Cover
Cover | 12 Months Ended |
Dec. 31, 2021shares | |
Entity Addresses [Line Items] | |
Document Type | 40-F/A |
Amendment Flag | true |
Amendment Description | A2Z Smart Technologies Corp. (the “Registrant” or the “Company”) is filing this Amendment No. 1 on Form 40-F/A (“Amendment No. 1”) to the Company’s Annual Report on Form 40-F, dated March 31, 2022 (the “Original Form 40-F”) for the sole purpose of submitting Exhibits 101 and 104 to the Form 40-F as required by General Instruction B(15)(a)(iii) of Form 40-F and Rule 405 of Regulation S-T. Exhibits 101 and 104 were omitted from the Registrant’s Original Form 40-F in accordance with the 30-day grace period provided under Rule 405(a)(2)(ii) or Regulation S-T. |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2021 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2021 |
Current Fiscal Year End Date | --12-31 |
Entity File Number | 001-40472 |
Entity Registrant Name | A2Z Smart Technologies Corp. |
Entity Central Index Key | 0001866030 |
Entity Primary SIC Number | 3569 |
Entity Incorporation, State or Country Code | A1 |
Entity Address, Address Line One | 1600-609 Granville Street |
Entity Address, City or Town | Vancouver |
Entity Address, State or Province | BC |
City Area Code | (647) |
Local Phone Number | 558-5564 |
Title of 12(b) Security | Common Shares |
Trading Symbol | AZ |
Security Exchange Name | NASDAQ |
Annual Information Form | true |
Audited Annual Financial Statements | true |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Emerging Growth Company | true |
Elected Not To Use the Extended Transition Period | false |
Entity Common Stock, Shares Outstanding | 26,326,488 |
ICFR Auditor Attestation Flag | false |
Auditor Name | BDO Ziv Haft |
Auditor Firm ID | 1185 |
Auditor Location | Tel-Aviv, Israel |
Business Contact [Member] | |
Entity Addresses [Line Items] | |
Entity Address, Address Line One | 122 East 42nd Street, 18th Floor |
Entity Address, City or Town | New York |
Entity Address, State or Province | NY |
Entity Address, Postal Zip Code | 10168 |
Country Region | 1 |
City Area Code | 800 |
Local Phone Number | 221-0102 |
Contact Personnel Name | COGENCY GLOBAL INC. |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 8,470 | $ 5,397 |
Restricted cash | 60 | 192 |
Inventories (note 5) | 1,147 | 19 |
Trade receivables | 857 | 196 |
Other accounts receivable (note 7) | 434 | 353 |
Total current assets | 10,968 | 6,157 |
Intangible asset - patent, net | 2,091 | 2,239 |
Property, plant and equipment, net (note 8) | 1,072 | 456 |
Total non-current assets | 3,163 | 2,695 |
Total Assets | 14,131 | 8,852 |
Current liabilities | ||
Short term loan and current portion of long term loans | 158 | 358 |
Lease liability | 126 | 21 |
Trade payables | 989 | 541 |
Other accounts payable (note 9) | 1,099 | 376 |
Total current liabilities | 2,372 | 1,296 |
Lease liability | 151 | |
Long term loans (note 10) | 483 | 666 |
Warrant Liability (note 12) | 51 | 8,676 |
Severance payment, net (note 13) | 167 | 187 |
Total non-current liabilities | 852 | 9,529 |
Total liabilities | 3,224 | 10,825 |
Shareholders’ equity (deficit) (note 14) | ||
Share capital and additional paid in capital | 28,297 | 10,445 |
Warrant Reserve | 34,763 | |
Accumulated other comprehensive income | (708) | (1,339) |
Accumulated deficit | (50,838) | (11,599) |
Total equity attributable to Company shareholders | 11,514 | (2,493) |
Non-controlling interest (note 16) | (607) | 520 |
Total shareholders’ equity (deficit) | 10,907 | (1,973) |
Total liabilities and shareholders’ equity | $ 14,131 | $ 8,852 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Profit or loss [abstract] | ||
Revenues (note 17) | $ 2,685 | $ 1,068 |
Cost of revenues (note 18) | 2,029 | 853 |
Gross profit | 656 | 215 |
Expenses: | ||
Research and development costs (note 19) | 3,222 | 418 |
Sales and marketing costs | 102 | 108 |
General and administration expenses (note 20) | 6,494 | 2,365 |
Operating loss | (9,162) | (2,676) |
Loss (gain) on revaluation of warrant liability (note 12) | 30,895 | 3,228 |
Financial income | (75) | |
Financial expense | 91 | 107 |
Loss before taxes on income | (40,148) | (5,936) |
Income tax expense (note 22) | (142) | (17) |
Loss for the year | (40,290) | (5,953) |
Item that will not be reclassified to profit or loss: | ||
Adjustments arising from translating financial statements of foreign operations | 555 | (1,282) |
Remeasurement loss from defined benefit plans | 13 | |
Other comprehensive income | 555 | (1,269) |
Total comprehensive loss for the year | (39,735) | (7,222) |
Less: Net loss attributable to non-controlling shareholders | (1,127) | (32) |
Net loss attributable to A2Z’s shareholders | $ (38,608) | $ (7,190) |
Basic and diluted loss per share | $ (1.70) | $ (0.43) |
Weighted average number of shares outstanding | 23,340,621 | 16,758,323 |
Statements of Changes In Shareh
Statements of Changes In Shareholders' Equity (Deficit) - USD ($) $ in Thousands | Issued capital [member] | Capital reserve [member] | Accumulated other comprehensive income [member] | Retained earnings [member] | Non-controlling interests [member] | Total | |
Balance - January 1, 2021 at Dec. 31, 2019 | $ 6,555 | $ (70) | $ (5,678) | $ 552 | $ 1,359 | ||
Beginning balance, shares at Dec. 31, 2019 | [1] | 15,692,126 | |||||
IfrsStatementLineItems [Line Items] | |||||||
Net loss for the period | (5,921) | (32) | (5,953) | ||||
Adjustments arising from translating financial statements of foreign operations | (1,269) | (1,269) | |||||
Net comprehensive loss for the period | (1,269) | (5,921) | (32) | (7,222) | |||
Issuance of shares in private placement, net | $ 163 | 163 | |||||
Issuance of shares in private placement, net, shares | 277,779 | ||||||
Exercise of warrants (note 14(K)) | $ 98 | 98 | |||||
Exercise of warrants, shares | 182,142 | ||||||
Exercise of options (note 14(M)) | $ 39 | 39 | |||||
Exercise of stock options, shares | 123,386 | ||||||
Issuance of shares in private placement, net (note 14(L)) | $ 2,570 | 2,570 | |||||
Issuance of shares in private placement, net, shares | 5,816,784 | ||||||
Issuance of warrants for services (note 14 (P)) | $ 52 | 52 | |||||
Issuance of warrants for services, shares | |||||||
Issuance of shares for services (note 14 (C)(E)(J)) | $ 168 | 168 | |||||
Issuance of shares for services (note 14 (C)(E)(J)), shares | 127,693 | ||||||
Issuance of stock options for services (note15(B)(xii)) | $ 800 | 800 | |||||
Issuance of shares for services, shares | |||||||
Share based compensation (note 15(b)(xii)) | 800 | ||||||
Balance - December 31, 2021 at Dec. 31, 2020 | $ 10,445 | (1,339) | (11,599) | 520 | (1,973) | ||
Beginning balance, shares at Dec. 31, 2020 | [1] | 22,219,910 | |||||
IfrsStatementLineItems [Line Items] | |||||||
Net loss for the period | (39,239) | (1,051) | (40,290) | ||||
Adjustments arising from translating financial statements of foreign operations | 631 | (76) | 555 | ||||
Net comprehensive loss for the period | 631 | (39,239) | (1,127) | (39,735) | |||
Exercise of warrants (note 14(K)) | $ 12,929 | (9,201) | 3,728 | ||||
Exercise of warrants, shares | 2,514,693 | ||||||
Exercise of options (note 14(M)) | $ 742 | 742 | |||||
Exercise of stock options, shares | 286,223 | ||||||
Issuance of shares in private placement, net (note 14(L)) | $ 3,338 | 3,338 | |||||
Issuance of shares in private placement, net, shares | 1,305,662 | ||||||
Reclassification of warrant liability (note 12) | 43,964 | 43,964 | |||||
Share based compensation (note 15(b)(xii)) | 843 | 843 | |||||
Balance - December 31, 2021 at Dec. 31, 2021 | $ 28,297 | $ 34,763 | $ (708) | $ (50,838) | $ (607) | $ 10,907 | |
Beginning balance, shares at Dec. 31, 2021 | [2] | 26,326,488 | |||||
[1] | On August 13, 2021, the Board and the TSX-V approved a 1-for-3 reverse stock split, (the “Reverse Split”). Consequently, all share numbers, share prices, and exercise prices have been retroactively adjusted in these consolidated financial statements for all periods presented. | ||||||
[2] | On August 13, 2021, the Board and the TSX-V approved a 1-for-3 reverse stock split, (the “Reverse Split”). Consequently, all share numbers, share prices, and exercise prices have been retroactively adjusted in these consolidated financial statements for all periods presented. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Cash flows from operating activities | ||
Net loss for the year | $ (40,290) | $ (5,953) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Amortization and depreciation | 251 | 213 |
Share based compensation | 843 | 601 |
Loss on revaluation of warrant liability | 30,895 | 3,228 |
Change in severance liability | (20) | 28 |
Change in inventory | (1,128) | 19 |
Change in trade receivables | (661) | 35 |
Change in other account receivables | (81) | 719 |
Accrued interest on loansand leases | 36 | 73 |
Changes in deferred taxes | 16 | |
Change in accounts payable | 448 | 43 |
Change in other accounts payable | 329 | (25) |
Cash flow from operating activities | (9,378) | (1,003) |
Cash flows from investing activities | ||
Restricted deposits | 132 | (192) |
Intangible assets | (6) | |
Purchase of property, plant and equipment | (412) | (227) |
Cash flow used in investing activities | (280) | (425) |
Cash flows from financing activities | ||
Issuance of shares and warrants, net | 8,358 | 8,249 |
Investment in subsidiary | (1,566) | |
Exercise of options | 742 | 39 |
Exercise of warrants | 3,386 | 98 |
Lease payments | (111) | (43) |
Long term deposits | 30 | |
Repayment of loans | (316) | (100) |
Proceeds from receipt of loans | 296 | 494 |
Cash flows from financing activities | 12,355 | 7,201 |
Increase (decrease) in cash and cash equivalents | 2,697 | 5,773 |
Effect of changes in foreign exchange rates | 376 | (738) |
Cash at beginning of year | 5,397 | 362 |
Cash at end of year | 8,470 | 5,397 |
Interest paid during the period | 34 | 12 |
Reclassification of warrant liability to warrant reserve | $ 43,964 |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of detailed information about business combination [abstract] | |
DESCRIPTION OF BUSINESS | NOTE 1 - DESCRIPTION OF BUSINESS A. Overview A2Z SMART TECHNOLOGIES CORP. (Formerly A2Z Technologies Canada Corp.) (the “Company” or “A2ZST”) was incorporated on January 15, 2018 under the laws of British Columbia. The head office is located at 1600 – 609 Granville Street, Vancouver, British Columbia V7Y 1C3, and the records and registered office is located at 2200 HSBC Building 885 West Georgia Street, British Columbia, V6C 3E8. The Company was listed on the NASDAQ Stock Market LLC (“Nasdaq”) starting January 22, 2022, and trades under the symbol “AZ” and on the TSX Venture Exchange (“TSX Venture”) and trades under the symbol “AZ.V”. The Company owns 79.49 The Cust2Mate system offers unique features for shoppers and retailers such as product information and location, an on-cart scale to weigh items and automatically calculate costs, bar-code scanner and on-board payment system to bypass checkout lines. In addition, the product includes big data smart algorithms and computer vision capabilities, allowing for customer specific targeted advertising. (“The Cust2Mate Platform”). The Cust2Mate Platform is being rolled out in Israel and is being marketed throughout the world, with pilots in North and South America and the in the Middle East. The Company’s other activities include the provision of services in the field of advanced engineering capabilities to the military and security markets as well as the development of related products for the civilian markets. Such services include providing maintenance services and container leasing. The Company also provides maintenance services for complex electronic systems and products . The Company, through its 80 These consolidated financial statements were authorized for issue by the Board of Directors on March 31, 2022. B. COVID-19 Since January 2020, the Coronavirus outbreak has dramatically expanded into a worldwide pandemic creating macro-economic uncertainty and disruption in the business and financial markets. Many countries around the world, including Israel, have been taking measures designated to limit the continued spread of the Coronavirus, including the closure of workplaces, restricting travel, prohibiting assembling, closing international borders and quarantining populated areas. Such measures present concerns that may dramatically affect the Company’s ability to conduct its business effectively, including, but not limited to, adverse effects relating to employees’ welfare, slowdown and stoppage of manufacturing, commerce, shipping, delivery, work, travel and other activities which are essential and critical for maintaining on-going business activities. The nature of the Company’s work in Israel is such that it is defined as an essential service for the industry, and therefore, it is able to continue all of its operations in Israel with little disruption. The Company has experienced an impact on all of its business activities, including delays in the roll out and completion of certain pilot programs and the slowed pace in research and development projects. Given the uncertainty around the extent and timing of the future spread or mitigation of COVID-19 and around the imposition or relaxation of protective measures, the Company cannot reasonably estimate the impact to its future results of operations, cash flows or financial condition; infections may become more widespread and the limitation on the ability to work, travel and timely sell and distribute products, as well as any closures or supply disruptions, may be extended for longer periods of time and to other locations, all of which would have a negative impact on the Company’s business, financial condition and operating results. In addition, the unknown scale and duration of these developments have macro and micro negative effects on the financial markets and global economy which could result in an economic downturn that could affect demand for the Company’s products and have a material adverse effect on its operations and financial results, earnings, cash flow and financial condition. A2Z SMART TECHNOLOGIES CORP. (Formerly A2Z TECHNOLOGIES CANADA CORP.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of changes in accounting estimates [abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES A. Cash and cash equivalents Cash equivalents are considered by the Company to be highly liquid investments, including, inter alia, short-term deposits with banks, the maturity of which do not exceed three months at the time of deposit and which are not restricted. B. Restricted cash A restricted deposit is cash invested in a short-term deposit (between three months and one year) or in a long-term deposit (with a maturity of more than one year from the date of investment). Restricted deposits are designated to secure the Company’s office facilities lease agreements and its credit cards. C. Loss per share Basic loss per share is computed by dividing the net loss available to common shareholders by the weighted average number of shares outstanding during the reporting period. Diluted loss per share is computed similarly to basic loss per share except that the weighted average number of shares outstanding is increased to include additional shares from the assumed exercise of stock options and warrants, if dilutive. The average number of shares is calculated by assuming that outstanding conversions were exercised and that the proceeds from such exercises were used to acquire common shares at the average market price during the reporting period. For the years ended December 31, 2021, and 2020, potentially dilutive common shares issuable upon the exercise of warrants and options were not included in the computation of loss per share because their effect was anti-dilutive. D. Provisions Provisions are recognized when the Company has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured. Provisions are measured using the best estimate of the amounts required to settle the obligation at the end of the reporting period. E. Fair value measurement Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: 1. In the principal market for the asset or liability, or 2. In the absence of a principal market, in the most advantageous market for the asset or liability. The principal or the most advantageous market must be accessible to the Company. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. A2Z SMART TECHNOLOGIES CORP. (Formerly A2Z TECHNOLOGIES CANADA CORP.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): E. Fair value measurement (cont.) A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. Classification of fair value hierarchy The financial instruments presented in the statement of financial position at fair value are grouped into classes with similar characteristics using the following fair value hierarchy which is determined based on the source of input used in measuring fair value: Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 - Inputs other than quoted prices included within Level 1 that are observable either directly or indirectly. Level 3 - Inputs that are not based on observable market data (valuation techniques which use inputs that are not based on observable market data). 1. Financial assets The Company classifies its financial assets into one of the following categories, based on the business model for managing the financial asset and its contractual cash flow characteristics. The Company’s accounting policy for the relevant category is as follows: Amortized cost: These assets arise principally from the provision of goods and services to customers (e.g. trade accounts receivable), but also incorporate other types of financial assets where the objective is to hold these assets in order to collect contractual cash flows and the contractual cash flows are solely payments of principal and interest. They are initially recognized at fair value plus transaction costs that are directly attributable to their acquisition or issue, and are subsequently carried at amortized cost using the effective interest rate method, less provision for impairment. Impairment provisions for trade accounts receivable are recognized based on the simplified approach within IFRS 9 using a provision in the determination of the lifetime expected credit losses. During this process the probability of the non-payment of the trade receivables is assessed. This probability is then multiplied by the amount of the expected loss arising from default to determine the lifetime expected credit loss for the trade receivables. For trade receivables, which are reported net, such provisions are recorded in a separate provision account with the loss being recognized within general and administrative expenses in the consolidated statement of comprehensive income. On confirmation that the trade receivable will not be collectable, the gross carrying value of the asset is written off against the associated provision. A2Z SMART TECHNOLOGIES CORP. (Formerly A2Z TECHNOLOGIES CANADA CORP.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): E. Fair value measurement (cont.): 2. Financial Liabilities The Company classifies its financial liabilities into one of two categories, depending on the purpose for which the liability was acquired. The Company’s accounting policy for each category is as follows: Fair value through profit or loss: Warrants are initially recognized at fair value net of any transaction costs directly attributable to the issue of the instrument. Such liabilities are subsequently measured at fair value through profit or loss. Other financial liabilities include the following items: Bank borrowings are initially recognized at fair value net of any transaction costs directly attributable to the issue of the instrument. Such interest-bearing liabilities are subsequently measured at amortized cost using the effective interest rate method, which ensures that any interest expense over the period to repayment is at a constant rate on the balance of the liability carried in the consolidated statement of financial position. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding. Trade accounts payable and other accounts payable, which are initially recognized at fair value and subsequently carried at amortized cost using the effective interest method. 3. Issue of a unit of securities: The issue of a unit of securities involves the allocation of the proceeds received (before issue expenses) to the securities issued in the unit based on the following order: financial derivatives and other financial instruments measured at fair value in each period. Then fair value is determined for financial liabilities that are measured at amortized cost. The proceeds allocated to equity instruments are determined to be the residual amount. Issue costs are allocated to each component pro rata to the amounts determined for each component in the unit. 4. Derivative liability - Warrants: Warrants that are denominated in a currency other than the functional currency of the Company are considered a derivative liability and are classified as financial liabilities at fair value through profit or loss. Accordingly, these warrants are measured at fair value and the changes in fair value in each reporting period are recognized in profit or loss. 5. Derecognition ● Financial assets - The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the rights to receive the contractual cash flows. ● Financial Liabilities - The Company derecognizes a financial liability when its contractual obligations are discharged or cancelled, or expire. A2Z SMART TECHNOLOGIES CORP. (Formerly A2Z TECHNOLOGIES CANADA CORP.