cash | ₪ (24,304) | |
Less – acquired cash and cash equivalents | 1,560 | 5,210 |
Total | ₪ 1,560 | ₪ (19,094) |
Schedule of Amounts Recognized
Schedule of Amounts Recognized on Acquisition (Details) - ILS (₪) ₪ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Investment In Subsidiaries | ||
Cash and cash equivalents | ₪ 1,560 | ₪ 5,210 |
Restricted cash | 196 | 586 |
Trade and other receivables | 1,936 | 20,452 |
Deferred tax assets | 1,056 | |
Inventory | 2,631 | 22,788 |
Property, plant and equipment and right-of-use asset | 1,934 | 6,267 |
Goodwill | 150 | 329 |
Short term loans | (699) | |
Current maturities | (75) | (93) |
Trade and other payable | (7,524) | (50,670) |
Financial liabilities | (3,237) | (3,583) |
Loan to non-controlling interest | 2,598 | 5,119 |
Liabilities in respect of employee benefits | (383) | (383) |
Lease liability | (2,650) | |
Total identifiable net assets | (1,337) | ₪ (6,509) |
Financial assets measured at fair value through profit or loss | 47 | |
Overdraft | ₪ (1,170) |
Investment in Subsidiaries (Det
Investment in Subsidiaries (Details Narrative) - ILS (₪) ₪ in Thousands | 1 Months Ended | 12 Months Ended | |||||||||||||
Dec. 19, 2022 | Jul. 27, 2022 | Apr. 24, 2022 | Feb. 05, 2022 | Jan. 19, 2022 | Oct. 20, 2021 | Aug. 08, 2021 | May 18, 2021 | Oct. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Sep. 18, 2023 | May 14, 2020 | |
IfrsStatementLineItems [Line Items] | |||||||||||||||
Acquisition description | On July 27, 2022, the Company engaged in an agreement to purchase 51% of “Refua Center” pharmacy located in Bnei Brak. | On April 24, 2022, the Company engaged in an agreement to purchase 51% of “Amidar” pharmacy located in Naharia. | On February 5, 2022, the Company engaged in an agreement to purchase 100% of “Maayan Haim” pharmacy located in Ashdod. | On January 19, 2022, the Company engaged in an agreement to purchase 51% of “Orni” pharmacy located in Tel Aviv. | On October 20, 2021, the company engaged in an agreement to purchase 51% of “Maayan Haim” pharmacy located in Bet Dagan which has a license to sell Medical cannabis. | On August 8, 2021, the Company engaged in an agreement to purchase 51% of “Club Pharm Shely” pharmacy located in Binyamina. | On May 18, 2021, the Company acquired 100% of “Pharmazone” trading house, “Doron” pharmacy and “Ahuza” pharmacy located in Raanana. | In October 2022, the Company purchase 51% of “Amirim Pharm” pharmacy located in Hadera. | In March 2021, the Company acquired, through Cannolam, four pharmacies located in Dimona (51%), Tel Aviv (100%), Kfar Hasidim (100%) and Ashdod (51%). | ||||||
Contingent consideration provisional | ₪ 818 | ₪ 5,060 | ₪ 15,780 | ||||||||||||
Goodwill | 15,882 | 67,690 | |||||||||||||
Noncontrolling interest | 142 | 9,043 | |||||||||||||
Revenue | 355,553 | 388,684 | 219,677 | ||||||||||||
Loans received from partners | ₪ 20,000 | ||||||||||||||
Assets | 786,614 | 958,007 | |||||||||||||
Liabilities | 329,552 | 436,530 | |||||||||||||
Loss value | ₪ (63,533) | 43,749 | 7,293 | ||||||||||||
Proceeds from partner inventory income | 20,000 | ||||||||||||||
Annual interest rate | 3% | ||||||||||||||
Inventories | ₪ 105,469 | 140,133 | |||||||||||||
Partnership agreement [member] | |||||||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||||||
Assets | 40,700 | ||||||||||||||
Liabilities | 36,900 | ||||||||||||||
Loss value | 18,400 | ||||||||||||||
Inventories | 19,200 | ||||||||||||||
Loans | 21,600 | ||||||||||||||
Revenues | 2,400 | ||||||||||||||
Interest costs incurred | ₪ 900 | ||||||||||||||
Top of range [member] | |||||||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||||||
Proceeds from partner income | ₪ 40,000 | ||||||||||||||
Measurement of fair values [member] | |||||||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||||||
Revenue | 22,460 | 54,609 | |||||||||||||
Total comprehensive profit (loss) for the year | 378 | 3,153 | |||||||||||||
Acquisition-related costs for transaction recognised separately from acquisition of assets and assumption of liabilities in business combination | 625 | 356 | |||||||||||||
Measurement of fair values [member] | Subsidiaries [member] | |||||||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||||||
Revenue | 162,164 | ||||||||||||||
Total comprehensive profit (loss) for the year | 34,876 | ₪ 3,068 | |||||||||||||
Canndoc [member] | |||||||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||||||
Percentage of voting equity interests acquired | 100% | ||||||||||||||
Pharmazone [member] | |||||||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||||||
Percentage of voting equity interests acquired | 100% | ||||||||||||||
Cannolam ltd [member] | |||||||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||||||
Percentage of voting equity interests acquired | 100% | 100% | 100% | ||||||||||||
Acquisitions 2022 [member] | |||||||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||||||
Contingent consideration provisional | ₪ 3,264 | ₪ 5,170 | |||||||||||||
Eilat pharmacy and trading house [member] | |||||||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||||||
Loans received from partners | 2,500 | ||||||||||||||
Assets | 4,200 | ||||||||||||||
Liabilities | 4,300 | ||||||||||||||
Loss value | ₪ 100 |
Schedule of Property, Plant and
Schedule of Property, Plant and Equipment and Right of use assets (Details) - ILS (₪) ₪ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
