SMX (SMX) 20-F 28 Apr 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	001-41639
Entity Registrant Name	SMX (Security Matters) Public Limited Company
Entity Central Index Key	0001940674
Entity Incorporation, State or Country Code	L2
Entity Address, Address Line One	Mespil Business Centre
Entity Address, Address Line Two	Mespil House
Entity Address, Address Line Three	Sussex Road
Entity Address, City or Town	Dublin 4
Entity Address, Country	IE
Entity Address, Postal Zip Code	D04 T4A6
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	No
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
ICFR Auditor Attestation Flag	false
Auditor Firm ID	1185
Auditor Location	Tel-Aviv, Israel
Auditor Name	Ziv Haft
Class A Ordinary Shares, with a nominal value of $0.0001 per share
Entity Addresses [Line Items]
Title of 12(b) Security	Class A Ordinary Shares, with a nominal value of $0.0001 per share
Trading Symbol	SMX
Security Exchange Name	NASDAQ
Warrants, each exercisable for one Class A Ordinary Share at an exercise price of $11.50 per share
Entity Addresses [Line Items]
Title of 12(b) Security	Warrants, each exercisable for one Class A Ordinary Share at an exercise price of $11.50 per share
Trading Symbol	SMXWW
Security Exchange Name	NASDAQ
Class A Ordinary Shares [Member]
Entity Addresses [Line Items]
Entity Common Stock, Shares Outstanding	1
Warrants [Member]
Entity Addresses [Line Items]
Entity Common Stock, Shares Outstanding	0
Deferred Shares [Member]
Entity Addresses [Line Items]
Entity Common Stock, Shares Outstanding	25,000
Business Contact [Member]
Entity Addresses [Line Items]
Entity Address, Address Line One	Mespil Business Centre
Entity Address, Address Line Two	Mespil House,
Entity Address, Address Line Three	Sussex Road
Entity Address, City or Town	Dublin 4
Entity Address, Country	IE
Entity Address, Postal Zip Code	D04 T4A6
City Area Code	+353-1
Local Phone Number	920-1000
Contact Personnel Name	Haggai Alon
Contact Personnel Email Address	haggai@securitymattersltd.com

Consolidated Statements of Fina

Consolidated Statements of Financial Position € in Thousands, $ in Thousands		Dec. 31, 2022 USD ($)	Dec. 31, 2022 EUR (€)	Jul. 01, 2022 EUR (€)	Dec. 31, 2021 USD ($)
Current assets
Cash and cash equivalents		$ 1,398			$ 4,171
Other current assets		3,673			920
Total current assets		5,071			5,091
Non-current assets
Property and equipment, net		969			1,192
Intangible assets, net		5,027			3,908
Investment in associated companies		221			147
Total non-current assets		6,217			5,247
Total assets		11,288			10,338
Current liabilities
Trade payables		2,972			916
Lease liabilities		30			37
Other payables		650			673
Convertible note		563
Borrowings from related parties		710			270
Total current liabilities		4,925			1,896
Non-current liabilities
Lease liabilities		440			466
Bridge loans and derivative financial liabilities		3,682
Other liabilities		85			85
Total non-current liabilities		4,207			551
Total liabilities		9,132			2,447
Equity
Issued capital
Additional paid-in capital		32,713			31,504
Foreign currency translation		(537)			223
Accumulated losses		(30,020)			(23,836)
Total equity		2,156			7,891
Total liabilities and equity		11,288			10,338
Security Matters Limited [Member]
Current assets
Cash and cash equivalents | €	[1]		€ 25
Other current assets		3,673			920
Non-current assets
Property and equipment, net		969			1,192
Intangible assets, net		5,027
Investment in associated companies		221			147
Total assets | €	[1]		25
Current liabilities
Lease liabilities		30			37
Other payables		650			673
Convertible note		563
Borrowings from related parties		710			270
Non-current liabilities
Lease liabilities		$ 440			$ 466
Equity
Issued capital | €
Additional paid-in capital | €	[1]		25
Total equity | €	[1]		€ 25
[1]Less than 1 thousand

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Profit or loss [abstract]
Revenue			$ 13
Cost of sales			10
Gross profit			3
Research and development expenses, net	1,898	2,039	1,689
Selling and marketing expenses	569	453	427
General and administrative expenses	2,723	2,482	2,447
Operating loss	(5,190)	(4,974)	(4,560)
Finance expenses	1,128	101	79
Finance income	28	237	67
Share of net profit (loss) of associated companies	106	(101)	(1)
Loss before income tax	(6,184)	(4,939)	(4,573)
Income tax
Loss after income tax for the year attributable to shareholders	(6,184)	(4,939)	(4,573)
Items that will not be reclassified to profit or loss:
Foreign currency translation	(522)	(7)	388
Items that will or may be reclassified to profit or loss:
Exchange gains arising on translation of foreign operations	(238)	(375)
Other comprehensive income (loss), net of tax	(760)	(382)	388
Total comprehensive loss	$ (6,944)	$ (5,321)	$ (4,185)
Loss per share attributable to shareholders
Basic and diluted loss per share attributable to shareholders	$ (0.04)	$ (0.03)	$ (0.04)

Consolidated Statements of Chan

Consolidated Statements of Changes In Equity - USD ($) $ in Thousands	Issued capital [member]	Additional paid-in capital [member]	Foreign Currency Translation [Member]	Retained earnings [member]	Total
Beginning balance, value at Dec. 31, 2019		$ 17,357	$ 217	$ (14,324)	$ 3,250
Beginning balance, shares at Dec. 31, 2019
IfrsStatementLineItems [Line Items]
Loss after income tax for the year				(4,573)	(4,573)
Other comprehensive income (loss) for the year			388		388
Total comprehensive loss for the year			388	(4,573)	(4,185)
Issuance of shares, net		6,857			6,857
Share-based compensation		519			519
Exercise of warrants
Ending balance, value at Dec. 31, 2020		24,733	605	(18,897)	6,441
Ending balance, shares at Dec. 31, 2020
IfrsStatementLineItems [Line Items]
Loss after income tax for the year				(4,939)	(4,939)
Other comprehensive income (loss) for the year			(382)		(382)
Total comprehensive loss for the year			(382)	(4,939)	(5,321)
Issuance of shares, net		5,892			5,892
Share-based compensation		484			484
Exercise of warrants		395			395
Ending balance, value at Dec. 31, 2021		31,504	223	(23,836)	7,891
Ending balance, shares at Dec. 31, 2021
IfrsStatementLineItems [Line Items]
Loss after income tax for the year				(6,184)	(6,184)
Other comprehensive income (loss) for the year			(760)		(760)
Total comprehensive loss for the year			(760)	(6,184)	(6,944)
Issuance of shares, net		182			182
Share-based compensation		306			306
Issuance of options to acquire intangible asset		721			721
Ending balance, value at Dec. 31, 2022		$ 32,713	$ (537)	$ (30,020)	$ 2,156

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cash flows from operating activities:
Loss before tax for the year	$ (6,184)	$ (4,939)	$ (4,573)
Share based compensation	252	431	483
Increase in other current assets	(2,936)	(463)	(162)
Depreciation and amortization	290	315	219
Increase in trade payables	2,217	401	323
Increase in other payables	114	60	150
Increase (decrease) in other liabilities	17	(3)	(15)
Change in fair value of financial liabilities	387
Decrease in provision			(6)
Interest on leases	51	47	29
Provision of borrowing to related parties	621	89
Share in (earnings) losses of associated companies, net	(106)	101	1
Issuance of shares for directors	54	53	36
Net cash flow used in operating activities	(5,223)	(3,908)	(3,515)
Cash flows from investing activities:
Purchase of property, plant and equipment	(152)	(297)	(235)
Capitalized development cost	(975)	(1,468)	(723)
Net cash flow used in investing activities	(1,127)	(1,765)	(958)
Cash flows from financing activities:
Payments of borrowings to related parties	(172)	(103)	(144)
Payment of lease liabilities	(55)	(98)	(12)
Exercise of warrants		395
Proceeds from issuance of convertible notes	581
Proceeds from issuance of shares, net	182	5,892	6,857
Proceeds from bridge loans and warrants	3,310	32
Net cash flow from financing activities	3,846	6,118	6,701
Increase (decrease) in cash and cash equivalents	(2,504)	445	2,228
Cash and cash equivalents at beginning of year	4,171	4,341	1,708
Exchange rate differences on cash and cash equivalent	(269)	(615)	405
Cash and cash equivalents at end of year	$ 1,398	$ 4,171	$ 4,341