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): E. Fair value measurement (cont.): 6. Impairment of financial assets ECL and their measurement ECL are measured as the unbiased probability-weighted present value of all cash shortfalls over the expected life of each financial asset. For receivables from financial services, ECL are mainly calculated with a statistical model using three major risk parameters: probability of default, loss given default and exposure at default. The estimation of these risk parameters incorporates all available relevant information, not only historical and current loss data, but also reasonable and supportable forward-looking information reflected by the future expectation factors. This information includes macroeconomic factors (e.g., gross domestic product growth, unemployment rate, cost performance index) and forecasts of future economic conditions. For receivables from financial services, these forecasts are performed using a scenario analysis (base case, adverse and optimistic scenarios). As of December 31, 2021, and December 31, 2020, ECL for trade and other account receivables are not material, and as such are not disclosed, in accordance IFRS 9. Definition of default, including reasons for selecting the definition Prior to commencing a business relationship, the Company will enter into an agreement with the customer. The agreement or contract typically includes details of the terms of payment to which the customer is entitled. In most cases, the customer updates the Company if there is a delay in the payment beyond the terms of the agreement. Any delays in payment for more than two months are subject to approval of management. If a customer’s scheduled payment is delayed by more than two months and such delay is not approved by the Company’s management, the CEO will typically make direct contact with the customer’s management and inform them of the overdue obligation and that Company will pursue remedies available to collect the overdue payment. If the customer and the Company are not able to resolve the matter at that time, the receivable is considered to be in default as the collectability is no longer certain. If the collection effort is not successful, the Company will retain legal counsel in the applicable country to assist with collection and sends a demand letter to that effect. Write-off policy The Company writes off its financial assets if any of the following occur: ● Inability to locate the debtor. ● Discharge of the debt in a bankruptcy. ● It is determined that the efforts to collect the debt are no longer cost effective given the size of receivable. The collections department must comply with the collection efforts outlined in the policy to collect on delinquent customer accounts before any write-offs are made. A2Z SMART TECHNOLOGIES CORP. (Formerly A2Z TECHNOLOGIES CANADA CORP.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): E. Fair value measurement (cont.): Aging Schedule based on due date AGING SCHEDULE BASED ON DUE DATE December 31, 2020 December 31, 2021 Aging schedule December 31, 2020 December 31, 2021 Within payment terms $ 196 $ 857 Total $ 196 $ 857 Three-level matrix Based on its past experience and historical data along with a consideration of future projections of factors, such as the economic environment, the Company has established a three-level matrix. The three-level matrix contains the following groups and balances: SCHEDULE OF THREE-LEVEL MATRIX December 31, 2020 December 31, 2021 Customers from public establishments $ 173 $ 296 Customers from institutions 15 - Other customers 8 561 Total $ 196 $ 857 A2Z SMART TECHNOLOGIES CORP. (Formerly A2Z TECHNOLOGIES CANADA CORP.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): F. Operating Segment An operating segment is a component of the Company that meets the following three criteria: 1. Is engaged in business activities from which it may earn revenues and incur expenses; 2. Whose operating results are regularly reviewed by the Company’s chief operating decision maker to make decisions about allocated resources to the segment and assess its performance; and 3. For which separate financial information is available. Segment revenue and segment costs include items that are attributable to the relevant segments and items that can be allocated to segments. Items that cannot be allocated to segments include the Company’s financial income and expenses and income tax. The Company has two operating segments; Advanced Engineering and Smart Carts. G. Share-based compensation Where equity settled share options are awarded to employees and service providers, the fair value of the options calculated at the grant date is based on the market share price and is charged to the statement of comprehensive income over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each reporting date so that, ultimately, the cumulative amount recognized over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. As long as all other vesting conditions are satisfied, a charge is made irrespective of whether the market vesting conditions are satisfied. The cumulative expense charged is not adjusted for failure to achieve a market vesting condition. H. Deferred taxes Deferred taxes are recognized in respect of temporary differences between the carrying amounts of assets and liabilities in the financial statements and the amounts attributable for tax purposes. Significant judgment is required to determine the amount of deferred tax assets that can be recognized, based upon the estimated timing and level of future taxable profits together with future tax planning strategies. Deferred taxes are measured at the tax rates that are expected to apply in the period when the temporary differences are reversed based on tax laws that have been enacted or substantively enacted at the end of the reporting period. Deferred taxes are recognized in Profit or loss, except when they relate to items recognized in other comprehensive income or directly in equity. Deferred tax assets are reviewed at the end of each reporting period and reduced to the extent that it is not probable that they will be utilized. In addition, temporary differences (such as carry forward losses) for which deferred tax assets have not been recognized or reassessed are recognized to the extent that their recoverability is probable. Any resulting reduction or reversal is recognized as “income tax” within the statement of comprehensive income. All deferred tax assets and liabilities are presented in the statement of financial position as non-current items, respectively. Deferred taxes are offset in the statement of financial position if there is a legally enforceable right to offset a current tax asset against a current tax liability and the deferred taxes relate to the same taxpayer and the same taxation authority. The current tax liability is measured using the tax rates and tax laws that have been enacted or substantively enacted by the reporting date as well as adjustments required in connection with the tax liability in respect of previous years. Deferred tax assets in respect to carryforward losses have not been recognized in respect of these items because it is not probable that future taxable profit will be available against which the group can utilize the benefits therefrom. A2Z SMART TECHNOLOGIES CORP. (Formerly A2Z TECHNOLOGIES CANADA CORP.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): I. Defined benefit schemes The Company contributes towards the state pension in accordance with local legislation where required. The only obligation of the Company is to make the required contributions. Costs related to such contributions are expensed in the period in which they are incurred. The Company has several employee benefits plans as to its employees: 1. Short-term employee benefits: Short-term employee benefits include salaries, paid annual leave, paid sick leave, recreation and social security contributions and are recognized as expenses as the services are rendered. A liability in respect of a cash bonus or a profit-sharing plan is recognized when the Company has a legal or constructive obligation to make such payment as a result of past service rendered by an employee and a reliable estimate of the amount can be made. 2. Post-employment benefits: The plans are normally financed by contributions to insurance companies and classified as defined contribution plans or as defined benefit plans. This liability is calculated based on actuary measurement. Contributions to the defined contribution plan in respect of severance or retirement pay are recognized as an expense simultaneously with receiving the employee’s services and no additional provision is required in the financial statements except for the unpaid contribution. The Company also operates for some employees an immaterial defined benefit plan in respect of severance pay pursuant to the Severance Pay Law. The Company presents the accrued severance pay liability net from severance pay fund. J. Property, plant and equipment Items of property, plant and equipment are initially recognized at cost. Cost includes directly attributable costs and the estimated present value of any future costs of dismantling and removing items. Depreciation is computed by the straight-line method, based on the estimated useful lives of the assets, as follows: SCHEDULE OF ESTIMATED USEFUL LIVES OF ASSETS Estimated useful lives Computers and electronic equipment 3 Furniture and equipment 7 Vehicles 6.67 Leasehold Improvement 10 A2Z SMART TECHNOLOGIES CORP. (Formerly A2Z TECHNOLOGIES CANADA CORP.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): J. Revenue recognition Revenue is recognized based on the five-step model outlined in IFRS 15, Revenue from Contracts with Customers. IFRS 15 sets out a single revenue recognition model, according to which the entity shall recognize revenue in accordance with the said core principle by implementing a five-step model framework: 1. Identify the contracts with a customer. 2. Identify the performance obligations in the contract. 3. Determine the transaction price. 4. Allocate the transaction price to the performance obligations in the contract. 5. Recognize revenue when the entity satisfies a performance obligation. A. Revenue from services is derived from contracts with customers pursuant to which the Company provides maintenance for various electronic systems. Revenues on these contracts are recognized using the straight-line method, based on the period of time passed. B. Revenue from providing maintenance services to refrigeration systems is derived from on demand fixed-price contracts with customers. Revenues on these on demand fixed-price contracts are recognized at the point in time when the services were delivered. C. Revenues from leasing soaking containers is recognized on a straight-line basis over the annual leasing period (limited to 1 year). D. Revenues from the Cust2mate Platform are recognized at the time the service is transferred to the customer and measures the revenue in an amount that represents the consideration that the Company expects to be entitled to for the same goods or service. K. Share based payment transactions The Company’s employees and other service providers are entitled to remuneration in the form of equity-settled share-based payment. The cost of equity-settled transactions is recognized in profit or loss together with a corresponding increase in equity during the period which the performance and/or service conditions are to be satisfied ending on the date on which the relevant employees become entitled to the award (“the vesting period”). The cumulative expense recognized for equity-settled transactions at the end of each reporting date includes the Group’s best estimate of the number of equity instruments that will ultimately vest. The cost of equity-settled transactions with employees is measured at the fair value of the equity instruments granted at grant date. The fair value of option granted is determined using the Binomial Lattice option-pricing model (“Binomial model”). The Binomial model takes into account variables such as volatility, dividend yield rate, and risk-free interest rate and also allows for the use of dynamic assumptions and considers the contractual term of the option, the probability that the option will be exercised prior to the end of its contractual life, and the probability of termination or retirement of the option holder in computing the value of the option. No expense is recognized for awards that do not ultimately vest. L. Research and development expenses Research expenses are recognized in profit or loss when incurred. An intangible asset arising from a development project or from the development phase of an internal project is recognized if the Company can demonstrate all of the following: the technical feasibility of completing the intangible asset so that it will be available for use or sale; the Company’s intention to complete the intangible asset and use or sell it; the Company’s ability to use or sell the intangible asset; how the intangible asset will generate future economic benefits; the availability of adequate technical, financial and other resources to complete the intangible asset; and the Company’s ability to measure reliably the expenditure attributable to the intangible asset during its development. Through December 31, 2021, the Company has not met all the aforementioned criteria and therefore all development costs have been recognized in profit or loss. A2Z SMART TECHNOLOGIES CORP. (Formerly A2Z TECHNOLOGIES CANADA CORP.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): M. Standard not yet effective Certain pronouncements were issued by the IASB or the IFRIC that are mandatory for future accounting periods. Many are not applicable to or do not have a significant impact on the Company and have been excluded from the list below. The Company has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective. The following have not yet been adopted and are being evaluated to determine their impact on the Company. IAS - 1 Presentation of Financial Statements In January 2020, the IASB issued amendments to IAS 1, which clarify the criteria used to determine whether liabilities are classified as current or non-current. These amendments clarify that current or non-current classification is based on whether an entity has a right at the end of the reporting period to defer settlement of the liability for at least twelve months after the reporting period. The amendments also clarify that ‘settlement’ includes the transfer of cash, goods, services, or equity instruments unless the obligation to transfer equity instruments arises from a conversion feature classified as an equity instrument separately from the liability component of a compound financial instrument. The amendments are effective for annual reporting periods beginning on or after January 1, 2022. However, in May 2020, the effective date was deferred to annual reporting periods beginning on or after January 1, 2023. The Company evaluated the expected impact of the IAS 1 amendments on its financial position as December 31, 2021, as a reclassification of its derivative liability - warrants in the amount of $ 51 A2Z SMART TECHNOLOGIES CORP. (Formerly A2Z TECHNOLOGIES CANADA CORP.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) |
BASIS OF PREPARATION
BASIS OF PREPARATION | 12 Months Ended |
Dec. 31, 2021 | |
Basis Of Preparation | |
BASIS OF PREPARATION | NOTE 3 – BASIS OF PREPARATION A. Basis of preparation The principal accounting policies adopted in the preparation of the financial statements are set out above. These financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board. The financial statements have been prepared under the historical cost convention except for certain derivatives. The Company has elected to present the statement of comprehensive income using the function of expense method. B. Basis of consolidation Where the Company has control over an investee, it is classified as a subsidiary. The financial statements of the subsidiaries are included in the consolidated financial statements from the date that control commenced until the date control ceases. The Company controls an investee if all three elements are present: power over the investee, exposure to variable returns from the investee, and the ability of the investor to use its power to affect those variable returns. Control is reassessed whenever facts and circumstances indicate that there may be a change in any of these elements of control. The consolidated financial statements of the Company include the accounts of the Company and its subsidiaries as if they formed a single entity. Any intercompany transactions were eliminated in full. C. Basis of Measurement These consolidated financial statements have been prepared on a going concern basis, under the historical cost basis, except for financial instruments which have been measured at fair value. D. Functional and foreign currency The Company’s functional currency is the New Israeli Shekel (“NIS”), since the Company’s primary economic environment is in Israel. However, the reporting currency is in US Dollars (“USD”) due to expected future expansion. Transactions and balances in foreign currencies are converted into US Dollars in accordance with the principles set forth by International Accounting Standard (IAS) 21 “The Effects of Changes in Foreign Exchange Rates”. Accordingly, transactions and balances have been converted as follows: ● Monetary assets and liabilities - at the rate of exchange applicable at the statements of financial position date. ● Exchange gains and losses from the aforementioned conversion are recognized in the statement of comprehensive loss. ● Expense items - at exchange rates applicable as of the date of recognition of those items. ● Non-monetary items are converted at the rate of exchange at the statements of financial position date. |
CRITICAL ACCOUNTING ESTIMATES A
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS | 12 Months Ended |
Dec. 31, 2021 | |
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS | NOTE 4 - CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS The areas requiring the use of estimates and critical judgments that may potentially have a significant impact on the Company’s earnings and financial position are the useful life of property and equipment and income tax. The useful life of property, plant and equipment Property and equipment are amortized or depreciated over their useful lives. Useful lives are based on management’s estimates of the period that the assets will generate revenue, which are periodically reviewed for continued appropriateness. Changes to estimates can result in significant variations in the amounts charged to the consolidated statement of comprehensive income in specific periods. A2Z SMART TECHNOLOGIES CORP. (Formerly A2Z TECHNOLOGIES CANADA CORP.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) Intangible assets Intangible assets are tested for impairment annually or more frequently if there is an indication of impairment. The carrying value of intangibles with definite lives is reviewed each reporting period to determine whether there is any indication of impairment. If there are indications of impairment the impairment analysis is completed and if the carrying amount of an asset exceeds its recoverable amount, the asset is impaired and impairment loss is recognized. Derivative liability - Warrants The Company uses the Black-Scholes option-pricing model to estimate fair value at each reporting date. The key assumptions used in the model are the expected future volatility in the price of the Company’s shares and the expected life of the warrants. Determining the fair value of share-based payment transactions: The fair value of share-based payment transactions is determined upon initial recognition by the Binomial model. The Binomial model is based on share price and exercise price and assumptions regarding expected volatility, term of share option, dividend yield and risk-free interest rate. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2021 | |
INVENTORIES | NOTE 5 INVENTORIES SCHEDULE OF INVENTORIES December 31, December 31, 2021 2020 Raw materials $ 93 $ 19 Smart cart electrical equipment 908 - Smart cart parts 145 - Inventories $ 1,147 $ 19 A2Z SMART TECHNOLOGIES CORP. (Formerly A2Z TECHNOLOGIES CANADA CORP.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) |
BUSINESS COMBINATION UNDER COMM
BUSINESS COMBINATION UNDER COMMON CONTROL | 12 Months Ended |
Dec. 31, 2021 | |
BUSINESS COMBINATION UNDER COMMON CONTROL | NOTE 6 BUSINESS COMBINATION UNDER COMMON CONTROL On November 16, 2020, the Company completed the acquisition of 79.49 1,566 Impact of implementation of the Cust2Mate consolidation in accordance with pooling of interest method as of January 1, 2019: SCHEDULE OF BUSINESS COMBINATION A2Z Cust2Mate Eliminating entries Total 31/12/19 31/12/19 31/12/19 ASSETS Cash and cash equivalents $ 289 $ 73 $ - $ 362 Inventories 38 - - 38 Trade receivables 244 - - 244 Financial asset 5,624 - (5,624 ) - Other accounts receivable 1,106 154 - 1,260 Intangible asset - patent, net 2,341 15 - 2,356 Property, plant and equipment, net 326 2 - 328 Long term deposit 30 - - 30 Deferred taxes , 16 - - 16 LIABILITIES Short term loan and current portion of long term loans 200 - - 200 Lease liability 63 - - 63 Trade payables 471 38 - 509 Other accounts payable 422 - - 1,988 Long term loans 152 204 - 356 Severance payment, net 159 - - 159 Total shareholders’ equity 8,547 2 (7,190 )(*) 1,359 (*) Including consideration paid of $ 1,566 A2Z SMART TECHNOLOGIES CORP. (Formerly A2Z TECHNOLOGIES CANADA CORP.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) NOTE 6 BUSINESS COMBINATION UNDER COMMON CONTROL (CONTINUED): A2Z Cust2Mate Eliminating entries Total 31/12/19 31/12/19 31/12/19 Revenues 1,306 78 - 1,384 Cost of revenues (783 ) - - (783 ) General and administrative expenses (744 ) (10 ) - (754 ) Research and development expenses (219 ) (195 ) - (414 ) Marketing and selling (87 ) - - (87 ) Listing Expense (1,792 ) - - (1,792 ) Financial expenses (109 ) - - (109 ) Income tax (expense) (380 ) - - (380 ) CASH FLOWS Cash flows from operating activities (1,410 ) (104 ) - (1,514 ) Cash flows from investing activities (26 ) (4 ) - (30 ) Cash flows from financing activities 1,665 170 - 1,835 |
OTHER ACCOUNTS RECEIVABLE
OTHER ACCOUNTS RECEIVABLE | 12 Months Ended |
Dec. 31, 2021 | |
