A2Z Smart Technologies (AZ) 20-F 27 Mar 23 2022 FY Annual report (foreign) Financial data

Cover

Cover	12 Months Ended
	Dec. 31, 2022 shares
Entity Addresses [Line Items]
Document Type	20-F
Amendment Flag	false
Document Registration Statement	false
Document Annual Report	true
Document Transition Report	false
Document Shell Company Report	false
Document Period End Date	Dec. 31, 2022
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2022
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 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
Entity Address, Country	CA
Entity Address, Postal Zip Code	V7Y 1C3
Title of 12(b) Security	Common Shares
Trading Symbol	AZ
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	true
Elected Not To Use the Extended Transition Period	false
Document Accounting Standard	International Financial Reporting Standards
Entity Shell Company	false
Entity Common Stock, Shares Outstanding	30,945,322
ICFR Auditor Attestation Flag	false
Auditor Firm ID	1185
Auditor Name	BDO Member Firm
Auditor Location	Tel Aviv, Israel
Business Contact [Member]
Entity Addresses [Line Items]
Entity Address, Address Line One	1600-609 Granville Street
Entity Address, City or Town	Vancouver
Entity Address, State or Province	BC
Entity Address, Country	CA
Entity Address, Postal Zip Code	V7Y 1C3
City Area Code	(647)
Local Phone Number	558-5564
Contact Personnel Name	Bentsur Joseph

Consolidated Statements of Fina

Consolidated Statements of Financial Position - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Current assets
Cash and cash equivalents	$ 2,616	$ 8,470
Deposits	8	60
Inventories (note 5)	375	1,147
Trade receivables, net (note 6)	1,373	857
Other accounts receivable (note 8)	2,570	434
Total current assets	6,942	10,968
Intangible asset - patent, net (note 9)	2,207	2,091
Goodwill (note 7)	1,188
Property, plant and equipment, net (note 10)	2,357	1,072
Total non-current assets	5,752	3,163
Total Assets	12,694	14,131
Current liabilities
Short term loan and current portion of long-term loans (note 11)	1,403	158
Lease liability (note 12)	281	126
Trade payables	2,224	989
Deferred revenues (note 13)	1,373
Other accounts payable (note 14)	956	1,099
Total current liabilities	6,237	2,372
Lease liability (note 12)	605	151
Long term loans (note 15)	341	483
Provision (note 7)	1,447
Warrant Liability (note 17)	1,142	51
Severance payment, net (note 16)	33	167
Total non-current liabilities	3,568	852
Total liabilities	9,805	3,224
Shareholders’ equity (note 19)
Share capital and additional paid in capital	43,452	28,297
Warrant Reserve	30,863	34,763
Accumulated other comprehensive income	(1,634)	(708)
Accumulated deficit	(67,395)	(50,838)
Total equity attributable to Company shareholders	5,286	11,514
Non-controlling interest (note 21)	(2,397)	(607)
Total shareholders’ equity	2,889	10,907
Total liabilities and shareholders’ equity	$ 12,694	$ 14,131

Consolidated Statement of Compr

Consolidated Statement of Comprehensive Loss - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022		Dec. 31, 2021	Dec. 31, 2020
Profit or loss [abstract]
Revenues (note 22)	$ 9,351	[1],[2]	$ 2,685	$ 1,068
Cost of revenues (note 23)	7,517		2,029	853
Gross profit	1,834		656	215
Expenses:
Research and development costs (note 24)	4,462		3,222	418
Sales and marketing costs	475		102	108
General and administration expenses (note 25)	13,599		6,494	2,365
Operating loss	(16,702)	[1],[2]	(9,162)	(2,676)
Loss on revaluation of warrant liability (note 17)	254		30,895	3,228
Financial income				(75)
Financial expenses (note 27)	1,391		91	107
Loss before taxes on income	(18,347)		(40,148)	(5,936)
Income tax expense (note 28)		[1],[2]	(142)	(17)
Loss for the year	(18,347)	[1],[2]	(40,290)	(5,953)
Item that will not be reclassified to profit or loss:
Adjustments arising from translating financial statements of foreign operations	(936)		555	(1,282)
Remeasurement loss from defined benefit plans	10			13
Other comprehensive income (loss)	(926)		555	(1,269)
Total comprehensive loss for the year	(19,273)		(39,735)	(7,222)
Less: Net loss attributable to non-controlling shareholders	(1,790)		(1,127)	(32)
Net loss attributable to A2Z’s shareholders	$ (17,483)		$ (38,608)	$ (7,190)
Basic and diluted loss per share	$ (0.70)		$ (1.70)	$ (0.43)
Weighted average number of shares outstanding	27,681,778		23,340,621	16,758,323
[1]All non-current assets are located in the state of Israel.[2]All revenues are generated in the state of Israel.

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
Beginning balance 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)
Remeasurement gain from defined benefit plans								13
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		$ 98						98
Exercise of warrants, shares		182,142
Exercise of stock options		$ 39						39
Exercise of stock options, shares		123,386
Share based compensation (note 20 (b)(ix))								800
Issuance of shares in private placement, net (note 19 (H)(I))		$ 2,570						2,570
Issuance of shares in private placement, net (note 19 (H)(I)), shares		5,816,784
Issuance of warrants for services		$ 52						52
Issuance of warrants for services, shares
Issuance of shares for services (note 19 (C)(E)(J))		$ 168						168
Issuance of shares for services (note 14 (C)(E)(J)), shares		127,693
Issuance of stock options for services (note 20 (B)(ix))		$ 800						800
Issuance of stock options for services (note 20 (B)(ix)), shares
Ending balance at Dec. 31, 2020		$ 10,445			(1,339)	(11,599)	520	(1,973)
Ending balance, shares at Dec. 31, 2020	[2]	22,219,910
IfrsStatementLineItems [Line Items]
Net loss for the period						(39,239)	(1,051)	(40,290)
Remeasurement gain from defined benefit plans
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)
Issuance of shares in private placement, net		$ 3,338						3,338
Issuance of shares in private placement, net, shares		1,305,662
Exercise of warrants		$ 12,929		(9,201)				3,728
Exercise of warrants, shares		2,514,693
Exercise of stock options		$ 742						742
Exercise of stock options, shares		286,223
Share based compensation (note 20 (b)(ix))		$ 843						843
Reclassification of warrant liability (note 17)				43,964				43,964
Ending balance at Dec. 31, 2021		$ 28,297		34,763	(708)	(50,838)	(607)	$ 10,907
Ending balance, shares at Dec. 31, 2021		26,326,488	[2]					26,326,488
IfrsStatementLineItems [Line Items]
Net loss for the period						(16,557)	(1,790)	$ (18,347)	[3],[4]
Remeasurement gain from defined benefit plans					10			10
Adjustments arising from translating financial statements of foreign operations					(936)			(936)
Net comprehensive loss for the period					(926)	(16,557)	(1,790)	(19,273)
Issuance of shares in respect of crowd funding (note 19(Q))
Issuance of shares in respect of crowd funding (note 19(Q)), shares		74,895
Issuance of shares in respect of Isramat deal (note 19(O))		$ 1,747						1,747
Issuance of shares in respect of Isramat deal (note 19(O)), shares		273,774
Issuance of shares in private placement, net		$ 3,004						3,004
Issuance of shares in private placement, net, shares		2,978,337
Exercise of warrants		$ 5,277		(3,900)				1,377
Exercise of warrants, shares		630,161
Exercise of stock options		$ 208						208
Exercise of stock options, shares		116,667
Exercise of RSU’s (note 19(R))
Exercise of RSU's (note 19(R)), shares		545,000
Expiration of warrants (note 17(A))		$ 51						51
Share based compensation (note 20 (b)(ix))		4,868						4,868
Ending balance at Dec. 31, 2022		$ 43,452		$ 30,863	$ (1,634)	$ (67,395)	$ (2,397)	$ 2,889
Ending balance, shares at Dec. 31, 2022		30,945,322						30,945,322
[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.[3]All non-current assets are located in the state of Israel.[4]All revenues are generated in the state of Israel.

Consolidated Statement of Cash

Consolidated Statement of Cash Flows $ in Thousands, $ in Thousands		12 Months Ended
		Dec. 31, 2022 USD ($)		Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Cash flows from operating activities
Loss for the year		$ (18,347)	[1],[2]	$ (40,290)	$ (5,953)
Adjustments to reconcile net loss to net cash provided by operating activities:
Amortization and depreciation		786		251	213
Share based compensation		4,868		843	601
Loss on revaluation of warrant liability		254		30,895	3,228
Increase in provisions		1,190
Change in severance liability		(154)		(20)	28
Change in inventory		690		(1,128)	19
Change in trade receivables		990		(661)	35
Change in other account receivables		(2,383)		(81)	719
Accrued interest on loans and leases		13		36	73
Changes in deferred taxes					16
Change in accounts payable		860		448	43
Change in deferred revenues		1,439
Change in other accounts payable		363		329	(25)
Cash flow from operating activities		(9,431)		(9,378)	(1,003)
Cash flows from investing activities
Change in deposits		48		132	(192)
Investment in subsidiary		(879)
Intangible assets					(6)
Purchase of property, plant and equipment		(727)		(412)	(227)
Cash flow used in investing activities		(1,559)		(280)	(425)
Cash flows from financing activities
Issuance of shares and warrants, net		3,894		8,358	8,249
Investment in subsidiary					(1,566)
Exercise of options		208		742	39
Exercise of warrants		1,379		3,386	98
Lease payments		(337)		(111)	(43)
Long term deposits					30
Repayment of loans		(342)		(316)	(100)
Proceeds from receipt of loans		1,294		296	494
Cash flows from financing activities		6,096		12,355	7,201
Increase (decrease) in cash and cash equivalents		(4,894)		2,697	5,773
Effect of changes in foreign exchange rates		(960)		376	(738)
Cash at beginning of year		8,470		5,397	362
Cash at the end of the year		2,616		8,470	5,397
Taxes paid during the year		74
Interest paid during the year		49		34	12
Reclassification of warrant liability to warrant reserve		51		43,964
Reclassification of other account payables to short term loans		359
Recognition of a lease liability and right-of-use asset		947
Issuance of share in respect of Isramat deal		2,089
Issuance of the Company’s ordinary shares		1,747
Commitment to selling shareholders		343
Working capital other than cash and cash equivalents		(869)
Liability for severance pay fund, net		35
Property, plant and equipment		(636)
Benefit shareholder consulting agreement		(27)
Customer relations		(284)
Goodwill		(1,188)
Total cash and cash equivalents paid	[3]	$ (879)
[1]All non-current assets are located in the state of Israel.[2]All revenues are generated in the state of Israel.[3]See note 7.

DESCRIPTION OF BUSINESS

DESCRIPTION OF BUSINESS	12 Months Ended
	Dec. 31, 2022
Description Of Business
DESCRIPTION OF BUSINESS	NOTE 1 - DESCRIPTION OF BUSINESS Overview A2Z SMART TECHNOLOGIES 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 various 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 in the Middle East. The Company’s other activities include the provision of maintenance services utilizing the application 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. On February 3, 2022, the Company completed the acquisition of Isramat Ltd. This strategic acquisition vertically integrates certain manufacturing capabilities for the production of A2Z’s Cust2Mate smart cart while complementing existing contract manufacturing partnerships to support anticipated worldwide growth. See also note 6. The Company, through its 80 As of December 31, 2022, the Company had four subsidiaries, all of which are companies incorporated under the laws of Israel: (1) Cust2mate Ltd. (“Cust2mate”); (2) A2Z Advanced Military Solutions Ltd (“A2Z MS”); (3) A2Z Advanced Solutions (“A2Z AS”); and (4) Isramat Ltd, the “Subsidiaries”). The Company had a net loss of approximately $ 19.3 million for the year ended December 31, 2022, $ 39.8 million for the year ended December 31, 2021, and $ 7.2 million for the year ended December 31, 2020. The Company has an accumulated deficit of $ 67 million as of December 31, 2022. The Company has incurred negative cash from operation and net losses for current and recent years. The Company financed its operation up do date by issuance of shares and warrants, The Company does not have any material financial obligations as of the balance date The company believes that it has sufficient resources to operate in the foreseeable future with the support of its officers. On March 13, 2023, the Company closed, in escrow, the issuance of 1,783,561 1.46 1.95 2,604 These consolidated financial statements were authorized for issue by the Board of Directors on March 27, 2023. A2Z SMART TECHNOLOGIES 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, 2022
Basis Of Preparation
BASIS OF PREPARATION	NOTE 2 – 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 presentation 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. A2Z SMART TECHNOLOGIES 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, 2022
Disclosure of changes in accounting estimates [abstract]
SIGNIFICANT ACCOUNTING POLICIES	NOTE 3 - 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. Short term deposits A short term deposit is cash held 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). Short term deposits are deposits designated to secure the Company’s car 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. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) NOTE 3 - 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. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) NOTE 3 - 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. Another financial liability recognized at fair value is due to a commitment to the selling shareholders of Isramat (See also note 7) that if the aggregate proceeds received by a selling shareholder from the sale of its acquisition shares during the lockup period, together with the value of its unsold acquisition shares as of the end of such period, is lower than its pro rata portion in the equity consideration, the Company will pay the difference in cash to such selling shareholder. 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. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) NOTE 3 - 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, 2022, and December 31, 2021, 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. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) NOTE 3 - SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): E. Fair value measurement (cont.): Aging Schedule based on due date AGING SCHEDULE BASED ON DUE DATE December 31, 2022 December 31, 2021 Aging schedule December 31, 2022 December 31, 2021 Within payment terms $ 1,373 $ 857 Total $ 1,373 $ 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, 2022 December 31, 2021 Government institutions $ 279 $ 296 Industrial customers 1,052 - Other customers 42 561 Total $ 1,373 $ 857 A2Z SMART TECHNOLOGIES CORP. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) NOTE 3 - 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 three operating segments; Precision Metal Parts, 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. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) NOTE 3 - 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 Machines and manufacturing equipment 10 Furniture and equipment 7 Vehicles 6.67 ERP system and R&D expenses 3 6 Leasehold Improvement 10 A2Z SMART TECHNOLOGIES CORP. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) NOTE 3 - 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. i. 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. ii. Revenues generated in Isramat are recognized from sale of goods in profit or loss at the point in time when the control of the goods is transferred to the customer, generally upon delivery of the goods to the customer. Performance obligations and timing of revenue recognition The majority of the Company’s revenue is derived from selling goods with revenue recognized at a point in time when control of the goods has transferred to the customer. This is generally when the goods are delivered to the customer. However, for export sales, control might also be transferred when delivered either to the port of departure or port of arrival, depending on the specific terms of the contract with a customer. There is limited judgement needed in identifying the point control passes: once physical delivery of the products to the agreed location has occurred, the Company no longer has physical possession, usually will have a present right to payment (as a single payment on delivery) and retains none of the significant risks and rewards of the goods in question. The Company has a segment which carries out maintenance and leasing services for clients, with revenue recognized typically on an over time basis. This is because the designs created have no alternative use for the Company and the contracts would require payment to be received for the time and effort spent by the Company on progressing the contracts in the event of the customer cancelling the contract prior to completion for any reason other than the Company’s failure to perform its obligations under the contract. On partially complete service contracts, A Layout (International) recognizes revenue based on stage of completion of the project which is estimated by comparing the number of hours actually spent on the project with the total number of hours expected to complete the project (i.e. an input based method). This is considered a faithful depiction of the transfer of services as the contracts are initially priced on the basis of anticipated hours to complete the projects and therefore also represents the amount to which the Company would be entitled based on its performance to date. Determining the transaction price A substantial amount of the Company’s revenue is derived from Smart Cart segment – fixed price contracts and therefore the amount of revenue to be earned from each contract is determined by reference to those fixed prices. Exceptions are as follows: ● For one key customer, the Company accepts orders and is paid up in advance of delivering the products. 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. 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, 2022, costs in the amount of $ 219 A2Z SMART TECHNOLOGIES CORP. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) NOTE 3 - SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): M. Standard not yet effective There are a number of standards, amendments to standards, and interpretations which have been issued by the IASB that are effective in future accounting periods that the Company has decided not to adopt early. The following amendments are effective for the period beginning 1 January 2023: - Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2); - Definition of Accounting Estimates (Amendments to IAS 8); and - Deferred Tax Related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12) The following amendments are effective for the period beginning 1 January 2024: - IFRS 16 Leases (Amendment – Liability in a Sale and Leaseback) - IAS 1 Presentation of Financial Statements (Amendment – Classification of Liabilities as Current or Non-current) - IAS 1 Presentation of Financial Statements (Amendment – Non-current Liabilities with Covenants) The Company is currently assessing the impact of these new accounting standards and amendments. The Company does not believe that the amendments to IAS 1 will have a significant impact on the classification of its liabilities, as the conversion feature in its convertible debt instruments is classified as an equity instrument and therefore, does not affect the classification of its convertible debt as a non-current liability. The Company does not expect any other standards issued by the IASB, but not yet effective, to have a material impact on the Company. Changes in accounting policies The following amendments are effective for the period beginning 1 January 2022: Leases The majority of the Company’s accounting policies for leases are set out in note 12. Identifying leases The Company accounts for a contract as a lease when it conveys the right to use an asset for a period of time in exchange for consideration. Leases are those contracts that satisfy the following criteria: - There is an identified asset; - The Company obtains substantially all the economic benefits from use of the asset; and - The company has the right to direct use of the asset The Company considers whether the supplier has substantive substitution rights. If the supplier does have those rights, the contract is not identified as giving rise to a lease. In determining whether the Company obtains substantially all the economic benefits from use of the asset, the Company considers only the economic benefits that arise use of the asset, not those incidental to legal ownership or other potential benefits. In determining whether the Company has the right to direct use of the asset, the Company considers whether it directs how and for what purpose the asset is used throughout the period of use. If there are no significant decisions to be made because they are pre-determined due to the nature of the asset, the Company considers whether it was involved in the design of the asset in a way that predetermines how and for what purpose the asset will be used throughout the period of use. If the contract or portion of a contract does not satisfy these criteria, the Company applies other applicable IFRSs rather than IFRS 16. A2Z SMART TECHNOLOGIES CORP. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) NOTE 3 - SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): 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, 2022, as a reclassification of its derivative liability - warrants in the amount of $1,142 from Non – Current Liabilities to Current Liabilities. Onerous Contracts Cost of Fulfilling a Contract (Amendments to IAS 37) IAS 37 defines an onerous contract as a contract in which the unavoidable costs (costs that the Group has committed to pursuant to the contract) of meeting the obligations under the contract exceed the economic benefits expected to be received under it. The amendments to IAS 37.68A clarify, that the costs relating directly to the contract consist of both: ● The incremental costs of fulfilling that contract- e.g., direct labor and material; and ● An allocation of other costs that relate directly to fulfilling contracts: e.g. Allocation of depreciation charge on property, plant and equipment used in fulfilling the contract. The Company, prior to the application of the amendments, did not have any onerous contracts. The Company estimates that the initial application of the Amendments is not expected to have a material impact on its financial statements.