GENERAL

GENERAL	12 Months Ended
	Dec. 31, 2022
Guarantor and Issuer, Guaranteed Security [Line Items]
GENERAL	GENERAL A. SMX (Security Matters) Public Limited Company (the “Company”) was incorporated in July 1st 2022 under the laws of Ireland with registered number 722009 and its registered office at Mespil Business Center, Mespil House, Sessex Road, Dublin 4, Ireland, D04 T4A6. B. The Corporation has not engaged in any activities except in connection with its formation. C. On July 26, 2022, Security Matters Limited and Lionheart III Corp (“Lionheart”), a publicly traded special purpose acquisition company (SPAC), entered into a business combination agreement (“BCA”) and accompanying scheme implementation deed (“SID”). Under the BCA, the existing Lionheart stockholders receiving Security Matters Limited shares and warrants in exchange for their existing Lionheart shares and warrants and all shares in Security Matters Limited being cancelled in return for the Company’s shares and resulting in that Security Matters Limited becoming a wholly owned subsidiary of the Company. On March 7, 2023 a business combination (the “Business Combination”) with Lionheart III Corp (“Lionheart”) was completed, following that the Company, which is newly-formed parent company – SMX (Security Matters) Public Limited Company, (formerly called Empatan Public Limited Company) was listed in the NASDAQ stock exchange under the ticker SMX.
Security Matters Limited [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
GENERAL	NOTE 1 – GENERAL A. Security Matters Limited (“Security Matters” or the “Company”, and together with its subsidiaries, the “Group”) was incorporated in May 2018 under Australian law. Security Matters’s registered address is Mespil Business Center, Mespil House, Sessex Road, Dublin 4, Ireland, D04 T4A6. The Group engages in research and development to permanently and irrevocably “mark” any object either solid, liquid or gas, allowing identification, circularity, proof of authenticity, tracking supply chain movements and quality assurance for countless products in virtually every industry. Security Matters’ technology comprises a chemical-based hidden “barcode” system, alongside a unique “reader” to identify these codes, and a blockchain record to store and protect ownership data. Security Matters offers a business-to-business (B2B), “white-label” solution that serves market leaders’ needs for authentication, supply chain integrity and quality assurance. B. On March 7, 2023 the business combination (the “Business Combination”) with Lionheart III Corp (“Lionheart”) was completed, following that a newly-formed parent company – SMX (Security Matters) Public Limited Company (“SMX PLC”), (formerly called Empatan Public Limited Company On July 26, 2022, the Company and Lionheart, a publicly traded special purpose acquisition company (SPAC), entered into a business combination agreement (“BCA”) and accompanying scheme implementation deed (“SID”). Under the BCA, the existing Lionheart stockholders receiving SMX PLC Shares and warrants in exchange for their existing Lionheart shares and warrants and all shares in the Company being cancelled in return for SMX PLC shares and resulting in the Company becoming a wholly owned subsidiary of SMX PLC. The Business Combination resulted in 97.58 3,061 17,300 C. During the 12 months ended December 31, 2022, the Company incurred operating losses and negative cash flows from operating activities. The Company has not yet generated significant revenues. As discussed in Note 12, during the fourth quarter of 2022 the Company entered into binding loan agreements with existing shareholders. As discussed in Note 24 (4), the Company executed an equity line agreement. The Company has also the ability to decrease its expenses in order to meet its existing cash flow streams. Management believes that the proceeds from the recent funding agreements, combined with its cash on hand, equity line and the Company’s plans, are sufficient to meet the Company’s obligations as they come due in the foreseeable future. There are no assurances, however, that the Company will be able to obtain an adequate level of financial resources that are required for its long-term business plan.