IfrsStatementLineItems [Line Items] | ||
Beginning balance | ₪ 103,133 | |
Ending balance | 97,473 | ₪ 103,133 |
Right-of-use assets [member] | ||
IfrsStatementLineItems [Line Items] | ||
Beginning balance | 26,406 | |
Ending balance | 23,973 | 26,406 |
Gross carrying amount [member] | ||
IfrsStatementLineItems [Line Items] | ||
Beginning balance | 126,320 | 97,997 |
Disposals | (1,636) | |
Additions during the year | 12,959 | 26,389 |
Ending balance | 137,643 | 126,320 |
Acquisitions as part of business combination | 1,934 | |
Gross carrying amount [member] | Right-of-use assets [member] | ||
IfrsStatementLineItems [Line Items] | ||
Beginning balance | 33,770 | 27,115 |
Disposals | (711) | |
Additions during the year | 2,976 | 6,655 |
Ending balance | 36,035 | 33,770 |
Acquisitions as part of business combination | ||
Accumulated depreciation, amortisation and impairment [member] | ||
IfrsStatementLineItems [Line Items] | ||
Beginning balance | 23,187 | 11,488 |
Disposals | (772) | |
Additions during the year | 13,166 | 11,699 |
Ending balance | 40,170 | 23,187 |
Impairment loss | 4,589 | |
Accumulated depreciation, amortisation and impairment [member] | Right-of-use assets [member] | ||
IfrsStatementLineItems [Line Items] | ||
Beginning balance | 7,364 | 3,146 |
Disposals | (284) | |
Additions during the year | 4,982 | 4,218 |
Ending balance | 12,062 | 7,364 |
Impairment loss | ||
Accumulated depreciation, amortisation and impairment [member] | Computer equipment [member] | ||
IfrsStatementLineItems [Line Items] | ||
Additions during the year | 761 | |
Computer equipment [member] | ||
IfrsStatementLineItems [Line Items] | ||
Beginning balance | 5,323 | |
Ending balance | 4,622 | 5,323 |
Computer equipment [member] | Gross carrying amount [member] | ||
IfrsStatementLineItems [Line Items] | ||
Beginning balance | 6,813 | 3,961 |
Disposals | ||
Additions during the year | 789 | 2,687 |
Ending balance | 7,602 | 6,813 |
Acquisitions as part of business combination | 165 | |
Computer equipment [member] | Accumulated depreciation, amortisation and impairment [member] | ||
IfrsStatementLineItems [Line Items] | ||
Beginning balance | 1,490 | |
Disposals | ||
Additions during the year | 1,490 | 729 |
Ending balance | 2,980 | 1,490 |
Impairment loss | ||
Machinery [member] | ||
IfrsStatementLineItems [Line Items] | ||
Beginning balance | 12,474 | |
Ending balance | 10,004 | 12,474 |
Machinery [member] | Gross carrying amount [member] | ||
IfrsStatementLineItems [Line Items] | ||
Beginning balance | 15,605 | 8,123 |
Disposals | (55) | |
Additions during the year | 257 | 7,460 |
Ending balance | 15,807 | 15,605 |
Acquisitions as part of business combination | 22 | |
Machinery [member] | Accumulated depreciation, amortisation and impairment [member] | ||
IfrsStatementLineItems [Line Items] | ||
Beginning balance | 3,131 | 1,358 |
Disposals | (41) | |
Additions during the year | 1,797 | 1,773 |
Ending balance | 5,803 | 3,131 |
Impairment loss | 916 | |
Buildings [member] | ||
IfrsStatementLineItems [Line Items] | ||
Beginning balance | 58,930 | |
Ending balance | 58,874 | 58,930 |
Buildings [member] | Gross carrying amount [member] | ||
IfrsStatementLineItems [Line Items] | ||
Beginning balance | 70,132 | 58,798 |
Disposals | (870) | |
Additions during the year | 8,937 | 9,587 |
Ending balance | 78,199 | 70,132 |
Acquisitions as part of business combination | 1,747 | |
Buildings [member] | Accumulated depreciation, amortisation and impairment [member] | ||
IfrsStatementLineItems [Line Items] | ||
Beginning balance | 11,202 | 6,255 |
Disposals | (447) | |
Additions during the year | 4,897 | 4,947 |
Ending balance | 19,325 | ₪ 11,202 |
Impairment loss | ₪ 3,673 |
Schedule of Goodwill (Details)
Schedule of Goodwill (Details) ₪ in Thousands | 12 Months Ended |
Dec. 31, 2023 ILS (₪) | |
Notes and other explanatory information [abstract] | |
Balance as at December 31, 2022 | ₪ 284,181 |
Impairment loss | (63,101) |
Balance as at December 31, 2023 | ₪ 221,080 |
Goodwill (Details Narrative)
Goodwill (Details Narrative) ₪ in Thousands | 12 Months Ended |
Dec. 31, 2023 ILS (₪) | |
Notes and other explanatory information [abstract] | |
Recoverable amount | ₪ 390,936 |
Impairment losses on goodwill | ₪ 63,101 |
After-tax discount rate | 16.50% |
Debt leveraging rate | 7% |
Market interest rate | 9.65% |
Terminal value long-term growth rate | 3.50% |
Decrease impairment loss | ₪ 352,232 |
Incease impairment loss | 39 |
Impairment loss on financial assets | 368,352 |
Impairment loss on financial increase | ₪ 23 |
Schedule of Investment in Asset
Schedule of Investment in Assets Measured at Fair Value through Profit or Loss (Details) - ILS (₪) ₪ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
IfrsStatementLineItems [Line Items] | ||
Fair value of the investment | ₪ 1,922 | ₪ 2,565 |
F.O.R.E biotherapeutics ltd [member] | ||
IfrsStatementLineItems [Line Items] | ||
Fair value of the investment | 1,922 | 1,600 |
Cavnox ltd [member] | ||
IfrsStatementLineItems [Line Items] | ||
Fair value of the investment | ₪ 965 |
Investment in Assets Measured_3
Investment in Assets Measured at Fair Value through Profit or Loss (Details Narrative) ₪ in Thousands, $ in Thousands | 1 Months Ended | |||||
Oct. 31, 2021 USD ($) | Oct. 31, 2021 ILS (₪) | Dec. 31, 2023 ILS (₪) | Aug. 31, 2023 USD ($) | Dec. 31, 2022 ILS (₪) | Oct. 31, 2022 | |