CRITICAL ACCOUNTING ESTIMATES A

CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS	12 Months Ended
	Dec. 31, 2022
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. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) NOTE 4 - CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (CONTINUED): 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. Going concern In order to assess whether it is appropriate for the company to continue as a going concern, management is required to apply judgment and make estimates with respect to future cash flow projections. In arriving at this judgment, there were several assumptions and estimates involved in calculating these future cash flow projections. This includes making estimates regarding the timing and amounts of future expenditures and the ability and timing to raising additional financing. Functional currency The Company and its subsidiaries are required to determine their functional currencies based on the primary economic environment in which each entity operates. In order to do that, management has to analyze several factors, including which currency mainly influences the cost of undertaking the business activities, in which currency the entity has received financing, and in which currency it keeps its receipts from operating activities. Management uses its judgment to determine which factors are most important when the above indicators are mixed and the functional currency is not obvious. Impairment of non-financial assets Impairment tests on goodwill and other intangible assets with indefinite useful economic lives are undertaken annually at the financial year end. Other non-financial assets are subject to impairment tests whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. Where the carrying value of an asset exceeds its recoverable amount (i.e., the higher of value in use and fair value less costs to sell), the asset is written down accordingly. Where it is not possible to estimate the recoverable amount of an individual asset, the impairment test is carried out on the smallest group of assets to which it belongs for which there are separately identifiable cash flows; its cash generating units (‘CGUs’). Goodwill is allocated on initial recognition to each of the Company’s CGUs that are expected to benefit from a business combination that gives rise to the goodwill. Impairment charges are included in profit or loss, except to the extent they reverse gains previously recognized in other comprehensive income. An impairment loss recognized for goodwill is not reversed. Goodwill Goodwill arising on the acquisition of a subsidiary represents the excess of the cost of acquisition over the Company’s interest in the net fair value of the identifiable assets, liabilities and Contingent liabilities of the subsidiary or jointly controlled entity recognized at the date of acquisition. Goodwill is initially recognized as an asset at cost and is subsequently measured at cost less any accumulated impairment losses. 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. A2Z SMART TECHNOLOGIES CORP. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data)

INVENTORIES

INVENTORIES	12 Months Ended
	Dec. 31, 2022
INVENTORIES	NOTE 5 INVENTORIES SCHEDULE OF INVENTORIES December 31, December 31, 2022 2021 Raw materials $ 38 $ 93 Smart cart electrical equipment - 909 Smart cart parts 337 145 Inventories $ 375 $ 1,147

TRADE RCEIVABLES, NET

TRADE RCEIVABLES, NET	12 Months Ended
	Dec. 31, 2022
TRADE RCEIVABLES, NET	NOTE 6 TRADE RCEIVABLES, NET SCHEDULE OF TRADE RECEIVABLES December 31, December 31, 2022 2021 Customers $ 1,383 $ 857 Expected credit losses (10 ) - Trade Receivables, net $ 1,373 $ 857

ACQUISITION

ACQUISITION	12 Months Ended
	Dec. 31, 2022
Disclosure of detailed information about business combination [abstract]
ACQUISITION	NOTE 7 ACQUISITION On February 3, 2022, the Company announced it has completed the acquisition of all the outstanding shares of Isramat Ltd (“Isramat”), an Israeli manufacturer of precision metal parts. In connection with closing of the acquisition, the Company paid NIS 2,800,000 879 273,774 7.6311 IFRS 13 favors the use of quoted prices and limits the inclusion of restrictions (such as lockup) in the calculated fair value. Based on the provisions of IFRS 13, the Company has recognized a provision for the commitment to the selling shareholders on the day of the acquisition in the amount of $ 343 1,447 1,105 The table below summarizes the fair value of the commitment at the purchase date: SUMMARY OF FAIR VALUE OF COMMITMENT Balance at January 1, 2022 $ - Acquisition date February 3, 2022 343 Revaluation 1,190 Effect of changes in foreign exchange rates (86 ) Balance at December 31, 2022 $ 1,447 The purchase consideration has been allocated between the acquired tangible assets and intangible assets, based on their fair values. Management is fully responsible for the valuation made of the assets. 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 identifiable net assets acquired by approximately $ 1,188 A2Z SMART TECHNOLOGIES CORP. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) NOTE 7 ACQUISITION (CONTINUED) The table below summarizes the fair value of assets acquired at the purchase date: SCHEDULE OF FAIR VALUE OF ASSETS ACQUIRED February 3, 2022 Working capital other than cash and cash equivalents $ 869 Liability for severance pay fund, net (35 ) Property, plant and equipment 636 Benefit shareholder consulting agreement 27 Customer relations 284 Goodwill (*) 1,188 Total consideration paid (**) $ 2,969 Consideration paid in cash $ 879 Commitment to the selling shareholders 343 Consideration paid in common shares in the capital of the Company 1,747 Total consideration paid (**) $ 2,969 (*) 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, and to the value of assembled workforce. Isramat manufactures and sells precision metal parts. Revenue from these sales is recognized when Isramat has delivered the parts to locations specified by its customers and the customers have accepted the parts in accordance with the sales contract. (**) Consideration paid in cash for the purchase of Isramat shares was $ 879 273,774 1,747 The contribution of Isramat’s results to the Company’s consolidated revenues were $ 3,958 875 The pro forma financial information presented below is for information 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 had the transaction taken place at January 1, 2022. The pro forma financial information is as follows: SCHEDULE OF PRO FORMA INFORMATION For the year ended December 31, 2022 (in thousands) unaudited Total revenues $ 9,594 Net loss attributable to the Company $ 17,635

OTHER ACCOUNTS RECEIVABLE

OTHER ACCOUNTS RECEIVABLE	12 Months Ended
	Dec. 31, 2022
OTHER ACCOUNTS RECEIVABLE	NOTE 8 OTHER ACCOUNTS RECEIVABLE SCHEDULE OF OTHER ACCOUNTS RECEIVABLE December 31, December 31, 2022 2021 Related parties $ - $ 126 Advances to suppliers 918 - Prepaid expenses 751 50 Government institutions 151 251 Other 750 7 Other accounts receivable $ 2,570 $ 434 A2Z SMART TECHNOLOGIES CORP. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data)

INTANGIBLE ASSETS - PATENT, NET

INTANGIBLE ASSETS - PATENT, NET	12 Months Ended
	Dec. 31, 2022
INTANGIBLE ASSETS - PATENT, NET	NOTE 9 INTANGIBLE ASSETS - PATENT, NET SUMMARY OF INTANGIBLE ASSETS PATENT, NET Balance, January 1, 2021 $ 2,239 Depreciation (123 ) Effect of changes in foreign exchange rates (25 ) Balance, December 31, 2021 $ 2,091 Additions 311 Depreciation (200 ) Effect of changes in foreign exchange rates 5 Balance, December 31, 2022 $ 2,207

PROPERTY, PLANT AND EQUIPMENT,

PROPERTY, PLANT AND EQUIPMENT, NET	12 Months Ended
	Dec. 31, 2022
PROPERTY, PLANT AND EQUIPMENT, NET	NOTE 10 PROPERTY, PLANT AND EQUIPMENT, NET SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT NET Computers and electronic equipment Machines and manufacturing equipment Furniture and equipment Vehicles ERP system and R&D expenses Leasehold Improvements Right of use Asset Total Cost: As of January 1, 2022 $ 440 $ - $ 201 $ 968 $ - $ 59 $ 362 $ 2,030 Additions 29 174 28 316 223 14 - 784 Disposals - - - (380 ) - - (380 ) Additions from newly acquired subsidiary - 2,242 178 34 - 367 859 3,681 Translation adjustments (53 ) (208 ) (48 ) (80 ) (4 ) (37 ) (42 ) (472 ) As of December 31, 2022 $ 416 $ 2,208 $ 359 $ 858 219 $ 403 $ 1,180 $ 5,642 Accumulated depreciation: As of January 1, 2022 $ 288 $ - $ 142 $ 368 $ - $ 59 $ 101 $ 958 Additions 37 116 16 88 5 3 107 371 Disposals - - - (58 ) - - - (58 ) Additions from newly acquired subsidiary - 1,657 158 6 - 350 164 2,335 Translation adjustments (35 ) (163 ) (27 ) (47 ) - (36 ) (13 ) (321 ) As of December 31, 2022 $ 290 $ 1,610 $ 289 $ 357 $ 5 $ 376 $ 360 $ 3,286 Net Book Value: As of December 31, 2022 $ 126 $ 598 $ 70 $ 501 214 $ 27 $ 820 $ 2,357 As of December 31, 2021 $ 152 $ - $ 59 $ 600 - $ - $ 261 $ 1,072 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 Cost, beginning balance $ 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 Cost, ending balance $ 440 $ 201 $ 968 $ 59 $ 362 $ 2,030 Accumulated depreciation: As of January 1, 2021 $ 268 $ 133 $ 294 $ 57 $ 23 $ 775 Beginning balance $ 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 Ending balance $ 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 Net Book Value $ 102 $ 6 $ 331 $ - $ 17 $ 456 A2Z SMART TECHNOLOGIES CORP. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data)

SHORT TERM LOANS AND CURRENT PO

SHORT TERM LOANS AND CURRENT PORTION OF LONG-TERM LOANS	12 Months Ended
	Dec. 31, 2022
Short Term Loans And Current Portion Of Long-term Loans
SHORT TERM LOANS AND CURRENT PORTION OF LONG-TERM LOANS	NOTE 11 – SHORT TERM LOANS AND CURRENT PORTION OF LONG-TERM LOANS SCHEDULE OF SHORT TERM LOANS AND CURRENT PORTION OF LONG-TERM LOANS Linked to Interest rate December 31, 2022 December 31, 2021 Short term loans NIS 3.2 7.5 % $ 1,114 $ - Current portion of long-term loans 289 158 Short term loans and current portion of long-term loans $ 1,403 $ 158

LEASE LIABILITY

LEASE LIABILITY	12 Months Ended
	Dec. 31, 2022
LEASE LIABILITY	NOTE 12 – LEASE LIABILITY The Company has lease contracts for industrial areas and office facilities used in its operations. Leases of industrial areas and office facilities generally have lease terms of between 2 and 5. The Group has several lease contracts that include termination option, which are valid after a minimal lease period. The Group has several lease contracts that include extension options. Set out below are the carrying amounts of lease liabilities recognized and the movements during the period: SCHEDULE OF CARRYING AMOUNTS OF LEASE LIABILITIES RECOGNIZED AND MOVEMENTS Industrial areas and office facilities Balance January 1, 2021 $ 21 Additions 362 Disposals (107 ) Accumulated interest 25 Exchange rate differences (24 ) Balance December 31, 2021 $ 277 Additions 859 Disposals (335 ) Accumulated interest 107 Exchange rate differences (22 ) Balance December 31, 2022 $ 886 Linked to December 31, 2022 December 31, 2021 Long Term leases NIS $ 886 $ 277 Current portion of long-term leases 281 126 Non-current portion of long-term leases $ 605 $ 151

DEFERRED REVENUES

DEFERRED REVENUES	12 Months Ended
	Dec. 31, 2022
DEFERRED REVENUES	NOTE 13 – DEFERRED REVENUES The Company has invoiced its one major customer in the Smart Cart segment a sum amount of $ 1,373

OTHER ACCOUNTS PAYABLE

OTHER ACCOUNTS PAYABLE	12 Months Ended
	Dec. 31, 2022
OTHER ACCOUNTS PAYABLE	NOTE 14 - OTHER ACCOUNTS PAYABLE SCHEDULE OF OTHER ACCOUNTS PAYABLE December 31, December 31, 2022 2021 Employees and government authorities $ 681 $ 362 Accrued expenses 93 169 Other 182 568 Other accounts payable $ 956 $ 1,099

LONG TERM LOANS

LONG TERM LOANS	12 Months Ended
	Dec. 31, 2022
LONG TERM LOANS	NOTE 15 - LONG TERM LOANS SCHEDULE OF LONG TERM LOANS Linked to Interest rate December 31, 2022 December 31, 2021 Long term loans NIS 1.8 6.1 % $ 1,385 $ 641 Less- Current portion (1,044 ) (158 ) Non Current Long term loans $ 341 $ 483 The loans are from leading Israeli financial institutions and bear interest of between 1.8 6.1 1,044 341 A2Z SMART TECHNOLOGIES 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, 2022
Severance Payment Net
SEVERANCE PAYMENT, NET	NOTE 16 – SEVERANCE PAYMENT, NET SCHEDULE OF PLAN DEFINED BENEFIT OBLIGATION a. The plan liabilities, net: Year ended Year ended December 31, 2022 December 31, 2021 Defined benefit plan: Present value of defined benefit obligation $ 394 $ 541 Fair value of plan assets (361 ) (374 ) Total $ 33 $ 167 Changes in the present value of defined benefit obligation: 2022 2021 Balance at beginning of year $ 541 $ 563 Recognized in statement of comprehensive loss: Interest cost 9 10 Current service cost 30 39 Currency translation (111 ) (71 ) Recognized in other comprehensive gain : (10 ) - Net actuarial gain (98 ) - Balance at end of year $ 361 $ 541 SCHEDULE OF FAIR VALUE OF PLAN ASSETS b. The movement in the fair value of the plan assets: 2022 2021 Balance at beginning of year $ (374 ) $ (376 ) Recognized in statement of comprehensive loss: Expected return 24 28 Recognized in other comprehensive loss /(gain): Net actuarial loss (gain) - - Other: Contributions by employer (11 ) (26 ) Balance at end of year $ (361 ) $ (374 ) SCHEDULE OF ASSUMPTIONS UNDERLYING DEFINED BENEFIT PLAN c. The principal assumptions underlying the defined benefit plan: December 31, 2022 December 31, 2021 Discount rate of the plan liability 2.75 % 2.24 % Expected rate of return on plan assets 2.64 % 2.36 % Future salary increases 3.82 % 3.47 % A2Z SMART TECHNOLOGIES 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, 2022
Warrant Liability
WARRANT LIABILITY	NOTE 17 – WARRANT LIABILITY a) November 2022 Warrants On November 2, 2022, the Company issued an aggregate of 1,489,166 warrants (November 2022 Warrants) as part of a private placement (see also note 19 (s)). The warrants were issued with an exercise price denominated in Canadian Dollars (CAD 2.04 ) rather than the functional currency of the Company – New Israeli Shekels (NIS). The warrants are exercisable for a period of 2 years from the issue date. The Black-Scholes option pricing model was used to measure the warrant liability with the following assumptions: volatility of 110 % using the historical prices of the Company, risk-free interest rate of 3.94 %, expected life of 2.00 years and share price of CAD 1.56 . These warrants were valuated at their fair value at the end of each reporting period and classified as a liability. SCHEDULE OF FAIR VALUE HIERARCHY OF WARRANTS Balance at January 1, 2022 $ - Issuance of November 2022 Warrants 894 Revaluation at December 31,2022 248 Reclassification to Warrant Reserve - Warrants exercised - Expiry of warrants - Balance at December 31, 2022 $ 1,142 b) 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 Revaluations 2,183 Reclassification to Warrant Reserve (6,969 ) Balance at December 31, 2021 $ - Balance at December 31, 2022 $ - A2Z SMART TECHNOLOGIES CORP. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) NOTE 17 – WARRANT LIABILITY (CONTINUED): c) 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 at January 1, 2021 $ 8,391 Revaluation at March 31, 2021 26,816 Reclassification to Warrant Reserve (35,207 ) Balance at December 31, 2021 $ - Balance at December 31, 2022 $ - d) 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 On January 31, 2022, the remaining January 2020 Warrants expired, and the Company reclassified the warrant liability to equity. 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 $ 285 Warrants exercised (342 ) Revaluations 1,896 Reclassification to Warrant Reserve $ (1,788 ) Balance at December 31, 2021 51 Expiry of warrants (51 ) Balance at December 31, 2022 $ - A2Z SMART TECHNOLOGIES CORP. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data)

LIENS, COMMITMENTS AND PROVISIO

LIENS, COMMITMENTS AND PROVISIONS	12 Months Ended
	Dec. 31, 2022
LIENS, COMMITMENTS AND PROVISIONS	NOTE 18 – LIENS, COMMITMENTS AND PROVISIONS A. The Company’s Israeli subsidiary’s fixed assets (motor vehicles) are secured against bank borrowings.