OTHER ACCOUNTS RECEIVABLE | NOTE 7 OTHER ACCOUNTS RECEIVABLE SCHEDULE OF OTHER ACCOUNTS RECEIVABLE December 31, December 31, 2021 2020 Related parties $ 126 $ - Advances to suppliers - 28 Prepaid expenses 50 263 Government institutions 251 60 Other 7 2 Other accounts receivable $ 434 $ 353 A2Z SMART TECHNOLOGIES CORP. (Formerly A2Z TECHNOLOGIES CANADA CORP.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2021 | |
PROPERTY, PLANT AND EQUIPMENT, NET | NOTE 8 - PROPERTY, PLANT AND EQUIPMENT, NET SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT NET Computers and electronic equipment Furniture and equipment Vehicles Leasehold Improvements Right of use Asset Total Cost: As of January 1, 2021 $ 370 $ 139 $ 625 $ 57 $ 40 $ 1,231 Additions 52 62 298 - 362 774 Translation adjustments 18 - 45 2 (40 ) 25 As of December 31, 2021 $ 440 $ 201 $ 968 $ 59 $ 362 $ 2,030 Accumulated depreciation: As of January 1, 2021 $ 268 $ 133 $ 294 $ 57 $ 23 $ 775 Additions 22 7 92 - 101 222 Translation adjustments (2 ) 2 (18 ) 2 (23 ) (39 ) As of December 31, 2021 $ 288 $ 142 $ 368 $ 59 $ 101 $ 958 Net Book Value: As of December 31, 2021 $ 152 $ 59 $ 600 $ - $ 261 $ 1,072 As of December 31, 2020 $ 102 $ 6 $ 331 $ - $ 17 $ 456 Computers and electronic equipment Furniture and equipment Vehicles Leasehold Improvements Right of use Asset Total Cost: As of January 1, 2020 $ 342 $ 123 $ 345 $ 53 $ 40 $ 903 Additions - 3 224 - - 227 Translation adjustments 28 13 56 4 - 101 As of December 31, 2020 $ 370 $ 139 $ 625 $ 57 $ 40 $ 1,231 Accumulated depreciation: As of January 1, 2020 $ 219 $ 122 $ 204 $ 53 $ 20 $ 618 Balance $ 219 $ 122 $ 204 $ 53 $ 20 $ 618 Additions 16 2 35 - 4 57 Translation adjustments 33 9 55 4 (1 ) 100 As of December 31, 2020 $ 268 $ 133 $ 294 $ 57 $ 23 $ 775 Net Book Value: As of December 31, 2020 $ 102 $ 6 $ 331 $ - $ 17 $ 456 As of December 31, 2019 $ 123 $ 1 $ 141 $ - $ - $ 265 Net Book Value $ 123 $ 1 $ 141 $ - $ - $ 265 A2Z SMART TECHNOLOGIES CORP. (Formerly A2Z TECHNOLOGIES CANADA CORP.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) |
OTHER ACCOUNTS PAYABLE
OTHER ACCOUNTS PAYABLE | 12 Months Ended |
Dec. 31, 2021 | |
OTHER ACCOUNTS PAYABLE | NOTE 9 - OTHER ACCOUNTS PAYABLE SCHEDULE OF OTHER ACCOUNTS PAYABLE December 31, December 31, 2021 2020 Employees and government authorities $ 362 $ 125 Accrued expenses 169 221 Other 568 30 Other accounts payable $ 1,099 $ 376 |
LONG TERM LOANS
LONG TERM LOANS | 12 Months Ended |
Dec. 31, 2021 | |
LONG TERM LOANS | NOTE 10 - LONG TERM LOANS : SCHEDULE OF LONG TERM LOANS Linked to Interest rate December 31, 2021 December 31, 2020 Long term loans NIS 1.8 6.1 $ 641 $ 1,024 Less- Current portion (158 ) (358 ) Non Current Long term loans $ 483 $ 666 The loans are from leading Israeli financial institutions and bear interest of between 1.8 6.1 158 877 A2Z SMART TECHNOLOGIES CORP. (Formerly A2Z TECHNOLOGIES CANADA CORP.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) |
SEVERANCE PAYMENT, NET
SEVERANCE PAYMENT, NET | 12 Months Ended |
Dec. 31, 2021 | |
Severance Payment Net | |
SEVERANCE PAYMENT, NET | NOTE 11 – SEVERANCE PAYMENT, NET SCHEDULE OF PLAN DEFINED BENEFIT OBLIGATION a. The plan liabilities, net: Year ended Year ended December 31, 2021 December 31, 2020 Defined benefit plan: Present value of defined benefit obligation $ 541 $ 563 Fair value of plan assets (374 ) (376 ) Total $ 167 $ 187 Changes in the present value of defined benefit obligation: 2021 2020 Balance at beginning of year $ 563 $ 484 Recognized in statement of comprehensive loss: Interest cost 10 12 Current service cost 39 41 Currency translation (71 ) 38 Recognized in other comprehensive gain (loss): Net actuarial gain (loss) - (13 ) Balance at end of year $ 541 $ 563 SCHEDULE OF FAIR VALUE OF PLAN ASSETS b. The movement in the fair value of the plan assets: 2021 2020 Balance at beginning of year $ (376 ) $ (325 ) Recognized in statement of comprehensive loss: Expected return 28 (28 ) Recognized in other comprehensive loss /(gain): Net actuarial loss (gain) - (25 ) Other: Contributions by employer (26 ) (18 ) Balance at end of year $ (374 ) $ (376 ) SCHEDULE OF ASSUMPTIONS UNDERLYING DEFINED BENEFIT PLAN c. The principal assumptions underlying the defined benefit plan: December 31, 2021 December 31, 2020 Discount rate of the plan liability 2.24 % 2.20 % Expected rate of return on plan assets 2.36 % 2.32 % Future salary increases 3.47 % 3.44 % A2Z SMART TECHNOLOGIES CORP. (Formerly A2Z TECHNOLOGIES CANADA CORP.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) |
WARRANT LIABILITY
WARRANT LIABILITY | 12 Months Ended |
Dec. 31, 2021 | |
Warrant Liability | |
WARRANT LIABILITY | NOTE 12 – WARRANT LIABILITY a) January 2020 Warrants Certain warrants issued in January 2020 were issued with an exercise price denominated in Canadian Dollars (CAD) rather than the functional currency of the Company - New Israeli Shekels (NIS). These warrants were recorded at their fair value at the end of each reporting period and classified as a derivative liability. On June 30, 2021, warrant holders, owning 220,589 1.95 1.95 2.65 1.00 1,788 As of December 31, 2021, the warrant liability was $ 51 1,788 82% 0.064% 0.08 13.72 16,312 The following is the reconciliation of the fair value that are categorized within Level 3 of the fair value hierarchy in financial instruments: SCHEDULE OF FAIR VALUE HIERARCHY OF WARRANTS Balance at January 1, 2020 $ - Issuance at January 30, 2020 214 Issuance at December 29, 2020 1,698 Revaluation at December 31, 2020 71 Reclassification to Warrant Reserve (6,846 ) Balance at December 31, 2020 285 Warrants exercised (342 ) Revaluations 1,896 Reclassification to Warrant Reserve $ (1,788 ) Balance at December 31, 2021 $ 51 A2Z SMART TECHNOLOGIES CORP. (Formerly A2Z TECHNOLOGIES CANADA CORP.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) NOTE 12 – WARRANT LIABILITY (CONTINUED): b) November 2020 and December 2020 Warrants Certain warrants issued in November and December 2020 were issued with an exercise price denominated in Canadian Dollars (CAD) rather than the functional currency of the Company – New Israeli Shekels (NIS). These warrants were recorded at their fair value at the end of each reporting period and classified as a derivative liability. As of March 31, 2021, the warrant liability was $ 35,175 26,816 79% 1.002% 4.63 9.30 On March 31, 2021, warrant holders, owning 5,816,785 2.70 2.70 2.65 1.00 35,065 The following is the reconciliation of the fair value that are categorized within Level 3 of the fair value hierarchy in financial instruments: SCHEDULE OF FAIR VALUE HIERARCHY OF WARRANTS Balance on January 1, 2020 $ - Issuance at November 16, 2020 3,537 Issuance at December 29, 2020 1,698 Revaluation at December 31,2020 3,156 Balance at December 31, 2020 $ 8,391 Revaluation at March 31, 2021 26,816 Reclassification to Warrant Reserve (35,207 ) Balance at December 31, 2021 $ - A2Z SMART TECHNOLOGIES CORP. (Formerly A2Z TECHNOLOGIES CANADA CORP.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) NOTE 12 – WARRANT LIABILITY (CONTINUED): c) April and May 2021 Warrants Certain warrants were issued with an exercise price denominated in Canadian Dollars (CAD) rather than the functional currency of the Company – New Israeli Shekels (NIS). These warrants were recorded at their fair value at the end of each reporting period and classified as a derivative liability. As of June 30, 2021, the warrant liability was $ 7,093 2,307 111% 0.41% 1.79 11.91 On June 30, 2021, warrant holders owning 583,703 11.04 11.04 2.63 1.00 6,846 As of August 29, 2021, the warrant liability was $ 247 124 134% 0.41% 1.62 6.69 The following is the reconciliation of the fair value that are categorized within Level 3 of the fair value hierarchy in financial instruments: SCHEDULE OF FAIR VALUE HIERARCHY OF WARRANTS Balance at January 1, 2021 $ - Issuance at June 4, 2021 4,786 Revaluation at June 30 ,2021 2,307 Reclassification to Warrant Reserve (6,846 ) Balance at June 30, 2021 247 Revaluation at August 29 ,2021 (124 ) Reclassification to Warrant Reserve (123 ) Balance at December 31, 2021 $ - |
LIENS, COMMITMENTS AND CONTINGE
LIENS, COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2021 | |
LIENS, COMMITMENTS AND CONTINGENCIES | NOTE 13 – LIENS, COMMITMENTS AND CONTINGENCIES A. The Company’s Israeli subsidiary’s fixed assets (motor vehicles) are secured against bank borrowings. B. One of the Company’s Israeli subsidiaries leases its facility which expires on March 1, 2024. Lease payments are approximately $ 11 132 Another one of the Company’s Israeli subsidiaries leases its facility which expires on June 30, 2022. Lease payments are approximately $ 3.5 45 A2Z SMART TECHNOLOGIES CORP. (Formerly A2Z TECHNOLOGIES CANADA CORP.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) |
SHAREHOLDERS_ EQUITY (DEFICIT)
SHAREHOLDERS’ EQUITY (DEFICIT) | 12 Months Ended |
Dec. 31, 2021 | |
SHAREHOLDERS’ EQUITY (DEFICIT) | NOTE 14 – SHAREHOLDERS’ EQUITY (DEFICIT) On August 13, 2021, the Board and the TSX-V approved a 1-for-3 reverse stock split A. On January 21, 2020, 47,619 0.42 15 20 B. On January 30, 2020, the Company completed a private placement of 277,779 1.80 377 500 1.95 214 C. On January 30, 2020, the Company issued 30,831 50 D. On March 18, 2020, 75,000 0.39 23 32 E. On April 27, 2020, the Company issued 76,701 71 F. During July 2020 and August 2020, 182,142 2.52 98 G. On October 28, 2020, 767 1.14 1 H. On November 16, 2020, the Company closed a private placement (the “November 2020 Private Placement”) and issued 4,450,153 1.875 6,377 8,344 2.70 417 The fair value of the November 2020 Private Placement Warrants was $ 3,537 All securities issued in connection with the November 2020 Private Placement are subject to a four month and one day hold period expiring on March 11, 2021. A2Z SMART TECHNOLOGIES CORP. (Formerly A2Z TECHNOLOGIES CANADA CORP.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) NOTE 14 – SHAREHOLDERS’ EQUITY (DEFICIT) (CONTINUED): I. On December 29, 2020, the Company closed a private placement (the “December 2020 Private Placement”) and issued 1,366,631 1.875 2,000 2,562 2.70 128 100,000 All securities issued in connection with the December 2020 Private Placement are subject to a four month and one day hold period expiring on April 25, 2021. The December 2020 Warrants and Finders’ Warrants and have an exercise price of CAD$ 2.70 1,698 J. On December 24, 2020, the Company issued 20,161 47 K. During the year ended December 31, 2021, the Company issued 2,514,693 2,629,343 L. On June 4, 2021, the Company completed two private placements (collectively, the “Offering”). The Offering resulted in the issuance of an aggregate of 1,305,662 8.16 8,590 10.65 11.04 221,100 1,084,562 466 578 The fair value of the warrants granted was $ 4,786 3,338 M. During the year ended December 31, 2021, the Company issued 286,223 286,223 A2Z SMART TECHNOLOGIES CORP. (Formerly A2Z TECHNOLOGIES CANADA CORP.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) |
WARRANTS AND OPTIONS
WARRANTS AND OPTIONS | 12 Months Ended |
Dec. 31, 2021 | |
Warrants And Options | |
WARRANTS AND OPTIONS | NOTE 15 – WARRANTS AND OPTIONS a) Warrants (i) Warrant transactions for the years ended December 31, 2021, and 2020 are as follows: SCHEDULE OF WARRANTS TRANSACTIONS Number Weighted Average Exercise Price Balance, January 1, 2020 1,277,464 ILS 2.5200 Exercise of warrants (182,142 ) ILS 2.5200 Warrants issued in the January 2020 Private Placement 277,779 ILS 5.124 Warrants issued in the November 2020 Private Placement 4,450,153 ILS 7.1418 Warrants issued in the December 2020 Private Placement 1,366,631 ILS 7.1418 Finders’ Fee Warrants 100,000 ILS 7.1418 Balance, December 31, 2020 7,289,885 ILS 6.1280 Exercise of warrants (15,000 ) ILS 5.124 Exercise of warrants (80,000 ) ILS 7.1418 Warrants issued in the April 2021 Private Placement (Note 13(l)) 221,100 ILS 29.025 Warrants issued in the May 2021 Private Placement (Note 13(l)) 1,084,562 ILS 29.025 Exercise of warrants (14,502 ) ILS 5.124 Exercise of warrants (145,011 ) ILS 5.124 Exercise of warrants (45,000 ) ILS 7.1418 Exercise of warrants (14,502 ) ILS 5.124 Exercise of warrants (33,333 ) ILS 7.1418 Exercise of warrants (15,000 ) ILS 5.124 Exercise of warrants (55,000 ) ILS 7.1418 Exercise of warrants (100,000 ) ILS 7.1418 Exercise of warrants (595,231 ) ILS 7.1418 Exercise of warrants (ii) (1,095,322 ) ILS 2.5200 Exercise of warrants (7,251 ) ILS 5.124 Exercise of warrants (31,776 ) ILS 7.1418 Exercise of warrants (382,415 ) ILS 7.1418 Balance, December 31, 2021 5,966,204 ILS 11.0318 (ii) As of December 31, 2021, the Company had outstanding warrants, enabling the holders to acquire common shares as follows: SCHEDULE OF OUTSTANDING WARRANTS December 31, 2021 Expiry date Exercise price Exercise price (USD) 5,437 January 30, 2022 CAD 1.95 $ 1.53 61,077 January 30, 2022 ILS 5.124 (1) $ 1.65 3,227,398 November 10, 2025 ILS 7.1418 (2) $ 2.30 1,366,631 December 24, 2025 ILS 7.1418 (2) $ 2.30 221,100 April 18, 2023 ILS 29.025 (3) $ 9.33 1,084,562 May 28, 2023 ILS 29.025 (3) $ 9.33 5,966,205 (1) On June 30, 2021, warrant holders and the Company, agreed that the exercise price of CAD$ 1.95 5.124 (2) On March 31, 2021, warrant holders and the Company, agreed that the exercise price of CAD$ 2.70 7.1418 (3) On June 30, 2021, warrant holders and the Company, agreed that the exercise price of CAD$ 11.04 29.025 A2Z SMART TECHNOLOGIES CORP. (Formerly A2Z TECHNOLOGIES CANADA CORP.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) NOTE 15 – WARRANTS AND OPTIONS (CONTINUED): a) Warrants (continued) (iii) On December 16, 2021, 1,095,322 2.52 980,673 b) Stock Options Stock option transactions for the years ended December 31, and 2020 are as follows: SCHEDULE OF STOCK OPTION TRANSACTIONS Number Weighted Average Exercise Price (CAD) Weighted Average Exercise Price (USD) Balance January 1, 2020 182,909 $ 0.42 $ 0.32 Options granted 100,000 2.40 Options granted 613,333 1.50 Options granted 116,667 2.25 Exercise of options (767 ) 1.14 Exercise of agent’s options (47,619 ) 0.42 Exercise of options (75,000 ) 0.42 Balance December 31, 2020 889,523 $ 1.62 $ 1.27 Options granted (i) 33,333 3.00 Options granted (ii) 116,667 3.00 Exercise of options (8,333 ) 2.25 Options granted (iii) 50,000 8.40 Exercise of options (59,524 ) 0.42 Exercise of options (33,333 ) 1.50 Exercise of options (33,333 ) 2.25 Options granted (iv) 116,700 6.00 Options granted (v) 16,677 8.00 Exercise of options (35,000 ) 2.25 Exercise of options (116,700 ) 6.00 Expiry of options (116,667 ) 3.00 Balance December 31, 2021 820,010 $ 2.10 $ 1.65 A2Z SMART TECHNOLOGIES CORP. (Formerly A2Z TECHNOLOGIES CANADA CORP.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) NOTE 15 – WARRANTS AND OPTIONS (CONTINUED): b) Stock Options (continued) (i) On January 28, 2021, 33,333 3.00 January 28, 2025 90 2.82 4 209 0.30 0 (ii) On January 28, 2021, 116,667 3.00 December 31, 2021 191 2.82 0.92 173 0.11 0 (iii) On June 3, 2021, 50,000 8.40 June 3, 2026 445 9.18 5 191 0.93 0 (iv) On August 23, 2021, 116,700 6.00 April 30, 2022 242 6.50 0.68 126 0.19 0 (v) On October 28, 2021, 16,677 8.00 October 28, 2026 242 9.37 5 114 1.43 0 (vi) As at December 31, 2021, the Company had outstanding stock options, enabling the holders to acquire common shares as follows: SCHEDULE OF OUTSTANDING STOCK OPTIONS Outstanding as of December 31, 2021 Exercisable as of December 31, 2021 Expiry date Exercise price (CAD) Exercise price (USD) 100,000 100,000 January 23, 2023 CAD 2.40 $ 1.88 580,000 449,167 August 20, 2025 CAD 1.50 $ 1.18 40,000 40,000 September 1, 2025 CAD 2.25 $ 1.77 33,333 22,222 January 28, 2025 CAD 3.00 $ 2.36 50,000 16,667 June 3, 2026 CAD 8.40 $ 6.60 16,677 5,559 October 28, 2026 CAD 8.00 $ 6.28 820,010 633,615 (vii) Share-based compensation expense is recognized over the vesting period of options. During the year ended December 31, 2021, share-based compensation of $ 843 800 A2Z SMART TECHNOLOGIES CORP. (Formerly A2Z TECHNOLOGIES CANADA CORP.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) |
NON CONTROLLING INTERESTS
NON CONTROLLING INTERESTS | 12 Months Ended |
Dec. 31, 2021 | |
NON CONTROLLING INTERESTS | NOTE 16 – NON CONTROLLING INTERESTS The following Company subsidiaries which have non-controlling interests: SCHEDULE OF SUBSIDIARIES OF NON-CONTROLLING INTERESTS December 31, December 31, 2021 2020 Cust2mate $ (1,026 ) $ - AAI 419 520 $ (607 ) $ 520 |
REVENUES
REVENUES | 12 Months Ended |
Dec. 31, 2021 | |
REVENUES | NOTE 17 – REVENUES Major customers (as percentage of total revenues): SCHEDULE OF MAJOR CUSTOMERS Year Ended December 31, December 31, 2021 2020 % % Customer A 39 % 61 % Customer B 15 % 6 % Customer C 10 % 4 % Customer D 28 % - 92 % 71 % Revenue streams (as percentage of total revenues): SCHEDULE OF REVENUE FROM SERVICES Year Ended December 31, December 31, 2021 2020 % % Revenues from services Revenues from services 50 % 65 % Revenues from leasing 15 % 25 % Revenues from maintenance services 7 % 10 % Smart Carts Revenues from smart carts project 28 % - 100 % 100 % A2Z SMART TECHNOLOGIES CORP. (Formerly A2Z TECHNOLOGIES CANADA CORP.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) |
COST OF REVENUES
COST OF REVENUES | 12 Months Ended |
Dec. 31, 2021 | |
COST OF REVENUES | NOTE 18 – COST OF REVENUES SCHEDULE OF COST OF REVENUES Year Ended December 31, December 31, 2021 2020 Payroll and related expenses $ 1,096 $ 493 Subcontractor and outsourced work 162 65 Materials and components consumed 291 90 Car maintenance 373 147 Other 107 58 Cost of revenues $ 2,029 $ 853 |
RESEARCH AND DEVELOPMENT EXPENS
RESEARCH AND DEVELOPMENT EXPENSES | 12 Months Ended |
Dec. 31, 2021 | |
RESEARCH AND DEVELOPMENT EXPENSES | NOTE 19 – RESEARCH AND DEVELOPMENT EXPENSES SCHEDULE OF RESEARCH AND DEVELOPMENT EXPENSES 2021 2020 Year Ended December 31, December 31, 2021 2020 Payroll and related expenses $ 510 $ 410 Subcontractor and outsourced work 2,477 - Legal fees 99 - Other 136 8 Research and development expense $ 3,222 $ 418 |
GENERAL AND ADMINISTRATIVE EXPE
GENERAL AND ADMINISTRATIVE EXPENSES | 12 Months Ended |
Dec. 31, 2021 | |
GENERAL AND ADMINISTRATIVE EXPENSES | NOTE 20 – GENERAL AND ADMINISTRATIVE EXPENSES SCHEDULE OF GENERAL AND ADMINISTRATIVE EXPENSE 2021 2020 Year Ended December 31, December 31, 2021 2020 Payroll and related $ 1,027 $ 579 Professional fees 3,417 1,449 Share-based compensation 842 - Depreciation and amortization 321 213 Office maintenance 275 23 Investor relations 254 101 Others 358 - General and administrative expense $ 6,494 $ 2,365 A2Z SMART TECHNOLOGIES CORP. (Formerly A2Z TECHNOLOGIES CANADA CORP.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) |
LOSS PER SHARE
LOSS PER SHARE | 12 Months Ended |
Dec. 31, 2021 | |
LOSS PER SHARE | NOTE 21 - LOSS PER SHARE Both the basic and diluted earnings (loss) per share have been calculated using the weighted average number of shares in issue during the relevant financial periods, the weighted average number of equity shares in issue and loss for the period as follows: SCHEDULE OF EARNINGS PER COMMON SHARE Year ended Year ended December 31, 2021 December 31, 2020 Net loss for the year $ (39,735 ) $ (7,222 ) Weighted average number of ordinary shares 23,340,621 16,758,323 Basic and diluted loss per share in USD $ ( 1.70 ) ($ 0.43 ) |
INCOME TAX EXPENSE
INCOME TAX EXPENSE | 12 Months Ended |
Dec. 31, 2021 | |
INCOME TAX EXPENSE | NOTE 22 – INCOME TAX EXPENSE A. Taxes on income: The combined Canadian federal and provincial statutory income tax rate is 26.5 26.5 Israeli corporate tax rates are 23 B. Tax reconciliation: SCHEDULE OF EFFECTIVE INCOME TAX EXPENSE Year ended December 31, 2021 Year ended December 31, 2020 Loss before income tax $ (40,148 ) $ (5,936 ) Statutory tax rate 23 % 23 % Income tax benefit (expense) at the statutory tax rate 9,234 1,365 Expenses not recognized for tax purposes (9,234 ) (876 ) Recognition/Derecognition of deferred tax assets which were not recognized on prior periods (142 ) (506 ) Income tax expense $ (142 ) $ (17 ) C. Income tax expense: SCHEDULE OF INCOME TAX EXPENSE Year ended Year ended December 31, 2021 December 31, 2020 Current $ - $ 10 Prior year taxes 142 - Deferred taxes, net - 7 Total $ 142 $ 17 A2Z SMART TECHNOLOGIES CORP. (Formerly A2Z TECHNOLOGIES CANADA CORP.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) NOTE 22 – INCOME TAX EXPENSE: (CONTINUED) D. Deferred tax assets: Deferred tax assets have not been recognized in respect of carryforward losses because it is not probable that future taxable profit will be available against which the group can utilize the benefits therefrom. |
RELATED PARTIES AND SHAREHOLDER
RELATED PARTIES AND SHAREHOLDER | 12 Months Ended |
Dec. 31, 2021 | |
RELATED PARTIES AND SHAREHOLDER | NOTE 23- RELATED PARTIES AND SHAREHOLDER The following transactions arose with related parties: SCHEDULE OF RELATED PARTIES 2021 2020 Year Ended December 31, December 31, 2021 2020 Consulting fees $ 958 $ 594 Salaries 37 27 Pensions 6 4 Total $ 1,001 $ 625 Amounts owing by (to) related parties: SCHEDULE OF AMOUNT OWING BY RELATED PARTIES 2021 2020 Year Ended December 31, December 31, 2021 2020 Key management personnel $ 183 $ - Company controlled by the CEO (57 ) - Total $ 126 $ - The CEO has an agreement with the Company pursuant to which he received a consulting fee of NIS 150,000 46 500 400 A2Z SMART TECHNOLOGIES CORP. (Formerly A2Z TECHNOLOGIES CANADA CORP.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) |
FINANCIAL INSTRUMENTS AND RISK
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT | 12 Months Ended |
Dec. 31, 2021 | |