IfrsStatementLineItems [Line Items] | ||||||
Issued capital | ₪ | ₪ 643,158 | ₪ 632,025 | ||||
F.O.R.E biotherapeutics ltd [member] | Contractual agreement [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Diluted percentage | 0.03% | |||||
Issued capital | $ | $ 40,000 | |||||
Undiluted percentage | 0.03% | |||||
F.O.R.E biotherapeutics ltd [member] | Top of range [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Diluted percentage | 0.44% | |||||
F.O.R.E biotherapeutics ltd [member] | Bottom of range [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Diluted percentage | 0.11% | |||||
Regenera pharma ltd [member] | Top of range [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Diluted percentage | 0.11% | |||||
Regenera pharma ltd [member] | Bottom of range [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Diluted percentage | 0.03% | |||||
Cavnox ltd [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Return for convertible loan, amount | $ 300 | ₪ 965 |
Schedule of Trade Receivables (
Schedule of Trade Receivables (Details) - ILS (₪) ₪ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Trade and other receivables [abstract] | |||
Open accounts | [1] | ₪ 65,820 | ₪ 34,841 |
Credit cards receivable | 1,634 | 3,725 | |
Provision for discount | (1,858) | (753) | |
Provision for doubtful debts | (5,185) | (894) | |
trade receivables | ₪ 60,411 | ₪ 36,919 | |
[1]For additional information, please see Note 13A(2) regarding factoring. |
Schedule of Other Receivables (
Schedule of Other Receivables (Details) - ILS (₪) ₪ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Trade and other receivables [abstract] | ||
Institutions (A) | ₪ 61,325 | ₪ 6,384 |
Prepaid expenses | 1,285 | 3,132 |
Prepayments to suppliers | 29,464 | 1,212 |
Loans to non-related parties, net (B) | 40,532 | 64,352 |
Receivables revenue | 713 | 3,840 |
Loans to related parties | 3,416 | 16,087 |
Others | 4,381 | 2,368 |
Other Receivables | ₪ 141,116 | ₪ 97,375 |
Schedule of Provision for Impai
Schedule of Provision for Impairment (Details) ₪ in Thousands | 12 Months Ended |
Dec. 31, 2023 ILS (₪) | |
Trade and other receivables [abstract] | |
Balance before provision for impairment | ₪ 52,761 |
Provision for impairment | (12,229) |
Balance after provision for impairment | ₪ 40,532 |
Schedule of Other Payables (Det
Schedule of Other Payables (Details) - ILS (₪) ₪ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Trade and other receivables [abstract] | ||
Accrued expenses | ₪ 6,386 | ₪ 3,857 |
Institutions | 27,351 | 21,236 |
Payroll and related liabilities | 6,113 | 6,732 |
Deferred revenues | 8,060 | |
Short term Lease liability | 4,640 | 4,349 |
Advanced payments | 66 | |
Deferred consideration due to acquisitions | 4,080 | 4,080 |
Contingent liability (Note 16) | 6,123 | |
Others | 459 | 17 |
Other Payables | ₪ 55,152 | ₪ 48,397 |
Receivables and Payables (Detai
Receivables and Payables (Details Narrative) | 12 Months Ended | |||||
Dec. 31, 2023 ILS (₪) | Dec. 31, 2022 ILS (₪) | Dec. 31, 2021 ILS (₪) | Apr. 30, 2024 ILS (₪) | Jun. 06, 2023 USD ($) | Apr. 17, 2023 ILS (₪) | |
IfrsStatementLineItems [Line Items] | ||||||
Received compensation | $ 35,000,000 | ₪ 42,000,000 | ||||
Other income | ₪ 33,886,000 | ₪ 10,872,000 | ₪ 860,000 | |||
Cost of revenue | 247,214,000 | ₪ 229,727,000 | ₪ 123,688,000 | |||
Debts and loans | 43,500,000 | |||||
Repayment of loans | 12,200,000 | |||||
Iron swords [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Received compensation | 31,100,000 | |||||
Receive tax authorities | 56,000,000 | |||||
Other income | 30,000,000 | |||||
Cost of revenue | ₪ 57,000,000 | |||||
Iron swords [member] | Nonadjusting event reporting [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Received compensation | ₪ 57,300,000 |
Disclosure Of Foreign Currency
Disclosure Of Foreign Currency Financial Assets And Liabilities (Details) € in Thousands, ₪ in Thousands, $ in Thousands, $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2023 ILS (₪) | Dec. 31, 2023 EUR (€) | Dec. 31, 2023 CAD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 ILS (₪) | Dec. 31, 2022 EUR (€) | Dec. 31, 2022 CAD ($) |
IfrsStatementLineItems [Line Items] | ||||||||
Cash | ₪ | ₪ 94,819 | ₪ 192,351 | ||||||
Investment | ₪ | 187 | |||||||
Other receivables – USD | ₪ | ₪ 141,116 | ₪ 97,375 | ||||||
Class of liabilities [member] | ||||||||
IfrsStatementLineItems [Line Items] | ||||||||
Cash | $ 541 | |||||||
Other receivables – USD | ||||||||
Trade | 13,380 | $ 921 | 11,267 | $ 208 | ||||
Class of liabilities [member] | F.O.R.E biotherapeutics ltd [member] | ||||||||
IfrsStatementLineItems [Line Items] | ||||||||
Investment | ||||||||
Class of liabilities [member] | Cavnox ltd [member] | ||||||||
IfrsStatementLineItems [Line Items] | ||||||||
Investment | ||||||||
Class of assets [member] | ||||||||
IfrsStatementLineItems [Line Items] | ||||||||
Cash | 293 | € 24 | 17,302 | |||||
Other receivables – USD | 1,111 | 2,899 | ||||||
Trade | ||||||||
Class of assets [member] | F.O.R.E biotherapeutics ltd [member] | ||||||||
IfrsStatementLineItems [Line Items] | ||||||||
Investment | 1,922 | 1,600 | ||||||
Class of assets [member] | Cavnox ltd [member] | ||||||||
IfrsStatementLineItems [Line Items] | ||||||||
Investment | $ 965 |
Schedule of Financial Liabiliti