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2022
Guarantor and Issuer, Guaranteed Security [Line Items]
SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES The significant accounting policies followed in the preparation of the financial statements, on a consistent basis, are: Basis of preparation These financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (“IASB”). Separate statements of comprehensive income, changes in equity, and cash flows have not been presented because the Corporation has not engaged in any activities except in connection with its formation. Cash and cash equivalents Cash equivalents are considered by the Company to be highly liquid investments, including, inter alia, short-term deposits with banks and the maturity of which do not exceed three months at the time of deposit, and which are not restricted. Foreign currency The financial statements are prepared in EURO which is the presentation and functional currency of the Company.
Security Matters Limited [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES The significant accounting policies followed in the preparation of the financial statements, on a consistent basis, are: Basis of preparation These financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (“IASB”). The financial statements have been prepared under the historical cost convention except for certain financial liabilities which are measured at fair value until conversion. The Company has elected to present the statement of comprehensive income using the function of expense method. Principles of consolidation The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Security Matters Limited as of December 31, 2022 and 2021 and the results of all subsidiaries for the three years in the period then ended. Security Matters Limited and its subsidiaries together are referred to in these financial statements as the Group or the “consolidated entity”. Subsidiaries are all those entities over which the Company has control. The Company controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is obtained by the Company and until the date that control is lost. Intercompany transactions between entities in the consolidated entity are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting Estimates and Assumptions The preparation of the consolidated financial statements requires management to make estimates and assumptions that have an effect on the application of the accounting policies and on the reported amounts of assets, liabilities and expenses. These estimates and underlying assumptions are reviewed regularly. Changes in accounting estimates are reported in the period of the change in estimate. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements, are disclosed in note 3. Cash and cash equivalents Cash equivalents are considered by the Group to be highly liquid investments, including, inter alia, short-term deposits with banks and the maturity of which do not exceed three months at the time of deposit, and which are not restricted. SECURITY MATTERS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (US$ in thousands, except per share data) NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (CONT.): Foreign currency The consolidated financial statements are prepared in US Dollars which is the presentation currency of the Group. Security Matters Limited’s functional currency is Australian Dollars. The functional currency of Security Matters Ltd. (Israel) is New Israeli Shekels. The functional currency of Security Matters Canada Ltd. Is Canadian Dollars. The functional currency of Security Matters France Ltd. Is Euro. The functional currency of SMX Beverages Pty Ltd. Is Australian Dollars. 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: ● Assets and liabilities – at the rate of exchange applicable at the reporting date; ● Expense items – at annual average rate at the statements of financial position date. ● Share capital, capital reserve and other capital movement items were at rate of exchange as of the date of recognition of those items. ● Accumulated deficit was based on the opening balance for the beginning of the reporting period in addition to the movements mentioned above. ● Exchange gains and losses from the aforementioned conversion are recognized in the statement of other comprehensive lose in Foreign Currency Translation Reserve. Investments in associated companies Investments in associated companies are accounted under the equity method and are initially recognized at cost. The investment’s cost includes transaction costs. The consolidated financial statements include the Group’s share in net income or loss, in other comprehensive income or loss, and in the net assets of associated companies accounted by the equity method from the date when significant influence or joint control materialized, until the date on which the conditions for significant influence or joint control are no longer met. Losses of an associate in amounts which exceed its equity are recognized by the Company to the extent of its investment in the associate plus any losses that the Company may incur as a result of a guarantee or other financial support provided in respect of the associate. Loss per share Basic loss per share Basic loss per share is calculated by dividing the net loss attributable to the owners of Security Matters Limited, by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the financial year . Diluted earnings per share Potential ordinary shares are included in the computation of diluted earnings per share when their conversion decreases earnings per share. Potential Ordinary shares that are converted during the period are included in diluted earnings per share only until the conversion date and from that date in basic earnings per share. Governmental grants Government grants received for the use of research and development activities, for which the Group undertook to pay royalties to the state, contingent on future sales arising from this financing, were treated as forgivable loans. The grant was recognized as a liability in the financial statements, except when there is reasonable assurance that the Group will comply with the conditions for the forgiveness of the loan, then it would be recognized as a government grant. When the loan bears a below-market rate of interest, the liability is recognized at its fair value in accordance with the market interest rate prevailing at the time of receiving the grant. The difference between the consideration received and the liability recognized at inception was treated as a government grant and recognized as a reimbursement of research expenses. The repayment of the liability to the state is reviewed every reporting period, with changes in the liability resulting from a change in the expected royalties recognized in profit or loss. SECURITY MATTERS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (US$ in thousands, except per share data) NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (CONT.): Fair value measurement Fair value is the price that would be received when selling 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: A. In the principal market for the asset or liability; or B. 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 Group. 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. 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 Group 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 financial instruments by fair value hierarchy The financial instruments presented in the statements 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). Financial assets The Group classifies its financial assets into one of the following categories, depending on the purpose for which the asset was acquired. The Group’s accounting policy for each category is as follows: Other receivables: These assets are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They arise principally through the provision of goods and services, but also incorporate other types of contractual monetary asset. These assets are carried at amortized cost less any provision for impairment. The Group has no financial assets classified at Fair value through profit or loss. Financial liabilities financial liabilities measured at amortized cost: Financial liabilities are initially recognized at fair value less transaction costs that are directly attributable to the issue of the financial liability. After initial recognition, the Group measures all financial liabilities at amortized cost using the effective interest rate method, which ensures that any interest expense over the period is at a constant interest rate on the balance of the liability carried in the statement of financial position, except for measured at fair value through profit or loss: These financial liabilities comprise of derivatives that are options which are to be settled in equity instruments but nevertheless do not meet the definitions of equity instrument. At initial recognition, the Group measures those financial liabilities at fair value. Transaction costs are recognized in profit or loss. After initial recognition, changes in fair value are recognized in profit or loss. SECURITY MATTERS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (US$ in thousands, except per share data) NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (CONT.): Impairment of financial assets The Group recognizes a loss allowance for expected credit losses on financial assets which are either measured at amortized cost or fair value through other comprehensive income. The measurement of the loss allowance depends upon the Group’s assessment at the end of each reporting period as to whether the financial instrument’s credit risk has increased significantly since initial recognition, based on reasonable and supportable information that is available, without undue cost or effort to obtain. Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-month expected credit loss allowance is estimated. This represents a portion of the asset’s lifetime expected credit losses that is attributable to a default event that is possible within the next 12 months. Where a financial asset has become credit impaired or where it is determined that credit risk has increased significantly, the loss allowance is based on the asset’s lifetime expected credit losses. The amount of expected credit loss recognized is measured on the basis of the probability weighted present value of anticipated cash shortfalls over the life of the instrument discounted at the original effective interest rate. The loss allowance is recognized in profit or loss. Impairment of non-financial assets Intangible assets that have an indefinite useful life are not subject to amortization and are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. Other non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. Recoverable amount is the higher of an asset’s fair value less costs of disposal and value-in-use. The value-in-use is the present value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to the asset or cash-generating unit to which the asset belongs. Assets that do not have independent cash flows are grouped together to form a cash-generating unit. 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 DEPRECIATION RATES OF PROPERTY, PLANT AND EQUIPMENT % Computers 33 Machines and equipment 20 Furniture and office equipment 10 Leasehold improvements 5 Leasehold improvements are depreciated over the term of the expected lease including optional extension, or the estimated useful lives of the improvements, whichever is shorter. Reimbursement of research and development expenses Reimbursements in proof of concept (POC) agreements of expenditures on research and development in order to achieve commercial agreement once this activity will be result successful, are offset in profit or loss against the related expenses (research and development expenses). Any IP generated from this activity remains at the ownership of the Group. SECURITY MATTERS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (US$ in thousands, except per share data) NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (CONT.): Right-of-use assets All leases are accounted for by recognizing a right-of-use asset and a lease liability, excluding leases where the lease term is 12 months or less, or where the underlying asset is of low-value. These leases expenditures are recognized on a straight-line basis over the lease term. A right-of-use asset is recognized at the commencement date of a lease. The right-of-use asset is measured at cost, which comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or before the commencement date net of any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated useful life of the asset, whichever is the shorter. Where the Group expects to obtain ownership of the leased asset at the end of the lease term, the depreciation is over its estimated useful life. Right-of use assets are subject to impairment or adjusted for any remeasurement of lease liabilities. Lease liabilities All leases are accounted for by recognizing a right-of-use asset and a lease liability. Lease liabilities are measured at the present value of the contractual payments due to the lessor over the lease term, with the discount rate determined by reference to the rate implicit in the lease unless (as is typically the case) this is not readily determinable, in which case the Group’s incremental borrowing rate on commencement of the lease is used. Variable lease payments are only included in the measurement of the lease liability if they depend on an index or rate. In such cases, the initial measurement of the lease liability assumes the variable element will remain unchanged throughout the lease term. Other variable lease payments are expensed in the period to which they relate. On initial recognition, the carrying value of the lease liability also includes: ● amounts expected to be payable under any residual value guarantee. ● the exercise price of any purchase option granted in favor of the Group if it is reasonably certain to exercise that option. ● any penalties payable for terminating the lease, if the term of the lease has been estimated on the basis of termination option being exercised. Subsequent to initial measurement lease liabilities increase as a result of interest charged at a constant rate on the balance outstanding and are reduced for lease payments made. Lease liabilities are remeasured when there is a change in future lease payments arising from a change in an index or rate or when there is a change in the assessment of the term of any lease the remeasurement being recognized in front of the right of use assets. Employee benefits The Group has several employee benefit plans as to Israeli 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 Group 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. The Group has defined for most of its employees contribution plans pursuant to Section 14 to the Israel Severance Pay Law since 2004 under which the Group pays fixed contributions and will have no legal or constructive obligation to pay further contributions if the fund does not hold sufficient amounts to pay all employee benefits relating to employee service in the current and prior periods. 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. SECURITY MATTERS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (US$ in thousands, except per share data) NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (CONT.): Intangible assets Intangible assets include capitalized technology development costs. Expenditures on research activities are recognized in profit or loss as incurred. Expenditures on internally developed products are mainly employee salaries and legal fees for filing of patents and are capitalized when the Group demonstrates all the following criteria: a. The technical feasibility of completing the intangible asset so that it will be available for use or sale. b. The intention to complete the intangible asset and use or sell it. c. The ability to use or sell the intangible asset. d. The probability of the intangible asset to generate future economic benefits. Among other things, the Group considers the existence of a market for the output of the intangible asset or the intangible asset itself or, if it is to be used internally, the usefulness of the intangible asset. e. The availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset. f. The ability to measure reliably the expenditures attributable to the intangible asset during its development. The recognition criteria above are considered by the Group at each stage of development to determine when the criteria have been initially met in full. The technical feasibility criteria is determined to be met when the milestone of initial marking and reading capabilities is satisfied. The milestone’s identification occurs only following a detailed broad mapping of the raw material characteristics and establishing the formula for the chemical marker architecture to be embedded into the raw material based on industry standards and regulations. The result is the initial evidence that the x-ray algorithm of the designated reader is in a stage that can identify the marker and convey information. At this stage, the Group believes that the technical feasibility of completing the development for use is probable. The Group notes that technical feasibility has been established and the achieved technology is ready for the next stage which consists of performing a proof-of-concept pilot with an industry partner, in order to adapt the technology for the relevant industry and adjust the development to meet the industry’s needs. Currently, the Group’s capitalized development activities focus on: 1. Development of marker architecture to be embedded topically or in-situ (application) for each material/product within the optimal industrial manufacturing phase, based on industry standards and regulations. 2. Semi Industrial scale – technology implementation in semi-industrial production. 3. Development of a digital platform to support the end-to-end traceability from raw material to final product to recycling. The Group’s management has the full intention to complete the development of the technology and ultimately to sell it. This intention is demonstrated by initiating partnerships with industry market leaders and continuing the development into the next phase. The Group’s intention is also reflected in the Group’s approved budget. The Group’s management intends to concentrate its future sales and marketing efforts in the U.S. market, including recruitment of sales and marketing personnel. It plans to advance successful proof-of-concept pilots performed with industry leading partners, and further advance its innovative technology and commercialization efforts and collaborations in the segments relevant to its technology. The Group’s business model targets leading brands and manufacturers in order to create a new market standard for circular economy solutions, brand authentication and supply chain integrity. The Group’s technology is applicable for multiple industries such as gold, fashion, electronics and circular economy – plastic and rubber. The Group is able to provide an adaptive solution for multiple market segments, based on a unified technology solution, through collaborative relationships with leading market companies which provide it with access to various potential entities to sell its solution. This is part of the Group’s strategy to create strategic partnerships with market leaders across its main segments of activity. The Group believes that this close collaboration with market leaders, and developing a product that meets their requests, suggest that there is a strong potential market for its development. SECURITY MATTERS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (US$ in thousands, except per share data) NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (CONT.): Intangible assets (Cont.) Adequate technical and financial resources are available to complete the development; the development will be completed by the Group’s technology team which consists of professional experienced scientists and engineers, with a track record in the industrial sector and with financial resources successfully raised through the issuance of ordinary shares and loans. The Group has already accomplished its core technology development and is currently focused on development of specific adjustments for different market segments. This stage is focused and short-termed, therefore, management believes that limited financial resources are required for completing the development and that there is high probability for commencing commercial agreements following the successful proof-of-concept pilots. The Group has financial systems in place that allow it to maintain records in sufficient detail that enable it to measure reliably the expenditures attributable to the intangible asset during its development. Development expenditures not satisfying all the above criteria are recognized in the consolidated statement of comprehensive income as incurred. Subsequent measurement In subsequent periods, capitalized development expenditures are measured at cost less accumulated amortization and accumulated impairment losses. An asset is ready for its intended use, when the developed technology becomes operational and the Group completes an initial customization for a client’s specific needs, which means that the technology is fully implemented in the customer’s manufacturing processes and ready for its intended use. The management estimates that in approximately two years such customization will be completed, and amortization will commence. Intangible assets with a finite useful life are amortized over their estimated useful lives and reviewed for impairment whenever there is an indication that the asset may be impaired. The amortization period and the amortization method for intangible assets are reviewed at least at each year end. The carrying amount of these assets is reviewed whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. If the asset is considered to be impaired, the amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired asset. An expenditure incurred in development activities, including the Group’s software development is capitalized only where it clearly increases the economic benefits to be derived from the asset to which it relates, the expenditure will lead to new or substantially improved products, the products are technically and commercially feasible and the Group has sufficient resources to complete the development and reach the stage for which the product is ready for use. All other expenditure, including those incurred in order to maintain an intangible assets current level of performance, is expensed as incurred. Share-based compensation The Group measures the share-based expense and the cost of equity-settled transactions with employees and service providers by reference to the fair value of the equity instruments at the date at which they are granted. The Group selected the Black-Scholes model as the Group’s option pricing model to estimate the fair value of the Group’s options awards. The model is based on share price, grant date and on assumptions regarding expected volatility, expected life of the options, expected dividend, and a no risk interest rate. As for granted options which are settled in equity instruments, the fair value of the options at the grant date is charged to the statement of comprehensive loss 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. New standards, interpretations and amendments not yet effective The Group has not early adopted any standard, interpretation or amendment that has been issued but is 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 Group has decided not to adopt early. The following amendments are effective for the period beginning January 1, 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 January 1, 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 Group is currently assessing the impact of these new accounting standards and amendments. The Group does not expect any other standards issued by the IASB, but not yet effective, to have a material impact on the Group. SECURITY MATTERS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (US$ in thousands, except per share data)

CRITICAL ACCOUNTING ESTIMATES A

CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS	12 Months Ended
	Dec. 31, 2022
Security Matters Limited [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS	NOTE 3 – CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS In the process of applying the significant accounting policies, the Group has made the following judgments which have the most significant effect on the amounts recognized in the financial statements. The preparation of the financial statements requires management to make estimates and assumptions that have an effect on the application of the accounting policies and on the reported amounts of assets, liabilities, revenues and expenses. Changes in accounting estimates are reported in the period of the change in estimate. The key assumptions made in the financial statements are discussed below. Share based payments The Group has a share-based remuneration scheme for employees. The fair value of share options is estimated by using the Black-Scholes model, which was derived to model the value of the firm’s equity over time. The simulation model was designed to take into account the unique terms and conditions of the performance shares and share options, as well as the capital structure of the firm and the volatility of its assets, on the date of grant based on certain assumptions. Those conditions are described in the share-based compensation note and include, among others, the dividend growth rate, expected share price volatility and expected life of the options. The fair value of the equity settled options granted is charged to statement of profit or loss over the vesting period of each tranche and the credit is taken to equity, based on the consolidated entity’s estimate of shares that will eventually vest. Intangible assets The Group capitalizes costs for its developed projects when specific criteria are met. Initial capitalization of costs is based on management’s judgement that technological and economic feasibility is achievable, usually when a product development project has reached a defined milestone according to an established project management model. The management makes assumptions regarding the expected future economic benefit to be derived from the intangible asset and therefore whether the capitalized costs are expected to be recovered. This amount of capitalized costs includes significant investment in the development of marking and reading capabilities in the subject material. Prior to being marketed, the Group will obtain a proof-of-concept pilot with an industry leading partner. The innovative nature of the product gives rise to some judgement as to whether the proof-of-concept will be successful such that it will lead to obtaining commercial contracts with customers. See also Note 2 – Intangible Assets. The Management bases its estimates on historical experience, assumptions, and information currently available and deemed to be reasonable at the time the financial statements are prepared. However, actual amounts may differ from the estimated amounts as more detailed information becomes available. Estimates and assumptions are reviewed on an ongoing basis and, if necessary, changes are recognized in the period in which the estimate is revised. Financial liability at fair value The fair value of financial liabilities at fair value was estimated by using a Black Scholes model and Monte-Carlo simulation approach, which was aimed to model the value of the Company’s assets over time. The simulation approach was designed to take into account the terms and conditions financial liability, which are described in Note 12 and Note 23, as well as the capital structure of the Company and the volatility of its assets. The valuation was performed based on management’s assumptions and projections.