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT | NOTE 24 - FINANCIAL INSTRUMENTS AND RISK MANAGEMENT The Company is exposed to a variety of financial risks, which results from its financing, operating and investing activities. The objective of financial risk management is to contain, where appropriate, exposures in these financial risks to limit any negative impact on the Company’s financial performance and position. The Company’s financial instruments are its cash, trade and other receivables, payables, other payables and loans. The main purpose of these financial instruments is to raise finance for the Company’s operation. The Company actively measures, monitors and manages its financial risk exposures by various functions pursuant to the segregation of duties and principals. The risks arising from the Company’s financial instruments are mainly credit risk and currency risk. The risk rate on loans is fixed. The risk management policies employed by the Company to manage these risks are discussed below. NOTE 24 - FINANCIAL INSTRUMENTS AND RISK MANAGEMENT A. Credit risk: Credit risk arises when a failure by counterparties to discharge their obligations could reduce the amount of future cash inflows from financial assets on hand at the balance sheet date. The Company closely monitors the activities of its counterparties and controls the access to its intellectual property which enables it to ensure the prompt collection of customers’ balances. The Company’s main financial assets are cash and cash equivalents as well as other receivables and represent the Company’s maximum exposure to credit risk in connection with its financial assets. Wherever possible and commercially practical the Company holds cash with major financial institutions in Israel. Credit risk arises when a failure by counterparties to discharge their obligations could reduce the amount of future cash inflows from financial assets on hand at the balance sheet date. The Company closely monitors the activities of its counterparties and controls the access to its intellectual property which enables it to ensure the prompt collection of customers’ balances. Although we maintain incident management and disaster response plans, in the event of a major disruption caused by a natural disaster or man-made problem, or outbreaks of pandemic diseases, including COVID-19, we may be unable to continue our operations and may experience system interruptions and reputational harm. Acts of terrorism and other geo-political unrest, including the ongoing conflict in Ukraine, could also cause disruptions in our business or the business of our customers, partners, vendors, or the economy as a whole. All of the aforementioned risks may be further increased if our disaster recovery plans prove to be inadequate. The Company’s main financial assets are cash and cash equivalents and trade accounts receivable as well as marketable securities and represent the Company’s maximum exposure to credit risk in connection with its financial assets. Wherever possible and commercially practical the Company holds cash with major financial institutions In Israel. SCHEDULE OF FINANCIAL ASSET WITH CASH AND TRADE ACCOUNTS RECEIVABLE 2021 2020 December 31, December 31, 2021 2020 Cash and Cash Equivalents $ 8,470 $ 5,397 Cash restricted 60 192 Trade receivables 857 196 Other Accounts Receivable 434 353 Total $ 9,821 $ 6,138 A2Z SMART TECHNOLOGIES CORP. (Formerly A2Z TECHNOLOGIES CANADA CORP.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) NOTE 24 - FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (CONTINUED): B. Liquidity risks: Liquidity risk is the risk that arises when the maturity of assets and the maturity of liabilities do not match. An unmatched position potentially enhances profitability, but can also increase the risk of loss. The Company has procedures with the object of minimizing such loss by maintaining sufficient cash and other highly liquid current assets and by having an available adequate amount of committed credit facilities. The following tables detail the Company’s remaining contractual maturity for its financial liabilities. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay SCHEDULE OF LIQUIDITY RISKS Contractual Carrying amounts Within 1 year over 1 year Trade payables $ 989 $ 989 $ - Other accounts payable $ 1,099 $ 704 $ 395 Loans $ 641 $ 158 $ 483 Lease liability $ 277 $ 126 $ 151 C. Market risks: The Company’s’ business of maintenance services of various electronic systems is highly competitive and involves a certain degree of risk. The Company’s business operations will depend largely upon the outcome of continued sales and services to security establishments and the initiation of sales of their products to the civilian markets. The Company’s Cust2Mate business is new, and the Company is aware of competitors in the market. In addition to the regular management oversight and skills required, success in this segment will require the Company to penetrate the market as rapidly as possible. As of December 31, 2021, if the Company’s functional currency (ILS) had strengthened/ weakened by 5% against the USD, with all other variables held constant, the loss for the year would decrease /increase by approximately $ 240 D. Interest rate risks: The Company is exposed to cash flow interest rate risk from long-term borrowings at variable rate. It is currently Company policy that between 50% and 75% of Company borrowings are fixed rate borrowings During 2021 and 2020, the Company’s borrowings at variable rate were denominated in NIS. The Company analyses the interest rate exposure on a quarterly basis. A sensitivity analysis is performed by applying a simulation technique to the liabilities that represent major interest-bearing positions. Various scenarios are run taking into consideration refinancing, renewal of the existing positions, alternative financing and hedging. Based on the simulations performed, the impact on profit and loss and net assets of a 100 basis point shift (being the maximum reasonable expectation of changes in interest rates) would be approximately $ 8 E. Capital management The Company considers its capital to be comprised of shareholders’ equity. The Company’s objectives in managing its capital are to maintain its ability to continue as a going concern and to further develop its business. To effectively manage the Company’s capital requirements, the Company has a planning and budgeting process in place to meet its strategic goals. In order to facilitate the management of its capital requirements, the Company prepares expenditure budgets that are updated as necessary depending on various factors, including successful capital deployment and general industry conditions. Management reviews the capital structure on a regular basis to ensure the above objectives are met. There have been no changes to the Company’s approach to capital management during the year ended December 31, 2021. There are no externally imposed restrictions on the Company’s capital. A2Z SMART TECHNOLOGIES CORP. (Formerly A2Z TECHNOLOGIES CANADA CORP.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) |
OPERATING SEGMENTS
OPERATING SEGMENTS | 12 Months Ended |
Dec. 31, 2021 | |
OPERATING SEGMENTS | NOTE 25 – OPERATING SEGMENTS The Company and its subsidiaries are engaged in the following two a. Advanced engineering capabilities to the military/security markets as well as development of related products for the civilian and retail markets. (“Advanced Engineering”) b. Retail automation solutions – Smart Carts (“Smart Carts”) SCHEDULE OF OPERATING SEGMENTS For the year ended Advanced Engineering Smart Carts Total Revenues External $ 1,935 $ 750 $ 2,685 Inter-segment - - - Total 1,935 750 2,685 Segment loss 35,095 4,962 40,057 Finance expense, net 91 Tax expenses 142 Loss $ 40,290 For the year ended Advanced Engineering Smart Carts Total Revenues External $ 1,068 $ - $ 1,068 Inter-segment - - - Total 1,068 - 1,068 Segment loss 5,770 166 5,936 Finance expense, net (32 ) Tax expenses (17 ) Loss $ 5,953 A2Z SMART TECHNOLOGIES CORP. (Formerly A2Z TECHNOLOGIES CANADA CORP.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) NOTE 25 – OPERATING SEGMENTS (CONTINUED): Advanced Engineering Smart Carts Adjustment & Elimination Total As of December 31, 2021 Advanced Engineering Smart Carts Adjustment & Elimination Total Segment assets $ 12,118 $ 2,013 $ - $ 14,131 Segment liabilities $ 1,786 $ 1,438 $ - $ 3,224 Advanced Engineering Smart Carts Adjustment & Elimination Total As of December 31, 2020 Advanced Engineering Smart Carts Adjustment & Elimination Total Segment assets $ 8,598 $ 254 $ - $ 8,852 Segment liabilities $ 10,418 $ 418 $ - $ 10,836 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events | |
SUBSEQUENT EVENTS | NOTE 26 – SUBSEQUENT EVENTS a. Between January 1, 2022, and March 31, 2022, 474,207 5.124 7.1418 956 474,207 b. On January 31, 2022, 5,437 1.95 c. On February 3, 2022, the Company announced it has completed the acquisition of all of the outstanding shares of Isramat Ltd (“Isramat”), an Israeli manufacturer of precision metal parts. In connection with closing of the acquisition, the Company will pay NIS 2,800 900 273,774 7.6311 The purchase consideration is being allocated between the acquired tangible assets and intangible assets, based on their fair values. Fair values were estimated with the assistance of an independent third party. Management is fully responsible for the valuation of the assets. An initial valuation has been completed and a final assessment will be made within one year. The fair value assigned to identifiable intangible assets acquired has been determined by using valuation methods that accounts for replacement costs, using estimates and assumptions determined by management. Based on the above, the Company has initially determined that the purchase price exceeds the fair values of assets acquired by approximately $ 312 312 20 NOTE 26 – SUBSEQUENT EVENTS (CONTINUED): The table below summarizes the preliminary fair value of assets acquired at the purchase date: SCHEDULE OF FAIR VALUE OF ASSETS ACQUIRED February 3, 2022 Total assets 2,649 Benefit shareholder consulting agreement 28 Goodwill (*) 312 Total net assets acquired 2,989 (*) Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired. The goodwill is attributed to the expected benefits arising from the synergies of the combination of the activities of the Company and acquired company. The pro forma financial information presented below is for informational purposes only, is subject to a number of estimates, assumptions and other uncertainties, and is not indicative of the results of operations that would have been achieved if the transaction had taken place at January 1, 2021. The pro forma financial information is as follows: SCHEDULE OF PRO FORMA INFORMATION For the year ended December 31, 2021 Pro forma Unaudited Total revenues $ 7,915 Net loss attributable to A2Z’s shareholders $ 37,698 d. On February 11, 2022, the Company issued 74,985 |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of changes in accounting estimates [abstract] | |
Cash and cash equivalents | A. Cash and cash equivalents Cash equivalents are considered by the Company to be highly liquid investments, including, inter alia, short-term deposits with banks, the maturity of which do not exceed three months at the time of deposit and which are not restricted. |
Restricted cash | B. Restricted cash A restricted deposit is cash invested in a short-term deposit (between three months and one year) or in a long-term deposit (with a maturity of more than one year from the date of investment). Restricted deposits are designated to secure the Company’s office facilities lease agreements and its credit cards. |
Loss per share | C. Loss per share Basic loss per share is computed by dividing the net loss available to common shareholders by the weighted average number of shares outstanding during the reporting period. Diluted loss per share is computed similarly to basic loss per share except that the weighted average number of shares outstanding is increased to include additional shares from the assumed exercise of stock options and warrants, if dilutive. The average number of shares is calculated by assuming that outstanding conversions were exercised and that the proceeds from such exercises were used to acquire common shares at the average market price during the reporting period. For the years ended December 31, 2021, and 2020, potentially dilutive common shares issuable upon the exercise of warrants and options were not included in the computation of loss per share because their effect was anti-dilutive. |
Provisions | D. Provisions Provisions are recognized when the Company has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured. Provisions are measured using the best estimate of the amounts required to settle the obligation at the end of the reporting period. |
Fair value measurement | E. Fair value measurement Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: 1. In the principal market for the asset or liability, or 2. In the absence of a principal market, in the most advantageous market for the asset or liability. The principal or the most advantageous market must be accessible to the Company. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. A2Z SMART TECHNOLOGIES CORP. (Formerly A2Z TECHNOLOGIES CANADA CORP.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): E. Fair value measurement (cont.) A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. Classification of fair value hierarchy The financial instruments presented in the statement of financial position at fair value are grouped into classes with similar characteristics using the following fair value hierarchy which is determined based on the source of input used in measuring fair value: Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 - Inputs other than quoted prices included within Level 1 that are observable either directly or indirectly. Level 3 - Inputs that are not based on observable market data (valuation techniques which use inputs that are not based on observable market data). 1. Financial assets The Company classifies its financial assets into one of the following categories, based on the business model for managing the financial asset and its contractual cash flow characteristics. The Company’s accounting policy for the relevant category is as follows: Amortized cost: These assets arise principally from the provision of goods and services to customers (e.g. trade accounts receivable), but also incorporate other types of financial assets where the objective is to hold these assets in order to collect contractual cash flows and the contractual cash flows are solely payments of principal and interest. They are initially recognized at fair value plus transaction costs that are directly attributable to their acquisition or issue, and are subsequently carried at amortized cost using the effective interest rate method, less provision for impairment. Impairment provisions for trade accounts receivable are recognized based on the simplified approach within IFRS 9 using a provision in the determination of the lifetime expected credit losses. During this process the probability of the non-payment of the trade receivables is assessed. This probability is then multiplied by the amount of the expected loss arising from default to determine the lifetime expected credit loss for the trade receivables. For trade receivables, which are reported net, such provisions are recorded in a separate provision account with the loss being recognized within general and administrative expenses in the consolidated statement of comprehensive income. On confirmation that the trade receivable will not be collectable, the gross carrying value of the asset is written off against the associated provision. A2Z SMART TECHNOLOGIES CORP. (Formerly A2Z TECHNOLOGIES CANADA CORP.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): E. Fair value measurement (cont.): 2. Financial Liabilities The Company classifies its financial liabilities into one of two categories, depending on the purpose for which the liability was acquired. The Company’s accounting policy for each category is as follows: Fair value through profit or loss: Warrants are initially recognized at fair value net of any transaction costs directly attributable to the issue of the instrument. Such liabilities are subsequently measured at fair value through profit or loss. Other financial liabilities include the following items: Bank borrowings are initially recognized at fair value net of any transaction costs directly attributable to the issue of the instrument. Such interest-bearing liabilities are subsequently measured at amortized cost using the effective interest rate method, which ensures that any interest expense over the period to repayment is at a constant rate on the balance of the liability carried in the consolidated statement of financial position. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding. Trade accounts payable and other accounts payable, which are initially recognized at fair value and subsequently carried at amortized cost using the effective interest method. 3. Issue of a unit of securities: The issue of a unit of securities involves the allocation of the proceeds received (before issue expenses) to the securities issued in the unit based on the following order: financial derivatives and other financial instruments measured at fair value in each period. Then fair value is determined for financial liabilities that are measured at amortized cost. The proceeds allocated to equity instruments are determined to be the residual amount. Issue costs are allocated to each component pro rata to the amounts determined for each component in the unit. 4. Derivative liability - Warrants: Warrants that are denominated in a currency other than the functional currency of the Company are considered a derivative liability and are classified as financial liabilities at fair value through profit or loss. Accordingly, these warrants are measured at fair value and the changes in fair value in each reporting period are recognized in profit or loss. 5. Derecognition ● Financial assets - The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the rights to receive the contractual cash flows. ● Financial Liabilities - The Company derecognizes a financial liability when its contractual obligations are discharged or cancelled, or expire. A2Z SMART TECHNOLOGIES CORP. (Formerly A2Z TECHNOLOGIES CANADA CORP.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): E. Fair value measurement (cont.): 6. Impairment of financial assets ECL and their measurement ECL are measured as the unbiased probability-weighted present value of all cash shortfalls over the expected life of each financial asset. For receivables from financial services, ECL are mainly calculated with a statistical model using three major risk parameters: probability of default, loss given default and exposure at default. The estimation of these risk parameters incorporates all available relevant information, not only historical and current loss data, but also reasonable and supportable forward-looking information reflected by the future expectation factors. This information includes macroeconomic factors (e.g., gross domestic product growth, unemployment rate, cost performance index) and forecasts of future economic conditions. For receivables from financial services, these forecasts are performed using a scenario analysis (base case, adverse and optimistic scenarios). As of December 31, 2021, and December 31, 2020, ECL for trade and other account receivables are not material, and as such are not disclosed, in accordance IFRS 9. Definition of default, including reasons for selecting the definition Prior to commencing a business relationship, the Company will enter into an agreement with the customer. The agreement or contract typically includes details of the terms of payment to which the customer is entitled. In most cases, the customer updates the Company if there is a delay in the payment beyond the terms of the agreement. Any delays in payment for more than two months are subject to approval of management. If a customer’s scheduled payment is delayed by more than two months and such delay is not approved by the Company’s management, the CEO will typically make direct contact with the customer’s management and inform them of the overdue obligation and that Company will pursue remedies available to collect the overdue payment. If the customer and the Company are not able to resolve the matter at that time, the receivable is considered to be in default as the collectability is no longer certain. If the collection effort is not successful, the Company will retain legal counsel in the applicable country to assist with collection and sends a demand letter to that effect. Write-off policy The Company writes off its financial assets if any of the following occur: ● Inability to locate the debtor. ● Discharge of the debt in a bankruptcy. ● It is determined that the efforts to collect the debt are no longer cost effective given the size of receivable. The collections department must comply with the collection efforts outlined in the policy to collect on delinquent customer accounts before any write-offs are made. A2Z SMART TECHNOLOGIES CORP. (Formerly A2Z TECHNOLOGIES CANADA CORP.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): E. Fair value measurement (cont.): Aging Schedule based on due date AGING SCHEDULE BASED ON DUE DATE December 31, 2020 December 31, 2021 Aging schedule December 31, 2020 December 31, 2021 Within payment terms $ 196 $ 857 Total $ 196 $ 857 Three-level matrix Based on its past experience and historical data along with a consideration of future projections of factors, such as the economic environment, the Company has established a three-level matrix. The three-level matrix contains the following groups and balances: SCHEDULE OF THREE-LEVEL MATRIX December 31, 2020 December 31, 2021 Customers from public establishments $ 173 $ 296 Customers from institutions 15 - Other customers 8 561 Total $ 196 $ 857 A2Z SMART TECHNOLOGIES CORP. (Formerly A2Z TECHNOLOGIES CANADA CORP.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): |