Schedule of Financial Liabilities Contractual Terms, by Undiscounted Amounts (Details) - ILS (₪) ₪ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
IfrsStatementLineItems [Line Items] | |||
Credit from banking corporations | [1] | ₪ 170,396 | ₪ 226,619 |
Trade payables and other payables | 128,952 | 174,463 | |
Lease liability | [2] | 25,281 | 27,451 |
Total Financial Liabilities Undiscounted Amount | 324,629 | 429,623 | |
Short term loan from related party | 1,090 | ||
Not later than one year [member] | |||
IfrsStatementLineItems [Line Items] | |||
Credit from banking corporations | [1] | 88,194 | 126,935 |
Trade payables and other payables | 128,952 | 174,463 | |
Lease liability | [2] | 4,640 | 4,349 |
Total Financial Liabilities Undiscounted Amount | 221,786 | 306,837 | |
Short term loan from related party | 1,090 | ||
Later than one year [member] | |||
IfrsStatementLineItems [Line Items] | |||
Credit from banking corporations | [1] | 82,202 | 99,684 |
Trade payables and other payables | |||
Lease liability | [2] | 20,641 | 23,102 |
Total Financial Liabilities Undiscounted Amount | ₪ 102,843 | 122,786 | |
Short term loan from related party | |||
[1]The Company is in compliance with the required financial covenants. Therefore, the liabilities are presented under non-current liabilities.[2]The company has lease agreements for the company’s offices in Herzliya and for the pharmacies located throughout Israel. |
Schedule of Financial Assets me
Schedule of Financial Assets measured in Fair Value (Details) - ILS (₪) ₪ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
IfrsStatementLineItems [Line Items] | ||
Investments in investees | ₪ 1,974 | ₪ 2,613 |
Investment in XTL stocks | 135 | 157 |
Total assets | 2,109 | 2,770 |
Level 1 of fair value hierarchy [member] | ||
IfrsStatementLineItems [Line Items] | ||
Investments in investees | 53 | 48 |
Investment in XTL stocks | 134 | 157 |
Total assets | 187 | 205 |
Level 2 of fair value hierarchy [member] | ||
IfrsStatementLineItems [Line Items] | ||
Investments in investees | ||
Investment in XTL stocks | ||
Total assets | ||
Level 3 of fair value hierarchy [member] | ||
IfrsStatementLineItems [Line Items] | ||
Investments in investees | 1,922 | 2,565 |
Investment in XTL stocks | ||
Total assets | ₪ 1,922 | ₪ 2,565 |
Schedule of Financial Assets _2
Schedule of Financial Assets Measured at Fair Value through Profit or Loss (Details) - ILS (₪) ₪ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
IfrsStatementLineItems [Line Items] | |||
Opening balance | ₪ 2,565 | ||
Profit for the year | (63,533) | ₪ 43,749 | ₪ 7,293 |
Closing balance | 1,922 | 2,565 | |
Level 3 of fair value hierarchy [member] | |||
IfrsStatementLineItems [Line Items] | |||
Opening balance | 2,565 | 2,565 | |
Profit for the year | (643) | ||
Closing balance | ₪ 1,922 | ₪ 2,565 | ₪ 2,565 |
Schedule of Sensitivity Analy_2
Schedule of Sensitivity Analysis in Profit or Loss in Foreign Currency (Details) - ILS (₪) ₪ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
IfrsStatementLineItems [Line Items] | |||
Profit for the year | ₪ (63,533) | ₪ 43,749 | ₪ 7,293 |
Impact of USD [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Profit for the year | ₪ 185 |
Financial Instruments and Man_3
Financial Instruments and Management of Financial Risks (Details Narrative) - ILS (₪) ₪ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
IfrsStatementLineItems [Line Items] | ||
Investments | ₪ 187 | |
Loans | ₪ 170,000 | |
Borrowings, interest rate | 3% | |
Fair value assets of investments | ₪ 2,109 | ₪ 2,770 |
Market risk [member] | ||
IfrsStatementLineItems [Line Items] | ||
Sensitivity analysis description | the sensitivity to an increase or decrease of 1.5% in the relevant exchange rate. This metric represents the estimate of management regarding reasonably possible changes to the exchange rate. The sensitivity analysis includes current balances of monetary items denominated in foreign currency, and adjusts the translation thereof at the end of the period to a change of 1.5% in foreign currency rates. | |
Investees [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Fair value assets of investments | ₪ 2,109 | |
Customer credit [member] | ||
IfrsStatementLineItems [Line Items] | ||
Credit maturity period | 90 | |
Loans | ₪ 59,000 | |
Borrowings, interest rate | 7% |
Schedule of Maturity Analysis o
Schedule of Maturity Analysis of Lease Liabilities (Details) - ILS (₪) ₪ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
IfrsStatementLineItems [Line Items] | ||
Total | ₪ 25,281 | |
Current maturities of lease liability | 4,640 | |
Long-term lease liability | 20,641 | ₪ 23,102 |
Payments of lease liabilities | 4,713 | |
Not later than one year [member] | ||
IfrsStatementLineItems [Line Items] | ||
Total | 4,640 | |
Later than one year and not later than five years [member] | ||
IfrsStatementLineItems [Line Items] | ||
Total | 12,133 | |
Later than five years [member] | ||
IfrsStatementLineItems [Line Items] | ||
Total | ₪ 8,508 |
Schedule of Recognized Profit o
Schedule of Recognized Profit or Loss (Details) - ILS (₪) ₪ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Lease liabilities [abstract] | |||
Interest expenses on lease liability | ₪ 726 | ₪ 719 | ₪ 480 |
Variable lease payments not included in the measurement of the lease liability | 1,330 | 988 | 2,574 |
Total | ₪ 2,056 | ₪ 1,707 | ₪ 3,054 |