OTHER CURRENT ASSETS

OTHER CURRENT ASSETS	12 Months Ended
	Dec. 31, 2022
Security Matters Limited [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
OTHER CURRENT ASSETS	NOTE 4 – OTHER CURRENT ASSETS : SCHEDULE OF OTHER CURRENT ASSETS December 31, 2022 December 31, 2021 Prepaid expenses (*) 3,157 454 Tax authorities 358 280 Proof of concept receivables 86 116 Other 72 70 Total 3,673 920 * The prepaid expenses include 3,123 SECURITY MATTERS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (US$ in thousands, except per share data)

PROPERTY AND EQUIPMENT, NET

PROPERTY AND EQUIPMENT, NET	12 Months Ended
	Dec. 31, 2022
Security Matters Limited [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
PROPERTY AND EQUIPMENT, NET	NOTE 5 – PROPERTY AND EQUIPMENT, NET SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT Leasehold improvements Machines and Equipment Furniture and Office Equipment Computers Right of use assets Total Cost At January 1, 2022 81 1,233 83 99 628 2,124 Additions - 135 - 17 49 201 Deductions (21 ) (21 ) Depreciation 4 202 7 19 39 271 Currency translation adjustments (18 ) (221 ) (18 ) (14 ) (64 ) (335 ) At December 31, 2022 63 1,147 65 102 592 1,969 Accumulated depreciation At January 1, 2022 20 645 33 72 162 932 Depreciation 4 202 7 19 39 271 Currency translation adjustments (6 ) (148 ) (9 ) (17 ) (23 ) (203 ) At December 31, 2022 18 699 31 74 178 1,000 Net book value at December 31, 2022 45 448 34 28 414 969 Leasehold improvements Machines and Equipment Furniture and Office Equipment Computers Right of use assets Total Cost At January 1, 2021 69 847 73 72 606 1,667 Additions 3 275 1 18 - 297 Depreciation 5 187 7 16 72 287 Currency translation adjustments 9 111 9 9 22 160 At December 31, 2021 81 1,233 83 99 628 2,124 Accumulated depreciation At January 1, 2021 13 399 23 49 85 569 Depreciation 5 187 7 16 72 287 Currency translation adjustments 2 59 3 7 5 76 At December 31, 2021 20 645 33 72 162 932 Net book value at December 31, 2021 61 588 50 28 466 1,192 SECURITY MATTERS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (US$ in thousands, except per share data)

CONVERTIBLE NOTE

CONVERTIBLE NOTE	12 Months Ended
	Dec. 31, 2022
Security Matters Limited [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
CONVERTIBLE NOTE	NOTE 6 – CONVERTIBLE NOTE In May 2022, the Company issued 828,240 convertible notes (the “Convertible Notes”), with a face value of AUD 1 (USD 0.7 ) per each Convertible Note, for an aggregate amount of AUD 828 thousand ( 569 ). The Convertible Notes have a maturity date of six months from issuance date. The conversion price is as follows: (i) if the Company executes a binding agreement for an M&A transaction or receives USD 20 million or more in return for the issuance of shares on or before December 31, 2022, the principal amount of each Convertible Note will automatically be converted into shares in the Company. The issuance price per share will be calculated at a 20% discount to the higher of the offer price or price paid by the investors participating in the qualified transaction, as such term is defined in the Convertible Notes agreement, subject to a floor cap of no lower than AUD 0.15 (USD 0.11) per share. In July 2022, the Company entered into a Business Combination Agreement that will be subject to de-listing of the Company’s ordinary share capital from the Australian Stock Exchange following receiving an Australian court approval of the future merger (ii) if the Company has not executed a binding agreement for a qualified transaction until December 31, 2022, the Convertible Notes balance will automatically convert into ordinary shares at that date. The issuance price per share will be calculated at a 20% discount to the 5-21 day volume weighted average price to December 31, 2022, as such term is defined in the Convertible Notes agreement, subject to a cap of no lower than AUD 0.15 (USD 0.11) per share, and on December 31, 2022 the investors will also be issued unlisted two year options on a 1:2 basis with an exercise price of AUD 0.45 (USD 0.32) per share. . As of December 31, 2022, the Convertible Note amounted to 563 . In July 2022, an amendment to the Convertible Notes agreements was signed between the Company and the investors which prescribes a cancellation of the Convertible Notes and replacing them with the issuance of 1,000,000 On March 7, 2023, the Convertible Notes were converted to 1,000,000

INVESTMENTS IN ASSOCIATED COMPA

INVESTMENTS IN ASSOCIATED COMPANIES	12 Months Ended
	Dec. 31, 2022
Security Matters Limited [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
INVESTMENTS IN ASSOCIATED COMPANIES	NOTE 7 – INVESTMENTS IN ASSOCIATED COMPANIES SCHEDULE OF INVESTMENTS IN ASSOCIATED COMPANIES Entity Country of Incorporation Percentage Owned December 31, 2022 Percentage Owned December 31, 2021 Yahaloma Technologies Inc. Canada 50 50 True Gold Consortium Pty Ltd Australia 44.4 45.5 SMX Beverages Pty Ltd Australia 100 50 The proportion of ownership interest is equal to the proportion of voting power held. SECURITY MATTERS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (US$ in thousands, except per share data) NOTE 7 – INVESTMENTS IN ASSOCIATED COMPANIES (CONT.): Yahaloma Technologies Inc . On April 30, 2019, Security Matters Ltd. Signed an agreement with Trifecta Industries Inc. (“Trifecta”) for the commercialization of Security Matters Ltd.’s trace technology in the diamonds and precious stone industry. Under the terms of the agreement, Security Matters Ltd. And Trifecta established a new entity – Yahaloma Technologies Inc. (“Yahaloma”), which is equally held by Security Matters Limited and Trifecta. Yahaloma will have the exclusive rights and responsibility to commercialize the Group’s intellectual property in the area of diamonds or precious stone. Management has assessed the transaction and reached the conclusion that the new entity is jointly controlled by Security Matters Limited and Trifecta. Management has further determined that the contractual arrangement provides the parties to the joint arrangement with rights to the net assets of the arrangement. The contractual arrangement establishes each party’s share in the profit or loss relating to the activities of the arrangement. The arrangement is a joint venture and the Company’s interests in this joint venture is accounted for using the equity method of accounting. SMX Beverages Pty Ltd On February 10, 2020, the Company signed an agreement with Global BevCo Pty Ltd. (“Global BevCo”), an Australian company for the commercialization of Group’s trace technology in the alcoholic beverages industry. Under the terms of the agreement, the Company and Global BevCo established a new private entity, SMX Beverages Pty Ltd (“SMX-B”), which is equally held by the above two-mentioned entities. The Company has the exclusive rights and responsibility to commercialize the Group’s intellectual property in the area of alcoholic beverages. The joint arrangement is a joint venture and the Company’s interests in its associate is accounted for using the equity method of accounting. On December 24, 2021, the Company signed an agreement with Global BevCo to acquire the remaining 50 8,000,001 0.4 March 25, 2027 960,000 721,424 2.5 5 13,500 5 True Gold Consortium Pty Ltd On July 29, 2020, the Company signed a shareholders’ agreement with W.A. Mint Pty Ltd. And True Gold Consortium Pty Ltd. (“True Gold”). The purpose of the agreement is to set the framework for True Gold’s activity. True Gold’s goal is to establish an industry standard with the development of an innovative system that can mark (at a molecular level), track and trace gold bars and gold through every stage of the supply chain with blockchain technology. Under the terms of the agreement, True Gold will be equally held by the above two-mentioned entities, with the goal of adding other shareholders. The Company’s management has assessed the transaction and reached the conclusion that the new entity is jointly controlled by Security Matters Limited, and W.A. Mint Pty Ltd. The Company’s management has further determined that the contractual arrangement provides the parties to the joint arrangement with rights to the net assets of the arrangement. The contractual arrangement establishes each party’s share in the profit or loss relating to the activities of the arrangement. The arrangement is a joint venture and the Company’s interests in this joint venture is accounted for using the equity method of accounting. SECURITY MATTERS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (US$ in thousands, except per share data) NOTE 7 – INVESTMENTS IN ASSOCIATED COMPANIES (CONT.): Reconciliation of the consolidated entity’s carrying amount SCHEDULE OF INFORMATION ABOUT CONSOLIDATED STRUCTURED ENTITIES December 31, 2022 December 31, 2021 December 31, 2020 Security Matters Limited’s share of net assets 115 248 249 Company’s share in net profits (losses) of associated companies 106 (101 ) (1 ) Closing carrying amount 221 147 248