Operating Segment | F. Operating Segment An operating segment is a component of the Company that meets the following three criteria: 1. Is engaged in business activities from which it may earn revenues and incur expenses; 2. Whose operating results are regularly reviewed by the Company’s chief operating decision maker to make decisions about allocated resources to the segment and assess its performance; and 3. For which separate financial information is available. Segment revenue and segment costs include items that are attributable to the relevant segments and items that can be allocated to segments. Items that cannot be allocated to segments include the Company’s financial income and expenses and income tax. The Company has two operating segments; Advanced Engineering and Smart Carts. |
Share-based compensation | G. Share-based compensation Where equity settled share options are awarded to employees and service providers, the fair value of the options calculated at the grant date is based on the market share price and is charged to the statement of comprehensive income over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each reporting date so that, ultimately, the cumulative amount recognized over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. As long as all other vesting conditions are satisfied, a charge is made irrespective of whether the market vesting conditions are satisfied. The cumulative expense charged is not adjusted for failure to achieve a market vesting condition. |
Deferred taxes | H. Deferred taxes Deferred taxes are recognized in respect of temporary differences between the carrying amounts of assets and liabilities in the financial statements and the amounts attributable for tax purposes. Significant judgment is required to determine the amount of deferred tax assets that can be recognized, based upon the estimated timing and level of future taxable profits together with future tax planning strategies. Deferred taxes are measured at the tax rates that are expected to apply in the period when the temporary differences are reversed based on tax laws that have been enacted or substantively enacted at the end of the reporting period. Deferred taxes are recognized in Profit or loss, except when they relate to items recognized in other comprehensive income or directly in equity. Deferred tax assets are reviewed at the end of each reporting period and reduced to the extent that it is not probable that they will be utilized. In addition, temporary differences (such as carry forward losses) for which deferred tax assets have not been recognized or reassessed are recognized to the extent that their recoverability is probable. Any resulting reduction or reversal is recognized as “income tax” within the statement of comprehensive income. All deferred tax assets and liabilities are presented in the statement of financial position as non-current items, respectively. Deferred taxes are offset in the statement of financial position if there is a legally enforceable right to offset a current tax asset against a current tax liability and the deferred taxes relate to the same taxpayer and the same taxation authority. The current tax liability is measured using the tax rates and tax laws that have been enacted or substantively enacted by the reporting date as well as adjustments required in connection with the tax liability in respect of previous years. Deferred tax assets in respect to carryforward losses have not been recognized in respect of these items because it is not probable that future taxable profit will be available against which the group can utilize the benefits therefrom. A2Z SMART TECHNOLOGIES CORP. (Formerly A2Z TECHNOLOGIES CANADA CORP.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): |
Defined benefit schemes | I. Defined benefit schemes The Company contributes towards the state pension in accordance with local legislation where required. The only obligation of the Company is to make the required contributions. Costs related to such contributions are expensed in the period in which they are incurred. The Company has several employee benefits plans as to its employees: 1. Short-term employee benefits: Short-term employee benefits include salaries, paid annual leave, paid sick leave, recreation and social security contributions and are recognized as expenses as the services are rendered. A liability in respect of a cash bonus or a profit-sharing plan is recognized when the Company has a legal or constructive obligation to make such payment as a result of past service rendered by an employee and a reliable estimate of the amount can be made. 2. Post-employment benefits: The plans are normally financed by contributions to insurance companies and classified as defined contribution plans or as defined benefit plans. This liability is calculated based on actuary measurement. Contributions to the defined contribution plan in respect of severance or retirement pay are recognized as an expense simultaneously with receiving the employee’s services and no additional provision is required in the financial statements except for the unpaid contribution. The Company also operates for some employees an immaterial defined benefit plan in respect of severance pay pursuant to the Severance Pay Law. The Company presents the accrued severance pay liability net from severance pay fund. |
Property, plant and equipment | J. Property, plant and equipment Items of property, plant and equipment are initially recognized at cost. Cost includes directly attributable costs and the estimated present value of any future costs of dismantling and removing items. Depreciation is computed by the straight-line method, based on the estimated useful lives of the assets, as follows: SCHEDULE OF ESTIMATED USEFUL LIVES OF ASSETS Estimated useful lives Computers and electronic equipment 3 Furniture and equipment 7 Vehicles 6.67 Leasehold Improvement 10 A2Z SMART TECHNOLOGIES CORP. (Formerly A2Z TECHNOLOGIES CANADA CORP.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): |
Revenue recognition | J. Revenue recognition Revenue is recognized based on the five-step model outlined in IFRS 15, Revenue from Contracts with Customers. IFRS 15 sets out a single revenue recognition model, according to which the entity shall recognize revenue in accordance with the said core principle by implementing a five-step model framework: 1. Identify the contracts with a customer. 2. Identify the performance obligations in the contract. 3. Determine the transaction price. 4. Allocate the transaction price to the performance obligations in the contract. 5. Recognize revenue when the entity satisfies a performance obligation. A. Revenue from services is derived from contracts with customers pursuant to which the Company provides maintenance for various electronic systems. Revenues on these contracts are recognized using the straight-line method, based on the period of time passed. B. Revenue from providing maintenance services to refrigeration systems is derived from on demand fixed-price contracts with customers. Revenues on these on demand fixed-price contracts are recognized at the point in time when the services were delivered. C. Revenues from leasing soaking containers is recognized on a straight-line basis over the annual leasing period (limited to 1 year). D. Revenues from the Cust2mate Platform are recognized at the time the service is transferred to the customer and measures the revenue in an amount that represents the consideration that the Company expects to be entitled to for the same goods or service. |
Share based payment transactions | K. Share based payment transactions The Company’s employees and other service providers are entitled to remuneration in the form of equity-settled share-based payment. The cost of equity-settled transactions is recognized in profit or loss together with a corresponding increase in equity during the period which the performance and/or service conditions are to be satisfied ending on the date on which the relevant employees become entitled to the award (“the vesting period”). The cumulative expense recognized for equity-settled transactions at the end of each reporting date includes the Group’s best estimate of the number of equity instruments that will ultimately vest. The cost of equity-settled transactions with employees is measured at the fair value of the equity instruments granted at grant date. The fair value of option granted is determined using the Binomial Lattice option-pricing model (“Binomial model”). The Binomial model takes into account variables such as volatility, dividend yield rate, and risk-free interest rate and also allows for the use of dynamic assumptions and considers the contractual term of the option, the probability that the option will be exercised prior to the end of its contractual life, and the probability of termination or retirement of the option holder in computing the value of the option. No expense is recognized for awards that do not ultimately vest. |
Research and development expenses | L. Research and development expenses Research expenses are recognized in profit or loss when incurred. An intangible asset arising from a development project or from the development phase of an internal project is recognized if the Company can demonstrate all of the following: the technical feasibility of completing the intangible asset so that it will be available for use or sale; the Company’s intention to complete the intangible asset and use or sell it; the Company’s ability to use or sell the intangible asset; how the intangible asset will generate future economic benefits; the availability of adequate technical, financial and other resources to complete the intangible asset; and the Company’s ability to measure reliably the expenditure attributable to the intangible asset during its development. Through December 31, 2021, the Company has not met all the aforementioned criteria and therefore all development costs have been recognized in profit or loss. A2Z SMART TECHNOLOGIES CORP. (Formerly A2Z TECHNOLOGIES CANADA CORP.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): |
Standard not yet effective | M. Standard not yet effective Certain pronouncements were issued by the IASB or the IFRIC that are mandatory for future accounting periods. Many are not applicable to or do not have a significant impact on the Company and have been excluded from the list below. The Company has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective. The following have not yet been adopted and are being evaluated to determine their impact on the Company. IAS - 1 Presentation of Financial Statements In January 2020, the IASB issued amendments to IAS 1, which clarify the criteria used to determine whether liabilities are classified as current or non-current. These amendments clarify that current or non-current classification is based on whether an entity has a right at the end of the reporting period to defer settlement of the liability for at least twelve months after the reporting period. The amendments also clarify that ‘settlement’ includes the transfer of cash, goods, services, or equity instruments unless the obligation to transfer equity instruments arises from a conversion feature classified as an equity instrument separately from the liability component of a compound financial instrument. The amendments are effective for annual reporting periods beginning on or after January 1, 2022. However, in May 2020, the effective date was deferred to annual reporting periods beginning on or after January 1, 2023. The Company evaluated the expected impact of the IAS 1 amendments on its financial position as December 31, 2021, as a reclassification of its derivative liability - warrants in the amount of $ 51 A2Z SMART TECHNOLOGIES CORP. (Formerly A2Z TECHNOLOGIES CANADA CORP.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of changes in accounting estimates [abstract] | |
AGING SCHEDULE BASED ON DUE DATE | Aging Schedule based on due date AGING SCHEDULE BASED ON DUE DATE December 31, 2020 December 31, 2021 Aging schedule December 31, 2020 December 31, 2021 Within payment terms $ 196 $ 857 Total $ 196 $ 857 |
SCHEDULE OF THREE-LEVEL MATRIX | Based on its past experience and historical data along with a consideration of future projections of factors, such as the economic environment, the Company has established a three-level matrix. The three-level matrix contains the following groups and balances: SCHEDULE OF THREE-LEVEL MATRIX December 31, 2020 December 31, 2021 Customers from public establishments $ 173 $ 296 Customers from institutions 15 - Other customers 8 561 Total $ 196 $ 857 |
SCHEDULE OF ESTIMATED USEFUL LIVES OF ASSETS | SCHEDULE OF ESTIMATED USEFUL LIVES OF ASSETS Estimated useful lives Computers and electronic equipment 3 Furniture and equipment 7 Vehicles 6.67 Leasehold Improvement 10 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SCHEDULE OF INVENTORIES | SCHEDULE OF INVENTORIES December 31, December 31, 2021 2020 Raw materials $ 93 $ 19 Smart cart electrical equipment 908 - Smart cart parts 145 - Inventories $ 1,147 $ 19 |
BUSINESS COMBINATION UNDER CO_2
BUSINESS COMBINATION UNDER COMMON CONTROL (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SCHEDULE OF BUSINESS COMBINATION | Impact of implementation of the Cust2Mate consolidation in accordance with pooling of interest method as of January 1, 2019: SCHEDULE OF BUSINESS COMBINATION A2Z Cust2Mate Eliminating entries Total 31/12/19 31/12/19 31/12/19 ASSETS Cash and cash equivalents $ 289 $ 73 $ - $ 362 Inventories 38 - - 38 Trade receivables 244 - - 244 Financial asset 5,624 - (5,624 ) - Other accounts receivable 1,106 154 - 1,260 Intangible asset - patent, net 2,341 15 - 2,356 Property, plant and equipment, net 326 2 - 328 Long term deposit 30 - - 30 Deferred taxes , 16 - - 16 LIABILITIES Short term loan and current portion of long term loans 200 - - 200 Lease liability 63 - - 63 Trade payables 471 38 - 509 Other accounts payable 422 - - 1,988 Long term loans 152 204 - 356 Severance payment, net 159 - - 159 Total shareholders’ equity 8,547 2 (7,190 )(*) 1,359 (*) Including consideration paid of $ 1,566 A2Z SMART TECHNOLOGIES CORP. (Formerly A2Z TECHNOLOGIES CANADA CORP.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) NOTE 6 BUSINESS COMBINATION UNDER COMMON CONTROL (CONTINUED): A2Z Cust2Mate Eliminating entries Total 31/12/19 31/12/19 31/12/19 Revenues 1,306 78 - 1,384 Cost of revenues (783 ) - - (783 ) General and administrative expenses (744 ) (10 ) - (754 ) Research and development expenses (219 ) (195 ) - (414 ) Marketing and selling (87 ) - - (87 ) Listing Expense (1,792 ) - - (1,792 ) Financial expenses (109 ) - - (109 ) Income tax (expense) (380 ) - - (380 ) CASH FLOWS Cash flows from operating activities (1,410 ) (104 ) - (1,514 ) Cash flows from investing activities (26 ) (4 ) - (30 ) Cash flows from financing activities 1,665 170 - 1,835 |
OTHER ACCOUNTS RECEIVABLE (Tabl
OTHER ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SCHEDULE OF OTHER ACCOUNTS RECEIVABLE | SCHEDULE OF OTHER ACCOUNTS RECEIVABLE December 31, December 31, 2021 2020 Related parties $ 126 $ - Advances to suppliers - 28 Prepaid expenses 50 263 Government institutions 251 60 Other 7 2 Other accounts receivable $ 434 $ 353 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT NET | SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT NET Computers and electronic equipment Furniture and equipment Vehicles Leasehold Improvements Right of use Asset Total Cost: As of January 1, 2021 $ 370 $ 139 $ 625 $ 57 $ 40 $ 1,231 Additions 52 62 298 - 362 774 Translation adjustments 18 - 45 2 (40 ) 25 As of December 31, 2021 $ 440 $ 201 $ 968 $ 59 $ 362 $ 2,030 Accumulated depreciation: As of January 1, 2021 $ 268 $ 133 $ 294 $ 57 $ 23 $ 775 Additions 22 7 92 - 101 222 Translation adjustments (2 ) 2 (18 ) 2 (23 ) (39 ) As of December 31, 2021 $ 288 $ 142 $ 368 $ 59 $ 101 $ 958 Net Book Value: As of December 31, 2021 $ 152 $ 59 $ 600 $ - $ 261 $ 1,072 As of December 31, 2020 $ 102 $ 6 $ 331 $ - $ 17 $ 456 Computers and electronic equipment Furniture and equipment Vehicles Leasehold Improvements Right of use Asset Total Cost: As of January 1, 2020 $ 342 $ 123 $ 345 $ 53 $ 40 $ 903 Additions - 3 224 - - 227 Translation adjustments 28 13 56 4 - 101 As of December 31, 2020 $ 370 $ 139 $ 625 $ 57 $ 40 $ 1,231 Accumulated depreciation: As of January 1, 2020 $ 219 $ 122 $ 204 $ 53 $ 20 $ 618 Balance $ 219 $ 122 $ 204 $ 53 $ 20 $ 618 Additions 16 2 35 - 4 57 Translation adjustments 33 9 55 4 (1 ) 100 As of December 31, 2020 $ 268 $ 133 $ 294 $ 57 $ 23 $ 775 Net Book Value: As of December 31, 2020 $ 102 $ 6 $ 331 $ - $ 17 $ 456 As of December 31, 2019 $ 123 $ 1 $ 141 $ - $ - $ 265 Net Book Value $ 123 $ 1 $ 141 $ - $ - $ 265 |
OTHER ACCOUNTS PAYABLE (Tables)
OTHER ACCOUNTS PAYABLE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SCHEDULE OF OTHER ACCOUNTS PAYABLE | SCHEDULE OF OTHER ACCOUNTS PAYABLE December 31, December 31, 2021 2020 Employees and government authorities $ 362 $ 125 Accrued expenses 169 221 Other 568 30 Other accounts payable $ 1,099 $ 376 |
LONG TERM LOANS (Tables)
LONG TERM LOANS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SCHEDULE OF LONG TERM LOANS | SCHEDULE OF LONG TERM LOANS Linked to Interest rate December 31, 2021 December 31, 2020 Long term loans NIS 1.8 6.1 $ 641 $ 1,024 Less- Current portion (158 ) (358 ) Non Current Long term loans $ 483 $ 666 |
SEVERANCE PAYMENT, NET (Tables)
SEVERANCE PAYMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Severance Payment Net | |
SCHEDULE OF PLAN DEFINED BENEFIT OBLIGATION | SCHEDULE OF PLAN DEFINED BENEFIT OBLIGATION a. The plan liabilities, net: Year ended Year ended December 31, 2021 December 31, 2020 Defined benefit plan: Present value of defined benefit obligation $ 541 $ 563 Fair value of plan assets (374 ) (376 ) Total $ 167 $ 187 Changes in the present value of defined benefit obligation: 2021 2020 Balance at beginning of year $ 563 $ 484 Recognized in statement of comprehensive loss: Interest cost 10 12 Current service cost 39 41 Currency translation (71 ) 38 Recognized in other comprehensive gain (loss): Net actuarial gain (loss) - (13 ) Balance at end of year $ 541 $ 563 |
SCHEDULE OF FAIR VALUE OF PLAN ASSETS | SCHEDULE OF FAIR VALUE OF PLAN ASSETS b. The movement in the fair value of the plan assets: 2021 2020 Balance at beginning of year $ (376 ) $ (325 ) Recognized in statement of comprehensive loss: Expected return 28 (28 ) Recognized in other comprehensive loss /(gain): Net actuarial loss (gain) - (25 ) Other: Contributions by employer (26 ) (18 ) Balance at end of year $ (374 ) $ (376 ) |
SCHEDULE OF ASSUMPTIONS UNDERLYING DEFINED BENEFIT PLAN | SCHEDULE OF ASSUMPTIONS UNDERLYING DEFINED BENEFIT PLAN c. The principal assumptions underlying the defined benefit plan: December 31, 2021 December 31, 2020 Discount rate of the plan liability 2.24 % 2.20 % Expected rate of return on plan assets 2.36 % 2.32 % Future salary increases 3.47 % 3.44 % |
WARRANT LIABILITY (Tables)
WARRANT LIABILITY (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Jan 2020 Warrants [Member] | |
IfrsStatementLineItems [Line Items] | |
SCHEDULE OF FAIR VALUE HIERARCHY OF WARRANTS | The following is the reconciliation of the fair value that are categorized within Level 3 of the fair value hierarchy in financial instruments: SCHEDULE OF FAIR VALUE HIERARCHY OF WARRANTS Balance at January 1, 2020 $ - Issuance at January 30, 2020 214 Issuance at December 29, 2020 1,698 Revaluation at December 31, 2020 71 Reclassification to Warrant Reserve (6,846 ) Balance at December 31, 2020 285 Warrants exercised (342 ) Revaluations 1,896 Reclassification to Warrant Reserve $ (1,788 ) Balance at December 31, 2021 $ 51 |
November 2020 and December 2020 Warrants [Member] | |
IfrsStatementLineItems [Line Items] | |
SCHEDULE OF FAIR VALUE HIERARCHY OF WARRANTS | The following is the reconciliation of the fair value that are categorized within Level 3 of the fair value hierarchy in financial instruments: SCHEDULE OF FAIR VALUE HIERARCHY OF WARRANTS Balance on January 1, 2020 $ - Issuance at November 16, 2020 3,537 Issuance at December 29, 2020 1,698 Revaluation at December 31,2020 3,156 Balance at December 31, 2020 $ 8,391 Revaluation at March 31, 2021 26,816 Reclassification to Warrant Reserve (35,207 ) Balance at December 31, 2021 $ - |
April and May 2021 Warrants [Member] | |
IfrsStatementLineItems [Line Items] | |
SCHEDULE OF FAIR VALUE HIERARCHY OF WARRANTS | The following is the reconciliation of the fair value that are categorized within Level 3 of the fair value hierarchy in financial instruments: SCHEDULE OF FAIR VALUE HIERARCHY OF WARRANTS Balance at January 1, 2021 $ - Issuance at June 4, 2021 4,786 Revaluation at June 30 ,2021 2,307 Reclassification to Warrant Reserve (6,846 ) Balance at June 30, 2021 247 Revaluation at August 29 ,2021 (124 ) Reclassification to Warrant Reserve (123 ) Balance at December 31, 2021 $ - |
WARRANTS AND OPTIONS (Tables)
WARRANTS AND OPTIONS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Warrants And Options | |
SCHEDULE OF WARRANTS TRANSACTIONS | (i) Warrant transactions for the years ended December 31, 2021, and 2020 are as follows: SCHEDULE OF WARRANTS TRANSACTIONS Number Weighted Average Exercise Price Balance, January 1, 2020 1,277,464 ILS 2.5200 Exercise of warrants (182,142 ) ILS 2.5200 Warrants issued in the January 2020 Private Placement 277,779 ILS 5.124 Warrants issued in the November 2020 Private Placement 4,450,153 ILS 7.1418 Warrants issued in the December 2020 Private Placement 1,366,631 ILS 7.1418 Finders’ Fee Warrants 100,000 ILS 7.1418 Balance, December 31, 2020 7,289,885 ILS 6.1280 Exercise of warrants (15,000 ) ILS 5.124 Exercise of warrants (80,000 ) ILS 7.1418 Warrants issued in the April 2021 Private Placement (Note 13(l)) 221,100 ILS 29.025 Warrants issued in the May 2021 Private Placement (Note 13(l)) 1,084,562 ILS 29.025 Exercise of warrants (14,502 ) ILS 5.124 Exercise of warrants (145,011 ) ILS 5.124 Exercise of warrants (45,000 ) ILS 7.1418 Exercise of warrants (14,502 ) ILS 5.124 Exercise of warrants (33,333 ) ILS 7.1418 Exercise of warrants (15,000 ) ILS 5.124 Exercise of warrants (55,000 ) ILS 7.1418 Exercise of warrants (100,000 ) ILS 7.1418 Exercise of warrants (595,231 ) ILS 7.1418 Exercise of warrants (ii) (1,095,322 ) ILS 2.5200 Exercise of warrants (7,251 ) ILS 5.124 Exercise of warrants (31,776 ) ILS 7.1418 Exercise of warrants (382,415 ) ILS 7.1418 Balance, December 31, 2021 5,966,204 ILS 11.0318 (ii) As of December 31, 2021, the Company had outstanding warrants, enabling the holders to acquire common shares as follows: |