Schedule of Deferred Tax Assets
Schedule of Deferred Tax Assets and Liabilities (Details) ₪ in Thousands | 12 Months Ended |
Dec. 31, 2023 ILS (₪) | |
Major components of tax expense (income) [abstract] | |
Deferred tax asset liability, beginning balance | ₪ 20,635 |
Changes recognized in biological assets | 1,275 |
Changes recognized in carryforward tax losses | 1,786 |
Other changes | 985 |
Deferred tax asset liability, ending balance | ₪ 24,681 |
Schedule of Components of Taxes
Schedule of Components of Taxes (Details) - ILS (₪) ₪ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Major components of tax expense (income) [abstract] | |||
Current tax expense | ₪ 6,294 | ₪ 17,708 | ₪ 10,467 |
Deferred tax (income) | (4,046) | (17,615) | 974 |
Total tax expense | ₪ 2,248 | ₪ 93 | ₪ 11,441 |
Schedule of Reconciliation Betw
Schedule of Reconciliation Between Tax on Earnings Before Income and Tax Expenses (Details) - ILS (₪) ₪ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Major components of tax expense (income) [abstract] | |||
Loss (Profit) before taxes on income | ₪ 61,285 | ₪ (43,842) | ₪ (18,734) |
tax rate | 23% | 23% | 23% |
Total tax benefit (expense) at applicable tax rate | ₪ 14,096 | ₪ (10,084) | ₪ (4,309) |
Nondeductible expenses | (482) | (2,999) | (419) |
Nondeductible Share-based payment | (596) | (2,049) | (1,484) |
Creation of deferred taxes for tax losses from previous years for which deferred taxes were not created in the past | 12,837 | (2,709) | |
Change in temporary differences for which deferred taxes are not recognized | 529 | (1,075) | |
Impairment losses on goodwill | (14,513) | ||
Other permanent differences | (1,282) | 3,277 | (2,520) |
Income tax benefit (expense) | ₪ (2,248) | ₪ (93) | ₪ (11,441) |
Taxes on Income (Details Narrat
Taxes on Income (Details Narrative) - ILS (₪) ₪ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Major components of tax expense (income) [abstract] | |||
Coprporate applicable tax rate | 23% | 23% | 23% |
Carryforward tax losses | ₪ 86,725 | ||
Deferred tax | 27,523 | ||
Deferred tax carryforward loss | 119,664 | ||
Provision for current taxes | ₪ 7,627 |
Commitments, Charges and Cont_2
Commitments, Charges and Contingent Liabilities (Details Narrative) | Dec. 31, 2023 ILS (₪) | Sep. 18, 2023 | Aug. 03, 2023 ILS (₪) | Jul. 24, 2023 ILS (₪) | Jun. 06, 2023 USD ($) | Jun. 06, 2023 ILS (₪) | Apr. 17, 2023 ILS (₪) | Apr. 16, 2023 ILS (₪) | Feb. 14, 2023 ILS (₪) | Jan. 31, 2023 | Sep. 30, 2022 ILS (₪) | Jul. 12, 2022 ILS (₪) | Feb. 16, 2022 | Dec. 08, 2020 ILS (₪) | May 14, 2020 | Aug. 19, 2019 ILS (₪) |
IfrsStatementLineItems [Line Items] | ||||||||||||||||
Estimated financial effect of contingent liabilities | ₪ 3,000,000 | ₪ 685,000,000 | ₪ 686,000,000 | |||||||||||||
Plaintiff compensation | 70,000 | |||||||||||||||
Counterclaim against the plaintiff | ₪ 1,000,000 | ₪ 100,000,000 | ₪ 7,360,867 | |||||||||||||
Compensation received | $ 35,000,000 | ₪ 42,000,000 | ||||||||||||||
Compensation approved | 420,000,000 | |||||||||||||||
Punitive damages amount | ₪ 84,000,000 | |||||||||||||||
Cann pharmaceutical ltd [member] | ||||||||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||||||||
Estimated financial effect of contingent liabilities | ₪ 8,000,000 | ₪ 7,875,189 | ||||||||||||||
Percentage of voting equity interests acquired | 100% | 100% | ||||||||||||||
Cannolam ltd [member] | ||||||||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||||||||
Percentage of voting equity interests acquired | 100% | 100% | 100% | |||||||||||||
Cantek Group Companies [Member] | ||||||||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||||||||
Estimated financial effect of contingent liabilities | ₪ 3,501,659 | |||||||||||||||
Medical Cannabis Growing Agreement [Member] | Third Party [Member] | ||||||||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||||||||
Estimated financial effect of contingent liabilities | ₪ 2,271,310 | |||||||||||||||
Attorney [member] | ||||||||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||||||||
Plaintiff compensation | ₪ 40,000 |
Schedule of Long term Loans (De
Schedule of Long term Loans (Details) - ILS (₪) ₪ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Long-term credit from banks | ₪ 82,202 | ₪ 99,684 |
Current maturities of long-term loans | 50,266 | |
Long term loans from banks | ₪ 132,468 |
Schedule of Information on Mate
Schedule of Information on Material Loans (Details) - ILS (₪) ₪ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
IfrsStatementLineItems [Line Items] | ||
Long-term material loans from bank | ₪ 82,202 | ₪ 99,684 |
Original loan | 170,000 | |
Less current maturities | (50,266) | |
Long term loans from banks | 132,468 | |
Long-term borrowings [member] | ||
IfrsStatementLineItems [Line Items] | ||
Long-term material loans from bank | 113,471 | 107,471 |
Original loan | ₪ 146,000 | |
Interest rate | Prime rate plus a spread of 1.5% - 2.56% | |
Loan period (years) | 1.5-5 | |
Less current maturities | ₪ (44,762) | (26,202) |
Long term loans from banks | ₪ 68,709 | ₪ 81,269 |
Schedule of Composition of Shar
Schedule of Composition of Share Capital (Details) - Ordinary shares [member] - shares | Dec. 31, 2023 | Dec. 31, 2022 |
IfrsStatementLineItems [Line Items] | ||
Registered share capital | 100,000,000 | 100,000,000 |
Issued and paid-up share capital | 45,572,690 | 45,572,689 |