SHAREHOLDERS_ EQUITY (DEFICIT)

SHAREHOLDERS’ EQUITY (DEFICIT)	12 Months Ended
	Dec. 31, 2022
SHAREHOLDERS’ EQUITY (DEFICIT)	NOTE 19 – SHAREHOLDERS’ EQUITY (DEFICIT) The Company’s Authorized share capital is unlimited common shares without par value (“Shares”). As of December 31, 2022, the number of shares issued and outstanding are 30,945,322 26,326,488 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 A2Z SMART TECHNOLOGIES CORP. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) NOTE 19 – 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 N. During the year ended December 31, 2022, the Company issued 630,161 630,161 O. On February 3, 2022, the Company issued the shareholders of Isramat 273,774 P. During the year ended December 31, 2022, the Company issued 116,667 116,667 Q. On February 11, 2022, the Company issued 74,985 R. During the year ended December 31, 2022, the Company issued 545,000 545,000 S. On November 2, 2022, the Company completed a private placement (“November 2022 Private Placement”) that resulted in the issuance of 2,978,337 1.35 1.86 4,021 1,489,169 1.5 2.04 1,489,169 260 349,000 237,200 The fair value of the November 2022 Private Placement Warrants granted was $ 894 3,127 A2Z SMART TECHNOLOGIES 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, 2022
Warrants And Options
WARRANTS AND OPTIONS	NOTE 20 – WARRANTS AND OPTIONS a) Warrants (i) Warrant transactions for the years ended December 31, 2022, and 2021 are as follows: SCHEDULE OF WARRANTS TRANSACTIONS Number Weighted Average Exercise Price Balance, January 1, 2021 7,289,885 $ 1.91 Warrants issued in the April 2021 Private Placement 221,100 Warrants issued in the May 2021 Private Placement 1,084,562 Exercise of warrants (2,629,343 ) Balance, December 31, 2021 5,966,204 $ 3.55 Expiration of warrants (5,437 ) Exercise of warrants (630,161 ) Warrants issued in the November 2022 Private Placement 1,726,366 Balance, December 31, 2022 7,056,972 $ 3.54 (ii) As of December 31, 2022, the Company had outstanding warrants, enabling the holders to acquire common shares as follows: SCHEDULE OF OUTSTANDING WARRANTS December 31, 2022 Expiry date Exercise price Exercise price (USD) 2,658,313 November 10, 2025 ILS 7.1418 (2) $ 2.03 1,366,631 December 24, 2025 ILS 7.1418 (2) $ 2.03 221,100 April 18, 2023 ILS 29.025 (3) $ 8.25 1,084,562 May 28, 2023 ILS 29.025 (3) $ 8.25 1,726,366 November 8, 2024 CAD 2.04 $ 1.60 7,056,972 (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. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) NOTE 20 – 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, 2022, and 2021 are as follows: SCHEDULE OF STOCK OPTION TRANSACTIONS Number Weighted Average Exercise Price (CAD) Weighted Average Exercise Price (USD) Balance January 1, 2021 889,523 $ 1.62 $ 1.27 Options granted 333,377 3.00 Exercise of options (286,223 ) 2.25 Expiry of options (116,667 ) 3.00 Balance December 31, 2021 820,010 $ 2.10 $ 1.78 Exercise of options (116,667 ) 2.27 Expiry of options (20,000 ) 1.5 Options granted 1,200,000 3.67 Balance December 31, 2022 1,883,343 $ 3.17 $ 2.32 (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 A2Z SMART TECHNOLOGIES CORP. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) NOTE 20 – WARRANTS AND OPTIONS (CONTINUED): b) Stock Options (continued) (v) On October 28, 2021, 16,677 8.00 October 28, 2026 242 9.37 5 114 1.43 0 (vi) On August 4, 2022, 900,000 3.56 August 2, 2032 2,712 4.12 10 112 2.67 0 (vii) On August 21, 2022, 300,000 4.00 August 2, 2032 977 4.00 10 112 2.99 0 (viii) As at December 31, 2022, 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, 2022 Exercisable as of December 31, 2022 Expiry date Exercise price (CAD) Exercise price (USD) 543,333 510,000 August 20, 2025 CAD 1.50 $ 1.11 40,000 40,000 September 1, 2025 CAD 2.25 $ 1.66 33,333 33,333 January 28, 2025 CAD 3.00 $ 2.21 50,000 33,333 June 3, 2026 CAD 8.40 $ 6.20 16,677 11,118 October 28, 2026 CAD 8.00 $ 5.90 900,000 225,000 August 2, 2032 CAD 3.56 $ 2.63 300,000 300,000 August 21, 2032 CAD 4.00 $ 2.95 1,883,343 1,152,784 (ix) Share-based compensation expense is recognized over the vesting period of options. During the year ended December 31, 2022, share-based compensation of $ 4,868 843 800 c) RSU’s On August 4, 2022, the Company granted 1,265,000 590,000 The RSUs will vest at each recipient’s discretion and taking into account personal tax implications and convert into 1,265,000 common shares of no par value in the Company (“Common Shares”). RSU’s transactions for the year ended December 31, 2022, and for the year ended December 31, 2021, are as follows: SCHEDULE OF RSU’S TRANSACTIONS Number Balance, January 1, 2021 - RSU’s granted - Exercise of RSU’s - Balance, December 31, 2021 - RSU’s granted 1,265,000 Exercise of RSU’s (545,000 ) Balance, December 31, 2022 720,000 Total exercisable RSU’s as at December 31, 2022, are 225,832 2,475 nil nil A2Z SMART TECHNOLOGIES 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, 2022
NON CONTROLLING INTERESTS	NOTE 21 – NON CONTROLLING INTERESTS The following Company subsidiaries which have non-controlling interests: SCHEDULE OF SUBSIDIARIES OF NON-CONTROLLING INTERESTS December 31, December 31, 2022 2021 Cust2mate $ (2,791 ) $ (1,026 ) AAI 394 419 Non controlling interest $ (2,397 ) $ (607 )

REVENUES

REVENUES	12 Months Ended
	Dec. 31, 2022
REVENUES	NOTE 22 – REVENUES Revenue streams: SCHEDULE OF REVENUE FROM SERVICES 2022 2021 2020 Year Ended December 31 2022 2021 2020 Revenues from services: Revenues from services $ 1,364 $ 1,548 $ 801 Revenues from leasing 341 387 267 Precision metal parts: Revenues from sales of precision metal parts 3,958 - - Smart Carts: Revenues from smart carts project 3,688 750 - Revenues $ 9,351 $ 2,685 $ 1,068 A2Z SMART TECHNOLOGIES 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, 2022
COST OF REVENUES	NOTE 23 – COST OF REVENUES SCHEDULE OF COST OF REVENUES 2022 2021 2020 Year Ended December 31 2022 2021 2020 Payroll and related expenses $ 2,383 $ 1,096 $ 493 Subcontractor and outsourced work 103 162 65 Materials and components consumed 4,650 291 90 Depreciation 131 - - Car maintenance 165 373 147 Other 85 107 58 Cost of revenues 7,517 2,029 853

RESEARCH AND DEVELOPMENT EXPENS

RESEARCH AND DEVELOPMENT EXPENSES	12 Months Ended
	Dec. 31, 2022
RESEARCH AND DEVELOPMENT EXPENSES	NOTE 24 – RESEARCH AND DEVELOPMENT EXPENSES SCHEDULE OF RESEARCH AND DEVELOPMENT EXPENSES 2022 2021 2020 Year Ended December 31 2022 2021 2020 Payroll and related expenses $ 867 $ 510 $ 410 Subcontractor and outsourced work 3,362 2,477 - Legal fees 20 99 - Pilot expenses and other 212 136 8 Research and development expense 4,462 3,222 418

GENERAL AND ADMINISTRATIVE EXPE

GENERAL AND ADMINISTRATIVE EXPENSES	12 Months Ended
	Dec. 31, 2022
GENERAL AND ADMINISTRATIVE EXPENSES	NOTE 25 – GENERAL AND ADMINISTRATIVE EXPENSES SCHEDULE OF GENERAL AND ADMINISTRATIVE EXPENSES 2022 2021 2020 Year Ended December 31 2022 2021 2020 Payroll and related $ 3,990 $ 1,027 $ 579 Professional fees 2,233 3,417 1,449 Share-based compensation 4,868 842 - Depreciation and amortization 420 321 213 Office maintenance 437 275 23 Public company related expenses 316 254 59 Rent and related expenses 126 96 42 Travel 150 - - Directors & officers’ insurance 267 119 - Doubtful debts 382 - - Other 410 143 - General and administrative expense 13,599 6,494 2,365 A2Z SMART TECHNOLOGIES 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, 2022
LOSS PER SHARE	NOTE 26 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 LOSS PER SHARE 2022 2021 2020 Year Ended December 31 2022 2021 2020 Net loss for the year $ 19,273 $ 39,735 $ 7,222 Weighted average number of ordinary shares 27,681,778 23,340,621 16,758,323 Basic and diluted loss per share $ 0.70 $ 1.70 $ 0.43

FINANCIAL EXPENSES

FINANCIAL EXPENSES	12 Months Ended
	Dec. 31, 2022
Financial Expenses
FINANCIAL EXPENSES	NOTE 27 – FINANCIAL EXPENSES SCHEDULE OF FINANCIAL EXPENSES 2022 2021 2020 Year Ended December 31 2022 2021 2020 Bank fees and interest $ 136 $ 77 $ 94 Interest from application of IFRS 16 97 14 13 Revaluation of provision 1,158 - - Financial expenses 1,391 91 107

INCOME TAX EXPENSE

INCOME TAX EXPENSE	12 Months Ended
	Dec. 31, 2022
INCOME TAX EXPENSE	NOTE 28 – 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 23 B. Tax reconciliation: SCHEDULE OF EFFECTIVE INCOME TAX EXPENSE 2022 2021 2020 Year Ended December 31 2022 2021 2020 Loss before income tax $ (18,347 ) $ (40,148 ) $ (5,936 ) Statutory tax rate 23 % 23 % 23 % Income tax benefit at the statutory tax rate 4,220 9,234 1,365 Expenses not recognized for tax purposes (4,220 ) (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 2022 2021 2020 Year Ended December 31 2022 2021 2020 Current $ - $ - $ 10 Prior year taxes - 142 - Deferred taxes, net - - 7 Total $ - 142 $ 17 A2Z SMART TECHNOLOGIES CORP. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) NOTE 28 – 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 SHAREHOLDERS	12 Months Ended
	Dec. 31, 2022
Related Parties And Shareholders
RELATED PARTIES AND SHAREHOLDERS	NOTE 29- RELATED PARTIES AND SHAREHOLDERS The following transactions arose with related parties: SCHEDULE OF AMOUNT OWING BY RELATED PARTIES Year ended December 31, 2022 Directors Fees Consulting Fees / Salaries Share based awards Total Amounts owing by (to) as of December 31, 2022 Director and CEO $ - $ - $ - $ - $ 462 Company controlled by CEO - 1,224 - 1,224 (474 ) CFO - 84 160 244 - Directors 28 - 64 92 - $ 28 $ 1,308 $ 224 $ 1,560 $ (12 ) Year ended December 31, 2021 Directors Fees Consulting Fees / Salaries Share based awards Total Amounts owing by (to) as of December 31, 2021 Director and CEO $ - $ 43 $ - $ 43 $ 183 Company controlled by CEO - 958 - 958 (57 ) CFO - 94 59 153 - Directors 31 - 11 42 - $ 31 $ 1,095 $ 70 $ 1,196 $ 126 Year ended December 31, 2020 Directors Fees Consulting Fees / Salaries Share based awards Total Amounts owing by (to) as of December 31, 2021 Director and CEO $ - $ 31 $ - $ 31 $ - Company controlled by CEO - 594 - 594 - CFO - 30 27 57 - Directors 31 - 10 41 - $ 31 $ 655 $ 37 $ 723 $ - The CEO has an agreement with the Company pursuant to which he received a consulting fee of NIS 250,000 71 260 500 A2Z SMART TECHNOLOGIES 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, 2022
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT	NOTE 30 - 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 30 - FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (CONTINUED): 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 2022 2021 December 31, December 31, 2022 2021 Cash and Cash Equivalents $ 2,616 $ 8,470 Deposits 8 60 Trade receivables 1,373 857 Other Accounts Receivable 2,570 434 Total $ 6,567 $ 9,821 A2Z SMART TECHNOLOGIES CORP. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) NOTE 30 - 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 $ 2,224 $ 2,224 $ - Other accounts payable $ 956 $ 956 $ - Loans $ 1,744 $ 1,403 $ 341 Lease liability $ 886 $ 281 $ 605 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, 2022, 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 $ 97 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 2022 and 2021, 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 $ 100 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, 2022. There are no externally imposed restrictions on the Company’s capital. A2Z SMART TECHNOLOGIES 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, 2022
OPERATING SEGMENTS	NOTE 31 – OPERATING SEGMENTS The Company and its subsidiaries are engaged in the following three a. Maintenance services to the military utilizing the application of advanced engineering capabilities as well as development of related products for the civilian and retail markets. (“Advanced Engineering”) b. Retail automation solutions – Smart Carts (“Smart Carts”) c. Manufacturing and selling of precision metal parts – “Precision Metal Parts” SCHEDULE OF OPERATING SEGMENTS Year Ended December 31, 2022 Precision Metal Parts Advanced Engineering Smart Carts (*) Total (**) Revenues External $ 3,958 $ 1,705 $ 3,688 $ 9,351 Total 3,958 1,705 3,688 9,351 Segment operational loss (gain) 761 (60 ) 16,001 16,702 Loss on revaluation of warrant liability 254 Finance expense, net 1,391 Tax expenses - Loss $ 18,347 (*) All revenues from the smart cart segment are generated from one customer, which is the main customer of the Company, and accounts for 40 10 (**) All revenues are generated in the state of Israel. (**) All non-current assets are located in the state of Israel. Year Ended December 31, 2021 Precision Metal Parts Advanced Engineering Smart Carts (*) Total (**) Revenues External $ - $ 1,935 $ 750 $ 2,685 Total - 1,935 750 2,685 Segment operational loss - 1,034 8,128 9,162 Loss on revaluation of warrant liability 30,895 Finance expense, net 91 Tax expenses 142 Loss $ 40,290 Year Ended December 31, 2020 Precision Metal Parts Advanced Engineering Smart Carts (*) Total (**) Revenues External $ - $ 1,068 $ - $ 1,068 Total - 1,068 - 1,068 Segment operational loss - 2,510 166 2,676 Loss on revaluation of warrant liability 3,228 Finance expense, net 32 Tax expenses 17 Loss $ 5,953 A2Z SMART TECHNOLOGIES CORP. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) NOTE 31 – OPERATING SEGMENTS (CONTINUED): As at December 31, 2022 Precision Metal Parts Advanced Engineering Smart Carts Adjustment & Elimination Total Segment assets $ 2,741 $ 1,162 $ 8,791 $ - $ 12,694 Segment liabilities $ 3,575 $ 1,043 $ 5,187 $ - $ 9,805 As at December 31, 2021 Precision Metal Parts Advanced Engineering Smart Carts Adjustment & Elimination Total Segment assets $ - $ 1,707 $ 12,424 $ - $ 14,131 Segment liabilities $ - $ 1,786 $ 1,438 $ - $ 3,224