SCHEDULE OF OUTSTANDING WARRANTS | SCHEDULE OF OUTSTANDING WARRANTS December 31, 2021 Expiry date Exercise price Exercise price (USD) 5,437 January 30, 2022 CAD 1.95 $ 1.53 61,077 January 30, 2022 ILS 5.124 (1) $ 1.65 3,227,398 November 10, 2025 ILS 7.1418 (2) $ 2.30 1,366,631 December 24, 2025 ILS 7.1418 (2) $ 2.30 221,100 April 18, 2023 ILS 29.025 (3) $ 9.33 1,084,562 May 28, 2023 ILS 29.025 (3) $ 9.33 5,966,205 (1) On June 30, 2021, warrant holders and the Company, agreed that the exercise price of CAD$ 1.95 5.124 (2) On March 31, 2021, warrant holders and the Company, agreed that the exercise price of CAD$ 2.70 7.1418 (3) On June 30, 2021, warrant holders and the Company, agreed that the exercise price of CAD$ 11.04 29.025 |
SCHEDULE OF STOCK OPTION TRANSACTIONS | Stock option transactions for the years ended December 31, and 2020 are as follows: SCHEDULE OF STOCK OPTION TRANSACTIONS Number Weighted Average Exercise Price (CAD) Weighted Average Exercise Price (USD) Balance January 1, 2020 182,909 $ 0.42 $ 0.32 Options granted 100,000 2.40 Options granted 613,333 1.50 Options granted 116,667 2.25 Exercise of options (767 ) 1.14 Exercise of agent’s options (47,619 ) 0.42 Exercise of options (75,000 ) 0.42 Balance December 31, 2020 889,523 $ 1.62 $ 1.27 Options granted (i) 33,333 3.00 Options granted (ii) 116,667 3.00 Exercise of options (8,333 ) 2.25 Options granted (iii) 50,000 8.40 Exercise of options (59,524 ) 0.42 Exercise of options (33,333 ) 1.50 Exercise of options (33,333 ) 2.25 Options granted (iv) 116,700 6.00 Options granted (v) 16,677 8.00 Exercise of options (35,000 ) 2.25 Exercise of options (116,700 ) 6.00 Expiry of options (116,667 ) 3.00 Balance December 31, 2021 820,010 $ 2.10 $ 1.65 A2Z SMART TECHNOLOGIES CORP. (Formerly A2Z TECHNOLOGIES CANADA CORP.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) NOTE 15 – WARRANTS AND OPTIONS (CONTINUED): b) Stock Options (continued) (i) On January 28, 2021, 33,333 3.00 January 28, 2025 90 2.82 4 209 0.30 0 (ii) On January 28, 2021, 116,667 3.00 December 31, 2021 191 2.82 0.92 173 0.11 0 (iii) On June 3, 2021, 50,000 8.40 June 3, 2026 445 9.18 5 191 0.93 0 (iv) On August 23, 2021, 116,700 6.00 April 30, 2022 242 6.50 0.68 126 0.19 0 (v) On October 28, 2021, 16,677 8.00 October 28, 2026 242 9.37 5 114 1.43 0 |
SCHEDULE OF OUTSTANDING STOCK OPTIONS | SCHEDULE OF OUTSTANDING STOCK OPTIONS Outstanding as of December 31, 2021 Exercisable as of December 31, 2021 Expiry date Exercise price (CAD) Exercise price (USD) 100,000 100,000 January 23, 2023 CAD 2.40 $ 1.88 580,000 449,167 August 20, 2025 CAD 1.50 $ 1.18 40,000 40,000 September 1, 2025 CAD 2.25 $ 1.77 33,333 22,222 January 28, 2025 CAD 3.00 $ 2.36 50,000 16,667 June 3, 2026 CAD 8.40 $ 6.60 16,677 5,559 October 28, 2026 CAD 8.00 $ 6.28 820,010 633,615 |
NON CONTROLLING INTERESTS (Tabl
NON CONTROLLING INTERESTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SCHEDULE OF SUBSIDIARIES OF NON-CONTROLLING INTERESTS | The following Company subsidiaries which have non-controlling interests: SCHEDULE OF SUBSIDIARIES OF NON-CONTROLLING INTERESTS December 31, December 31, 2021 2020 Cust2mate $ (1,026 ) $ - AAI 419 520 $ (607 ) $ 520 |
REVENUES (Tables)
REVENUES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SCHEDULE OF MAJOR CUSTOMERS | Major customers (as percentage of total revenues): SCHEDULE OF MAJOR CUSTOMERS Year Ended December 31, December 31, 2021 2020 % % Customer A 39 % 61 % Customer B 15 % 6 % Customer C 10 % 4 % Customer D 28 % - 92 % 71 % |
SCHEDULE OF REVENUE FROM SERVICES | Revenue streams (as percentage of total revenues): SCHEDULE OF REVENUE FROM SERVICES Year Ended December 31, December 31, 2021 2020 % % Revenues from services Revenues from services 50 % 65 % Revenues from leasing 15 % 25 % Revenues from maintenance services 7 % 10 % Smart Carts Revenues from smart carts project 28 % - 100 % 100 % |
COST OF REVENUES (Tables)
COST OF REVENUES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SCHEDULE OF COST OF REVENUES | SCHEDULE OF COST OF REVENUES Year Ended December 31, December 31, 2021 2020 Payroll and related expenses $ 1,096 $ 493 Subcontractor and outsourced work 162 65 Materials and components consumed 291 90 Car maintenance 373 147 Other 107 58 Cost of revenues $ 2,029 $ 853 |
RESEARCH AND DEVELOPMENT EXPE_2
RESEARCH AND DEVELOPMENT EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SCHEDULE OF RESEARCH AND DEVELOPMENT EXPENSES | SCHEDULE OF RESEARCH AND DEVELOPMENT EXPENSES 2021 2020 Year Ended December 31, December 31, 2021 2020 Payroll and related expenses $ 510 $ 410 Subcontractor and outsourced work 2,477 - Legal fees 99 - Other 136 8 Research and development expense $ 3,222 $ 418 |
GENERAL AND ADMINISTRATIVE EX_2
GENERAL AND ADMINISTRATIVE EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SCHEDULE OF GENERAL AND ADMINISTRATIVE EXPENSE | SCHEDULE OF GENERAL AND ADMINISTRATIVE EXPENSE 2021 2020 Year Ended December 31, December 31, 2021 2020 Payroll and related $ 1,027 $ 579 Professional fees 3,417 1,449 Share-based compensation 842 - Depreciation and amortization 321 213 Office maintenance 275 23 Investor relations 254 101 Others 358 - General and administrative expense $ 6,494 $ 2,365 |
LOSS PER SHARE (Tables)
LOSS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SCHEDULE OF EARNINGS PER COMMON SHARE | Both the basic and diluted earnings (loss) per share have been calculated using the weighted average number of shares in issue during the relevant financial periods, the weighted average number of equity shares in issue and loss for the period as follows: SCHEDULE OF EARNINGS PER COMMON SHARE Year ended Year ended December 31, 2021 December 31, 2020 Net loss for the year $ (39,735 ) $ (7,222 ) Weighted average number of ordinary shares 23,340,621 16,758,323 Basic and diluted loss per share in USD $ ( 1.70 ) ($ 0.43 ) |
INCOME TAX EXPENSE (Tables)
INCOME TAX EXPENSE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SCHEDULE OF EFFECTIVE INCOME TAX EXPENSE | SCHEDULE OF EFFECTIVE INCOME TAX EXPENSE Year ended December 31, 2021 Year ended December 31, 2020 Loss before income tax $ (40,148 ) $ (5,936 ) Statutory tax rate 23 % 23 % Income tax benefit (expense) at the statutory tax rate 9,234 1,365 Expenses not recognized for tax purposes (9,234 ) (876 ) Recognition/Derecognition of deferred tax assets which were not recognized on prior periods (142 ) (506 ) Income tax expense $ (142 ) $ (17 ) |
SCHEDULE OF INCOME TAX EXPENSE | SCHEDULE OF INCOME TAX EXPENSE Year ended Year ended December 31, 2021 December 31, 2020 Current $ - $ 10 Prior year taxes 142 - Deferred taxes, net - 7 Total $ 142 $ 17 |
RELATED PARTIES AND SHAREHOLD_2
RELATED PARTIES AND SHAREHOLDER (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SCHEDULE OF RELATED PARTIES | SCHEDULE OF RELATED PARTIES 2021 2020 Year Ended December 31, December 31, 2021 2020 Consulting fees $ 958 $ 594 Salaries 37 27 Pensions 6 4 Total $ 1,001 $ 625 |
SCHEDULE OF AMOUNT OWING BY RELATED PARTIES | SCHEDULE OF AMOUNT OWING BY RELATED PARTIES 2021 2020 Year Ended December 31, December 31, 2021 2020 Key management personnel $ 183 $ - Company controlled by the CEO (57 ) - Total $ 126 $ - |
FINANCIAL INSTRUMENTS AND RIS_2
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SCHEDULE OF FINANCIAL ASSET WITH CASH AND TRADE ACCOUNTS RECEIVABLE | SCHEDULE OF FINANCIAL ASSET WITH CASH AND TRADE ACCOUNTS RECEIVABLE 2021 2020 December 31, December 31, 2021 2020 Cash and Cash Equivalents $ 8,470 $ 5,397 Cash restricted 60 192 Trade receivables 857 196 Other Accounts Receivable 434 353 Total $ 9,821 $ 6,138 |
SCHEDULE OF LIQUIDITY RISKS | SCHEDULE OF LIQUIDITY RISKS Contractual Carrying amounts Within 1 year over 1 year Trade payables $ 989 $ 989 $ - Other accounts payable $ 1,099 $ 704 $ 395 Loans $ 641 $ 158 $ 483 Lease liability $ 277 $ 126 $ 151 |
OPERATING SEGMENTS (Tables)
OPERATING SEGMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SCHEDULE OF OPERATING SEGMENTS | SCHEDULE OF OPERATING SEGMENTS For the year ended Advanced Engineering Smart Carts Total Revenues External $ 1,935 $ 750 $ 2,685 Inter-segment - - - Total 1,935 750 2,685 Segment loss 35,095 4,962 40,057 Finance expense, net 91 Tax expenses 142 Loss $ 40,290 For the year ended Advanced Engineering Smart Carts Total Revenues External $ 1,068 $ - $ 1,068 Inter-segment - - - Total 1,068 - 1,068 Segment loss 5,770 166 5,936 Finance expense, net (32 ) Tax expenses (17 ) Loss $ 5,953 A2Z SMART TECHNOLOGIES CORP. (Formerly A2Z TECHNOLOGIES CANADA CORP.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) NOTE 25 – OPERATING SEGMENTS (CONTINUED): Advanced Engineering Smart Carts Adjustment & Elimination Total As of December 31, 2021 Advanced Engineering Smart Carts Adjustment & Elimination Total Segment assets $ 12,118 $ 2,013 $ - $ 14,131 Segment liabilities $ 1,786 $ 1,438 $ - $ 3,224 Advanced Engineering Smart Carts Adjustment & Elimination Total As of December 31, 2020 Advanced Engineering Smart Carts Adjustment & Elimination Total Segment assets $ 8,598 $ 254 $ - $ 8,852 Segment liabilities $ 10,418 $ 418 $ - $ 10,836 |
SUBSEQUENT EVENTS (Tables)
SUBSEQUENT EVENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events | |
SCHEDULE OF FAIR VALUE OF ASSETS ACQUIRED | The table below summarizes the preliminary fair value of assets acquired at the purchase date: SCHEDULE OF FAIR VALUE OF ASSETS ACQUIRED February 3, 2022 Total assets 2,649 Benefit shareholder consulting agreement 28 Goodwill (*) 312 Total net assets acquired 2,989 (*) Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired. The goodwill is attributed to the expected benefits arising from the synergies of the combination of the activities of the Company and acquired company. |
SCHEDULE OF PRO FORMA INFORMATION | SCHEDULE OF PRO FORMA INFORMATION For the year ended December 31, 2021 Pro forma Unaudited Total revenues $ 7,915 Net loss attributable to A2Z’s shareholders $ 37,698 |
DESCRIPTION OF BUSINESS (Detail
DESCRIPTION OF BUSINESS (Details Narrative) | 12 Months Ended |
Dec. 31, 2021 | |
Advanced Automotive Innovations Inc [Member] | |
IfrsStatementLineItems [Line Items] | |
Ownership interest in subsidary | 80.00% |
Cust 2 Mate Lted [Member] | |
IfrsStatementLineItems [Line Items] | |
Ownership percentage | 79.49% |
AGING SCHEDULE BASED ON DUE DAT
AGING SCHEDULE BASED ON DUE DATE (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
IfrsStatementLineItems [Line Items] | |||
Total | $ 857 | $ 196 | |
Current [member] | |||
IfrsStatementLineItems [Line Items] | |||
Total | $ 857 | $ 196 |
SCHEDULE OF THREE-LEVEL MATRIX
SCHEDULE OF THREE-LEVEL MATRIX (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
IfrsStatementLineItems [Line Items] | |||
Total | $ 857 | $ 196 | |
Customers from Public Establishments [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Total | 296 | 173 | |
Customers from Institutions [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Total | 15 | ||
Other Customers [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Total | $ 561 | $ 8 |
SCHEDULE OF ESTIMATED USEFUL LI
SCHEDULE OF ESTIMATED USEFUL LIVES OF ASSETS (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Computer equipment [member] | |
IfrsStatementLineItems [Line Items] | |
Estimated useful lives | 3 years |
Fixtures and fittings [member] | |
IfrsStatementLineItems [Line Items] | |
Estimated useful lives | 7 years |
Vehicles [member] | |
IfrsStatementLineItems [Line Items] | |
Estimated useful lives | 6 years 8 months 1 day |
Leasehold improvements [member] | |
IfrsStatementLineItems [Line Items] | |
Estimated useful lives | 10 years |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) $ in Thousands | Dec. 31, 2021USD ($) |
Disclosure of changes in accounting estimates [abstract] | |
Derivative liability - warrants amount | $ 51 |
SCHEDULE OF INVENTORIES (Detail
SCHEDULE OF INVENTORIES (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Raw materials | $ 93 | $ 19 | |
Smart cart electrical equipment | 908 | ||
Smart cart parts | 145 | ||
Inventories | $ 1,147 | $ 19 | $ 38 |
SCHEDULE OF BUSINESS COMBINATIO
SCHEDULE OF BUSINESS COMBINATION (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
IfrsStatementLineItems [Line Items] | ||||
Cash and cash equivalents | $ 8,470 | $ 5,397 | $ 362 | |
Inventories | 1,147 | 19 | 38 | |
Trade receivables | 857 | 196 | 244 | |
Financial asset | 857 | 196 | ||
Other accounts receivable | 434 | 353 | 1,260 | |
Intangible asset - patent, net | 2,091 | 2,239 | 2,356 | |
Property, plant and equipment, net | 328 | |||
Long term deposit | 30 | |||
Deferred taxes, net | 16 | |||
Short term loan and current portion of long term loans | 158 | 358 | 200 | |
Lease liability | 126 | 21 | 63 | |
Trade payables | 989 | 541 | 509 | |
Other accounts payable | 1,099 | 376 | 1,988 | |
Long term loans | 483 | 666 | 356 | |
Severance payment, net | 167 | 187 | 159 | |
Total shareholders' equity | 11,514 | (2,493) | 1,359 | |
Revenues | 2,685 | 1,068 | 1,384 | |
Cost of revenues | (2,029) | (853) | (783) | |
General and administrative expenses | (6,494) | (2,365) | (754) | |
Research and development expenses | (3,222) | (418) | (414) | |
Marketing and selling | (102) | (108) | (87) | |
Listing Expense | (1,792) | |||
Financial expenses | (91) | (107) | (109) | |
Income tax (expense) | 142 | 17 | (380) | |
Cash flows from operating activities | (9,378) | (1,003) | (1,514) | |
Cash flows from investing activities | (280) | (425) | (30) | |
Cash flows from financing activities | $ 12,355 | $ 7,201 | 1,835 | |
Elimination of intersegment amounts [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Cash and cash equivalents | ||||
Inventories | ||||
Trade receivables | ||||
Financial asset | (5,624) | |||
Other accounts receivable | ||||
Intangible asset - patent, net | ||||
Property, plant and equipment, net | ||||
Long term deposit | ||||
Deferred taxes, net | ||||
Short term loan and current portion of long term loans | ||||
Lease liability | ||||
Trade payables | ||||
Other accounts payable | ||||
Long term loans | ||||
Severance payment, net | ||||
Total shareholders' equity | [1] | (7,190) | ||
Revenues | ||||
Cost of revenues | ||||
General and administrative expenses | ||||
Research and development expenses | ||||
Marketing and selling | ||||
Listing Expense | ||||
Financial expenses | ||||
Income tax (expense) | ||||
Cash flows from operating activities | ||||
Cash flows from investing activities | ||||
Cash flows from financing activities | ||||
Cust2Mate [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Cash and cash equivalents | 73 | |||
Inventories | ||||
Trade receivables | ||||
Financial asset | ||||
Other accounts receivable | 154 | |||
Intangible asset - patent, net | 15 | |||
Property, plant and equipment, net | 2 | |||
Long term deposit | ||||
Deferred taxes, net | ||||
Short term loan and current portion of long term loans | ||||
Lease liability | ||||
Trade payables | 38 | |||
Other accounts payable | ||||
Long term loans | 204 | |||
Severance payment, net | ||||
Total shareholders' equity | 2 | |||
Revenues | 78 | |||
Cost of revenues | ||||
General and administrative expenses | (10) | |||
Research and development expenses | (195) | |||
Marketing and selling | ||||
Listing Expense | ||||
Financial expenses | ||||
Income tax (expense) | ||||
Cash flows from operating activities | (104) | |||
Cash flows from investing activities | (4) | |||
Cash flows from financing activities | 170 | |||
A2Z [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Cash and cash equivalents | 289 | |||
Inventories | 38 | |||
Trade receivables | 244 | |||
Financial asset | 5,624 | |||
Other accounts receivable | 1,106 | |||
Intangible asset - patent, net | 2,341 | |||
Property, plant and equipment, net | 326 | |||
Long term deposit | 30 | |||
Deferred taxes, net | 16 | |||
Short term loan and current portion of long term loans | 200 | |||
Lease liability | 63 | |||
Trade payables | 471 | |||
Other accounts payable | 422 | |||
Long term loans | 152 | |||
Severance payment, net | 159 | |||
Total shareholders' equity | 8,547 | |||
Revenues | 1,306 | |||
Cost of revenues | (783) | |||
General and administrative expenses | (744) | |||
Research and development expenses | (219) | |||
Marketing and selling | (87) | |||
Listing Expense | (1,792) | |||
Financial expenses | (109) | |||
Income tax (expense) | (380) | |||
Cash flows from operating activities | (1,410) | |||
Cash flows from investing activities | (26) | |||
Cash flows from financing activities | $ 1,665 | |||
[1] | Including consideration paid of $ 1,566 |
SCHEDULE OF BUSINESS COMBINAT_2
SCHEDULE OF BUSINESS COMBINATION (Details) (Parenthetical) $ in Thousands | Nov. 16, 2020USD ($) |
Cust2Mate [Member] | |
IfrsStatementLineItems [Line Items] | |
Consideration paid | $ 1,566 |
SCHEDULE OF OTHER ACCOUNTS RECE
SCHEDULE OF OTHER ACCOUNTS RECEIVABLE (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Related parties | $ 126 | ||
Advances to suppliers | 28 | ||
Prepaid expenses | 50 | 263 | |
Government institutions | 251 | 60 | |
Other | 7 | 2 | |
Other accounts receivable | $ 434 | $ 353 | $ 1,260 |
SCHEDULE OF PROPERTY, PLANT AND
SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT NET (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
IfrsStatementLineItems [Line Items] | ||
Balance | $ 456 | $ 265 |
Net Book Value | 1,072 | 456 |
Computer equipment [member] | ||
IfrsStatementLineItems [Line Items] | ||
Balance | 102 | 123 |
Net Book Value | 152 | 102 |
Fixtures and fittings [member] | ||
IfrsStatementLineItems [Line Items] | ||
Balance | 6 | 1 |
Net Book Value | 59 | 6 |
Vehicles [member] | ||
IfrsStatementLineItems [Line Items] | ||
Balance | 331 | 141 |
Net Book Value | 600 | 331 |
Leasehold improvements [member] | ||
IfrsStatementLineItems [Line Items] | ||
Balance | ||
Net Book Value | ||
Right-of-use assets [member] | ||
IfrsStatementLineItems [Line Items] | ||
Balance | 17 | |
Net Book Value | 261 | 17 |
Gross carrying amount [member] | ||
IfrsStatementLineItems [Line Items] | ||
Balance | 1,231 | 903 |
Additions | 774 | 227 |
Translation adjustments | 25 | 101 |
Net Book Value | 1,231 | |
Gross carrying amount [member] | Computer equipment [member] | ||
IfrsStatementLineItems [Line Items] | ||
Balance | 370 | 342 |
Additions | 52 | |
Translation adjustments | 18 | 28 |
Net Book Value | 440 | 370 |
Gross carrying amount [member] | Fixtures and fittings [member] | ||
IfrsStatementLineItems [Line Items] | ||
Balance | 139 | 123 |
Additions | 62 | 3 |
Translation adjustments | 13 | |
Net Book Value | 201 | 139 |
Gross carrying amount [member] | Vehicles [member] | ||
IfrsStatementLineItems [Line Items] | ||
Balance | 625 | 345 |
Additions | 298 | 224 |
Translation adjustments | 45 | 56 |
Net Book Value | 968 | 625 |
Gross carrying amount [member] | Leasehold improvements [member] | ||
IfrsStatementLineItems [Line Items] | ||
Balance | 57 | 53 |
Additions | ||
Translation adjustments | 2 | 4 |
Net Book Value | 59 | 57 |
Gross carrying amount [member] | Right-of-use assets [member] | ||
IfrsStatementLineItems [Line Items] | ||
Balance | 40 | 40 |
Additions | 362 | |
Translation adjustments | (40) | |
Net Book Value | 362 | 40 |
Accumulated Depreciation Amortisation [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Balance | 775 | 618 |
Additions | 222 | 57 |
Translation adjustments | (39) | 100 |
Net Book Value | 775 | |
Accumulated Depreciation Amortisation [Member] | Computer equipment [member] | ||
IfrsStatementLineItems [Line Items] | ||
Balance | 268 | 219 |
Additions | 22 | 16 |
Translation adjustments | (2) | 33 |
Net Book Value | 288 | 268 |
Accumulated Depreciation Amortisation [Member] | Fixtures and fittings [member] | ||
IfrsStatementLineItems [Line Items] | ||
Balance | 133 | 122 |
Additions | 7 | 2 |
Translation adjustments | 2 | 9 |
Net Book Value | 142 | 133 |
Accumulated Depreciation Amortisation [Member] | Vehicles [member] | ||
IfrsStatementLineItems [Line Items] | ||
Balance | 294 | 204 |
Additions | 92 | 35 |
Translation adjustments | (18) | 55 |
Net Book Value | 368 | 294 |
Accumulated Depreciation Amortisation [Member] | Leasehold improvements [member] | ||
IfrsStatementLineItems [Line Items] | ||
Balance | 57 | 53 |
Additions | ||
Translation adjustments | 2 | 4 |
Net Book Value | 59 | 57 |
Accumulated Depreciation Amortisation [Member] | Right-of-use assets [member] | ||
IfrsStatementLineItems [Line Items] | ||
Balance | 23 | 20 |
Additions | 101 | 4 |
Translation adjustments | (23) | (1) |
Net Book Value | $ 101 | $ 23 |
SCHEDULE OF OTHER ACCOUNTS PAYA
SCHEDULE OF OTHER ACCOUNTS PAYABLE (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Employees and government authorities | $ 362 | $ 125 | |
Accrued expenses | 169 | 221 | |
Other | 568 | 30 | |
Other accounts payable | $ 1,099 | $ 376 | $ 1,988 |
SCHEDULE OF LONG TERM LOANS (De
SCHEDULE OF LONG TERM LOANS (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
IfrsStatementLineItems [Line Items] | |||
Long term loans | $ 641 | $ 1,024 | |
Less- Current portion | (158) | (358) | $ (200) |
Non Current Long term loans | $ 483 | $ 666 | $ 356 |
Bottom of range [member] | |||
IfrsStatementLineItems [Line Items] | |||
Interest rate | 1.80% | ||
Top of range [member] | |||
IfrsStatementLineItems [Line Items] | |||
Interest rate | 6.10% |
BUSINESS COMBINATION UNDER CO_3
BUSINESS COMBINATION UNDER COMMON CONTROL (Details Narrative) - Cust2Mate [Member] $ in Thousands | Nov. 16, 2020USD ($) |
IfrsStatementLineItems [Line Items] | |
Acquisition percentage | 79.49% |
Total consideration paid | $ 1,566 |
LONG TERM LOANS (Details Narrat
LONG TERM LOANS (Details Narrative) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Within One Year [Member] | |
IfrsStatementLineItems [Line Items] | |
Loans repayable | $ 158 |
Between Two To Five Years [Member] | |
IfrsStatementLineItems [Line Items] | |
Repayment of loans | $ 877 |
Bottom of range [member] | |