INTANGIBLE ASSETS, NET

INTANGIBLE ASSETS, NET	12 Months Ended
	Dec. 31, 2022
Security Matters Limited [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
INTANGIBLE ASSETS, NET	NOTE 8 – INTANGIBLE ASSETS, NET SUMMARY OF INTANGIBLE ASSETS NET Capitalization of development cost Purchased license Total US$ in thousands US$ in thousands US$ in thousands COST As of January 1, 2022 4,024 - 4,024 Cost, beginning balance 4,024 - 4,024 Capitalized development cost 975 721 1,696 Currency translation adjustments (500 ) (66 ) (566 ) As of December 31, 2022 4,499 655 5,154 Cost, ending balance 4,499 655 5,154 Accumulated amortization As of January 1, 2022 116 - 116 Accumulated amortization, beginning balance 116 - 116 Amortization 14 - 14 Currency translation adjustments (3 ) - (3 ) As of December 31, 2022 127 - 127 Accumulated amortization, ending balances 127 - 127 Net book value as of December 31, 2022 4,372 655 5,027 Net book value 4,372 655 5,027 SECURITY MATTERS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (US$ in thousands, except per share data) NOTE 8 – Intangible assets, NET Capitalization of development cost US$ in thousands COST As of January 1, 2021 2,332 Cost, beginning balance 2,332 Capitalized development cost 1,468 Currency translation adjustments 224 As of December 31, 2021 4,024 Cost, ending balance 4,024 Accumulated amortization As of January 1, 2021 88 Accumulated amortization, beginning balance 88 Amortization 28 As of December 31, 2021 116 Accumulated amortization, ending balance 116 Net book value as of December 31, 2021 3,908 Net book value 3,908 An intangible asset at the amount of 145 Intangible assets as of December 31, 2022, consist of capitalized technology development costs of the Group’s core technology as well as the cost of the exclusive license intellectual property ( 721 50

LEASES

LEASES	12 Months Ended
	Dec. 31, 2022
Security Matters Limited [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
LEASES	NOTE 9 – LEASES The Group has lease contracts for office facilities (including a lab) and motor vehicles used in its operations. Leases of office and lab facilities generally have lease term of 12 3 Set out below are the carrying amounts of right-of-use assets recognized and the movements during the period: SCHEDULE OF RIGHT OF USE ASSETS Office and lab facilities Motor vehicles Total At January 1, 2022 446 20 466 Right-of-use assets, beginning balance 446 20 466 Additions 49 — 49 Foreign currency translation (35 ) (6 ) (41 ) Deductions (7 ) (14 ) (21 ) Depreciation expense (39 ) — (39 ) As at December 31, 2022 414 — 414 Right-of-use 414 — 414 SECURITY MATTERS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (US$ in thousands, except per share data) NOTE 9 – LEASES (CONT.): Set out below are the carrying amounts of lease liabilities and the movements during the period: SCHEDULE OF LEASE LIABILITY December 31, 2022 December 31, 2021 At January 1, 503 589 Lease liability, beginning balance 503 589 Additions 49 — Deductions (21 ) — Accretion of interest 51 47 Foreign exchange differences (57 ) (35 ) Lease Payments (55 ) (98 ) As at December 31, 470 503 Lease liability, ending balance 470 503 Current 30 37 Non-current 440 466 The following are the amounts recognized in profit or loss: SCHEDULE OF CARRYING AMOUNTS OF LEASE LIABILITIES RECOGNIZED IN PROFIT OR LOSS December 31, 2022 December 31, 2021 Depreciation expense of right-of-use assets 39 72 Interest expense on lease liabilities 51 47 Foreign Exchange different 16 (35 ) Expense relating to short-term leases - - Total amount recognized in profit or loss 106 84

OTHER PAYABLES

OTHER PAYABLES	12 Months Ended
	Dec. 31, 2022
Security Matters Limited [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
OTHER PAYABLES	NOTE 10 – OTHER PAYABLES SCHEDULE OF OTHER PAYABLES December 31, 2022 December 31, 2021 Employees, salaries and related liabilities 392 500 Related party 56 24 Liabilities for grants received (Note 19) 50 30 Accrued expenses — 49 Derivative financial liability (Note 13) — 32 Other 152 38 Total 650 673 SECURITY MATTERS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (US$ in thousands, except per share data)

BORROWINGS FROM RELATED PARTIES

BORROWINGS FROM RELATED PARTIES	12 Months Ended
	Dec. 31, 2022
Security Matters Limited [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
BORROWINGS FROM RELATED PARTIES	NOTE 11 BORROWINGS FROM RELATED PARTIES In 2015, the Group signed an agreement to receive a loan of ILS 2 513 These loan bears interest at an annual rate of 4 SCHEDULE OF BORROWINGS FROM RELATED PARTIES December 31, 2022 December 31, 2021 Balance at January 1, 270 280 Borrowings from related parties, beginning balance 270 280 Payment of borrowings (172 ) (103 ) Provision for bonus (include interest) 621 89 Exchange rate differences (9 ) 4 Balance at December 31, 710 270 Borrowings from related parties, ending balance 710 270 In consideration of providing funding as a seed capitalist, the Company agreed to provide, as additional consideration, a bonus payments (the “Bonus Payments”) on the occurrence of an exit or major liquidity event. In any way, the Bonus Payments are capped at ILS 3 965 The Bonus Payments are intended to operate in one of the two trigger events: (i) dividend distributions paid by the Company; or (ii) the sale of shares by a lender in Security Matters Ltd. (either in the event of a takeover or otherwise) Only if the aggregate amounts of one of the two trigger events exceeds the investment of the lenders in the Company (in a way of loan or shares), then the lender would be entitled the Bonus Payments based on a formula set forth in the agreement. The amount of the Bonus Payments is the amount that exceeds the aggregate sum invested in the Company (in a way of loan or shares) by the lender divided by several factors according to the formula as set forth in the agreement. There is no time limit to pay the Bonus Payments. Once the Company has paid each Bonus Payment in its entirety (i.e., the cap of ILS 3 million has been paid to each Lender), then the Company has fulfilled its obligations. When the Bonus Payments are not expected to be made, the resulting cash flows will not affect profit and loss until the point in which the Company estimates that the liquidity events will take place. As of December 31, 2021, the Company estimated that is more likely than not that the shareholders will sell their shares in 2022 which will entitle them to the Bonus Payments. The amount of the Bonus Payment is subject to assumptions that were made with the assistance of external appraisal. As a result, the increase in the carrying amount of the liability was charged as expense of $ 87 to profit and loss in 2021. In August 2022 the loan from related party has been fully repaid. In August 2022, the Company signed an addendum to the loan agreement that reduces the total amount of the Bonus Payments to ILS 2.5 million (approximately $ 710 ), to be paid upon the completion of the business combination (refer also to Note 24 – Subsequent Events). As of December 31, 2022, the Company estimated that is more likely than not that the business combination will be completed in the foreseeable future, as a result, the Company updated the liability according to the addendum which described above, the carrying amount of the liability was increased to $ 710 and charged as expense of $ 621 to profit and loss in 2022.

BRIDGE LOANS AND DERIVATIVE FIN

BRIDGE LOANS AND DERIVATIVE FINANCIAL LIABILITY	12 Months Ended
	Dec. 31, 2022
Security Matters Limited [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
BRIDGE LOANS AND DERIVATIVE FINANCIAL LIABILITY	NOTE 12 – BRIDGE LOANS AND DERIVATIVE FINANCIAL LIABILITY Between August to December 2022, the Company entered into bridge loan agreements (the “Bridge Loans”) with seven lenders, which lent the Company an aggregate amount of 3,310 . The Bridge Loans have a maturity date of up to two years and bears interest rate of 10 % per annum. The Bridge Loans were accounted for in accordance with amortized cost method. SECURITY MATTERS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (US$ in thousands, except per share data) NOTE 12 – BRIDGE LOANS AND DERIVATIVE FINANCIAL LIABILITY (CONT.): As part of the Bridge Loans agreements, the lenders were granted with three types of warrants: (i) Bonus Warrants – 215,500 11.50 five years Management utilized a third-party appraiser to assist them in valuing the Bonus Warrants. The fair value of the Bonus Warrants was calculated using the Black and Scholes model. As of December 31, 2022, the fair value of the Bonus Warrants was 24 . (ii) Redeemable Warrants Type 1 – 342,000 ) 11.50 five years ) ● 50.00 5.00 ● 25.00 5.00 ● 25.00 5.00 Each investor has the option to decide that the Company will satisfy any or each redemption through the issuance of ordinary shares of SMX PLC based upon a 20% discount to the 20 trading day VWAP preceding each such anniversary Management utilized a third-party appraiser to assist them in valuing the Redeemable Warrants Type 1. The fair value of the Redeemable Warrants Type 1 was calculated using Monte-Carlo simulation model. As of December 31, 2022, the fair value of the Redeemable Warrants Type 1 was 1,973 (iii) Redeemable Warrants Type 2 – 120,000 ) 11.50 five years ) ● 50.00 5.00 ● 50.00 5.00 Each investor has the option to decide that the Company will satisfy any or each redemption through the issuance of ordinary shares of SMX PLC based upon a 20% discount to the 20 trading day VWAP preceding each such anniversary Management utilized a third-party appraiser to assist them in valuing the Redeemable Warrants Type 2. The fair value of the Redeemable Warrants Type 2 was calculated using Monte-Carlo simulation model. As of December 31, 2022, the fair value of the Redeemable Warrants Type 2 was 696 . The main assumptions used in the three valuation models described above were: (1) risk free rate 3.99 81.03 5.18 In the event that the Business Combination shall not be consummated, the Bonus Warrants and the Redeemable Warrants type 1 and 2 shall be exchanged for such number of warrants for the Company’s ordinary shares. SECURITY MATTERS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (US$ in thousands, except per share data)