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2022
Disclosure of non-adjusting events after reporting period [abstract]
SUBSEQUENT EVENTS	NOTE 32 – SUBSEQUENT EVENTS a. On January 4, 2023, the Company granted 1,027,000 250,000 1,027,000 816,500 1.65 800,000 10 b. On March 13, 2023, the Company announced that it has closed, in escrow, the issuance of 1,783,561 Units 1.46 1.95 2,604,000 Warrant 891,778 2.35 1.75 891,778 208 290,000 142,685

SIGNIFICANT ACCOUNTING POLICI_2

SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2022
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.
Short term deposits	B. Short term deposits A short term deposit is cash held 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). Short term deposits are deposits designated to secure the Company’s car 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. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) NOTE 3 - 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. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) NOTE 3 - 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. Another financial liability recognized at fair value is due to a commitment to the selling shareholders of Isramat (See also note 7) that if the aggregate proceeds received by a selling shareholder from the sale of its acquisition shares during the lockup period, together with the value of its unsold acquisition shares as of the end of such period, is lower than its pro rata portion in the equity consideration, the Company will pay the difference in cash to such selling shareholder. 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. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) NOTE 3 - 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, 2022, and December 31, 2021, 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. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) NOTE 3 - SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): E. Fair value measurement (cont.): Aging Schedule based on due date AGING SCHEDULE BASED ON DUE DATE December 31, 2022 December 31, 2021 Aging schedule December 31, 2022 December 31, 2021 Within payment terms $ 1,373 $ 857 Total $ 1,373 $ 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, 2022 December 31, 2021 Government institutions $ 279 $ 296 Industrial customers 1,052 - Other customers 42 561 Total $ 1,373 $ 857 A2Z SMART TECHNOLOGIES CORP. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) NOTE 3 - 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 three operating segments; Precision Metal Parts, 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. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) NOTE 3 - 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 Machines and manufacturing equipment 10 Furniture and equipment 7 Vehicles 6.67 ERP system and R&D expenses 3 6 Leasehold Improvement 10 A2Z SMART TECHNOLOGIES CORP. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) NOTE 3 - 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. i. 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. ii. Revenues generated in Isramat are recognized from sale of goods in profit or loss at the point in time when the control of the goods is transferred to the customer, generally upon delivery of the goods to the customer. Performance obligations and timing of revenue recognition The majority of the Company’s revenue is derived from selling goods with revenue recognized at a point in time when control of the goods has transferred to the customer. This is generally when the goods are delivered to the customer. However, for export sales, control might also be transferred when delivered either to the port of departure or port of arrival, depending on the specific terms of the contract with a customer. There is limited judgement needed in identifying the point control passes: once physical delivery of the products to the agreed location has occurred, the Company no longer has physical possession, usually will have a present right to payment (as a single payment on delivery) and retains none of the significant risks and rewards of the goods in question. The Company has a segment which carries out maintenance and leasing services for clients, with revenue recognized typically on an over time basis. This is because the designs created have no alternative use for the Company and the contracts would require payment to be received for the time and effort spent by the Company on progressing the contracts in the event of the customer cancelling the contract prior to completion for any reason other than the Company’s failure to perform its obligations under the contract. On partially complete service contracts, A Layout (International) recognizes revenue based on stage of completion of the project which is estimated by comparing the number of hours actually spent on the project with the total number of hours expected to complete the project (i.e. an input based method). This is considered a faithful depiction of the transfer of services as the contracts are initially priced on the basis of anticipated hours to complete the projects and therefore also represents the amount to which the Company would be entitled based on its performance to date. Determining the transaction price A substantial amount of the Company’s revenue is derived from Smart Cart segment – fixed price contracts and therefore the amount of revenue to be earned from each contract is determined by reference to those fixed prices. Exceptions are as follows: ● For one key customer, the Company accepts orders and is paid up in advance of delivering the products.
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.
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, 2022, costs in the amount of $ 219 A2Z SMART TECHNOLOGIES CORP. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) NOTE 3 - SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
Standard not yet effective	M. Standard not yet effective There are a number of standards, amendments to standards, and interpretations which have been issued by the IASB that are effective in future accounting periods that the Company has decided not to adopt early. The following amendments are effective for the period beginning 1 January 2023: - Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2); - Definition of Accounting Estimates (Amendments to IAS 8); and - Deferred Tax Related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12) The following amendments are effective for the period beginning 1 January 2024: - IFRS 16 Leases (Amendment – Liability in a Sale and Leaseback) - IAS 1 Presentation of Financial Statements (Amendment – Classification of Liabilities as Current or Non-current) - IAS 1 Presentation of Financial Statements (Amendment – Non-current Liabilities with Covenants) The Company is currently assessing the impact of these new accounting standards and amendments. The Company does not believe that the amendments to IAS 1 will have a significant impact on the classification of its liabilities, as the conversion feature in its convertible debt instruments is classified as an equity instrument and therefore, does not affect the classification of its convertible debt as a non-current liability. The Company does not expect any other standards issued by the IASB, but not yet effective, to have a material impact on the Company. Changes in accounting policies The following amendments are effective for the period beginning 1 January 2022: Leases The majority of the Company’s accounting policies for leases are set out in note 12. Identifying leases The Company accounts for a contract as a lease when it conveys the right to use an asset for a period of time in exchange for consideration. Leases are those contracts that satisfy the following criteria: - There is an identified asset; - The Company obtains substantially all the economic benefits from use of the asset; and - The company has the right to direct use of the asset The Company considers whether the supplier has substantive substitution rights. If the supplier does have those rights, the contract is not identified as giving rise to a lease. In determining whether the Company obtains substantially all the economic benefits from use of the asset, the Company considers only the economic benefits that arise use of the asset, not those incidental to legal ownership or other potential benefits. In determining whether the Company has the right to direct use of the asset, the Company considers whether it directs how and for what purpose the asset is used throughout the period of use. If there are no significant decisions to be made because they are pre-determined due to the nature of the asset, the Company considers whether it was involved in the design of the asset in a way that predetermines how and for what purpose the asset will be used throughout the period of use. If the contract or portion of a contract does not satisfy these criteria, the Company applies other applicable IFRSs rather than IFRS 16. A2Z SMART TECHNOLOGIES CORP. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) NOTE 3 - SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): 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, 2022, as a reclassification of its derivative liability - warrants in the amount of $1,142 from Non – Current Liabilities to Current Liabilities. Onerous Contracts Cost of Fulfilling a Contract (Amendments to IAS 37) IAS 37 defines an onerous contract as a contract in which the unavoidable costs (costs that the Group has committed to pursuant to the contract) of meeting the obligations under the contract exceed the economic benefits expected to be received under it. The amendments to IAS 37.68A clarify, that the costs relating directly to the contract consist of both: ● The incremental costs of fulfilling that contract- e.g., direct labor and material; and ● An allocation of other costs that relate directly to fulfilling contracts: e.g. Allocation of depreciation charge on property, plant and equipment used in fulfilling the contract. The Company, prior to the application of the amendments, did not have any onerous contracts. The Company estimates that the initial application of the Amendments is not expected to have a material impact on its financial statements.

SIGNIFICANT ACCOUNTING POLICI_3

SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2022
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, 2022 December 31, 2021 Aging schedule December 31, 2022 December 31, 2021 Within payment terms $ 1,373 $ 857 Total $ 1,373 $ 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, 2022 December 31, 2021 Government institutions $ 279 $ 296 Industrial customers 1,052 - Other customers 42 561 Total $ 1,373 $ 857
SCHEDULE OF ESTIMATED USEFUL LIVES OF ASSETS	SCHEDULE OF ESTIMATED USEFUL LIVES OF ASSETS Estimated useful lives Computers and electronic equipment 3 Machines and manufacturing equipment 10 Furniture and equipment 7 Vehicles 6.67 ERP system and R&D expenses 3 6 Leasehold Improvement 10

INVENTORIES (Tables)

INVENTORIES (Tables)	12 Months Ended
	Dec. 31, 2022
SCHEDULE OF INVENTORIES	SCHEDULE OF INVENTORIES December 31, December 31, 2022 2021 Raw materials $ 38 $ 93 Smart cart electrical equipment - 909 Smart cart parts 337 145 Inventories $ 375 $ 1,147

TRADE RCEIVABLES, NET (Tables)

TRADE RCEIVABLES, NET (Tables)	12 Months Ended
	Dec. 31, 2022
SCHEDULE OF TRADE RECEIVABLES	SCHEDULE OF TRADE RECEIVABLES December 31, December 31, 2022 2021 Customers $ 1,383 $ 857 Expected credit losses (10 ) - Trade Receivables, net $ 1,373 $ 857

ACQUISITION (Tables)

ACQUISITION (Tables)	12 Months Ended
	Dec. 31, 2022
Disclosure of detailed information about business combination [abstract]
SUMMARY OF FAIR VALUE OF COMMITMENT	The table below summarizes the fair value of the commitment at the purchase date: SUMMARY OF FAIR VALUE OF COMMITMENT Balance at January 1, 2022 $ - Acquisition date February 3, 2022 343 Revaluation 1,190 Effect of changes in foreign exchange rates (86 ) Balance at December 31, 2022 $ 1,447
SCHEDULE OF FAIR VALUE OF ASSETS ACQUIRED	The table below summarizes the fair value of assets acquired at the purchase date: SCHEDULE OF FAIR VALUE OF ASSETS ACQUIRED February 3, 2022 Working capital other than cash and cash equivalents $ 869 Liability for severance pay fund, net (35 ) Property, plant and equipment 636 Benefit shareholder consulting agreement 27 Customer relations 284 Goodwill (*) 1,188 Total consideration paid (**) $ 2,969 Consideration paid in cash $ 879 Commitment to the selling shareholders 343 Consideration paid in common shares in the capital of the Company 1,747 Total consideration paid (**) $ 2,969 (*) 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, and to the value of assembled workforce. Isramat manufactures and sells precision metal parts. Revenue from these sales is recognized when Isramat has delivered the parts to locations specified by its customers and the customers have accepted the parts in accordance with the sales contract. (**) Consideration paid in cash for the purchase of Isramat shares was $ 879 273,774 1,747
SCHEDULE OF PRO FORMA INFORMATION	The pro forma financial information presented below is for information 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 had the transaction taken place at January 1, 2022. The pro forma financial information is as follows: SCHEDULE OF PRO FORMA INFORMATION For the year ended December 31, 2022 (in thousands) unaudited Total revenues $ 9,594 Net loss attributable to the Company $ 17,635

OTHER ACCOUNTS RECEIVABLE (Tabl

OTHER ACCOUNTS RECEIVABLE (Tables)	12 Months Ended
	Dec. 31, 2022
SCHEDULE OF OTHER ACCOUNTS RECEIVABLE	SCHEDULE OF OTHER ACCOUNTS RECEIVABLE December 31, December 31, 2022 2021 Related parties $ - $ 126 Advances to suppliers 918 - Prepaid expenses 751 50 Government institutions 151 251 Other 750 7 Other accounts receivable $ 2,570 $ 434

INTANGIBLE ASSETS - PATENT, N_2

INTANGIBLE ASSETS - PATENT, NET (Tables)	12 Months Ended
	Dec. 31, 2022
SUMMARY OF INTANGIBLE ASSETS PATENT, NET	SUMMARY OF INTANGIBLE ASSETS PATENT, NET Balance, January 1, 2021 $ 2,239 Depreciation (123 ) Effect of changes in foreign exchange rates (25 ) Balance, December 31, 2021 $ 2,091 Additions 311 Depreciation (200 ) Effect of changes in foreign exchange rates 5 Balance, December 31, 2022 $ 2,207

PROPERTY, PLANT AND EQUIPMENT_2

PROPERTY, PLANT AND EQUIPMENT, NET (Tables)	12 Months Ended
	Dec. 31, 2022
SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT NET	SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT NET Computers and electronic equipment Machines and manufacturing equipment Furniture and equipment Vehicles ERP system and R&D expenses Leasehold Improvements Right of use Asset Total Cost: As of January 1, 2022 $ 440 $ - $ 201 $ 968 $ - $ 59 $ 362 $ 2,030 Additions 29 174 28 316 223 14 - 784 Disposals - - - (380 ) - - (380 ) Additions from newly acquired subsidiary - 2,242 178 34 - 367 859 3,681 Translation adjustments (53 ) (208 ) (48 ) (80 ) (4 ) (37 ) (42 ) (472 ) As of December 31, 2022 $ 416 $ 2,208 $ 359 $ 858 219 $ 403 $ 1,180 $ 5,642 Accumulated depreciation: As of January 1, 2022 $ 288 $ - $ 142 $ 368 $ - $ 59 $ 101 $ 958 Additions 37 116 16 88 5 3 107 371 Disposals - - - (58 ) - - - (58 ) Additions from newly acquired subsidiary - 1,657 158 6 - 350 164 2,335 Translation adjustments (35 ) (163 ) (27 ) (47 ) - (36 ) (13 ) (321 ) As of December 31, 2022 $ 290 $ 1,610 $ 289 $ 357 $ 5 $ 376 $ 360 $ 3,286 Net Book Value: As of December 31, 2022 $ 126 $ 598 $ 70 $ 501 214 $ 27 $ 820 $ 2,357 As of December 31, 2021 $ 152 $ - $ 59 $ 600 - $ - $ 261 $ 1,072 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 Cost, beginning balance $ 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 Cost, ending balance $ 440 $ 201 $ 968 $ 59 $ 362 $ 2,030 Accumulated depreciation: As of January 1, 2021 $ 268 $ 133 $ 294 $ 57 $ 23 $ 775 Beginning balance $ 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 Ending balance $ 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 Net Book Value $ 102 $ 6 $ 331 $ - $ 17 $ 456

SHORT TERM LOANS AND CURRENT _2

SHORT TERM LOANS AND CURRENT PORTION OF LONG-TERM LOANS (Tables)	12 Months Ended
	Dec. 31, 2022
Short Term Loans And Current Portion Of Long-term Loans
SCHEDULE OF SHORT TERM LOANS AND CURRENT PORTION OF LONG-TERM LOANS	SCHEDULE OF SHORT TERM LOANS AND CURRENT PORTION OF LONG-TERM LOANS Linked to Interest rate December 31, 2022 December 31, 2021 Short term loans NIS 3.2 7.5 % $ 1,114 $ - Current portion of long-term loans 289 158 Short term loans and current portion of long-term loans $ 1,403 $ 158

LEASE LIABILITY (Tables)

LEASE LIABILITY (Tables)	12 Months Ended
	Dec. 31, 2022
SCHEDULE OF CARRYING AMOUNTS OF LEASE LIABILITIES RECOGNIZED AND MOVEMENTS	Set out below are the carrying amounts of lease liabilities recognized and the movements during the period: SCHEDULE OF CARRYING AMOUNTS OF LEASE LIABILITIES RECOGNIZED AND MOVEMENTS Industrial areas and office facilities Balance January 1, 2021 $ 21 Additions 362 Disposals (107 ) Accumulated interest 25 Exchange rate differences (24 ) Balance December 31, 2021 $ 277 Additions 859 Disposals (335 ) Accumulated interest 107 Exchange rate differences (22 ) Balance December 31, 2022 $ 886 Linked to December 31, 2022 December 31, 2021 Long Term leases NIS $ 886 $ 277 Current portion of long-term leases 281 126 Non-current portion of long-term leases $ 605 $ 151

OTHER ACCOUNTS PAYABLE (Tables)

OTHER ACCOUNTS PAYABLE (Tables)	12 Months Ended
	Dec. 31, 2022
SCHEDULE OF OTHER ACCOUNTS PAYABLE	SCHEDULE OF OTHER ACCOUNTS PAYABLE December 31, December 31, 2022 2021 Employees and government authorities $ 681 $ 362 Accrued expenses 93 169 Other 182 568 Other accounts payable $ 956 $ 1,099

LONG TERM LOANS (Tables)

LONG TERM LOANS (Tables)	12 Months Ended
	Dec. 31, 2022
SCHEDULE OF LONG TERM LOANS	SCHEDULE OF LONG TERM LOANS Linked to Interest rate December 31, 2022 December 31, 2021 Long term loans NIS 1.8 6.1 % $ 1,385 $ 641 Less- Current portion (1,044 ) (158 ) Non Current Long term loans $ 341 $ 483

SEVERANCE PAYMENT, NET (Tables)