IfrsStatementLineItems [Line Items] | |
Borrowings interest rate | 1.80% |
Top of range [member] | |
IfrsStatementLineItems [Line Items] | |
Borrowings interest rate | 6.10% |
SCHEDULE OF PLAN DEFINED BENEFI
SCHEDULE OF PLAN DEFINED BENEFIT OBLIGATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Severance Payment Net | |||
Present value of defined benefit obligation | $ 541 | $ 563 | $ 484 |
Fair value of plan assets | (374) | (376) | $ (325) |
Total | 167 | 187 | |
Balance at beginning of year | 563 | 484 | |
Interest cost | 10 | 12 | |
Current service cost | 39 | 41 | |
Currency translation | (71) | 38 | |
Net actuarial gain (loss) | (13) | ||
Balance at end of year | $ 541 | $ 563 |
SCHEDULE OF FAIR VALUE OF PLAN
SCHEDULE OF FAIR VALUE OF PLAN ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Severance Payment Net | ||
Balance at beginning of year | $ (376) | $ (325) |
Expected return | 28 | (28) |
Net actuarial loss (gain) | (25) | |
Contributions by employer | (26) | (18) |
Balance at end of year | $ (374) | $ (376) |
SCHEDULE OF ASSUMPTIONS UNDERLY
SCHEDULE OF ASSUMPTIONS UNDERLYING DEFINED BENEFIT PLAN (Details) | Dec. 31, 2021 | Dec. 31, 2020 |
Severance Payment Net | ||
Discount rate of the plan liability | 2.24% | 2.20% |
Expected rate of return on plan assets | 2.36% | 2.32% |
Future salary increases | 3.47% | 3.44% |
SCHEDULE OF FAIR VALUE HIERARCH
SCHEDULE OF FAIR VALUE HIERARCHY OF WARRANTS (Details) - USD ($) $ in Thousands | 2 Months Ended | 12 Months Ended | |
Aug. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
IfrsStatementLineItems [Line Items] | |||
Warrants exercised | $ 98 | $ 3,386 | $ 98 |
Jan 2020 Warrants [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Balance, warrants | 285 | ||
Issuance, warrants | 214 | ||
Revaluations, warrants | 1,896 | 71 | |
Reclassification to Warrant Reserve | (1,788) | ||
Warrants exercised | (342) | ||
Balance, warrants | 51 | 285 | |
November 2020 and December 2020 Warrants [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Balance, warrants | 8,391 | ||
Issuance, warrants | 3,537 | ||
Issuance of warrants, one | 1,698 | ||
Revaluations, warrants | 26,816 | 3,156 | |
Reclassification to Warrant Reserve | (35,207) | ||
Balance, warrants | 8,391 | ||
April and May 2021 Warrants [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Balance, warrants | 247 | ||
Issuance, warrants | 4,786 | ||
Revaluations, warrants | (124) | 2,307 | |
Reclassification to Warrant Reserve | (123) | (6,846) | |
Balance, warrants | $ 247 |
WARRANT LIABILITY (Details Narr
WARRANT LIABILITY (Details Narrative) $ / shares in Units, $ in Thousands | Aug. 29, 2021USD ($)$ / shares | Dec. 31, 2021USD ($)$ / sharesshares | Jun. 30, 2021USD ($)shares | Jun. 30, 2021$ / shares | Jun. 30, 2021₪ / shares | Mar. 31, 2021USD ($)shares | Mar. 31, 2021$ / shares | Mar. 31, 2021₪ / shares | Dec. 31, 2020USD ($) | Aug. 31, 2020₪ / sharesshares | Dec. 31, 2019USD ($) |
IfrsStatementLineItems [Line Items] | |||||||||||
Warrants outstanding | shares | 182,142,000 | ||||||||||
Exercise price | ₪ / shares | ₪ 2.52 | ||||||||||
Warrant liability | $ 51 | ||||||||||
Jan 2020 Warrants [Member] | |||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||
Warrant liability | 1,788 | ||||||||||
Warrant liability loss | $ 51 | $ 285 | |||||||||
Expected volatility | 0.82 | ||||||||||
Risk-free interest rate | 0.00064 | ||||||||||
Expected life | 29 days | ||||||||||
Share price | $ / shares | $ 13.72 | ||||||||||
Warrant shares | shares | 16,312 | ||||||||||
November 2020 and December 2020 Warrants [Member] | |||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||
Warrant liability | $ 26,816 | ||||||||||
Warrant liability loss | $ 35,175 | 8,391 | |||||||||
Expected volatility | 0.79 | ||||||||||
Risk-free interest rate | 0.01002 | ||||||||||
Expected life | 4 years 7 months 17 days | ||||||||||
Share price | $ / shares | $ 9.30 | ||||||||||
April and May 2021 Warrants [Member] | |||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||
Warrant liability | $ 124 | $ 2,307 | |||||||||
Warrant liability loss | $ 7,093 | $ 247 | |||||||||
Expected volatility | 1.34 | 1.11 | |||||||||
Risk-free interest rate | 0.0041 | 0.0041 | |||||||||
Expected life | 1 year 7 months 13 days | 1 year 9 months 14 days | |||||||||
Share price | $ / shares | $ 6.69 | $ 11.91 | |||||||||
Warrant liability gain | $ 247 | ||||||||||
Warrant Holders [Member] | Jan 2020 Warrants [Member] | |||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||
Warrants outstanding | shares | 220,589 | ||||||||||
Exercise price | $ / shares | $ 1.95 | ||||||||||
Warrants exchange rate | (per share) | 1 | ₪ 2.65 | |||||||||
Warrant liability | $ 1,788 | ||||||||||
Warrant Holders [Member] | November 2020 and December 2020 Warrants [Member] | |||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||
Warrants outstanding | shares | 5,816,785 | ||||||||||
Exercise price | $ / shares | $ 2.70 | ||||||||||
Warrants exchange rate | (per share) | $ 1 | ₪ 2.65 | |||||||||
Warrant equity | $ 35,065 | ||||||||||
Warrant Holders [Member] | April and May 2021 Warrants [Member] | |||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||
Warrants outstanding | shares | 583,703 | ||||||||||
Exercise price | $ / shares | 11.04 | ||||||||||
Warrants exchange rate | (per share) | $ 1 | ₪ 2.63 | |||||||||
Warrant liability | $ 6,846 |
LIENS, COMMITMENTS AND CONTIN_2
LIENS, COMMITMENTS AND CONTINGENCIES (Details Narrative) | 12 Months Ended |
Dec. 31, 2021USD ($) | |
March 1, 2024 [Member] | |
IfrsStatementLineItems [Line Items] | |
Monthly lease payments | $ 11,000 |
Annual lease payments | 132,000 |
June 30, 2022 [Member] | |
IfrsStatementLineItems [Line Items] | |
Monthly lease payments | 3,500 |
Annual lease payments | $ 45,000 |
SHAREHOLDERS_ EQUITY (DEFICIT)
SHAREHOLDERS’ EQUITY (DEFICIT) (Details Narrative) $ / shares in Units, $ in Thousands | Aug. 13, 2021 | Jun. 04, 2021USD ($)shares | Jun. 04, 2021CAD ($)shares | Dec. 29, 2020USD ($)shares | Dec. 29, 2020CAD ($)shares | Dec. 24, 2020USD ($)shares | Nov. 16, 2020USD ($) | Nov. 16, 2020CAD ($)$ / sharesshares | Oct. 28, 2020USD ($) | Apr. 27, 2020USD ($)shares | Mar. 18, 2020USD ($) | Mar. 18, 2020CAD ($)shares$ / shares | Jan. 30, 2020USD ($)shares | Jan. 30, 2020CAD ($)$ / sharesshares | Jan. 21, 2020USD ($) | Jan. 21, 2020CAD ($)shares$ / shares | Aug. 31, 2020USD ($) | Dec. 31, 2021USD ($)shares | Dec. 31, 2020USD ($)shares | Jun. 04, 2021$ / shares | Dec. 29, 2020$ / shares | Oct. 28, 2020shares$ / shares | Aug. 31, 2020₪ / sharesshares | Dec. 31, 2019shares |
IfrsStatementLineItems [Line Items] | ||||||||||||||||||||||||
Reverse stock split | 1-for-3 reverse stock split | |||||||||||||||||||||||
Number of shares issued | 75,000 | 47,619 | 820,010 | 889,523 | 767,000 | 182,909 | ||||||||||||||||||
Options exercise price | $ / shares | $ 0.39 | $ 0.42 | $ 1.14 | |||||||||||||||||||||
Proceeds from exercise of options | $ 1,000 | $ 23,000 | $ 32 | $ 15,000 | $ 20 | $ 742,000 | $ 39,000 | |||||||||||||||||
Warrants outstanding | 182,142,000 | |||||||||||||||||||||||
Warrants exercise price | ₪ / shares | ₪ 2.52 | |||||||||||||||||||||||
Proceeds from exercise of warrants | $ | $ 98,000 | 3,386,000 | 98,000 | |||||||||||||||||||||
Warrant liability | $ | 51,000 | |||||||||||||||||||||||
Additional paid-in capital | $ | $ 28,297,000 | $ 10,445,000 | ||||||||||||||||||||||
Consultant [Member] | ||||||||||||||||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||||||||||||||||
Number of shares issued for services | 20,161 | 30,831,000 | 30,831,000 | |||||||||||||||||||||
Shares issued for services, value | $ | $ 47,000 | $ 50,000 | ||||||||||||||||||||||
Two Consultants [Member] | ||||||||||||||||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||||||||||||||||
Number of shares issued for services | 76,701,000 | |||||||||||||||||||||||
Shares issued for services, value | $ | $ 71,000 | |||||||||||||||||||||||
January 2020 Private Placement [Member] | ||||||||||||||||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||||||||||||||||
Number of units issued | 277,779 | |||||||||||||||||||||||
Price of unit issued | $ / shares | $ 1.80 | |||||||||||||||||||||||
Gross proceeds for units | 377,000 | $ 500 | ||||||||||||||||||||||
Additional share price | $ / shares | $ 1.95 | |||||||||||||||||||||||
Fair value of issuance of warrants | $ | $ 214,000 | |||||||||||||||||||||||
November Two Thousand Twenty Private Placements [Member] | ||||||||||||||||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||||||||||||||||
Number of units issued | 4,450,153,000 | |||||||||||||||||||||||
Price of unit issued | $ / shares | $ 1.875 | |||||||||||||||||||||||
Gross proceeds for units | $ 6,377,000 | $ 8,344 | ||||||||||||||||||||||
November Two Thousand Twenty Private Warrants [Member] | ||||||||||||||||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||||||||||||||||
Additional share price | $ / shares | $ 2.70 | |||||||||||||||||||||||
November Two Thousand Twenty Private Placement [Member] | ||||||||||||||||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||||||||||||||||
Finders fees | $ | 417,000 | |||||||||||||||||||||||
Issuance of warrants | $ | $ 3,537,000 | |||||||||||||||||||||||
December 2020 Private Placement [Member] | ||||||||||||||||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||||||||||||||||
Number of shares issued | 286,223,000 | |||||||||||||||||||||||
Number of units issued | 1,366,631,000 | |||||||||||||||||||||||
Price of unit issued | $ / shares | $ 1.875 | |||||||||||||||||||||||
Gross proceeds for units | $ 2,000,000 | $ 2,562 | ||||||||||||||||||||||
Additional share price | $ / shares | 2.70 | |||||||||||||||||||||||
Warrants exercise price | $ / shares | $ 2.70 | |||||||||||||||||||||||
Finders fees | $ | $ 128,000 | |||||||||||||||||||||||
Finders warrants | 100,000 | 100,000 | ||||||||||||||||||||||
Warrant liability | $ | $ 1,698 | |||||||||||||||||||||||
Number of shares issued | 2,514,693,000 | |||||||||||||||||||||||
Number of warrants exercised | 2,629,343 | |||||||||||||||||||||||
Number of options exercised | 286,223,000 | |||||||||||||||||||||||
Two Private Placements [Member] | ||||||||||||||||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||||||||||||||||
Number of units issued | 1,305,662 | |||||||||||||||||||||||
Price of unit issued | $ / shares | $ 8.16 | |||||||||||||||||||||||
Gross proceeds for units | $ 8,590,000 | $ 10,650 | ||||||||||||||||||||||
Additional share price | $ / shares | $ 11.04 | |||||||||||||||||||||||
Finders fees | 466,000 | $ 578 | ||||||||||||||||||||||
Warrants granted | $ | 4,786,000 | |||||||||||||||||||||||
Additional paid-in capital | $ | $ 3,338,000 | |||||||||||||||||||||||
Two Private Placements [Member] | April 14 2023 [Member] | ||||||||||||||||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||||||||||||||||
Warrans issued | 221,100,000 | 221,100,000 | ||||||||||||||||||||||
Two Private Placements [Member] | May 28, 2023 [Member] | ||||||||||||||||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||||||||||||||||
Warrans issued | 1,084,562,000 | 1,084,562,000 |
SCHEDULE OF WARRANTS TRANSACTIO
SCHEDULE OF WARRANTS TRANSACTIONS (Details) - ₪ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
IfrsStatementLineItems [Line Items] | |||
Number of warrants outstanding, beginning balance | 7,289,885 | 1,277,464 | |
Weighted average exercise price, warrants, beginnging balance | ₪ 6.1280 | ₪ 2.5200 | |
Number of warrants outstanding, Exercise of warrants | (15,000) | (182,142) | |
Weighted average exercise price, Exercise of warrants | ₪ 5.124 | ₪ 2.5200 | |
Number of warrants outstanding, Finders' Fee Warrants | 100,000 | ||
Weighted Average Exercise Price, Finders' Fee Warrants | ₪ 7.1418 | ||
Number of warrants outstanding, ending balance | 5,966,204 | 7,289,885 | |
Weighted average exercise price, warrants, ending balance | ₪ 11.0318 | ₪ 6.1280 | |
Exercise of Warrants One [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Number of warrants outstanding, Exercise of warrants | (80,000) | ||
Weighted average exercise price, Exercise of warrants | ₪ 7.1418 | ||
Exercise of Warrants Two [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Number of warrants outstanding, Exercise of warrants | (14,502) | ||
Weighted average exercise price, Exercise of warrants | ₪ 5.124 | ||
Exercise of Warrants Three [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Number of warrants outstanding, Exercise of warrants | (145,011) | ||
Weighted average exercise price, Exercise of warrants | ₪ 5.124 | ||
Exercise of Warrants Four [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Number of warrants outstanding, Exercise of warrants | (45,000) | ||
Weighted average exercise price, Exercise of warrants | ₪ 7.1418 | ||
Exercise of Warrants Five [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Number of warrants outstanding, Exercise of warrants | (14,502) | ||
Weighted average exercise price, Exercise of warrants | ₪ 5.124 | ||
Exercise of Warrants Six [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Number of warrants outstanding, Exercise of warrants | (33,333) | ||
Weighted average exercise price, Exercise of warrants | ₪ 7.1418 | ||
Exercise of Warrants Seven [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Number of warrants outstanding, Exercise of warrants | (15,000) | ||
Weighted average exercise price, Exercise of warrants | ₪ 5.124 | ||
Exercise of Warrants Eight [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Number of warrants outstanding, Exercise of warrants | (55,000) | ||
Weighted average exercise price, Exercise of warrants | ₪ 7.1418 | ||
Exercise of Warrants Nine [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Number of warrants outstanding, Exercise of warrants | (100,000) | ||
Weighted average exercise price, Exercise of warrants | ₪ 7.1418 | ||
Exercise of Warrants Ten [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Number of warrants outstanding, Exercise of warrants | (595,231) | ||
Weighted average exercise price, Exercise of warrants | ₪ 7.1418 | ||
Exercise of Warrants Eleven [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Number of warrants outstanding, Exercise of warrants | [1] | (1,095,322) | |
Weighted average exercise price, Exercise of warrants | [1] | ₪ 2.5200 | |
Exercise of Warrants Twelve [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Number of warrants outstanding, Exercise of warrants | (7,251) | ||
Weighted average exercise price, Exercise of warrants | ₪ 5.124 | ||
Exercise of Warrants Thirteen [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Number of warrants outstanding, Exercise of warrants | (31,776) | ||
Weighted average exercise price, Exercise of warrants | ₪ 7.1418 | ||
Exercise of Warrants Fourteen [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Number of warrants outstanding, Exercise of warrants | (382,415) | ||
Weighted average exercise price, Exercise of warrants | ₪ 7.1418 | ||
January 2020 Private Placement [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Number of warrants outstanding, warrants issued | 277,779 | ||
Weighted Average Exercise Price, warrants issued | ₪ 5.124 | ||
November Two Thousand Twenty Private Placements [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Number of warrants outstanding, warrants issued | 4,450,153 | ||
Weighted Average Exercise Price, warrants issued | ₪ 7.1418 | ||
December 2020 Private Placement [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Number of warrants outstanding, warrants issued | 1,366,631 | ||
Weighted Average Exercise Price, warrants issued | ₪ 7.1418 | ||
April 2021 Private Placement [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Number of warrants outstanding, warrants issued | 221,100 | ||
Weighted Average Exercise Price, warrants issued | ₪ 29.025 | ||
May 2021 Private Placement [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Number of warrants outstanding, warrants issued | 1,084,562 | ||
Weighted Average Exercise Price, warrants issued | ₪ 29.025 | ||
[1] | As of December 31, 2021, the Company had outstanding warrants, enabling the holders to acquire common shares as follows: |
SCHEDULE OF OUTSTANDING WARRANT
SCHEDULE OF OUTSTANDING WARRANTS (Details) - Dec. 31, 2021 | $ / sharesshares | $ / sharesshares | ₪ / sharesshares | |
IfrsStatementLineItems [Line Items] | ||||
Number of warrants outstanding | 5,966,205 | 5,966,205 | 5,966,205 | |
Warrants One [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Number of warrants outstanding | 5,437 | 5,437 | 5,437 | |
Expiry date | Jan. 30, 2022 | Jan. 30, 2022 | Jan. 30, 2022 | |
Exercise price | (per share) | $ 1.53 | $ 1.95 | ||
Warrants Two [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Number of warrants outstanding | 61,077 | 61,077 | 61,077 | |
Expiry date | Jan. 30, 2022 | Jan. 30, 2022 | Jan. 30, 2022 | |
Exercise price | (per share) | $ 1.65 | ₪ 5.124 | [1] | |
Warrants Three [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Number of warrants outstanding | 3,227,398 | 3,227,398 | 3,227,398 | |
Expiry date | Nov. 10, 2025 | Nov. 10, 2025 | Nov. 10, 2025 | |
Exercise price | (per share) | $ 2.30 | ₪ 7.1418 | [2] | |
Warrants Four [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Number of warrants outstanding | 1,366,631 | 1,366,631 | 1,366,631 | |
Expiry date | Dec. 24, 2025 | Dec. 24, 2025 | Dec. 24, 2025 | |
Exercise price | (per share) | $ 2.30 | ₪ 7.1418 | [2] | |
Warrants Five [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Number of warrants outstanding | 221,100 | 221,100 | 221,100 | |
Expiry date | Apr. 18, 2023 | Apr. 18, 2023 | Apr. 18, 2023 | |
Exercise price | (per share) | $ 9.33 | ₪ 29.025 | [3] | |
Warrants Six [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Number of warrants outstanding | 1,084,562 | 1,084,562 | 1,084,562 | |
Expiry date | May 28, 2023 | May 28, 2023 | May 28, 2023 | |
Exercise price | (per share) | $ 9.33 | ₪ 29.025 | [3] | |
[1] | On June 30, 2021, warrant holders and the Company, agreed that the exercise price of CAD$ 1.95 5.124 | |||
[2] | On March 31, 2021, warrant holders and the Company, agreed that the exercise price of CAD$ 2.70 7.1418 | |||
[3] | On June 30, 2021, warrant holders and the Company, agreed that the exercise price of CAD$ 11.04 29.025 |
SCHEDULE OF OUTSTANDING WARRA_2
SCHEDULE OF OUTSTANDING WARRANTS (Details) (Parenthetical) | Dec. 31, 2021$ / shares | Dec. 31, 2021$ / shares | Dec. 31, 2021₪ / shares | Jun. 30, 2021$ / shares | Jun. 30, 2021₪ / shares | Mar. 31, 2021$ / shares | Mar. 31, 2021₪ / shares | |
Warrants One [Member] | ||||||||
IfrsStatementLineItems [Line Items] | ||||||||
Exercise price | (per share) | $ 1.53 | $ 1.95 | ||||||
Warrants One [Member] | Warrant Holders [Member] | ||||||||
IfrsStatementLineItems [Line Items] | ||||||||
Exercise price | (per share) | $ 1.95 | ₪ 5.124 | ||||||
Warrants Two [Member] | ||||||||
IfrsStatementLineItems [Line Items] | ||||||||
Exercise price | (per share) | 1.65 | ₪ 5.124 | [1] | |||||
Warrants Two [Member] | Warrant Holders [Member] | ||||||||
IfrsStatementLineItems [Line Items] | ||||||||
Exercise price | (per share) | $ 2.70 | ₪ 7.1418 | ||||||
Warrants Three [Member] | ||||||||
IfrsStatementLineItems [Line Items] | ||||||||
Exercise price | (per share) | $ 2.30 | ₪ 7.1418 | [2] | |||||
Warrants Three [Member] | Warrant Holders [Member] | ||||||||
IfrsStatementLineItems [Line Items] | ||||||||
Exercise price | (per share) | $ 11.04 | ₪ 29.025 | ||||||
[1] | On June 30, 2021, warrant holders and the Company, agreed that the exercise price of CAD$ 1.95 5.124 | |||||||
[2] | On March 31, 2021, warrant holders and the Company, agreed that the exercise price of CAD$ 2.70 7.1418 |
SCHEDULE OF STOCK OPTION TRANSA
SCHEDULE OF STOCK OPTION TRANSACTIONS (Details) | 12 Months Ended | ||||||
Dec. 31, 2021shares$ / shares | Dec. 31, 2021shares$ / shares | Dec. 31, 2020shares$ / shares | Dec. 31, 2020shares$ / shares | ||||
IfrsStatementLineItems [Line Items] | |||||||
Number of stock options, ending balance | shares | 889,523 | 889,523 | 182,909 | 182,909 | |||
Weighted Average Exercise Price, ending balance | (per share) | $ 1.27 | $ 1.62 | $ 0.32 | $ 0.42 | |||
Number of stock options, Expiry of options | (116,667) | ||||||
Weighted Average Exercise Price, Expiry of options | $ 3 | ||||||
Number of stock options, ending balance | shares | 820,010 | 820,010 | 889,523 | 889,523 | |||
Weighted Average Exercise Price, ending balance | (per share) | $ 1.65 | $ 2.10 | $ 1.27 | $ 1.62 | |||
Options Granted One [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Number of stock options, options granted | shares | 33,333 | [1] | 33,333 | [1] | 100,000 | 100,000 | |
Weighted Average Exercise Price, options granted | $ 3 | [1] | $ 2.40 | ||||
Options Granted Two [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Number of stock options, options granted | shares | 116,667 | [2] | 116,667 | [2] | 613,333 | 613,333 | |
Weighted Average Exercise Price, options granted | $ 3 | [2] | $ 1.50 | ||||
Options Granted Three [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Number of stock options, options granted | 50,000 | [3] | 116,667 | 116,667 | |||
Weighted Average Exercise Price, options granted | $ 8.40 | [3] | $ 2.25 | ||||
Exercise of Options One [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Number of stock options, Exercise of options | shares | (8,333) | (8,333) | (767) | (767) | |||
Weighted Average Exercise Price, Exercise of options | $ 2.25 | $ 1.14 | |||||
Exercise of Agents Options [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Number of stock options, Exercise of options | shares | (47,619) | (47,619) | |||||
Weighted Average Exercise Price, Exercise of options | $ 0.42 | ||||||
Exercise of Options Two [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Number of stock options, Exercise of options | shares | (59,524) | (59,524) | (75,000) | (75,000) | |||
Weighted Average Exercise Price, Exercise of options | $ 0.42 | $ 0.42 | |||||
Exercise of Options Three [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Number of stock options, Exercise of options | shares | (33,333) | (33,333) | |||||