Schedule of Share-based Payment
Schedule of Share-based Payment Expenses (Details) - ILS (₪) ₪ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of classes of share capital [abstract] | |||
Total expenses recognized from share-based payment transactions | ₪ 2,592 | ₪ 8,907 | ₪ 6,452 |
Schedule of Share Options Activ
Schedule of Share Options Activity (Details) | 12 Months Ended | ||
Dec. 31, 2023 shares ₪ / shares | Dec. 31, 2022 shares ₪ / shares | Dec. 31, 2021 shares ₪ / shares | |
Disclosure of classes of share capital [abstract] | |||
Number of options, share options at beginning of year | shares | 3,402,113 | 2,257,753 | 1,199,791 |
Weighted average exercise price, share options at beginning of year | ₪ / shares | ₪ 11.44 | ₪ 17.06 | ₪ 15.40 |
Number of options, share options which were granted during the year | shares | 1,344,068 | 1,201,426 | |
Weighted average exercise price, share options which were granted during the year | ₪ / shares | ₪ 20.25 | ₪ 18.88 | |
Number of options, share options which were forfeited during the year | shares | 278,491 | 128,438 | 132,688 |
Weighted average exercise price, share options which were forfeited during the year | ₪ / shares | ₪ 15.24 | ₪ 6.90 | ₪ 18.38 |
Number of options, share options which expired during the year | shares | 103,791 | 71,270 | 674 |
Weighted average exercise price, share options which expired during the year | ₪ / shares | ₪ 6.87 | ₪ 4.84 | ₪ 18.38 |
Number of options, share options which were exercised during the year | shares | 10,103 | ||
Weighted average exercise price, share options which were exercised during the year | ₪ / shares | ₪ 18.38 | ||
Number of options, share options at end of year | shares | 3,019,831 | 3,402,113 | 2,257,753 |
Weighted average exercise price, share options at end of year | ₪ / shares | ₪ 11.59 | ₪ 11.44 | ₪ 17.06 |
Number of options, exercisable share options at year end | shares | 2,386,907 | 1,923,260 | 1,413,615 |
Weighted average exercise price, exercisable share options at year end | ₪ / shares | ₪ 9.14 | ₪ 6.86 | ₪ 15.90 |
Equity (Details Narrative)
Equity (Details Narrative) ₪ / shares in Units, ₪ in Thousands | 1 Months Ended | 12 Months Ended | |||||||||||
Nov. 14, 2022 shares | Sep. 15, 2022 shares | May 15, 2022 shares | Sep. 02, 2021 ILS (₪) shares | Aug. 30, 2021 shares | Apr. 27, 2021 shares | Jan. 26, 2021 shares | Aug. 31, 2023 shares | Nov. 30, 2021 shares ₪ / shares | Dec. 31, 2023 ILS (₪) shares | Dec. 31, 2022 ILS (₪) shares | Dec. 31, 2021 ILS (₪) shares ₪ / shares | Apr. 23, 2021 shares | |
IfrsStatementLineItems [Line Items] | |||||||||||||
Number of options granted | 1,344,068 | 1,201,426 | |||||||||||
Number of shares issued | 438,745 | 139,966 | |||||||||||
Number of options exercised | 10,103 | ||||||||||||
Consideration on exercise of options | ₪ | ₪ 8,498 | ||||||||||||
Acquisitions considerations amount | ₪ | ₪ 17,300 | ||||||||||||
Subversive Unitholders [Member] | |||||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||||
Number of shares issued | 15,650,280 | ||||||||||||
Mr. Alexander Rabinovich [Member] | |||||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||||
Number of share options issued | 224,756 | ||||||||||||
Number of options exercised | 2,150,919 | ||||||||||||
Consideration on exercise of options | ₪ | ₪ 3,594 | ||||||||||||
Chief Financial Officer (CFO) and 19 Canndoc employees [member] | |||||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||||
Number of options granted | 3,831,949 | ||||||||||||
Officer, 5 Canndoc employees and 2 consultants [Member] | |||||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||||
Shares outstanding owed percentage | 0.80% | ||||||||||||
Officer, 5 Canndoc employees and 2 consultants [Member] | Top of range [member] | |||||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||||
Number of options granted | 340,170 | ||||||||||||
Employee [member] | |||||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||||
Number of options exercised | 10,103 | ||||||||||||
Exercise price per share | ₪ / shares | ₪ 18.38 | ||||||||||||
Institutional Investors [Member] | |||||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||||
Number of options granted | 1,631,708 | ||||||||||||
Number of shares issued | 240,972 | ||||||||||||
Number of options exercised | 240,972 | ||||||||||||
Exercise price per share | ₪ / shares | ₪ 19.58 | ||||||||||||
Chief Financial Officer (CFO) and 7 Canndoc employees [member] | |||||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||||
Shares outstanding owed percentage | 1.30% | ||||||||||||
Chief Financial Officer (CFO) and 7 Canndoc employees [member] | Top of range [member] | |||||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||||
Number of options granted | 596,937 | ||||||||||||
Chairman [Member] | |||||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||||
Number of options granted | 1,030,325 | ||||||||||||
Weighted average remaining contractual life of outstanding share options | 3 years | ||||||||||||
Options extended exercise period date | December 31, 2026 | ||||||||||||
Canndoc Employees [Member] | Top of range [member] | |||||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||||
Number of options granted | 287,131 |
Schedule of Cost of Revenue (De
Schedule of Cost of Revenue (Details) - ILS (₪) ₪ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