SEVERANCE PAYMENT, NET (Tables)	12 Months Ended
	Dec. 31, 2022
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, 2022 December 31, 2021 Defined benefit plan: Present value of defined benefit obligation $ 394 $ 541 Fair value of plan assets (361 ) (374 ) Total $ 33 $ 167 Changes in the present value of defined benefit obligation: 2022 2021 Balance at beginning of year $ 541 $ 563 Recognized in statement of comprehensive loss: Interest cost 9 10 Current service cost 30 39 Currency translation (111 ) (71 ) Recognized in other comprehensive gain : (10 ) - Net actuarial gain (98 ) - Balance at end of year $ 361 $ 541
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: 2022 2021 Balance at beginning of year $ (374 ) $ (376 ) Recognized in statement of comprehensive loss: Expected return 24 28 Recognized in other comprehensive loss /(gain): Net actuarial loss (gain) - - Other: Contributions by employer (11 ) (26 ) Balance at end of year $ (361 ) $ (374 )
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, 2022 December 31, 2021 Discount rate of the plan liability 2.75 % 2.24 % Expected rate of return on plan assets 2.64 % 2.36 % Future salary increases 3.82 % 3.47 %

WARRANT LIABILITY (Tables)

WARRANT LIABILITY (Tables)	12 Months Ended
	Dec. 31, 2022
November 2022 warrants [member]
IfrsStatementLineItems [Line Items]
SCHEDULE OF FAIR VALUE HIERARCHY OF WARRANTS	These warrants were valuated at their fair value at the end of each reporting period and classified as a liability. SCHEDULE OF FAIR VALUE HIERARCHY OF WARRANTS Balance at January 1, 2022 $ - Issuance of November 2022 Warrants 894 Revaluation at December 31,2022 248 Reclassification to Warrant Reserve - Warrants exercised - Expiry of warrants - Balance at December 31, 2022 $ 1,142
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 Revaluations 2,183 Reclassification to Warrant Reserve (6,969 ) Balance at December 31, 2021 $ - Balance at December 31, 2022 $ -
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 at January 1, 2021 $ 8,391 Revaluation at March 31, 2021 26,816 Reclassification to Warrant Reserve (35,207 ) Balance at December 31, 2021 $ - Balance at December 31, 2022 $ -
January 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, 2021 $ 285 Warrants exercised (342 ) Revaluations 1,896 Reclassification to Warrant Reserve $ (1,788 ) Balance at December 31, 2021 51 Expiry of warrants (51 ) Balance at December 31, 2022 $ -

WARRANTS AND OPTIONS (Tables)

WARRANTS AND OPTIONS (Tables)	12 Months Ended
	Dec. 31, 2022
Warrants And Options
SCHEDULE OF WARRANTS TRANSACTIONS	(i) Warrant transactions for the years ended December 31, 2022, and 2021 are as follows: SCHEDULE OF WARRANTS TRANSACTIONS Number Weighted Average Exercise Price Balance, January 1, 2021 7,289,885 $ 1.91 Warrants issued in the April 2021 Private Placement 221,100 Warrants issued in the May 2021 Private Placement 1,084,562 Exercise of warrants (2,629,343 ) Balance, December 31, 2021 5,966,204 $ 3.55 Expiration of warrants (5,437 ) Exercise of warrants (630,161 ) Warrants issued in the November 2022 Private Placement 1,726,366 Balance, December 31, 2022 7,056,972 $ 3.54
SCHEDULE OF OUTSTANDING WARRANTS	SCHEDULE OF OUTSTANDING WARRANTS December 31, 2022 Expiry date Exercise price Exercise price (USD) 2,658,313 November 10, 2025 ILS 7.1418 (2) $ 2.03 1,366,631 December 24, 2025 ILS 7.1418 (2) $ 2.03 221,100 April 18, 2023 ILS 29.025 (3) $ 8.25 1,084,562 May 28, 2023 ILS 29.025 (3) $ 8.25 1,726,366 November 8, 2024 CAD 2.04 $ 1.60 7,056,972 (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, 2022, and 2021 are as follows: SCHEDULE OF STOCK OPTION TRANSACTIONS Number Weighted Average Exercise Price (CAD) Weighted Average Exercise Price (USD) Balance January 1, 2021 889,523 $ 1.62 $ 1.27 Options granted 333,377 3.00 Exercise of options (286,223 ) 2.25 Expiry of options (116,667 ) 3.00 Balance December 31, 2021 820,010 $ 2.10 $ 1.78 Exercise of options (116,667 ) 2.27 Expiry of options (20,000 ) 1.5 Options granted 1,200,000 3.67 Balance December 31, 2022 1,883,343 $ 3.17 $ 2.32 (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 A2Z SMART TECHNOLOGIES CORP. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) NOTE 20 – WARRANTS AND OPTIONS (CONTINUED): b) Stock Options (continued) (v) On October 28, 2021, 16,677 8.00 October 28, 2026 242 9.37 5 114 1.43 0 (vi) On August 4, 2022, 900,000 3.56 August 2, 2032 2,712 4.12 10 112 2.67 0 (vii) On August 21, 2022, 300,000 4.00 August 2, 2032 977 4.00 10 112 2.99 0
SCHEDULE OF OUTSTANDING STOCK OPTIONS	SCHEDULE OF OUTSTANDING STOCK OPTIONS Outstanding as of December 31, 2022 Exercisable as of December 31, 2022 Expiry date Exercise price (CAD) Exercise price (USD) 543,333 510,000 August 20, 2025 CAD 1.50 $ 1.11 40,000 40,000 September 1, 2025 CAD 2.25 $ 1.66 33,333 33,333 January 28, 2025 CAD 3.00 $ 2.21 50,000 33,333 June 3, 2026 CAD 8.40 $ 6.20 16,677 11,118 October 28, 2026 CAD 8.00 $ 5.90 900,000 225,000 August 2, 2032 CAD 3.56 $ 2.63 300,000 300,000 August 21, 2032 CAD 4.00 $ 2.95 1,883,343 1,152,784
SCHEDULE OF RSU’S TRANSACTIONS	RSU’s transactions for the year ended December 31, 2022, and for the year ended December 31, 2021, are as follows: SCHEDULE OF RSU’S TRANSACTIONS Number Balance, January 1, 2021 - RSU’s granted - Exercise of RSU’s - Balance, December 31, 2021 - RSU’s granted 1,265,000 Exercise of RSU’s (545,000 ) Balance, December 31, 2022 720,000

NON CONTROLLING INTERESTS (Tabl

NON CONTROLLING INTERESTS (Tables)	12 Months Ended
	Dec. 31, 2022
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, 2022 2021 Cust2mate $ (2,791 ) $ (1,026 ) AAI 394 419 Non controlling interest $ (2,397 ) $ (607 )

REVENUES (Tables)

REVENUES (Tables)	12 Months Ended
	Dec. 31, 2022
SCHEDULE OF REVENUE FROM SERVICES	Revenue streams: SCHEDULE OF REVENUE FROM SERVICES 2022 2021 2020 Year Ended December 31 2022 2021 2020 Revenues from services: Revenues from services $ 1,364 $ 1,548 $ 801 Revenues from leasing 341 387 267 Precision metal parts: Revenues from sales of precision metal parts 3,958 - - Smart Carts: Revenues from smart carts project 3,688 750 - Revenues $ 9,351 $ 2,685 $ 1,068

COST OF REVENUES (Tables)

COST OF REVENUES (Tables)	12 Months Ended
	Dec. 31, 2022
SCHEDULE OF COST OF REVENUES	SCHEDULE OF COST OF REVENUES 2022 2021 2020 Year Ended December 31 2022 2021 2020 Payroll and related expenses $ 2,383 $ 1,096 $ 493 Subcontractor and outsourced work 103 162 65 Materials and components consumed 4,650 291 90 Depreciation 131 - - Car maintenance 165 373 147 Other 85 107 58 Cost of revenues 7,517 2,029 853

RESEARCH AND DEVELOPMENT EXPE_2

RESEARCH AND DEVELOPMENT EXPENSES (Tables)	12 Months Ended
	Dec. 31, 2022
SCHEDULE OF RESEARCH AND DEVELOPMENT EXPENSES	SCHEDULE OF RESEARCH AND DEVELOPMENT EXPENSES 2022 2021 2020 Year Ended December 31 2022 2021 2020 Payroll and related expenses $ 867 $ 510 $ 410 Subcontractor and outsourced work 3,362 2,477 - Legal fees 20 99 - Pilot expenses and other 212 136 8 Research and development expense 4,462 3,222 418

GENERAL AND ADMINISTRATIVE EX_2

GENERAL AND ADMINISTRATIVE EXPENSES (Tables)	12 Months Ended
	Dec. 31, 2022
SCHEDULE OF GENERAL AND ADMINISTRATIVE EXPENSES	SCHEDULE OF GENERAL AND ADMINISTRATIVE EXPENSES 2022 2021 2020 Year Ended December 31 2022 2021 2020 Payroll and related $ 3,990 $ 1,027 $ 579 Professional fees 2,233 3,417 1,449 Share-based compensation 4,868 842 - Depreciation and amortization 420 321 213 Office maintenance 437 275 23 Public company related expenses 316 254 59 Rent and related expenses 126 96 42 Travel 150 - - Directors & officers’ insurance 267 119 - Doubtful debts 382 - - Other 410 143 - General and administrative expense 13,599 6,494 2,365

LOSS PER SHARE (Tables)

LOSS PER SHARE (Tables)	12 Months Ended
	Dec. 31, 2022
SCHEDULE OF LOSS PER SHARE	SCHEDULE OF LOSS PER SHARE 2022 2021 2020 Year Ended December 31 2022 2021 2020 Net loss for the year $ 19,273 $ 39,735 $ 7,222 Weighted average number of ordinary shares 27,681,778 23,340,621 16,758,323 Basic and diluted loss per share $ 0.70 $ 1.70 $ 0.43

FINANCIAL EXPENSES (Tables)

FINANCIAL EXPENSES (Tables)	12 Months Ended
	Dec. 31, 2022
Financial Expenses
SCHEDULE OF FINANCIAL EXPENSES	SCHEDULE OF FINANCIAL EXPENSES 2022 2021 2020 Year Ended December 31 2022 2021 2020 Bank fees and interest $ 136 $ 77 $ 94 Interest from application of IFRS 16 97 14 13 Revaluation of provision 1,158 - - Financial expenses 1,391 91 107

INCOME TAX EXPENSE (Tables)

INCOME TAX EXPENSE (Tables)	12 Months Ended
	Dec. 31, 2022
SCHEDULE OF EFFECTIVE INCOME TAX EXPENSE	SCHEDULE OF EFFECTIVE INCOME TAX EXPENSE 2022 2021 2020 Year Ended December 31 2022 2021 2020 Loss before income tax $ (18,347 ) $ (40,148 ) $ (5,936 ) Statutory tax rate 23 % 23 % 23 % Income tax benefit at the statutory tax rate 4,220 9,234 1,365 Expenses not recognized for tax purposes (4,220 ) (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 2022 2021 2020 Year Ended December 31 2022 2021 2020 Current $ - $ - $ 10 Prior year taxes - 142 - Deferred taxes, net - - 7 Total $ - 142 $ 17

RELATED PARTIES AND SHAREHOLD_2

RELATED PARTIES AND SHAREHOLDERS (Tables)	12 Months Ended
	Dec. 31, 2022
Related Parties And Shareholders
SCHEDULE OF AMOUNT OWING BY RELATED PARTIES	The following transactions arose with related parties: SCHEDULE OF AMOUNT OWING BY RELATED PARTIES Year ended December 31, 2022 Directors Fees Consulting Fees / Salaries Share based awards Total Amounts owing by (to) as of December 31, 2022 Director and CEO $ - $ - $ - $ - $ 462 Company controlled by CEO - 1,224 - 1,224 (474 ) CFO - 84 160 244 - Directors 28 - 64 92 - $ 28 $ 1,308 $ 224 $ 1,560 $ (12 ) Year ended December 31, 2021 Directors Fees Consulting Fees / Salaries Share based awards Total Amounts owing by (to) as of December 31, 2021 Director and CEO $ - $ 43 $ - $ 43 $ 183 Company controlled by CEO - 958 - 958 (57 ) CFO - 94 59 153 - Directors 31 - 11 42 - $ 31 $ 1,095 $ 70 $ 1,196 $ 126 Year ended December 31, 2020 Directors Fees Consulting Fees / Salaries Share based awards Total Amounts owing by (to) as of December 31, 2021 Director and CEO $ - $ 31 $ - $ 31 $ - Company controlled by CEO - 594 - 594 - CFO - 30 27 57 - Directors 31 - 10 41 - $ 31 $ 655 $ 37 $ 723 $ -

FINANCIAL INSTRUMENTS AND RIS_2

FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Tables)	12 Months Ended
	Dec. 31, 2022
SCHEDULE OF FINANCIAL ASSET WITH CASH AND TRADE ACCOUNTS RECEIVABLE	SCHEDULE OF FINANCIAL ASSET WITH CASH AND TRADE ACCOUNTS RECEIVABLE 2022 2021 December 31, December 31, 2022 2021 Cash and Cash Equivalents $ 2,616 $ 8,470 Deposits 8 60 Trade receivables 1,373 857 Other Accounts Receivable 2,570 434 Total $ 6,567 $ 9,821
SCHEDULE OF LIQUIDITY RISKS	SCHEDULE OF LIQUIDITY RISKS Contractual Carrying amounts Within 1 year over 1 year Trade payables $ 2,224 $ 2,224 $ - Other accounts payable $ 956 $ 956 $ - Loans $ 1,744 $ 1,403 $ 341 Lease liability $ 886 $ 281 $ 605

OPERATING SEGMENTS (Tables)

OPERATING SEGMENTS (Tables)	12 Months Ended
	Dec. 31, 2022
SCHEDULE OF OPERATING SEGMENTS	SCHEDULE OF OPERATING SEGMENTS Year Ended December 31, 2022 Precision Metal Parts Advanced Engineering Smart Carts (*) Total (**) Revenues External $ 3,958 $ 1,705 $ 3,688 $ 9,351 Total 3,958 1,705 3,688 9,351 Segment operational loss (gain) 761 (60 ) 16,001 16,702 Loss on revaluation of warrant liability 254 Finance expense, net 1,391 Tax expenses - Loss $ 18,347 (*) All revenues from the smart cart segment are generated from one customer, which is the main customer of the Company, and accounts for 40 10 (**) All revenues are generated in the state of Israel. (**) All non-current assets are located in the state of Israel. Year Ended December 31, 2021 Precision Metal Parts Advanced Engineering Smart Carts (*) Total (**) Revenues External $ - $ 1,935 $ 750 $ 2,685 Total - 1,935 750 2,685 Segment operational loss - 1,034 8,128 9,162 Loss on revaluation of warrant liability 30,895 Finance expense, net 91 Tax expenses 142 Loss $ 40,290 Year Ended December 31, 2020 Precision Metal Parts Advanced Engineering Smart Carts (*) Total (**) Revenues External $ - $ 1,068 $ - $ 1,068 Total - 1,068 - 1,068 Segment operational loss - 2,510 166 2,676 Loss on revaluation of warrant liability 3,228 Finance expense, net 32 Tax expenses 17 Loss $ 5,953 A2Z SMART TECHNOLOGIES CORP. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in Thousands of US Dollars, except per share data) NOTE 31 – OPERATING SEGMENTS (CONTINUED): As at December 31, 2022 Precision Metal Parts Advanced Engineering Smart Carts Adjustment & Elimination Total Segment assets $ 2,741 $ 1,162 $ 8,791 $ - $ 12,694 Segment liabilities $ 3,575 $ 1,043 $ 5,187 $ - $ 9,805 As at December 31, 2021 Precision Metal Parts Advanced Engineering Smart Carts Adjustment & Elimination Total Segment assets $ - $ 1,707 $ 12,424 $ - $ 14,131 Segment liabilities $ - $ 1,786 $ 1,438 $ - $ 3,224

DESCRIPTION OF BUSINESS (Detail

DESCRIPTION OF BUSINESS (Details Narrative) $ / shares in Units, $ in Thousands		12 Months Ended
	Mar. 13, 2023 USD ($) $ / shares shares	Dec. 31, 2022 USD ($) shares	Dec. 31, 2021 USD ($) shares	Dec. 31, 2020 USD ($)	Mar. 13, 2023 $ / shares shares
IfrsStatementLineItems [Line Items]
Profit (loss) of combined entity as if combination occurred at beginning of period		$ 19,300	$ 39,800	$ 7,200
Retained earnings		$ 67,395	$ 50,838
Number of share issuance in escrow | shares		30,945,322	26,326,488
Gross proceeds for units		$ 3,894	$ 8,358	$ 8,249
Events occurring after reporting date [member]
IfrsStatementLineItems [Line Items]
Number of share issuance in escrow | shares	1,783,561				1,783,561
Issuance of escrow price per share | (per share)	$ 1.46				$ 1.95
Gross proceeds for units	$ 2,604
Advanced Automotive Innovations Inc. [member]
IfrsStatementLineItems [Line Items]
Ownership interest in subsidary		80%
Cust2Mate Ltd [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, 2022	Dec. 31, 2021
IfrsStatementLineItems [Line Items]
Total	$ 1,373	$ 857
Current [member]
IfrsStatementLineItems [Line Items]
Total	$ 1,373	$ 857