SHAREHOLDERS_ EQUITY

SHAREHOLDERS’ EQUITY	12 Months Ended
	Dec. 31, 2022
Guarantor and Issuer, Guaranteed Security [Line Items]
SHAREHOLDERS’ EQUITY	NOTE 3 – SHAREHOLDERS’ EQUITY A. The ordinary shares in the Company confer upon their holders the right to receive notice to participate and vote in general meetings of the Company, and the right to receive dividends, if and when declared. SCHEDULE OF ORDINARY SHARES Number of shares December 31, 2022 July 1, 2022 Authorized Issued and outstanding Authorized Issued and outstanding Ordinary shares USD 0.0001 500,000,000 1 500,000,000 1 Deferred Shares 1 25,000 25,000 - - Ordinary shares Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the company in proportion to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value and the company does not have a limited amount of authorised capital. Deferred shares Deferred Ordinary Shares are non-voting shares and do not convey upon the holder the right to be paid a dividend or to receive notice of or to attend, vote or speak at a general meeting. The Deferred Shares confer the right on a return of capital, on a winding-up or otherwise, only to the repayment of the nominal value paid up on the Deferred Shares after repayment of the nominal value of the Ordinary Shares.
Security Matters Limited [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
SHAREHOLDERS’ EQUITY	NOTE 13 – SHAREHOLDERS’ EQUITY A. The ordinary shares in the Company confer upon their holders the right to receive notice to participate and vote in general meetings of the Company, and the right to receive dividends, if and when declared. SCHEDULE OF ORDINARY SHARES Number of shares December 31, 2022 December 31, 2021 Authorized Issued and outstanding Authorized Issued and outstanding Ordinary shares 167,854,581 167,854,581 165,532,264 165,532,264 Ordinary shares Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the company in proportion to the number of and amounts paid on the shares held. The fully paid ordinary shares have no B. Increase in issued share capital: 1) In August 2022, the Company raised capital, in consideration of an aggregate of 254 22 2,000,000 2) In October 2021, the Company raised capital, in consideration of an aggregate of 1,890 115 8,938,666 4,469,333 0.4 March 2022 Upon exercise the holder would receive one ordinary share and another unlisted warrant that bears an exercise price of AUD 0.7, converted to one ordinary share and expired on January 20, 2023 3) In May 2021, the Company issued 15,270,249 4,034 4) During 2021, 1,774,744 1,774,744 395 SECURITY MATTERS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (US$ in thousands, except per share data) NOTE 13 – SHAREHOLDERS’ EQUITY (CONT.): C. Options granted to employees and service providers: 1) In June 2018, the Company has adopted a Share Option Plan (the “Plan”) to provide an incentive to retain, in the employment or service or directorship of the Company and provide the ability to attract new employees, directors or consultants whose services are considered valuable. The persons eligible to participate in the Share Option Plan include employees, directors and consultants of the Company or any subsidiary of the Company. 2) A summary of the status of the Company’s Share Option Plan granted to employees (including performance-based awards) and changes during the relevant period ended on that date is presented below: SCHEDULE OF SHARE OPTION GRANTED Year ended December 31, 2022 Year ended December 31, 2021 Number of options (in thousands) Weighted average Exercise price (AUD) Number of options (in thousands) Weighted average Exercise price (AUD) Outstanding at beginning of year 11,280 0.27 9,530 0.23 Issue of options 1,000 0.27 1,850 0.45 Expired (7,600 ) 0.22 (100 ) 0.34 Outstanding at end of year 4,680 0.35 11,280 0.27 Exercisable options 2,835 0.28 4,318 0.27 The options to employees outstanding as of December 31, 2022, are comprised, as follows: SCHEDULE OF OPTIONS TO EMPLOYEES OUTSTANDING Exercise price (AUD) Outstanding as of December 31, 2022 Weighted average remaining contractual term Exercisable as of December 31, 2022 Weighted average remaining contractual term (years) (years) 0.12 0.2 800 4.59 400 4.64 0.2 955 0.67 878 0.67 0.31 0.357 2075 2.56 1432 2.15 0.6 100 2.24 100 2.24 0.7 750 3.97 25 3.74 4,680 2,835 1. In 2022, the Company granted 600,000 1,600,000 0.03 0.14 vesting period up to 4 years from the grant date, contractual life of the options under the Plan is 5 years 154 2. In 2021, the Company granted 250,000 5,400,000 0.35 0.70 vesting period up to 4 years from the grant date, contractual life of the options under the Plan is 5 years 622 SECURITY MATTERS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (US$ in thousands, except per share data) NOTE 13 – SHAREHOLDERS’ EQUITY (CONT.): D. Options granted to employees and service providers (cont.): 3. In 2020, the Company granted 1,055,000 750,000 2,500,000 0.20 0.70 vesting period up to 4 years from the grant date, contractual life of the options under the Plan is 5 years 533 4. The Company granted 322,317 257,562 54 53 5. The expenses for the options that were not recognized as of December 31, 2022, amount to 152 6. The options issued in 2022 and 2021, were valued using the Black-Scholes pricing model. The main parameters which were used are: (1) risk-free rate: 0.11 3.55 64 118 5 0 E. Performance options: 1) In August 2018, two Executive Directors were granted 10,000,000 0.2 These milestones are reviewed by the Board of Directors and need to be achieved in 4 years since the date it was granted. If the milestones are not reached in 4 years, the options will expire 2) In August 2021, Executive Director was granted 167,000 500,000 the Company raises an aggregated amount of at least 10 million in one raise (including by way of a merger with a company with such amount in its treasury) 80% of the options will become vested. If an amount of 20 million or more is raised in one raise all options will become vested. 0.7 December 6, 2026 98 3) In July 2021, several employees were granted 1,100,000 (1) Company raised an aggregated amount of at least 20 million (including by way of a merger with a company with such amount in its treasury) (2) 25% of the options shall vest after one year and thereafter 6.25% at the end of every three months (3) the employees must continue to provide services to Company 0.351 July – September 2026 214 4) In July 2022, several employees were granted 200,000 25% on the first anniversary of the Vesting Commencement Date and additional 6.25% at the end of each three months of continuous services thereafter. However, if Company or a parent thereof commences trading on NASDAQ, all options shall become fully vested 0.7 0.8 July 2027 10 SECURITY MATTERS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (US$ in thousands, except per share data) NOTE 13 – SHAREHOLDERS’ EQUITY (CONT.): E. Performance options (cont.): 5) In June 2022, a key management was granted 200,000 0.4 June 2027 5 6) In May 2022, a consultant was granted 250,000 0.11 May 26, 2027 19

RESEARCH AND DEVELOPMENT EXPENS

RESEARCH AND DEVELOPMENT EXPENSES, NET	12 Months Ended
	Dec. 31, 2022
Security Matters Limited [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
RESEARCH AND DEVELOPMENT EXPENSES, NET	NOTE 14 – RESEARCH AND DEVELOPMENT EXPENSES, NET SCHEDULE OF RESEARCH AND DEVELOPMENT EXPENSE December 31, 2022 December 31, 2021 December 31, 2020 Salaries and related expenses 2,166 1,795 1,186 Subcontractors and consultants 374 631 509 Research expenses 316 252 155 Depreciation and amortization 255 287 243 Share based compensation 127 100 47 Travel expenses 50 42 11 Freight 30 23 33 Other 6 - 53 Reimbursement from paid pilots and proof of concept projects (1,426 ) (1,091 ) (548 ) Total 1,898 2,039 1,689

GENERAL AND ADMINISTRATIVE EXPE

GENERAL AND ADMINISTRATIVE EXPENSES	12 Months Ended
	Dec. 31, 2022
Security Matters Limited [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
GENERAL AND ADMINISTRATIVE EXPENSES	NOTE 15 – GENERAL AND ADMINISTRATIVE EXPENSES SCHEDULE OF GENERAL AND ADMINISTRATIVE EXPENSES December 31, 2022 December 31, 2021 December 31, 2020 Professional services 1,105 1,089 1,257 Wages and salaries related 935 752 409 Travel expenses 223 - 65 Office and maintenance 145 116 120 Share based compensation 137 331 436 Insurance 60 102 101 Depreciation and amortization 35 28 16 Other 83 64 43 Total 2,723 2,482 2,447 SECURITY MATTERS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (US$ in thousands, except per share data)

TAXES ON INCOME

TAXES ON INCOME	12 Months Ended
	Dec. 31, 2022
Security Matters Limited [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
TAXES ON INCOME	NOTE 16 – TAXES ON INCOME 1. The Company is incorporated and domiciled in Australia where the applicable tax rate is 27.5 2. Theoretical tax: SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE December 31, 2022 December 31, 2021 December 31, 2020 Reconciliation of income tax at the statutory rate Loss before income tax (6,184 ) (4,939 ) (4,573 ) Theoretical tax rate of 27.5 (1,701 ) (1,358 ) (1,257 ) Tax effect amounts which are not deductible/(taxable) in calculating taxable income: Non-deductible expenditure and others 335 118 132 Unrecognized temporary differences and tax losses for which deferred tax weren’t recognized 1,366 1,240 1,125 Income tax / (benefit) — — — 3. As of December 31, 2022, the Group has estimated carry forward tax losses of approximately 24,106 17,659 13,151

LOSS PER SHARE

LOSS PER SHARE	12 Months Ended
	Dec. 31, 2022
Security Matters Limited [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
LOSS PER SHARE	NOTE 17 – LOSS PER SHARE SCHEDULE OF LOSS PER SHARE December 31, 2022 December 31, 2021 December 31, 2020 Net loss attributable to the owners of the company (6,184 ) (4,939 ) (4,573 ) Basic and diluted loss per share (0.04 ) (0.03 ) (0.04 ) Weighted average number of ordinary shares Weighted average number of ordinary shares used in calculating basic and diluted loss per share 167,855 151,850 125,960 SECURITY MATTERS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (US$ in thousands, except per share data)