Weighted Average Exercise Price, Exercise of options | $ 1.50 | ||||||
Exercise of Options Four [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Number of stock options, Exercise of options | shares | (33,333) | (33,333) | |||||
Weighted Average Exercise Price, Exercise of options | $ 2.25 | ||||||
Options Granted Four [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Number of stock options, options granted | shares | [4] | 116,700 | 116,700 | ||||
Weighted Average Exercise Price, options granted | [4] | $ 6 | |||||
Options Granted Five [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Number of stock options, options granted | shares | [5] | 16,677 | 16,677 | ||||
Weighted Average Exercise Price, options granted | [5] | $ 8 | |||||
Exercise Of Options Five [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Number of stock options, Exercise of options | shares | (35,000) | (35,000) | |||||
Weighted Average Exercise Price, Exercise of options | $ 2.25 | ||||||
Exercise of Options Six [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Number of stock options, Exercise of options | shares | (116,700) | (116,700) | |||||
Weighted Average Exercise Price, Exercise of options | $ 6 | ||||||
[1] | On January 28, 2021, 33,333 3.00 January 28, 2025 90 2.82 4 209 0.30 0 | ||||||
[2] | On January 28, 2021, 116,667 3.00 December 31, 2021 191 2.82 0.92 173 0.11 0 | ||||||
[3] | On June 3, 2021, 50,000 8.40 June 3, 2026 445 9.18 5 191 0.93 0 | ||||||
[4] | On August 23, 2021, 116,700 6.00 April 30, 2022 242 6.50 0.68 126 0.19 0 | ||||||
[5] | On October 28, 2021, 16,677 8.00 October 28, 2026 242 9.37 5 114 1.43 0 |
SCHEDULE OF STOCK OPTION TRAN_2
SCHEDULE OF STOCK OPTION TRANSACTIONS (Details) (Parenthetical) $ / shares in Units, $ in Thousands | Oct. 28, 2021CAD ($)shares$ / shares | Aug. 23, 2021CAD ($)shares$ / shares | Jun. 03, 2021$ / shares | Jun. 03, 2021CAD ($)shares$ / shares | Jan. 28, 2021$ / shares$ / shares | Jan. 28, 2021CAD ($)shares$ / shares | Dec. 31, 2021$ / shares | Dec. 31, 2021$ / shares | Oct. 28, 2020$ / shares | Mar. 18, 2020$ / shares | Jan. 21, 2020$ / shares |
IfrsStatementLineItems [Line Items] | |||||||||||
Number of stock options, exercise price | $ 1.14 | $ 0.39 | $ 0.42 | ||||||||
Stock Option One [Member] | |||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||
Number of stock options, exercise price | (per share) | $ 1.88 | $ 2.40 | |||||||||
Options expire | Jan. 23, 2023 | ||||||||||
Stock Option One [Member] | Consultant [Member] | |||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||
Number of stock options, options issued | shares | 33,333 | ||||||||||
Number of stock options, exercise price | $ 3 | $ 3 | |||||||||
Options expire | Jan. 28, 2025 | ||||||||||
Fair value of options granted | $ | $ 90 | ||||||||||
Share Price | $ 2.82 | ||||||||||
Expected option life | 4 years | ||||||||||
Volatility | 209.00% | ||||||||||
Risk-free interest rate | 0.30% | ||||||||||
Dividend yield | 0.00% | ||||||||||
Stock Option Two [Member] | |||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||
Number of stock options, exercise price | (per share) | $ 1.18 | 1.50 | |||||||||
Options expire | Aug. 20, 2025 | ||||||||||
Stock Option Two [Member] | Consultant [Member] | |||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||
Number of stock options, options issued | shares | 116,667 | ||||||||||
Number of stock options, exercise price | $ 3 | $ 3 | |||||||||
Options expire | Dec. 31, 2021 | ||||||||||
Fair value of options granted | $ | $ 191 | ||||||||||
Share Price | $ 2.82 | ||||||||||
Expected option life | 11 months 1 day | ||||||||||
Volatility | 173.00% | ||||||||||
Risk-free interest rate | 0.11% | ||||||||||
Dividend yield | 0.00% | ||||||||||
Stock Option Three [Member] | |||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||
Number of stock options, exercise price | (per share) | $ 1.77 | 2.25 | |||||||||
Options expire | Sep. 1, 2025 | ||||||||||
Stock Option Three [Member] | Consultant [Member] | |||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||
Number of stock options, options issued | shares | 50,000 | ||||||||||
Number of stock options, exercise price | $ 8.40 | $ 8.40 | |||||||||
Options expire | Jun. 3, 2026 | ||||||||||
Fair value of options granted | $ | $ 445 | ||||||||||
Share Price | $ 9.18 | ||||||||||
Expected option life | 5 years | ||||||||||
Volatility | 191.00% | ||||||||||
Risk-free interest rate | 0.93% | ||||||||||
Dividend yield | 0.00% | ||||||||||
Stock Option Four [Member] | |||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||
Number of stock options, exercise price | (per share) | $ 2.36 | 3 | |||||||||
Options expire | Jan. 28, 2025 | ||||||||||
Stock Option Four [Member] | Consultant [Member] | |||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||
Number of stock options, options issued | shares | 116,700 | ||||||||||
Number of stock options, exercise price | $ 6 | ||||||||||
Options expire | Apr. 30, 2022 | ||||||||||
Fair value of options granted | $ | $ 242 | ||||||||||
Share Price | $ 6.50 | ||||||||||
Expected option life | 8 months 4 days | ||||||||||
Volatility | 126.00% | ||||||||||
Risk-free interest rate | 0.19% | ||||||||||
Dividend yield | 0.00% | ||||||||||
Stock Option Five [Member] | |||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||
Number of stock options, exercise price | (per share) | $ 6.60 | $ 8.40 | |||||||||
Options expire | Jun. 3, 2026 | ||||||||||
Stock Option Five [Member] | Consultant [Member] | |||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||
Number of stock options, options issued | shares | 16,677 | ||||||||||
Number of stock options, exercise price | $ 8 | ||||||||||
Options expire | Oct. 28, 2026 | ||||||||||
Fair value of options granted | $ | $ 242 | ||||||||||
Share Price | $ 9.37 | ||||||||||
Expected option life | 5 years | ||||||||||
Volatility | 114.00% | ||||||||||
Risk-free interest rate | 1.43% | ||||||||||
Dividend yield | 0.00% |
SCHEDULE OF OUTSTANDING STOCK O
SCHEDULE OF OUTSTANDING STOCK OPTIONS (Details) | 12 Months Ended | ||||||
Dec. 31, 2021shares$ / shares | Dec. 31, 2021shares$ / shares | Dec. 31, 2020shares | Oct. 28, 2020shares$ / shares | Mar. 18, 2020shares$ / shares | Jan. 21, 2020shares$ / shares | Dec. 31, 2019shares | |
IfrsStatementLineItems [Line Items] | |||||||
Number of stock options, Outstanding | 820,010 | 820,010 | 889,523 | 767,000 | 75,000 | 47,619 | 182,909 |
Number of stock options, Exercisable | 633,615 | 633,615 | |||||
Number of stock options, Exercise price | $ / shares | $ 1.14 | $ 0.39 | $ 0.42 | ||||
Stock Option One [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Number of stock options, Outstanding | 100,000 | 100,000 | |||||
Number of stock options, Exercisable | 100,000 | 100,000 | |||||
Number of stock options, Expiry date | Jan. 23, 2023 | ||||||
Number of stock options, Exercise price | (per share) | $ 1.88 | $ 2.40 | |||||
Stock Option Two [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Number of stock options, Outstanding | 580,000 | 580,000 | |||||
Number of stock options, Exercisable | 449,167 | 449,167 | |||||
Number of stock options, Expiry date | Aug. 20, 2025 | ||||||
Number of stock options, Exercise price | (per share) | $ 1.18 | $ 1.50 | |||||
Stock Option Three [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Number of stock options, Outstanding | 40,000 | 40,000 | |||||
Number of stock options, Exercisable | 40,000 | 40,000 | |||||
Number of stock options, Expiry date | Sep. 1, 2025 | ||||||
Number of stock options, Exercise price | (per share) | $ 1.77 | $ 2.25 | |||||
Stock Option Four [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Number of stock options, Outstanding | 33,333 | 33,333 | |||||
Number of stock options, Exercisable | 22,222 | 22,222 | |||||
Number of stock options, Expiry date | Jan. 28, 2025 | ||||||
Number of stock options, Exercise price | (per share) | $ 2.36 | $ 3 | |||||
Stock Option Five [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Number of stock options, Outstanding | 50,000 | 50,000 | |||||
Number of stock options, Exercisable | 16,667 | 16,667 | |||||
Number of stock options, Expiry date | Jun. 3, 2026 | ||||||
Number of stock options, Exercise price | (per share) | $ 6.60 | $ 8.40 | |||||
Stock Option Six [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Number of stock options, Outstanding | 16,677 | 16,677 | |||||
Number of stock options, Exercisable | 5,559 | 5,559 | |||||
Number of stock options, Expiry date | Oct. 28, 2026 | ||||||
Number of stock options, Exercise price | (per share) | $ 6.28 | $ 8 |
WARRANTS AND OPTIONS (Details N
WARRANTS AND OPTIONS (Details Narrative) $ / shares in Units, $ in Thousands | Dec. 16, 2021₪ / sharesshares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($)shares | Dec. 31, 2021₪ / shares | [1] |
IfrsStatementLineItems [Line Items] | |||||
Exercise of warrants | 15,000 | 182,142 | |||
Share based compensation | $ | $ 843 | $ 800 | |||
Warrants Four [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Exercise price | (per share) | $ 2.30 | ₪ 7.1418 | |||
Warrants Four [Member] | Warrant Holders [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Exercise of warrants | 1,095,322 | ||||
Exercise price | ₪ / shares | ₪ 2.52 | ||||
Warrants granted | 980,673 | ||||
[1] | On March 31, 2021, warrant holders and the Company, agreed that the exercise price of CAD$ 2.70 7.1418 |
SCHEDULE OF SUBSIDIARIES OF NON
SCHEDULE OF SUBSIDIARIES OF NON-CONTROLLING INTERESTS (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||
Non controlling interest | $ (607) | $ 520 |
Cust2Mate [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Non controlling interest | (1,026) | |
A A I [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Non controlling interest | $ 419 | $ 520 |
SCHEDULE OF MAJOR CUSTOMERS (De
SCHEDULE OF MAJOR CUSTOMERS (Details) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
IfrsStatementLineItems [Line Items] | ||
Major customer, percent | 100.00% | 100.00% |
Customer A [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Major customer, percent | 39.00% | 61.00% |
Customer B [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Major customer, percent | 15.00% | 6.00% |
Customer C [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Major customer, percent | 10.00% | 4.00% |
Customer D [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Major customer, percent | 28.00% | |
Customer [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Major customer, percent | 92.00% | 71.00% |
SCHEDULE OF REVENUE FROM SERVIC
SCHEDULE OF REVENUE FROM SERVICES (Details) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
IfrsStatementLineItems [Line Items] | ||
Percentage of entity's revenue | 100.00% | 100.00% |
Revenues from Services [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Percentage of entity's revenue | 50.00% | 65.00% |
Revenues from Leasing [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Percentage of entity's revenue | 15.00% | 25.00% |
Revenues from Maintenance Services [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Percentage of entity's revenue | 7.00% | 10.00% |
Revenues from Smart Carts Project [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Percentage of entity's revenue | 28.00% |
SCHEDULE OF COST OF REVENUES (D
SCHEDULE OF COST OF REVENUES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
IfrsStatementLineItems [Line Items] | |||
Cost of revenues | $ 2,029 | $ 853 | $ 783 |
Payroll and Related Expenses [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Cost of revenues | 1,096 | 493 | |
Subcontractor and Outsourced Work [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Cost of revenues | 162 | 65 | |
Materials and Components Consumed [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Cost of revenues | 291 | 90 | |
Car Maintenance [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Cost of revenues | 373 | 147 | |
Other [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Cost of revenues | $ 107 | $ 58 |
SCHEDULE OF RESEARCH AND DEVELO
SCHEDULE OF RESEARCH AND DEVELOPMENT EXPENSES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Payroll and related expenses | $ 510 | $ 410 | |
Subcontractor and outsourced work | 2,477 | ||
Legal fees | 99 | ||
Other | 136 | 8 | |
Research and development expense | $ 3,222 | $ 418 | $ 414 |
SCHEDULE OF GENERAL AND ADMINIS
SCHEDULE OF GENERAL AND ADMINISTRATIVE EXPENSE (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Payroll and related | $ 1,027 | $ 579 |
Professional fees | 3,417 | 1,449 |
Share-based compensation | 842 | |
Depreciation and amortization | 321 | 213 |
Office maintenance | 275 | 23 |
Investor relations | 254 | 101 |
Others | 358 | |
General and administrative expense | $ 6,494 | $ 2,365 |
SCHEDULE OF EARNINGS PER COMMON
SCHEDULE OF EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Net loss for the year | $ (39,735) | $ (7,222) |
Weighted average number of ordinary shares | 23,340,621 | 16,758,323 |
Basic and diluted loss per share in USD | $ 1.70 | $ 0.43 |
SCHEDULE OF EFFECTIVE INCOME TA
SCHEDULE OF EFFECTIVE INCOME TAX EXPENSE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Loss before income tax | $ (40,148) | $ (5,936) | |
Statutory tax rate | 23.00% | 23.00% | |
Income tax benefit (expense) at the statutory tax rate | $ 9,234 | $ 1,365 | |
Expenses not recognized for tax purposes | (9,234) | (876) | |
Recognition/Derecognition of deferred tax assets which were not recognized on prior periods | (142) | (506) | |
Income tax expense | $ (142) | $ (17) | $ 380 |
SCHEDULE OF INCOME TAX EXPENSE
SCHEDULE OF INCOME TAX EXPENSE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current | $ 10 | ||
Prior year taxes | 142 | ||
Deferred taxes, net | 7 | ||
Total | $ 142 | $ 17 | $ (380) |
SCHEDULE OF RELATED PARTIES (De
SCHEDULE OF RELATED PARTIES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Consulting fees | $ 958 | $ 594 |
Salaries | 37 | 27 |
Pensions | 6 | 4 |
Total | $ 1,001 | $ 625 |
SCHEDULE OF AMOUNT OWING BY REL
SCHEDULE OF AMOUNT OWING BY RELATED PARTIES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Key management personnel | $ 183 | |
Company controlled by the CEO | (57) | |
Total | $ 126 |
INCOME TAX EXPENSE (Details Nar
INCOME TAX EXPENSE (Details Narrative) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Federal and statutory income tax rate | 26.50% | 26.50% |
Israeli corporate tax rate | 23.00% | 23.00% |
SCHEDULE OF FINANCIAL ASSET WIT
SCHEDULE OF FINANCIAL ASSET WITH CASH AND TRADE ACCOUNTS RECEIVABLE (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Cash and Cash Equivalents | $ 8,470 | $ 5,397 | $ 362 |
Cash restricted | 60 | 192 | |
Trade receivables | 857 | 196 | 244 |
Other Accounts Receivable | 434 | 353 | $ 1,260 |
Total | $ 9,821 | $ 6,138 |
SCHEDULE OF LIQUIDITY RISKS (De
SCHEDULE OF LIQUIDITY RISKS (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Trade payables - Carrying amount | $ 989 | ||
Trade payables - Within 1 year | 989 | ||
Trade payables - Over 1 year | |||
Other accounts payable - Carrying amount | 1,099 | $ 376 | $ 1,988 |
Other accounts payable - Within 1 year | 704 | ||
Other accounts payable - Over 1 year | 395 | ||
Loans - Carrying amounts | 641 | 1,024 | |
Loans - Within 1 year | 158 | 358 | 200 |
Long term loans (note 10) | 483 | 666 | 356 |
Lease liability - Carrying amount | 277 | ||
Lease liability - Within 1 year | 126 | 21 | $ 63 |
Lease liability - Over 1 year | $ 151 |
RELATED PARTIES AND SHAREHOLD_3
RELATED PARTIES AND SHAREHOLDER (Details Narrative) ₪ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($) | Dec. 31, 2021ILS (₪) | Dec. 31, 2020USD ($) | |
IfrsStatementLineItems [Line Items] | |||
Consulting fees | $ 3,417 | $ 1,449 | |
Bonus amount | 500 | ||
Key management personnel compensation | 126 | ||
CEO [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Consulting fees | 46 | ₪ 150,000 | |
Compensation Commitee [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Key management personnel compensation | $ 400 |
FINANCIAL INSTRUMENTS AND RIS_3
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details Narrative) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Variable market risk description | As of December 31, 2021, if the Company’s functional currency (ILS) had strengthened/ weakened by 5% against the USD, with all other variables held constant, the loss for the year would decrease /increase by approximately $240 |
Increase decrease in income loss | $ 240 |
Borrowings rate, description | It is currently Company policy that between 50% and 75% of Company borrowings are fixed rate borrowings |
Maximum reasonable expectation in interest rate | $ 8 |
SCHEDULE OF OPERATING SEGMENTS
SCHEDULE OF OPERATING SEGMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
IfrsStatementLineItems [Line Items] | |||
Revenues | $ 2,685 | $ 1,068 | $ 1,384 |
Segment loss | (9,162) | (2,676) | |
Finance expense, net | 91 | 107 | 109 |
Tax expenses | 142 | 17 | (380) |
Loss | (40,290) | (5,953) | |
Segment assets | 14,131 | 8,852 | |
Segment liabilities | 3,224 | 10,825 | |
Elimination of intersegment amounts [member] | |||
IfrsStatementLineItems [Line Items] | |||
Revenues | |||
Finance expense, net | |||
Tax expenses | |||
Reportable segments [member] | |||
IfrsStatementLineItems [Line Items] | |||
Revenues | 2,685 | 1,068 | |
Segment loss | 40,057 | 5,936 | |
Finance expense, net | 91 | (32) | |
Tax expenses | 142 | (17) | |
Loss | 40,290 | 5,953 | |
Segment assets | 14,131 | 8,852 | |
Segment liabilities | 3,224 | 10,836 | |
Reportable segments [member] | Elimination of intersegment amounts [member] | |||
IfrsStatementLineItems [Line Items] | |||
Revenues | |||
Segment assets | |||
Segment liabilities | |||
Reportable segments [member] | Advanced Engineering [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Revenues | 1,935 | 1,068 | |
Segment loss | 35,095 | 5,770 | |
Segment assets | 12,118 | 8,598 | |
Segment liabilities | 1,786 | 10,418 | |
Reportable segments [member] | Advanced Engineering [Member] | Elimination of intersegment amounts [member] | |||
IfrsStatementLineItems [Line Items] | |||
Revenues | |||
Reportable segments [member] | Smart Carts [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Revenues | 750 | ||
Segment loss | 4,962 | 166 | |
Segment assets | 2,013 | 254 | |
Segment liabilities | 1,438 | 418 | |
Reportable segments [member] | Smart Carts [Member] | Elimination of intersegment amounts [member] | |||
IfrsStatementLineItems [Line Items] | |||
Revenues | |||
Reportable segments [member] | External [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Revenues | 2,685 | 1,068 | |
Reportable segments [member] | External [Member] | Advanced Engineering [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Revenues | 1,935 | 1,068 | |
Reportable segments [member] | External [Member] | Smart Carts [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Revenues | $ 750 |
OPERATING SEGMENTS (Details Nar
OPERATING SEGMENTS (Details Narrative) | 12 Months Ended |
Dec. 31, 2021Segments | |
Number of operating segments | 2 |
SCHEDULE OF FAIR VALUE OF ASSET
SCHEDULE OF FAIR VALUE OF ASSETS ACQUIRED (Details) - Events Occurring After Reporting Date [Member] $ in Thousands | Feb. 03, 2022USD ($) | |
IfrsStatementLineItems [Line Items] | ||
Goodwill recognised as of acquisition date | $ 312 | |
Isramat Ltd [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Total assets | 2,649 | |
Benefit shareholder consulting agreement | 28 | |
Goodwill recognised as of acquisition date | 312 | [1] |
Total net assets acquired | $ 2,989 | |
[1] | Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired. The goodwill is attributed to the expected benefits arising from the synergies of the combination of the activities of the Company and acquired company. |
SCHEDULE OF PRO FORMA INFORMATI
SCHEDULE OF PRO FORMA INFORMATION (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Subsequent Events | |
Total revenues | $ 7,915 |
Net loss attributable to A2Z’s shareholders | $ 37,698 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) ₪ / shares in Units, $ / shares in Units, ₪ in Thousands, shares in Thousands, $ in Thousands | Feb. 03, 2022USD ($)$ / sharesshares | Aug. 31, 2020USD ($) | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Mar. 31, 2022₪ / sharesshares | Feb. 11, 2022shares | Feb. 03, 2022ILS (₪)shares | Jan. 31, 2022$ / sharesshares | Mar. 31, 2021₪ / shares | Aug. 31, 2020₪ / sharesshares | |
IfrsStatementLineItems [Line Items] | ||||||||||||
Warrants outstanding | shares | 182,142 | |||||||||||
Exercise price | ₪ / shares | ₪ 2.52 | |||||||||||
Exercise of warrants | $ 98 | $ 3,386 | $ 98 | |||||||||
Events Occurring After Reporting Date [Member] | ||||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||||
Warrants outstanding | shares | 474,207 | 5,437 | ||||||||||
Exercise price | $ / shares | $ 1.95 | |||||||||||
Exercise of warrants | $ 956 | |||||||||||
Shares issued | shares | 273,774 | 474,207 | 74,985 | 273,774 | ||||||||
Deemed price per share | $ / shares | $ 7.6311 | |||||||||||
Fair value of assets acquired as goodwill | $ 312 | |||||||||||
Goodwill | $ 312 | |||||||||||
Goodwill amortization term | 20 years | |||||||||||
Events Occurring After Reporting Date [Member] | Isramat Ltd [Member] | ||||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||||
Cash | $ 900 | ₪ 2,800 | ||||||||||
Goodwill | [1] | $ 312 | ||||||||||
Events Occurring After Reporting Date [Member] | Bottom of range [member] | ||||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||||
Exercise price | ₪ / shares | ₪ 5.124 | |||||||||||
Events Occurring After Reporting Date [Member] | Top of range [member] | ||||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||||
Exercise price | ₪ / shares | ₪ 7.1418 | |||||||||||
[1] | Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired. The goodwill is attributed to the expected benefits arising from the synergies of the combination of the activities of the Company and acquired company. |