SCHEDULE OF THREE-LEVEL MATRIX

SCHEDULE OF THREE-LEVEL MATRIX (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
IfrsStatementLineItems [Line Items]
Total	$ 1,373	$ 857
Government institutions [member]
IfrsStatementLineItems [Line Items]
Total	279	296
Institutions customers [member]
IfrsStatementLineItems [Line Items]
Total	1,052
Other customers [member]
IfrsStatementLineItems [Line Items]
Total	$ 42	$ 561

SCHEDULE OF ESTIMATED USEFUL LI

SCHEDULE OF ESTIMATED USEFUL LIVES OF ASSETS (Details)	12 Months Ended
	Dec. 31, 2022
Computer equipment [member]
IfrsStatementLineItems [Line Items]
Estimated useful lives	3 years
Machines and manufacturing equipment [member]
IfrsStatementLineItems [Line Items]
Estimated useful lives	10 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
ERP system and R&D expenses [member] | Bottom of range [member]
IfrsStatementLineItems [Line Items]
Estimated useful lives	3 years
ERP system and R&D expenses [member] | Top of range [member]
IfrsStatementLineItems [Line Items]
Estimated useful lives	6 years
Leasehold improvements [member]
IfrsStatementLineItems [Line Items]
Estimated useful lives	10 years

SIGNIFICANT ACCOUNTING POLICI_4

SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) $ in Thousands	Dec. 31, 2022 USD ($)
Erp system [member]
IfrsStatementLineItems [Line Items]
Costs relate to capitalized	$ 219

SCHEDULE OF INVENTORIES (Detail

SCHEDULE OF INVENTORIES (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Raw materials	$ 38	$ 93
Smart cart electrical equipment		909
Smart cart parts	337	145
Inventories	$ 375	$ 1,147	$ 1,147

SCHEDULE OF TRADE RECEIVABLES (

SCHEDULE OF TRADE RECEIVABLES (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Customers	$ 1,383	$ 857
Expected credit losses	(10)
Trade Receivables, net	$ 1,373	$ 857

SUMMARY OF FAIR VALUE OF COMMIT

SUMMARY OF FAIR VALUE OF COMMITMENT (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($)
Disclosure of detailed information about business combination [abstract]
Balance at January 1, 2022
Acquisition date February 3, 2022	343
Revaluation	1,190
Effect of changes in foreign exchange rates	(86)
Balance at December 31, 2022	$ 1,447

SCHEDULE OF FAIR VALUE OF ASSET

SCHEDULE OF FAIR VALUE OF ASSETS ACQUIRED (Details) $ in Thousands		Dec. 31, 2022 USD ($)	Feb. 03, 2022 USD ($)	Feb. 03, 2022 ILS (₪)	Dec. 31, 2021 USD ($)
IfrsStatementLineItems [Line Items]
Identifiable assets acquired (liabilities assumed)		$ 1,447
Isramat Ltd [member]
IfrsStatementLineItems [Line Items]
Working capital other than cash and cash equivalents			$ 869
Liability for severance pay fund, net			(35)
Property, plant and equipment			636
Benefit shareholder consulting agreement			27
Customer relations			284
Goodwill recognised as of acquisition date	[1]		1,188
Identifiable assets acquired (liabilities assumed)	[2]		2,969
Consideration paid in cash			879	₪ 2,800,000
Commitment to the selling shareholders			343
Consideration paid in common shares in the capital of the Company			$ 1,747
[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, and to the value of assembled workforce.[2]Consideration paid in cash for the purchase of Isramat shares was $ 879 273,774 1,747

SCHEDULE OF FAIR VALUE OF ASS_2

SCHEDULE OF FAIR VALUE OF ASSETS ACQUIRED (Details) (Parenthetical) $ in Thousands	Dec. 31, 2022 shares	Feb. 03, 2022 USD ($) shares	Feb. 03, 2022 ILS (₪) shares	Dec. 31, 2021 shares
IfrsStatementLineItems [Line Items]
Number of shares issued	30,945,322			26,326,488
Isramat Ltd [member]
IfrsStatementLineItems [Line Items]
Cash paid		$ 879	₪ 2,800,000
Number of shares issued		273,774	273,774
Value of shares issued | $		$ 1,747

SCHEDULE OF PRO FORMA INFORMATI

SCHEDULE OF PRO FORMA INFORMATION (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($)
Disclosure of detailed information about business combination [abstract]
Total revenues	$ 9,594
Net loss attributable to the Company	$ 17,635

ACQUISITION (Details Narrative)

ACQUISITION (Details Narrative) $ / shares in Units, $ in Thousands			12 Months Ended
		Feb. 03, 2022 USD ($) $ / shares shares	Dec. 31, 2022 USD ($) shares	Dec. 31, 2021 USD ($) shares	Dec. 31, 2020 USD ($)	Feb. 03, 2022 ILS (₪) shares
IfrsStatementLineItems [Line Items]
Number of shares issued | shares			30,945,322	26,326,488
Financial expenses			$ 1,391	$ 91	$ 107
Isramat Ltd [member]
IfrsStatementLineItems [Line Items]
Cash paid		$ 879				₪ 2,800,000
Number of shares issued | shares		273,774				273,774
Share price per share | $ / shares		$ 7.6311
Provision for commitment to shareholders		$ 343
Commitment to seelling shareholders		1,447
Financial expenses		1,105
Goodwill recognized	[1]	$ 1,188
Revenues			3,958
Net loss			$ 875
[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, and to the value of assembled workforce.

SCHEDULE OF OTHER ACCOUNTS RECE

SCHEDULE OF OTHER ACCOUNTS RECEIVABLE (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Related parties		$ 126
Advances to suppliers	918
Prepaid expenses	751	50
Government institutions	151	251
Other	750	7
Other accounts receivable	$ 2,570	$ 434

SUMMARY OF INTANGIBLE ASSETS PA

SUMMARY OF INTANGIBLE ASSETS PATENT, NET (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Intangible assets - patent, net, Beginning balance	$ 2,091	$ 2,239
Deprication	(200)	(123)
Effect of changes in foreign exchange rates	5	(25)
Additions	311
Intangible assets - patent, net, Ending balance	$ 2,207	$ 2,091

SCHEDULE OF PROPERTY, PLANT AND

SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT NET (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
IfrsStatementLineItems [Line Items]
Beginning balance	$ 1,072	$ 456
Net Book Value	2,357	1,072
Computer equipment [member]
IfrsStatementLineItems [Line Items]
Beginning balance	152	102
Net Book Value	126	152
Machines and manufacturing equipment [member]
IfrsStatementLineItems [Line Items]
Beginning balance
Net Book Value	598
Fixtures and fittings [member]
IfrsStatementLineItems [Line Items]
Beginning balance	59	6
Net Book Value	70	59
Vehicles [member]
IfrsStatementLineItems [Line Items]
Beginning balance	600	331
Net Book Value	501	600
ERP system and R&D expenses [member]
IfrsStatementLineItems [Line Items]
Beginning balance
Net Book Value	214
Leasehold improvements [member]
IfrsStatementLineItems [Line Items]
Beginning balance
Net Book Value	27
Right-of-use assets [member]
IfrsStatementLineItems [Line Items]
Beginning balance	261	17
Net Book Value	820	261
Gross carrying amount [member]
IfrsStatementLineItems [Line Items]
Beginning balance	2,030	1,231
Additions	784	774
Disposals	(380)
Additions from newly acquired subsidiary	3,681
Translation adjustments	(472)	25
Net Book Value	5,642	2,030
Gross carrying amount [member] | Computer equipment [member]
IfrsStatementLineItems [Line Items]
Beginning balance	440	370
Additions	29	52
Disposals
Additions from newly acquired subsidiary
Translation adjustments	(53)	18
Net Book Value	416	440
Gross carrying amount [member] | Machines and manufacturing equipment [member]
IfrsStatementLineItems [Line Items]
Beginning balance
Additions	174
Disposals
Additions from newly acquired subsidiary	2,242
Translation adjustments	(208)
Net Book Value	2,208
Gross carrying amount [member] | Fixtures and fittings [member]
IfrsStatementLineItems [Line Items]
Beginning balance	201	139
Additions	28	62
Disposals
Additions from newly acquired subsidiary	178
Translation adjustments	(48)
Net Book Value	359	201
Gross carrying amount [member] | Vehicles [member]
IfrsStatementLineItems [Line Items]
Beginning balance	968	625
Additions	316	298
Disposals	(380)
Additions from newly acquired subsidiary	34
Translation adjustments	(80)	45
Net Book Value	858	968
Gross carrying amount [member] | ERP system and R&D expenses [member]
IfrsStatementLineItems [Line Items]
Beginning balance
Additions	223
Disposals
Additions from newly acquired subsidiary
Translation adjustments	(4)
Net Book Value	219
Gross carrying amount [member] | Leasehold improvements [member]
IfrsStatementLineItems [Line Items]
Beginning balance	59	57
Additions	14
Disposals
Additions from newly acquired subsidiary	367
Translation adjustments	(37)	2
Net Book Value	403	59
Gross carrying amount [member] | Right-of-use assets [member]
IfrsStatementLineItems [Line Items]
Beginning balance	362	40
Additions		362
Additions from newly acquired subsidiary	859
Translation adjustments	(42)	(40)
Net Book Value	1,180	362
Accumulated depreciation amortisation [member]
IfrsStatementLineItems [Line Items]
Beginning balance	958	775
Additions	371	222
Disposals	(58)
Additions from newly acquired subsidiary	2,335
Translation adjustments	(321)	(39)
Net Book Value	3,286	958
Accumulated depreciation amortisation [member] | Computer equipment [member]
IfrsStatementLineItems [Line Items]
Beginning balance	288	268
Additions	37	22
Disposals
Additions from newly acquired subsidiary
Translation adjustments	(35)	(2)
Net Book Value	290	288
Accumulated depreciation amortisation [member] | Machines and manufacturing equipment [member]
IfrsStatementLineItems [Line Items]
Beginning balance
Additions	116
Disposals
Additions from newly acquired subsidiary	1,657
Translation adjustments	(163)
Net Book Value	1,610
Accumulated depreciation amortisation [member] | Fixtures and fittings [member]
IfrsStatementLineItems [Line Items]
Beginning balance	142	133
Additions	16	7
Disposals
Additions from newly acquired subsidiary	158
Translation adjustments	(27)	2
Net Book Value	289	142
Accumulated depreciation amortisation [member] | Vehicles [member]
IfrsStatementLineItems [Line Items]
Beginning balance	368	294
Additions	88	92
Disposals	(58)
Additions from newly acquired subsidiary	6
Translation adjustments	(47)	(18)
Net Book Value	357	368
Accumulated depreciation amortisation [member] | ERP system and R&D expenses [member]
IfrsStatementLineItems [Line Items]
Beginning balance
Additions	5
Disposals
Additions from newly acquired subsidiary
Translation adjustments
Net Book Value	5
Accumulated depreciation amortisation [member] | Leasehold improvements [member]
IfrsStatementLineItems [Line Items]
Beginning balance	59	57
Additions	3
Disposals
Additions from newly acquired subsidiary	350
Translation adjustments	(36)	2
Net Book Value	376	59
Accumulated depreciation amortisation [member] | Right-of-use assets [member]
IfrsStatementLineItems [Line Items]
Beginning balance	101	23
Additions	107	101
Disposals
Additions from newly acquired subsidiary	164
Translation adjustments	(13)	(23)
Net Book Value	$ 360	$ 101

SCHEDULE OF SHORT TERM LOANS AN

SCHEDULE OF SHORT TERM LOANS AND CURRENT PORTION OF LONG-TERM LOANS (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
IfrsStatementLineItems [Line Items]
Short term loans	$ 1,403	$ 158
Short-term borrowings [member]
IfrsStatementLineItems [Line Items]
Short term loans	1,114
Current portion of long-term loans	289	158
Short term loans and current portion of long-term loans	$ 1,403	$ 158
Short-term borrowings [member] | Bottom of range [member]
IfrsStatementLineItems [Line Items]
Interest rate	3.20%
Short-term borrowings [member] | Top of range [member]
IfrsStatementLineItems [Line Items]
Interest rate	7.50%

SCHEDULE OF CARRYING AMOUNTS OF

SCHEDULE OF CARRYING AMOUNTS OF LEASE LIABILITIES RECOGNIZED AND MOVEMENTS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
IfrsStatementLineItems [Line Items]
Lease liabilities, Beginning balance	$ 277
Long Term leases	886	$ 277
Current portion of long-term leases	281	126
Non-current portion of long-term leases	605	151
Industrial areas and office facilities [member]
IfrsStatementLineItems [Line Items]
Lease liabilities, Beginning balance	277	21
Additions	859	362
Disposal	(335)	(107)
Accumulated interest	107	25
Exchange rate differences	(22)	(24)
Long Term leases	$ 886	$ 277

SCHEDULE OF OTHER ACCOUNTS PAYA

SCHEDULE OF OTHER ACCOUNTS PAYABLE (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Employees and government authorities	$ 681	$ 362
Accrued expenses	93	169
Other	182	568
Other accounts payable	$ 956	$ 1,099

SCHEDULE OF LONG TERM LOANS (De

SCHEDULE OF LONG TERM LOANS (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
IfrsStatementLineItems [Line Items]
Long term loans	$ 1,744
Less- Current portion	(1,403)	$ (158)
Non Current Long term loans	341	483
Long-term borrowings [member]
IfrsStatementLineItems [Line Items]
Long term loans	1,385	641
Less- Current portion	(1,044)	(158)
Non Current Long term loans	$ 341	$ 483
Long-term borrowings [member] | Bottom of range [member]
IfrsStatementLineItems [Line Items]
Interest rate	1.80%
Long-term borrowings [member] | Top of range [member]
IfrsStatementLineItems [Line Items]
Interest rate	6.10%

DEFERRED REVENUES (Details Narr

DEFERRED REVENUES (Details Narrative) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Deferred revenues	$ 1,373

LONG TERM LOANS (Details Narrat

LONG TERM LOANS (Details Narrative) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
IfrsStatementLineItems [Line Items]
Current portion of loans	$ 1,403	$ 158
Non-current portion of loans	341	483
Long-term borrowings [member]
IfrsStatementLineItems [Line Items]
Current portion of loans	1,044	158
Non-current portion of loans	$ 341	$ 483
Long-term borrowings [member] | Bottom of range [member]
IfrsStatementLineItems [Line Items]
Borrowings interest rate	1.80%
Long-term borrowings [member] | 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, 2022	Dec. 31, 2021	Dec. 31, 2020
Severance Payment Net
Present value of defined benefit obligation	$ 394	$ 541
Fair value of plan assets	(361)	(374)	$ (376)
Total	33	167
Balance at beginning of year	541	563
Interest cost	9	10
Current service cost	30	39
Currency translation	(111)	(71)
Recognized in other comprehensive gain :	(10)
Net actuarial gain	(98)
Balance at end of year	$ 361	$ 541

SCHEDULE OF FAIR VALUE OF PLAN

SCHEDULE OF FAIR VALUE OF PLAN ASSETS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Severance Payment Net
Balance at beginning of year	$ (374)	$ (376)
Expected return	24	28
Net actuarial loss (gain)
Contributions by employer	(11)	(26)
Balance at end of year	$ (361)	$ (374)

SCHEDULE OF ASSUMPTIONS UNDERLY

SCHEDULE OF ASSUMPTIONS UNDERLYING DEFINED BENEFIT PLAN (Details)	Dec. 31, 2022	Dec. 31, 2021
Severance Payment Net
Discount rate of the plan liability	2.75%	2.24%
Expected rate of return on plan assets	2.64%	2.36%
Future salary increases	0.0382	0.0347

SCHEDULE OF FAIR VALUE HIERARCH

SCHEDULE OF FAIR VALUE HIERARCHY OF WARRANTS (Details) - USD ($) $ in Thousands	2 Months Ended	12 Months Ended
	Aug. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
IfrsStatementLineItems [Line Items]
Warrants exercised	$ (98)	$ (1,379)	$ (3,386)	$ (98)
November 2022 Warrants [member]
IfrsStatementLineItems [Line Items]
Balance, warrants
Issuance, warrants		894
Revaluations, warrants		248
Reclassification to Warrant Reserve
Warrants exercised
Expiry of warrants
Balance, warrants		1,142
April and May 2021 Warrants [member]
IfrsStatementLineItems [Line Items]
Balance, warrants
Issuance, warrants			4,786
Revaluations, warrants			2,183
Reclassification to Warrant Reserve			(6,969)
Balance, warrants
November 2020 and December 2020 Warrants [member]
IfrsStatementLineItems [Line Items]
Balance, warrants			8,391
Revaluations, warrants			26,816
Reclassification to Warrant Reserve			(35,207)
Balance, warrants				8,391
January 2020 Warrants [member]
IfrsStatementLineItems [Line Items]
Balance, warrants		51	285
Revaluations, warrants			1,896
Reclassification to Warrant Reserve			(1,788)
Warrants exercised			(342)
Expiry of warrants		(51)
Balance, warrants			$ 51	$ 285