RELATED PARTIES

RELATED PARTIES	12 Months Ended
	Dec. 31, 2022
Security Matters Limited [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
RELATED PARTIES	NOTE 18 – RELATED PARTIES Key Management Personnel Compensation and other related party transactions and balances: The key management personnel, among others includes board members, CEO and CFO. The totals of remuneration paid to Key Management Personnel and related parties during the years are as follows : SCHEDULE OF KEY MANAGEMENT PERSONNEL 1. Transactions with related parties: December 31, 2022 December 31, 2021 Issuance of options to related party 721 - Short-term salary and fees 508 475 Loan repayment 172 103 Share based payments 98 105 Post-employment retirement benefits 94 92 Payment for Administrative services 36 39 Non-monetary benefits 29 11 Proof of Concept projects paid by affiliated companies (1,064 ) (695 ) Total (594 ) 130 SCHEDULE OF BALANCE WITH RELATED PARTIES 2. Balance with related parties: December 31, 2022 December 31, 2021 Key management Salary and related (99 ) (86 ) Directors Salary and related (82 ) (11 ) Shareholders Borrowings from related parties (710 ) (270 ) Shareholders Other accounts payable (56 ) (24 ) Joint Ventures Other receivables 59 74 Joint Ventures Investment in subsidiary 221 147 (667 ) (170 )

GOVERNMENT GRANTS

GOVERNMENT GRANTS	12 Months Ended
	Dec. 31, 2022
Security Matters Limited [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
GOVERNMENT GRANTS	NOTE 19 – GOVERNMENT GRANTS The Government of Israel encourages research and development projects oriented towards products for export or projects which will otherwise benefit the Israeli economy. This is conducted via the Israel Innovation Authority (IIA), which replaced the former Office of the Chief Scientist (OCS). The Group has an approved project with the IIA under which it received a total of 162 The Group is subject to paying 3 3 The difference between the consideration received and the liability recognized at inception (present value) was treated as a government grant according to IAS 20 and recognized as a reimbursement of research expenses. SCHEDULE OF GOVERNMENT GRANTS December 31, 2022 December 31, 2021 Short term liability at year end 50 30 Long term liability at year end 85 85 Total 135 115 SECURITY MATTERS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (US$ in thousands, except per share data)

CONTROLLED ENTITIES

CONTROLLED ENTITIES	12 Months Ended
	Dec. 31, 2022
Security Matters Limited [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
CONTROLLED ENTITIES	NOTE 20 – CONTROLLED ENTITIES The ultimate legal parent entity of the Group is Security Matters Limited, incorporated and domiciled in Australia. The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance with the accounting policies described in Note 2. SCHEDULE OF ASSETS AND LIABILITIES Controlled entity Country of Incorporation Percentage Owned December 31, 2022 Percentage Owned December 31, 2021 Security Matters Ltd. Israel 100 % 100 % Security Matters Canada Ltd. Canada 100 % 100 % Security Matters France Ltd. France 100 % 100 % SMX Beverages Pty Ltd. Australia 100 % 50 % Security Matters Canada Security Matters Canada was founded in March 2021 for commercializing the group’s activity in Canada. During the period Security Matters Canada has not yet started its operations. Security Matters France Security Matters France was founded in June 2021 for commercializing the group’s activity in EU. During the period Security Matters France has not yet started its operations. SMX Beverages Pty Ltd SMX Beverages Pty Ltd was founded in February 2020 as a joint venture for commercializing the group’s alcoholic beverages activity. Since March 2022, SMX Beverages Pty Ltd has been a wholly owned subsidiary (Note 7). During the period SMX Beverages Pty Ltd has not yet started its operations.

COMMITMENTS AND CONTINGENT LIAB

COMMITMENTS AND CONTINGENT LIABILITIES	12 Months Ended
	Dec. 31, 2022
Security Matters Limited [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
COMMITMENTS AND CONTINGENT LIABILITIES	NOTE 21 – COMMITMENTS AND CONTINGENT LIABILITIES As part of the Board’s ongoing regulatory compliance process, the Board continues to monitor legal and regulatory developments and their potential impact on the Company. Management is not aware of any contingencies that may have a significant impact on the financial position of the Company. 1. In January 2015, the Company entered an agreement with Isorad Ltd. (a company wholly owned by the State of Israel with rights to exclusively commercialize the Soreq Research Center technology for civilian uses), according to which the Company was granted technological license in return for future royalties based on 2.2 1 2 On January 2023, the Company signed an amendment to the agreement that determine the following: (1) for the BCA with Lionheart, Isorad was issued (a) 864,000 3.42 81.92 3 0 1 27 1.5 SECURITY MATTERS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (US$ in thousands, except per share data) NOTE 21 – COMMITMENTS AND CONTINGENT LIABILITIES (CONT.): 2. The Group leases its offices and laboratory under an operating lease agreement, as well as two company cars which are all recognized within lease balances in the financial statements. 3. As Described in Note 11 borrowings from related parties, the Company is committed to pay a bonus payment upon achieving certain goals. The Bonus Payments were examined by an external valuator and based on management’s projections and insights it has estimated that the value of the Lender’s Bonus is estimated at the amount of 87 as of December 31, 2021. In August 2022, the Company signed an addendum to the loan agreement that reduces the maximum total amount of the Bonus Payments to ILS 2.5 million (approximately 710 ), to be paid upon the completion of the business combination. As of December 31, 2022, the bonus was recorded in the amount of 710 . 4. As Described in Note 19 Government grants, the Company has a contingent liability of 166

FINANCIAL INSTRUMENTS AND RISK

FINANCIAL INSTRUMENTS AND RISK MANAGEMENT	12 Months Ended
	Dec. 31, 2022
Security Matters Limited [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT	NOTE 22 - FINANCIAL INSTRUMENTS AND RISK MANAGEMENT Financial risk management objectives The Group’s activities expose it to a variety of financial risks: foreign currency risk, credit risk and liquidity risk. The Group’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the financial performance of the Group. The Group uses different methods to measure different types of risk to which it is exposed. These methods include sensitivity analysis in the case of interest rate, foreign exchange and other price risks, ageing analysis for credit risk and beta analysis in respect of investment portfolios to determine market risk. Foreign currency risk Currency risk is the risk that the value of financial instruments will fluctuate due to changes in foreign exchange rates. Currency risk arises when future commercial transactions and recognized assets and liabilities are denominated in a currency that is not the Group’s functional currency. The Group is exposed to foreign exchange risk arising from currency exposure primarily with respect to the USD and Euro. The Group’s policy is not to enter into any currency hedging transactions. The carrying amounts of the Group foreign currency denominated monetary liability at the reporting date are as follows: SCHEDULE OF FOREIGN CURRENCY RISK Assets Liabilities December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 USD 1,214 481 (99 ) — EUR 28 135 (73 ) — 1,242 616 (172 ) — SECURITY MATTERS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (US$ in thousands, except per share data) NOTE 22 - FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (CONT.): Sensitivity analysis A 10% strengthening of the United States Dollar against the following currencies would have increased (decreased) equity and the income statement by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant. For a 10% weakening of the United States Dollar against the relevant currency, there would be an equal and opposite impact on the profit and other equity. SCHEDULE OF SENSITIVITY ANALYSIS PROFIT AND OTHER EQUITY December 31, 2022 December 31, 2021 Assets less liabilities 1,115 481 10 % 10 % 112 48 Price risk The consolidated entity is not exposed to any significant price risk. Interest rate risk The consolidated entity is not exposed to any significant interest rate risk. 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 Group closely monitors the activities of its counterparties and controls the access to its intellectual property which enables it to ensure the prompt collection. The Group’s main financial assets are cash and cash equivalents as well as other receivables and represent the Group’s maximum exposure to credit risk in connection with its financial assets. Wherever possible and commercially practical, the Group holds cash with major financial institutions in Israel and Australia. The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the reporting date was: SCHEDULE OF FINANCIAL ASSETS AND IMPACT OF CREDIT EXPOSURE December 31, 2022 December 31, 2021 Cash and cash equivalents 1,398 4,171 Other receivables 158 920 Total 1,556 5,091 SECURITY MATTERS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (US$ in thousands, except per share data) NOTE 22 - FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (CONT.): Liquidity risk 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 Group has procedures to minimize such loss by maintaining sufficient cash and other highly liquid current assets and by having available an adequate amount of committed credit facilities. As of the balance sheet date, the Group has a positive working capital. The following tables detail the Group’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 Group can be required to pay. SCHEDULE OF UNDISCOUNTED FINANCIAL LIABILITIES As of December 31, 2022 Less than 1 year 1-5 years Over 5 years Financial liabilities at amortized cost Trade and other payables 3,622 — — Bridge loans (Note 23) — 989 — Government grants 75 84 — Lease liability 72 371 270 Borrowings 710 — — Total 4,479 1,444 270 As of December 31, 2021 Less than 1 year 1-5 years Over 5 years Financial liabilities at amortized cost Trade and other payables 1,589 — — Lease liability 37 272 193 Borrowings 270 — — Total 1,896 272 193 SECURITY MATTERS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (US$ in thousands, except per share data)