IfrsStatementLineItems [Line Items] | |||
Total cost of revenue | ₪ 247,214 | ₪ 229,727 | ₪ 123,688 |
Payroll and associated expenses [member] | |||
IfrsStatementLineItems [Line Items] | |||
Total cost of revenue | 8,401 | 6,567 | 11,605 |
Farm operating expenses [member] | |||
IfrsStatementLineItems [Line Items] | |||
Total cost of revenue | 12,132 | 13,673 | 20,407 |
Purchases [member] | |||
IfrsStatementLineItems [Line Items] | |||
Total cost of revenue | 240,765 | 282,029 | 115,952 |
Depreciation [member] | |||
IfrsStatementLineItems [Line Items] | |||
Total cost of revenue | 5,295 | 4,780 | 3,163 |
Changes in inventory [member] | |||
IfrsStatementLineItems [Line Items] | |||
Total cost of revenue | ₪ (19,379) | ₪ (77,322) | ₪ (27,439) |
Schedule of General and Adminis
Schedule of General and Administrative Expenses (Details) - ILS (₪) ₪ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
IfrsStatementLineItems [Line Items] | |||
Total General and administrative expense | ₪ 42,610 | ₪ 36,082 | ₪ 27,206 |
Payroll and associated expenses [member] | |||
IfrsStatementLineItems [Line Items] | |||
Total General and administrative expense | 10,329 | 10,960 | 8,673 |
Consulting and professional expenses [member] | |||
IfrsStatementLineItems [Line Items] | |||
Total General and administrative expense | 8,555 | 7,759 | 4,686 |
Directors' fees [member] | |||
IfrsStatementLineItems [Line Items] | |||
Total General and administrative expense | 431 | 821 | 567 |
Insurance [member] | |||
IfrsStatementLineItems [Line Items] | |||
Total General and administrative expense | 1,749 | 2,147 | 2,661 |
Rent and maintenance [member] | |||
IfrsStatementLineItems [Line Items] | |||
Total General and administrative expense | 5,958 | 5,997 | 2,837 |
Provision for doubtful debts [member] | |||
IfrsStatementLineItems [Line Items] | |||
Total General and administrative expense | 4,363 | (20) | 477 |
Fees [member] | |||
IfrsStatementLineItems [Line Items] | |||
Total General and administrative expense | 680 | 302 | 337 |
Depreciation [member] | |||
IfrsStatementLineItems [Line Items] | |||
Total General and administrative expense | 7,871 | 4,224 | 2,931 |
Other [member] | |||
IfrsStatementLineItems [Line Items] | |||
Total General and administrative expense | ₪ 2,674 | ₪ 3,892 | ₪ 4,037 |
Schedule of Sales and Marketing
Schedule of Sales and Marketing Expenses (Details) - ILS (₪) ₪ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
IfrsStatementLineItems [Line Items] | |||
Total Sales and marketing expenses | ₪ 53,269 | ₪ 56,533 | ₪ 23,214 |
Payroll and associated expenses [member] | |||
IfrsStatementLineItems [Line Items] | |||
Total Sales and marketing expenses | 31,332 | 36,225 | 15,053 |
Commission distribution [member] | |||
IfrsStatementLineItems [Line Items] | |||
Total Sales and marketing expenses | 14,834 | 5,597 | 5,624 |
Other [member] | |||
IfrsStatementLineItems [Line Items] | |||
Total Sales and marketing expenses | ₪ 7,103 | ₪ 14,711 | ₪ 2,537 |
Schedule of Other Expenses (Inc
Schedule of Other Expenses (Income) (Details) - ILS (₪) ₪ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
IfrsStatementLineItems [Line Items] | |||
Total other income | ₪ 33,886 | ₪ 10,872 | ₪ 860 |
Total Other expenses | 81,024 | 13,000 | 3,831 |
Remeasurement of contingent consideration [member] | |||
IfrsStatementLineItems [Line Items] | |||
Total other income | 897 | 10,572 | |
Total Other expenses | 1,964 | ||
Government reimbursements [member] | |||
IfrsStatementLineItems [Line Items] | |||
Total other income | 30,080 | ||
Remeasurement of provision for impairment of other receivables [member] | |||
IfrsStatementLineItems [Line Items] | |||
Total other income | 1,277 | ||
Other [member] | |||
IfrsStatementLineItems [Line Items] | |||
Total other income | 1,632 | 300 | 860 |
Total Other expenses | 9,040 | 1,271 | 327 |
Impairment losses on goodwill [member] | |||
IfrsStatementLineItems [Line Items] | |||
Total Other expenses | 63,101 | ||
Impairment losses on Property, plant and equipment [member] | |||
IfrsStatementLineItems [Line Items] | |||
Total Other expenses | 4,589 | ||
Changes in loan measured at fair value through profit or loss [member] | |||
IfrsStatementLineItems [Line Items] | |||
Total Other expenses | 2,330 | ||
Issuance expenses [member] | |||
IfrsStatementLineItems [Line Items] | |||
Total Other expenses | 3,504 | ||
Provision for impairment [member] | |||
IfrsStatementLineItems [Line Items] | |||
Total Other expenses | ₪ 11,729 |
Schedule of Finance income (Det
Schedule of Finance income (Details) - ILS (₪) ₪ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Finance Income | |||
Income from deposits | ₪ 5,301 | ₪ 844 | ₪ 130 |
Interest in respect of loan from related party | 74 | ||
Exchange differences | 508 | 7,326 | |
Total finance income | ₪ 5,883 | ₪ 8,170 | ₪ 130 |
Schedule of Finance Expenses (D
Schedule of Finance Expenses (Details) - ILS (₪) ₪ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Finance Expenses | |||
Interest in respect of loan from related party | ₪ 43 | ||
Expenses in respect of fees and interest | 23,493 | 14,059 | 4,627 |
Exchange differences | 554 | 4,536 | |
Interest expense in respect of lease liability | 726 | 630 | 375 |
Other | 828 | 266 | |
Total finance expenses | ₪ 25,601 | ₪ 14,955 | ₪ 9,581 |
Schedule of Calculation of Loss