WARRANT LIABILITY (Details Narr

WARRANT LIABILITY (Details Narrative)

12 Months Ended

Nov. 02, 2022 $ / shares shares

Dec. 31, 2021 USD ($) $ / shares shares

Aug. 29, 2021 USD ($) $ / shares

Jun. 30, 2021 USD ($) shares

Mar. 31, 2021 USD ($) $ / shares shares

Dec. 31, 2022 USD ($) $ / shares shares

Jun. 30, 2021 $ / shares

Jun. 30, 2021 ₪ / shares

Mar. 31, 2021 $ / shares

Mar. 31, 2021 ₪ / shares

Dec. 31, 2020 USD ($) shares

Aug. 31, 2020 ₪ / shares shares

IfrsStatementLineItems [Line Items]

[custom:ClassOfWarrantOrRightOutstanding1-0] | shares

5,966,204

7,056,972

7,289,885

Exercise price | ₪ / shares

₪ 2.52

Share price | $ / shares

$ 1.56

Warrants outstanding | shares

182,142

November 2022 Warrants [member]

IfrsStatementLineItems [Line Items]

[custom:ClassOfWarrantOrRightOutstanding1-0] | shares

1,489,166

Exercise price | $ / shares

$ 2.04

[custom:WarrantsExercisableTerm]

2 years

Expected volatility

1.10

Risk-free interest rate

0.0394

Expected life

2 years

Warrant liability loss

$ 1,142,000

April and May 2021 Warrants [member]

IfrsStatementLineItems [Line Items]

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 loss

$ 7,093,000

Warrant liability

$ 124,000

2,307,000

Warrant liability gain

$ 247,000

April and May 2021 Warrants [member] | Warrant holders [member]

IfrsStatementLineItems [Line Items]

Exercise price | $ / shares

$ 11.04

Warrant liability

$ 6,846

Warrants outstanding | shares

583,703

Warrants exchange rate | (per share)

1

₪ 2.63

November 2020 and December 2020 Warrants [member]

IfrsStatementLineItems [Line Items]

Expected volatility

0.79

Risk-free interest rate

0.01002

Expected life

4 years 7 months 17 days

Share price | $ / shares

$ 9.30

Warrant liability loss

$ 35,175,000

8,391,000

Warrant liability

$ 26,816,000

November 2020 and December 2020 Warrants [member] | Warrant holders [member]

IfrsStatementLineItems [Line Items]

Exercise price | $ / shares

$ 2.70

Warrants outstanding | shares

5,816,785

Warrants exchange rate | (per share)

$ 1

₪ 2.65

Warrant equity

$ 35,065,000

January 2020 Warrants [member]

IfrsStatementLineItems [Line Items]

Expected volatility

0.82

Risk-free interest rate

0.00064

Expected life

29 days

Share price | $ / shares

$ 13.72

Warrant liability loss

$ 51,000

$ 285,000

Warrant liability

$ 1,788,000

Warrant shares | shares

16,312

January 2020 Warrants [member] | Warrant holders [member]

IfrsStatementLineItems [Line Items]

Exercise price | $ / shares

1.95

Warrant liability

$ 1,788,000

Warrants outstanding | shares

220,589

Warrants exchange rate | (per share)

$ 1

₪ 2.65

SHAREHOLDERS_ EQUITY (DEFICIT)

SHAREHOLDERS’ EQUITY (DEFICIT) (Details Narrative) $ / shares in Units, $ / shares in Units, $ in Thousands																					2 Months Ended	12 Months Ended
	Nov. 02, 2022 USD ($) $ / shares shares	Nov. 02, 2022 CAD ($)	Feb. 03, 2022 shares	Aug. 13, 2021	Jun. 04, 2021 USD ($) shares	Jun. 04, 2021 CAD ($) shares	Dec. 29, 2020 USD ($) shares	Dec. 29, 2020 CAD ($) shares	Dec. 24, 2020 USD ($) shares	Nov. 16, 2020 USD ($)	Nov. 16, 2020 CAD ($) $ / shares shares	Nov. 16, 2020 USD ($)	Oct. 28, 2020 USD ($)	Apr. 27, 2020 USD ($) shares	Mar. 18, 2020 USD ($)	Mar. 18, 2020 CAD ($) shares $ / shares	Jan. 30, 2020 USD ($) shares	Jan. 30, 2020 CAD ($) $ / shares shares	Jan. 21, 2020 USD ($)	Jan. 21, 2020 CAD ($) shares $ / shares	Aug. 30, 2022 USD ($)	Dec. 31, 2022 USD ($) shares	Dec. 31, 2021 USD ($) shares	Dec. 31, 2020 USD ($) shares	Nov. 02, 2022 $ / shares	Feb. 11, 2022 shares	Jun. 04, 2021 $ / shares	Dec. 29, 2020 $ / shares	Oct. 28, 2020 shares $ / shares	Aug. 31, 2020 ₪ / shares shares
IfrsStatementLineItems [Line Items]
Number of shares outstanding																						30,945,322	26,326,488
Shares issued																						30,945,322	26,326,488
Reverse stock split				1-for-3 reverse stock split
Number of shares issued																75,000				47,619		1,883,343	820,010	889,523					767
Options exercise price | $ / shares																$ 0.39				$ 0.42									$ 1.14
Proceeds from exercise of options													$ 1,000		$ 23,000	$ 32			$ 15,000	$ 20		$ 208,000	$ 742,000	$ 39,000
Number of warrants outstanding																														182,142
Warrants exercise price | ₪ / shares																														₪ 2.52
Proceeds from exercise of warrants | $																					$ 98,000	1,379,000	3,386,000	$ 98,000
Additional paid-in capital | $																						$ 43,452,000	$ 28,297,000
Number of options exercised																						116,667	286,223
Number of warrants issued																						7,056,972	5,966,204	7,289,885
RSU's [member]
IfrsStatementLineItems [Line Items]
Number of shares issued RSU																						545,000
Consultant [member]
IfrsStatementLineItems [Line Items]
Number of shares issued for services									20,161								30,831	30,831
Shares issued for services, value | $									$ 47,000								$ 50,000
Two consultants [member]
IfrsStatementLineItems [Line Items]
Number of shares issued for services														76,701
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 2020 private placements [member]
IfrsStatementLineItems [Line Items]
Number of units issued											4,450,153
Price of unit issued | $ / shares											$ 1.875
Gross proceeds for units										$ 6,377,000	$ 8,344
November 2020 private warrants [member]
IfrsStatementLineItems [Line Items]
Additional share price | $ / shares											$ 2.70
November 2020 private placement [member]
IfrsStatementLineItems [Line Items]
Finders fees | $												$ 417,000
Issuance of warrants | $												$ 3,537,000
December 2020 private placement [member]
IfrsStatementLineItems [Line Items]
Shares issued																						630,161	2,514,693			74,985
Number of shares issued																						116,667	286,223
Number of units issued	2,978,337						1,366,631
Price of unit issued | (per share)	$ 1.35																								$ 1.86			$ 1.875
Gross proceeds for units							$ 2,000,000	$ 2,562									$ 4,021,000
Additional share price | $ / shares																												2.70
Warrants exercise price | (per share)	$ 1.5																								$ 2.04			$ 2.70
Finders fees | $							$ 128,000
Finders warrants							100,000	100,000
Warrant liability | $							$ 1,698
Number of warrants exercised																						630,161	2,629,343
Number of options exercised																						116,667	286,223
Issuance of shares of isramat			273,774
Number of warrants issued	1,489,169
December 2020 private placement [member] | RSU's [member]
IfrsStatementLineItems [Line Items]
Number of shares issued																						545,000
Number of shares issued RSU																						545,000
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	221,100
Two private placements [member] | May 28, 2023 [member]
IfrsStatementLineItems [Line Items]
Warrans issued					1,084,562	1,084,562
November 2022 Warrants [member]
IfrsStatementLineItems [Line Items]
Shares issued	1,489,169
Finders fees	$ 260,000	$ 349,000
Warrants granted | $	894,000
Additional paid-in capital | $	$ 3,127,000
Number of warrants issued	237,200

SCHEDULE OF WARRANTS TRANSACTIO

SCHEDULE OF WARRANTS TRANSACTIONS (Details) - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
IfrsStatementLineItems [Line Items]
Number of warrants outstanding, beginning balance	5,966,204	7,289,885
Weighted Average Exercise Price, Beginning Balance	$ 3.55	$ 1.91
Number of warrants outstanding, Exercise of warrants	(630,161)	(2,629,343)
Number of warrants outstanding, Expired of warrants	(5,437)
Number of warrants outstanding, ending balance	7,056,972	5,966,204
Weighted Average Exercise Price, Ending Balance	$ 3.54	$ 3.55
April 2021 Private Placement [member]
IfrsStatementLineItems [Line Items]
Number of warrants outstanding, warrants issued		221,100
May 2021 Private Placement [member]
IfrsStatementLineItems [Line Items]
Number of warrants outstanding, warrants issued		1,084,562
November 2022 Private Placement [member]
IfrsStatementLineItems [Line Items]
Number of warrants outstanding, warrants issued	1,726,366

SCHEDULE OF OUTSTANDING WARRANT

SCHEDULE OF OUTSTANDING WARRANTS (Details)	12 Months Ended
	Dec. 31, 2022 $ / shares shares		Dec. 31, 2022 $ / shares shares	Dec. 31, 2022 ₪ / shares shares
IfrsStatementLineItems [Line Items]
Number of warrants outstanding	7,056,972		7,056,972	7,056,972
Warrants one [member]
IfrsStatementLineItems [Line Items]
Number of warrants outstanding	2,658,313		2,658,313	2,658,313
Expiry date	Nov. 10, 2025
Exercise price | (per share)	$ 2.03			₪ 7.1418	[1]
Warrants two [member]
IfrsStatementLineItems [Line Items]
Number of warrants outstanding	1,366,631		1,366,631	1,366,631
Expiry date	Dec. 24, 2025
Exercise price | (per share)	$ 2.03	[2]		₪ 7.1418	[1]
Warrants three [member]
IfrsStatementLineItems [Line Items]
Number of warrants outstanding	221,100		221,100	221,100
Expiry date	Apr. 18, 2023
Exercise price | (per share)	$ 8.25	[1]		₪ 29.025	[3]
Warrants four [member]
IfrsStatementLineItems [Line Items]
Number of warrants outstanding	1,084,562		1,084,562	1,084,562
Expiry date	May 28, 2023
Exercise price | (per share)	$ 8.25	[1]		₪ 29.025	[3]
Warrants five [member]
IfrsStatementLineItems [Line Items]
Number of warrants outstanding	1,726,366		1,726,366	1,726,366
Expiry date	Nov. 08, 2024
Exercise price | (per share)	$ 1.60	[3]	$ 2.04
[1]On March 31, 2021, warrant holders and the Company, agreed that the exercise price of CAD$ 2.70 7.1418 1.95 5.124 11.04 29.025

SCHEDULE OF OUTSTANDING WARRA_2

SCHEDULE OF OUTSTANDING WARRANTS (Details) (Parenthetical)	Dec. 31, 2022 $ / shares		Dec. 31, 2022 ₪ / 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)	$ 2.03		₪ 7.1418	[1]
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)	2.03	[2]	7.1418	[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)	$ 8.25	[1]	₪ 29.025	[3]
Warrants three [member] | Warrant holders [member]
IfrsStatementLineItems [Line Items]
Exercise price | (per share)					$ 11.04	₪ 29.025
[1]On March 31, 2021, warrant holders and the Company, agreed that the exercise price of CAD$ 2.70 7.1418 1.95 5.124 11.04 29.025

SCHEDULE OF STOCK OPTION TRANSA

SCHEDULE OF STOCK OPTION TRANSACTIONS (Details)	12 Months Ended
	Dec. 31, 2022 shares $ / shares	Dec. 31, 2022 shares $ / shares	Dec. 31, 2021 shares $ / shares	Dec. 31, 2021 shares $ / shares
Warrants And Options
Number of stock options, beginning balance	820,010	820,010	889,523	889,523
Weighted Average Exercise Price, beginning balance | (per share)	$ 1.78	$ 2.10	$ 1.27	$ 1.62
Number of stock options, options granted	1,200,000	1,200,000	333,377	333,377
Weighted Average Exercise Price, options granted | $ / shares		$ 3.67		$ 3
Number of stock options, Exercise of options	(116,667)	(116,667)	(286,223)	(286,223)
Weighted Average Exercise Price, Exercise of options | $ / shares		$ 2.27		$ 2.25
Number of stock options, Expiry of options	(20,000)	(20,000)	(116,667)	(116,667)
Weighted Average Exercise Price, Expiry of options | $ / shares		$ 1.5		$ 3
Number of stock options, ending balance	1,883,343	1,883,343	820,010	820,010
Weighted Average Exercise Price, ending balance | (per share)	$ 2.32	$ 3.17	$ 1.78	$ 2.10

SCHEDULE OF STOCK OPTION TRAN_2

SCHEDULE OF STOCK OPTION TRANSACTIONS (Details) (Parenthetical) $ / shares in Units, $ in Thousands

12 Months Ended

Aug. 21, 2022 CAD ($) shares $ / shares

Aug. 04, 2022 CAD ($) shares $ / shares

Oct. 28, 2021 CAD ($) shares $ / shares

Aug. 23, 2021 CAD ($) shares $ / shares

Jun. 03, 2021 CAD ($) shares $ / shares

Jan. 28, 2021 CAD ($) shares $ / shares

Dec. 31, 2022 shares $ / shares

Dec. 31, 2021 shares

Dec. 31, 2022 $ / shares

Oct. 28, 2020 $ / shares

Mar. 18, 2020 $ / shares

Jan. 21, 2020 $ / shares

IfrsStatementLineItems [Line Items]

Number of stock options, options issued | shares

1,200,000

333,377

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)

$ 1.11

$ 1.50

Options expire

Aug. 20, 2025

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

Options expire

Jan. 28, 2025

Fair value of options granted | $

$ 90

Share Price

$ 2.82

Expected option life

4 years

Volatility

209%

Risk-free interest rate

0.30%

Dividend yield

0%

Stock option two [member]

IfrsStatementLineItems [Line Items]

Number of stock options, exercise price | (per share)

$ 1.66

2.25

Options expire

Sep. 01, 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

Options expire

Dec. 31, 2021

Fair value of options granted | $

$ 191

Share Price

$ 2.82

Expected option life

11 months 1 day

Volatility

173%

Risk-free interest rate

0.11%

Dividend yield

0%

Stock option three [member]

IfrsStatementLineItems [Line Items]

Number of stock options, exercise price | (per share)

$ 2.21

3

Options expire

Jan. 28, 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

Options expire

Jun. 03, 2026

Fair value of options granted | $

$ 445

Share Price

$ 9.18

Expected option life

5 years

Volatility

191%

Risk-free interest rate

0.93%

Dividend yield

0%

Stock option four [member]

IfrsStatementLineItems [Line Items]

Number of stock options, exercise price | (per share)

$ 6.20

8.40

Options expire

Jun. 03, 2026

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%

Risk-free interest rate

0.19%

Dividend yield

0%

Stock option five [member]

IfrsStatementLineItems [Line Items]

Number of stock options, exercise price | (per share)

$ 5.90

8

Options expire

Oct. 28, 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%

Risk-free interest rate

1.43%

Dividend yield

0%

Stock option six [member]

IfrsStatementLineItems [Line Items]

Number of stock options, exercise price | (per share)

$ 2.63

3.56

Options expire

Aug. 02, 2032

Stock option six [member] | Director [Member]

IfrsStatementLineItems [Line Items]

Number of stock options, options issued | shares

900,000

Number of stock options, exercise price

$ 3.56

Options expire

Aug. 02, 2032

Fair value of options granted | $

$ 2,712

Share Price

$ 4.12

Expected option life

10 years

Volatility

112%

Risk-free interest rate

2.67%

Dividend yield

0%

Stock option seven [member]

IfrsStatementLineItems [Line Items]

Number of stock options, exercise price | (per share)

$ 2.95

$ 4

Options expire

Aug. 21, 2032

Stock option seven [member] | Consultant [member]

IfrsStatementLineItems [Line Items]

Number of stock options, options issued | shares

300,000

Number of stock options, exercise price

$ 4

Options expire

Aug. 02, 2032

Fair value of options granted | $

$ 977

Share Price

$ 4

Expected option life

10 years

Volatility

112%

Risk-free interest rate

2.99%

Dividend yield

0%

SCHEDULE OF OUTSTANDING STOCK O

SCHEDULE OF OUTSTANDING STOCK OPTIONS (Details)	12 Months Ended
	Dec. 31, 2022 shares $ / shares	Dec. 31, 2022 shares $ / shares	Dec. 31, 2021 shares	Dec. 31, 2020 shares	Oct. 28, 2020 shares $ / shares	Mar. 18, 2020 shares $ / shares	Jan. 21, 2020 shares $ / shares
IfrsStatementLineItems [Line Items]
Number of stock options, Outstanding	1,883,343	1,883,343	820,010	889,523	767	75,000	47,619
Number of stock options, Exercisable	1,152,784	1,152,784
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	543,333	543,333
Number of stock options, Exercisable	510,000	510,000
Number of stock options, Expiry date	Aug. 20, 2025
Number of stock options, Exercise price | (per share)	$ 1.11	$ 1.50
Stock option two [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. 01, 2025
Number of stock options, Exercise price | (per share)	$ 1.66	$ 2.25
Stock option three [member]
IfrsStatementLineItems [Line Items]
Number of stock options, Outstanding	33,333	33,333
Number of stock options, Exercisable	33,333	33,333
Number of stock options, Expiry date	Jan. 28, 2025
Number of stock options, Exercise price | (per share)	$ 2.21	$ 3
Stock option four [member]
IfrsStatementLineItems [Line Items]
Number of stock options, Outstanding	50,000	50,000
Number of stock options, Exercisable	33,333	33,333
Number of stock options, Expiry date	Jun. 03, 2026
Number of stock options, Exercise price | (per share)	$ 6.20	$ 8.40
Stock option five [member]
IfrsStatementLineItems [Line Items]
Number of stock options, Outstanding	16,677	16,677
Number of stock options, Exercisable	11,118	11,118
Number of stock options, Expiry date	Oct. 28, 2026
Number of stock options, Exercise price | (per share)	$ 5.90	$ 8
Stock option six [member]
IfrsStatementLineItems [Line Items]
Number of stock options, Outstanding	900,000	900,000
Number of stock options, Exercisable	225,000	225,000
Number of stock options, Expiry date	Aug. 02, 2032
Number of stock options, Exercise price | (per share)	$ 2.63	$ 3.56
Stock option seven [member]
IfrsStatementLineItems [Line Items]
Number of stock options, Outstanding	300,000	300,000
Number of stock options, Exercisable	300,000	300,000
Number of stock options, Expiry date	Aug. 21, 2032
Number of stock options, Exercise price | (per share)	$ 2.95	$ 4

SCHEDULE OF RSU_S TRANSACTIONS

SCHEDULE OF RSU’S TRANSACTIONS (Details) - RSU's [member] - shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
IfrsStatementLineItems [Line Items]
Number of RSU's, beginning balance
Number of RSU's, granted	1,265,000
Number of RSU's, Exercise	(545,000)
Number of RSU's, ending balance	720,000,000

WARRANTS AND OPTIONS (Details N

WARRANTS AND OPTIONS (Details Narrative) $ in Thousands			12 Months Ended
	Aug. 04, 2022 shares	Dec. 16, 2021 ₪ / shares shares	Dec. 31, 2022 USD ($) shares	Dec. 31, 2021 USD ($) shares	Dec. 31, 2020 USD ($)
IfrsStatementLineItems [Line Items]
Exercise of warrants			630,161	2,629,343
Share based compensation | $			$ 4,868	$ 843	$ 800
RSU's [member]
IfrsStatementLineItems [Line Items]
Share based compensation | $			$ 2,475
RSU's granted			1,265,000
Description of RSU's vesting and conversion	The RSUs will vest at each recipient’s discretion and taking into account personal tax implications and convert into 1,265,000 common shares of no par value in the Company (“Common Shares”).
RSU's exercisable			225,832
Directors officers and advisers [member] | RSU's [member]
IfrsStatementLineItems [Line Items]
RSU's granted	1,265,000
Executives and directors [member] | RSU's [member]
IfrsStatementLineItems [Line Items]
RSU's granted	590,000
Warrant [member] | Warrant holders [member]
IfrsStatementLineItems [Line Items]
Exercise of warrants		1,095,322
Exercise price | ₪ / shares		₪ 2.52
Warrants granted		980,673

SCHEDULE OF SUBSIDIARIES OF NON

SCHEDULE OF SUBSIDIARIES OF NON-CONTROLLING INTERESTS (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
IfrsStatementLineItems [Line Items]
Non controlling interest	$ (2,397)	$ (607)
Cust2mate [member]
IfrsStatementLineItems [Line Items]
Non controlling interest	(2,791)	(1,026)
AAI [member]
IfrsStatementLineItems [Line Items]
Non controlling interest	$ 394	$ 419

SCHEDULE OF REVENUE FROM SERVIC

SCHEDULE OF REVENUE FROM SERVICES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022		Dec. 31, 2021	Dec. 31, 2020
IfrsStatementLineItems [Line Items]
Revenues	$ 9,351	[1],[2]	$ 2,685	$ 1,068
Revenues from services [member]
IfrsStatementLineItems [Line Items]
Revenues	1,364		1,548	801
Revenues from leasing [member]
IfrsStatementLineItems [Line Items]
Revenues	341		387	267
Revenues from sales of precision metal parts [member]
IfrsStatementLineItems [Line Items]
Revenues	3,958
Revenues from smart carts project [member]
IfrsStatementLineItems [Line Items]
Revenues	$ 3,688		$ 750
[1]All non-current assets are located in the state of Israel.[2]All revenues are generated in the state of Israel.

SCHEDULE OF COST OF REVENUES (D

SCHEDULE OF COST OF REVENUES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
IfrsStatementLineItems [Line Items]
Cost of revenues	$ 7,517	$ 2,029	$ 853
Payroll and related expenses [member]
IfrsStatementLineItems [Line Items]
Cost of revenues	2,383	1,096	493
Subcontractor and outsourced work [member]
IfrsStatementLineItems [Line Items]
Cost of revenues	103	162	65
Materials and components consumed [member]
IfrsStatementLineItems [Line Items]
Cost of revenues	4,650	291	90
Depreciation [member]
IfrsStatementLineItems [Line Items]
Cost of revenues	131
Car maintenance [member]
IfrsStatementLineItems [Line Items]
Cost of revenues	165	373	147
Other [member]
IfrsStatementLineItems [Line Items]
Cost of revenues	$ 85	$ 107	$ 58

SCHEDULE OF RESEARCH AND DEVELO

SCHEDULE OF RESEARCH AND DEVELOPMENT EXPENSES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Payroll and related expenses	$ 867	$ 510	$ 410
Subcontractor and outsourced work	3,362	2,477
Legal fees	20	99
Pilot expenses and other	212	136	8
Research and development expense	$ 4,462	$ 3,222	$ 418

SCHEDULE OF GENERAL AND ADMINIS

SCHEDULE OF GENERAL AND ADMINISTRATIVE EXPENSES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Payroll and related	$ 3,990	$ 1,027	$ 579
Professional fees	2,233	3,417	1,449
Share-based compensation	4,868	842
Depreciation and amortization	420	321	213
Office maintenance	437	275	23
Public company related expenses	316	254	59
Rent and related expenses	126	96	42
Travel	150
Directors & officers’ insurance	267	119
Doubtful debts	382
Other	410	143
General and administrative expense	$ 13,599	$ 6,494	$ 2,365

SCHEDULE OF LOSS PER SHARE (Det

SCHEDULE OF LOSS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Net loss for the year	$ 19,273	$ 39,735	$ 7,222
Weighted average number of ordinary shares	27,681,778	23,340,621	16,758,323
Basic and diluted loss per share	$ 0.70	$ 1.70	$ 0.43

SCHEDULE OF FINANCIAL EXPENSES

SCHEDULE OF FINANCIAL EXPENSES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Financial Expenses
Bank fees and interest	$ 136	$ 77	$ 94
Interest from application of IFRS 16	97	14	13
Revaluation of provision	1,158
Financial expenses	$ 1,391	$ 91	$ 107

SCHEDULE OF EFFECTIVE INCOME TA

SCHEDULE OF EFFECTIVE INCOME TAX EXPENSE (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022		Dec. 31, 2021	Dec. 31, 2020
Loss before income tax	$ (18,347)		$ (40,148)	$ (5,936)
Statutory tax rate	23%		23%	23%
Income tax benefit at the statutory tax rate	$ 4,220		$ 9,234	$ 1,365
Expenses not recognized for tax purposes	(4,220)		(9,234)	(876)
Recognition/Derecognition of deferred tax assets which were not recognized on prior periods			(142)	(506)
Income tax expense		[1],[2]	$ (142)	$ (17)
[1]All non-current assets are located in the state of Israel.[2]All revenues are generated in the state of Israel.

SCHEDULE OF INCOME TAX EXPENSE

SCHEDULE OF INCOME TAX EXPENSE (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022		Dec. 31, 2021	Dec. 31, 2020
Current				$ 10
Prior year taxes			142
Deferred taxes, net				7
Total		[1],[2]	$ 142	$ 17
[1]All non-current assets are located in the state of Israel.[2]All revenues are generated in the state of Israel.

INCOME TAX EXPENSE (Details Nar

INCOME TAX EXPENSE (Details Narrative)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Federal and statutory income tax rate	26.50%	26.50%	26.50%
Israeli corporate tax rate	23%	23%	23%

SCHEDULE OF AMOUNT OWING BY REL

SCHEDULE OF AMOUNT OWING BY RELATED PARTIES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
IfrsStatementLineItems [Line Items]
Directors Fees	$ 28	$ 31	$ 31
Consulting Fees / Salaries	1,308	1,095	655
Share based awards	224	70	37
Total	1,560	1,196	723
Amounts owing by (to) as of related parties and shareholders	(12)	126
Director and CEO [member]
IfrsStatementLineItems [Line Items]
Directors Fees
Consulting Fees / Salaries		43	31
Share based awards
Total		43	31
Amounts owing by (to) as of related parties and shareholders	462	183
Company controlled by CEO [member]
IfrsStatementLineItems [Line Items]
Directors Fees
Consulting Fees / Salaries	1,224	958	594
Share based awards
Total	1,224	958	594
Amounts owing by (to) as of related parties and shareholders	(474)	(57)
CFO [member]
IfrsStatementLineItems [Line Items]
Directors Fees
Consulting Fees / Salaries	84	94	30
Share based awards	160	59	27
Total	244	153	57
Amounts owing by (to) as of related parties and shareholders
Directors [member]
IfrsStatementLineItems [Line Items]
Directors Fees	28	31	31
Consulting Fees / Salaries
Share based awards	64	11	10
Total	92	42	41
Amounts owing by (to) as of related parties and shareholders

RELATED PARTIES AND SHAREHOLD_3

RELATED PARTIES AND SHAREHOLDERS (Details Narrative) ₪ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($)	Dec. 31, 2022 ILS (₪)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
IfrsStatementLineItems [Line Items]
Consulting fees	$ 2,233		$ 3,417	$ 1,449
Bonus amount	260		$ 500
CEO [member]
IfrsStatementLineItems [Line Items]
Consulting fees | ₪		₪ 250,000
Compensation commitee [member]
IfrsStatementLineItems [Line Items]
Consulting fees	$ 71

SCHEDULE OF FINANCIAL ASSET WIT

SCHEDULE OF FINANCIAL ASSET WITH CASH AND TRADE ACCOUNTS RECEIVABLE (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Cash and Cash Equivalents	$ 2,616	$ 8,470	$ 5,397	$ 362
Deposits	8	60
Trade receivables	1,373	857
Other Accounts Receivable	2,570	434
Total	$ 6,567	$ 9,821

SCHEDULE OF LIQUIDITY RISKS (De

SCHEDULE OF LIQUIDITY RISKS (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Trade payables - Carrying amount	$ 2,224
Trade payables - Within 1 year	2,224
Trade payables - Over 1 year
Other accounts payable - Carrying amount	956	$ 1,099
Other accounts payable - Within 1 year	956
Other accounts payable - Over 1 year
Loans - Carrying amounts	1,744
Short term loan and current portion of long-term loans (note 11)	1,403	158
Long term loans (note 15)	341	483
Lease liability - Carrying amount	886	277
Lease liability - Within 1 year	281	126
Lease liability - Over 1 year	$ 605	$ 151

FINANCIAL INSTRUMENTS AND RIS_3

FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details Narrative) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($)
Variable market risk description	As of December 31, 2022, 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 $97.
Increase decrease in income loss	$ 97
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	$ 100

SCHEDULE OF OPERATING SEGMENTS

SCHEDULE OF OPERATING SEGMENTS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022		Dec. 31, 2021	Dec. 31, 2020
IfrsStatementLineItems [Line Items]
Revenues	$ 9,351	[1],[2]	$ 2,685	$ 1,068
Segment operational loss (gain)	16,702	[1],[2]	9,162	2,676
Loss on revaluation of warrant liability	254	[1],[2]	30,895	3,228
Finance expense, net	1,391	[1],[2]	91	32
Tax expenses		[1],[2]	142	17
Loss	18,347	[1],[2]	40,290	5,953
Segment assets	12,694		14,131
Segment liabilities	9,805		3,224
External [member]
IfrsStatementLineItems [Line Items]
Revenues	9,351	[1],[2]	2,685	1,068
Precision metal parts [member]
IfrsStatementLineItems [Line Items]
Revenues	3,958
Segment operational loss (gain)	761
Segment assets	2,741
Segment liabilities	3,575
Precision metal parts [member] | External [member]
IfrsStatementLineItems [Line Items]
Revenues	3,958
Advanced engineering [member]
IfrsStatementLineItems [Line Items]
Revenues	1,705		1,935	1,068
Segment operational loss (gain)	(60)		1,034	2,510
Segment assets	1,162		1,707
Segment liabilities	1,043		1,786
Advanced engineering [member] | External [member]
IfrsStatementLineItems [Line Items]
Revenues	1,705		1,935	1,068
Smart carts [member]
IfrsStatementLineItems [Line Items]
Revenues	3,688	[3]	750
Segment operational loss (gain)	16,001	[3]	8,128	166
Segment assets	8,791		12,424
Segment liabilities	5,187		1,438
Smart carts [member] | External [member]
IfrsStatementLineItems [Line Items]
Revenues	3,688	[3]	750
Adjustment and elimination [member]
IfrsStatementLineItems [Line Items]
Segment assets
Segment liabilities
[1]All non-current assets are located in the state of Israel.[2]All revenues are generated in the state of Israel.[3]All revenues from the smart cart segment are generated from one customer, which is the main customer of the Company, and accounts for 40 10

SCHEDULE OF OPERATING SEGMENT_2

SCHEDULE OF OPERATING SEGMENTS (Details) (Parenthetical)	12 Months Ended
	Dec. 31, 2022
Precision metal parts [member]
IfrsStatementLineItems [Line Items]
Percentage of revenue	40%
Advanced engineering [member]
IfrsStatementLineItems [Line Items]
Percentage of revenue	10%

OPERATING SEGMENTS (Details Nar

OPERATING SEGMENTS (Details Narrative)	12 Months Ended
	Dec. 31, 2022 Segments
Number of operating segment	3

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative) $ / shares in Units, $ / shares in Units, $ in Thousands, $ in Thousands			2 Months Ended	12 Months Ended
	Mar. 13, 2023 USD ($) $ / shares shares	Jan. 04, 2023 $ / shares shares	Aug. 30, 2022 USD ($)	Dec. 31, 2022 USD ($) shares	Dec. 31, 2021 USD ($) shares	Dec. 31, 2020 USD ($)	Mar. 13, 2023 CAD ($) $ / shares shares
IfrsStatementLineItems [Line Items]
Number of shares issued				30,945,322	26,326,488
Proceeds from exercise warrants | $			$ 98	$ 1,379	$ 3,386	$ 98
Nonadjusting event [member]
IfrsStatementLineItems [Line Items]
Number of shares issued	1,783,561						1,783,561
Warrant exercise price per share | (per share)	$ 1.46						$ 1.95
Proceeds from exercise warrants | $	$ 2,604,000
Nonadjusting event [member] | March 2023 Private Placement Warrants [Member]
IfrsStatementLineItems [Line Items]
Issuance of additional common shares	891,778
Finder fee	$ 208						$ 290,000
Private placement of warrant shares issued	142,685						142,685
Nonadjusting event [member] | Warrant [member]
IfrsStatementLineItems [Line Items]
Number of shares issued	891,778						891,778
Warrant exercise price per share | (per share)	$ 1.75						$ 2.35
Nonadjusting event [member] | Directors officier and advisers [member]
IfrsStatementLineItems [Line Items]
Number of shares granted		816,500
Exercise price per share | $ / shares		$ 1.65
Number of shares vested		800,000
Exercisable term		10 years
Nonadjusting event [member] | RSU's [member]
IfrsStatementLineItems [Line Items]
Convert into common shares		1,027,000
Nonadjusting event [member] | RSU's [member] | Directors officier and advisers [member]
IfrsStatementLineItems [Line Items]
Number of shares granted		1,027,000
Nonadjusting event [member] | RSU's [member] | Executives and directors [member]
IfrsStatementLineItems [Line Items]
Number of shares granted		250,000