Schedule of Calculation of Loss Per Share (Details) - ILS (₪) ₪ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Profit or loss [abstract] | |||
Weighted number of shares | 45,572,689 | 45,352,601 | 38,492,600 |
Profit (Loss) | ₪ (61,959) | ₪ 44,819 | ₪ 4,690 |
Options which could potentially be dilutive in the future, antidilutive in 2022, 2021 and 2020 | 54,271 | 2,346,532 |
Schedule of Transactions Betwee
Schedule of Transactions Between Related Parties (Details) - ILS (₪) ₪ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
IfrsStatementLineItems [Line Items] | ||
Other receivables (Note 12B) | ₪ 141,116 | ₪ 97,375 |
Related parties [member] | ||
IfrsStatementLineItems [Line Items] | ||
Other receivables (Note 12B) | ₪ 3,429 | ₪ 16,087 |
Schedule of Employed and Non Em
Schedule of Employed and Non Employed Employment Benefits (Details) ₪ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 ILS (₪) Integer | Dec. 31, 2022 ILS (₪) Integer | Dec. 31, 2021 ILS (₪) Integer | |
Employed [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Number of people | Integer | 4 | 4 | 3 |
Employee benefits expense | ₪ | ₪ 4,755 | ₪ 9,235 | ₪ 4,575 |
Employed [Member] | Short-term employee benefits [member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Number of people | Integer | 4 | 4 | 3 |
Employee benefits expense | ₪ | ₪ 2,628 | ₪ 2,198 | ₪ 946 |
Employed [Member] | Management fees [member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Number of people | Integer | 1 | 1 | 1 |
Employee benefits expense | ₪ | ₪ 781 | ₪ 675 | ₪ 606 |
Employed [Member] | Share-based payment [member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Number of people | Integer | 4 | 4 | 1 |
Employee benefits expense | ₪ | ₪ 1,346 | ₪ 6,362 | ₪ 3,023 |
Non Employed [member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Number of people | Integer | 4 | 4 | 3 |
Employee benefits expense | ₪ | ₪ 518 | ₪ 753 | ₪ 598 |
Non Employed [member] | Management fees [member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Number of people | Integer | 4 | 4 | 3 |
Employee benefits expense | ₪ | ₪ 518 | ₪ 739 | ₪ 550 |
Non Employed [member] | Share-based payment [member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Number of people | Integer | 3 | 3 | |
Employee benefits expense | ₪ | ₪ 14 | ₪ 48 |
Balances and Transactions wit_3
Balances and Transactions with Related Parties (Details Narrative) - ILS (₪) ₪ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
IfrsStatementLineItems [Line Items] | ||
Loan to related party | ₪ 3,416 | ₪ 16,087 |
Payroll expense | 366 | |
Mr. Avner Barak [member] | ||
IfrsStatementLineItems [Line Items] | ||
Loan to related party | 718 | |
Canndoc ltd [member] | ||
IfrsStatementLineItems [Line Items] | ||
Rental income | ₪ 205 | ₪ 291 |
Schedule of Financial Data Rega
Schedule of Financial Data Regarding Segment (Details) - ILS (₪) ₪ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
IfrsStatementLineItems [Line Items] | ||
Gain (Loss) from investment | ₪ 665 | ₪ 174 |
Fair value of the investment | 2,056 | 2,721 |
XTL [member] | ||
IfrsStatementLineItems [Line Items] | ||
Gain (Loss) from investment | 22 | 174 |
Fair value of the investment | 134 | 156 |
Cavnox [member] | ||
IfrsStatementLineItems [Line Items] | ||
Gain (Loss) from investment | 965 | |
Fair value of the investment | 965 | |
FORE [member] | ||
IfrsStatementLineItems [Line Items] | ||
Gain (Loss) from investment | (322) | |
Fair value of the investment | ₪ 1,922 | ₪ 1,600 |
Schedule of Operating Segments
Schedule of Operating Segments (Details) - ILS (₪) ₪ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
IfrsStatementLineItems [Line Items] | |||
External revenue | ₪ 355,553 | ₪ 388,684 | ₪ 219,677 |
Other expenses, net | 47,138 | 2,128 | 2,971 |
Operating Profit | (41,567) | 50,627 | 28,185 |
Segment assets | 786,614 | 958,007 | |
Segment liabilities | 329,552 | 436,530 | |
Cannabis segment [member] | |||
IfrsStatementLineItems [Line Items] | |||
External revenue | 355,553 | 388,684 | 219,677 |
Segment profit (loss) | 44,460 | 68,552 | 44,646 |
Segment assets | 755,209 | 886,184 | 551,435 |
Segment liabilities | 392,381 | 526,285 | 132,562 |
Biomed segment [member] | |||
IfrsStatementLineItems [Line Items] | |||
External revenue | |||
Segment profit (loss) | (665) | (174) | (1,868) |
Segment assets | 2,056 | 2,770 | 2,895 |
Segment liabilities | |||
Reconciliations [member] | |||
IfrsStatementLineItems [Line Items] | |||
External revenue | |||
Segment profit (loss) | |||
Segment assets | 29,349 | 69,053 | 131,994 |
Segment liabilities | (62,829) | (89,755) | 94,571 |
Reportable segments [member] | |||
IfrsStatementLineItems [Line Items] | |||
External revenue | 355,553 | 388,684 | 219,677 |
Segment profit (loss) | 43,795 | 68,378 | 42,778 |
General and administrative expenses not attributable to segments | (38,224) | (15,623) | (11,620) |
Other expenses, net | (47,138) | (2,128) | (2,971) |
Operating Profit | (41,567) | 50,627 | 28,187 |
Segment assets | 786,614 | 958,007 | 686,324 |
Segment liabilities | ₪ 329,552 | ₪ 436,530 | ₪ 227,133 |
Operating Segments (Details Nar
Operating Segments (Details Narrative) - ILS (₪) ₪ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
IfrsStatementLineItems [Line Items] | |||
Revenue | ₪ 355,553 | ₪ 388,684 | ₪ 219,677 |
One customer [member] | |||
IfrsStatementLineItems [Line Items] | |||
Revenue | ₪ 42,000 | ₪ 41,000 | ₪ 22,000 |