FAIR VALUE MEASUREMENT

FAIR VALUE MEASUREMENT	12 Months Ended
	Dec. 31, 2022
Security Matters Limited [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
FAIR VALUE MEASUREMENT	NOTE 23 – FAIR VALUE MEASUREMENT Fair value hierarchy The following tables detail the consolidated entity’s assets and liabilities, measured or disclosed at fair value, using a three-level hierarchy, based on the lowest level of input that is significant to the entire fair value measurement, being: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly Level 3: Unobservable inputs for the asset or liability SCHEDULE OF UNOBSERVABLE FOR ASSETS OR LIABILITY As of December 31, 2022 Level 1 Level 2 Level 3 Total US$ in thousands Liabilities Derivative financial liabilities (Note 22) — — 2,693 2,693 Total — — 2,693 2,693 As of December 31, 2021 Level 1 Level 2 Level 3 Total US$ in thousands Liabilities Derivative financial liability — 32 — 32 Total — 32 — 32

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2022
Guarantor and Issuer, Guaranteed Security [Line Items]
SUBSEQUENT EVENTS	NOTE 4 – SUBSEQUENT EVENTS 1. In February 2023, the Company entered a Standby Equity Facility to raise up to USD 25,000 96 97 3,500 (i) USD 1,500 thousand at the initial closing (was received on March 2023) (ii) USD 2,000 thousand upon effectiveness of a registration statement that was filed on March 2023 2. On January 25, 2023, Security Matters Limited issued 250,000 250 December 31, 2024 15 10 NOTE 4 – SUBSEQUENT EVENTS (CONT.): 3. Between August 2022 to January 2023, Security Matters Limited entered into bridge loan agreements (the “Bridge Loans”) with eleven lenders, which lent Security Matters Limited an aggregate amount of USD 3,860 two years 10 As part of the Bridge Loans agreements, the lenders were granted with two types of warrants: (i) Bonus Warrants – 243,000 11.50 five years (ii) Redeemable Warrants – 597,000 11.50 five years 5.00 Each investor has the option to decide that Security Matters Limited will satisfy any or each redemption through the issuance of ordinary shares of the Company based upon a 20% discount to the 20 trading day VWAP preceding each such anniversary In March 2023, Security Matters Limited signed an addendum to the Bridge Loans agreements which convert USD 1,350 4. In April 25, the Company’s board of directors and its shareholders approved and adopted the SMX Public Limited Company 2022 Incentive Equity Plan, which was subsequently amended the Company’s board of directors, subject to applicable Nasdaq requirements, which reserved for grant a number of Ordinary Shares equal to 15 5,082,417 5. The financial statements were authorized for issuance on April 25, 2023.
Security Matters Limited [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
SUBSEQUENT EVENTS	NOTE 24 – SUBSEQUENT EVENTS Since the reporting date the following significant events have occurred: 1. On January 25, 2023, the Company issued 250,000 in principal amount of convertible notes for an aggregate amount of 250 . These convertible notes have a maturity date of the earlier between December 31, 2024 and the date of any change in control (excluding the Business Combination). The convertible notes has an interest rate of 15% per annum. The convertible notes shall be converted into common shares at a conversion price of USD 10. 2. In January 2023, the Company signed an amendment to the agreement with Isorad that determine the following: (1) for the BCA with Lionheart, Isorad was issued (a) 864,000 options to purchase shares of the Company, the options were issued in January 2023 and valued using the Black-Scholes pricing model. The main parameters which were used are: (1) risk-free rate: 3.42 %; (2) expected volatility: 81.92 %: (3) expected term: up to 3 years; and (4) expected dividend yield: 0 % ; (b) Additionally, Isorad will be entitled to 1% of any amount actually received against equity or other funding convertible into equity at the closing of the transaction and until 13 months thereafter (to be paid after reaching an aggregated received amount of 27 million, or at the end of such 13 months, the earlier thereof). (2) Exit fee - in the occurrence of the first M&A event (as such event is defined in such agreement to include mergers, sale of all or substantially all the assets of the Company and similar event) after the closing of the BCA with SPAC, the Company is to pay a cash amount equal to 1.5 % of the amount received or transferred. This will not apply to any future offer of shares, merger or sale of assets thereafter. 3. On March 2, 2023, the Group signed an amendment that postponed the Bonus payment from borrowing from related party to March 31, 2024 (see Note 11). 4. In February 2023, SMX PLC entered a Standby Equity Facility to raise up to USD $ 25,000 thousand of common stock over the course of 36 months. SMX PLC will issue to the investor the common stock at a purchase price as one of two options (i) equal to 96 % of the weighted average price (“VWAP”) of the common stock during the applicable pricing period (ii) equal to 97 % of the lowest VWAP of the common stock during a pricing period of 3 consecutive trading days commencing on the relevant period. SMX PLC issued in advance part of the common stocks for proceeds of 3,500 as follows (i) 1,500 at the initial closing (was received on March 2023) (ii) 2,000 upon effectiveness of a registration statement that was initially filed in March 2023. 5. During 2023, the Company entered into an additional bridge loan agreement (the “Additional Bridge Loans”), in which the Company raised an aggregate amount of 550 . The Additional Bridge Loans have a maturity date of up to two years and bears interest rate of 10 % per annum. 6. In March 2023, the Group signed an addendum to the Bridge Loans agreements (see also Note 12) which converted $ 1,350 into common shares and deferred the remaining cash payments to March 31, 2024. 7. On March 7, 2023, certain of the Company’s Convertible Notes (see also Note 6) were converted to 1,000,000 ordinary shares of the Company. 8. The financial statements were authorized for issuance on April 25, 2023.

SIGNIFICANT ACCOUNTING POLICI_2

SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2022
Guarantor and Issuer, Guaranteed Security [Line Items]
Basis of preparation	Basis of preparation These financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (“IASB”). Separate statements of comprehensive income, changes in equity, and cash flows have not been presented because the Corporation has not engaged in any activities except in connection with its formation.
Cash and cash equivalents	Cash and cash equivalents Cash equivalents are considered by the Company to be highly liquid investments, including, inter alia, short-term deposits with banks and the maturity of which do not exceed three months at the time of deposit, and which are not restricted.
Foreign currency	Foreign currency The financial statements are prepared in EURO which is the presentation and functional currency of the Company.
Security Matters Limited [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
Basis of preparation	Basis of preparation These financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (“IASB”). The financial statements have been prepared under the historical cost convention except for certain financial liabilities which are measured at fair value until conversion. The Company has elected to present the statement of comprehensive income using the function of expense method.
Principles of consolidation	Principles of consolidation The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Security Matters Limited as of December 31, 2022 and 2021 and the results of all subsidiaries for the three years in the period then ended. Security Matters Limited and its subsidiaries together are referred to in these financial statements as the Group or the “consolidated entity”. Subsidiaries are all those entities over which the Company has control. The Company controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is obtained by the Company and until the date that control is lost. Intercompany transactions between entities in the consolidated entity are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred.
Accounting Estimates and Assumptions	Accounting Estimates and Assumptions The preparation of the consolidated financial statements requires management to make estimates and assumptions that have an effect on the application of the accounting policies and on the reported amounts of assets, liabilities and expenses. These estimates and underlying assumptions are reviewed regularly. Changes in accounting estimates are reported in the period of the change in estimate. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements, are disclosed in note 3.
Cash and cash equivalents	Cash and cash equivalents Cash equivalents are considered by the Group to be highly liquid investments, including, inter alia, short-term deposits with banks and the maturity of which do not exceed three months at the time of deposit, and which are not restricted. SECURITY MATTERS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (US$ in thousands, except per share data) NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (CONT.):
Foreign currency	Foreign currency The consolidated financial statements are prepared in US Dollars which is the presentation currency of the Group. Security Matters Limited’s functional currency is Australian Dollars. The functional currency of Security Matters Ltd. (Israel) is New Israeli Shekels. The functional currency of Security Matters Canada Ltd. Is Canadian Dollars. The functional currency of Security Matters France Ltd. Is Euro. The functional currency of SMX Beverages Pty Ltd. Is Australian Dollars. 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: ● Assets and liabilities – at the rate of exchange applicable at the reporting date; ● Expense items – at annual average rate at the statements of financial position date. ● Share capital, capital reserve and other capital movement items were at rate of exchange as of the date of recognition of those items. ● Accumulated deficit was based on the opening balance for the beginning of the reporting period in addition to the movements mentioned above. ● Exchange gains and losses from the aforementioned conversion are recognized in the statement of other comprehensive lose in Foreign Currency Translation Reserve.
Investments in associated companies	Investments in associated companies Investments in associated companies are accounted under the equity method and are initially recognized at cost. The investment’s cost includes transaction costs. The consolidated financial statements include the Group’s share in net income or loss, in other comprehensive income or loss, and in the net assets of associated companies accounted by the equity method from the date when significant influence or joint control materialized, until the date on which the conditions for significant influence or joint control are no longer met. Losses of an associate in amounts which exceed its equity are recognized by the Company to the extent of its investment in the associate plus any losses that the Company may incur as a result of a guarantee or other financial support provided in respect of the associate.
Loss per share	Loss per share Basic loss per share Basic loss per share is calculated by dividing the net loss attributable to the owners of Security Matters Limited, by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the financial year . Diluted earnings per share Potential ordinary shares are included in the computation of diluted earnings per share when their conversion decreases earnings per share. Potential Ordinary shares that are converted during the period are included in diluted earnings per share only until the conversion date and from that date in basic earnings per share.
Governmental grants	Governmental grants Government grants received for the use of research and development activities, for which the Group undertook to pay royalties to the state, contingent on future sales arising from this financing, were treated as forgivable loans. The grant was recognized as a liability in the financial statements, except when there is reasonable assurance that the Group will comply with the conditions for the forgiveness of the loan, then it would be recognized as a government grant. When the loan bears a below-market rate of interest, the liability is recognized at its fair value in accordance with the market interest rate prevailing at the time of receiving the grant. The difference between the consideration received and the liability recognized at inception was treated as a government grant and recognized as a reimbursement of research expenses. The repayment of the liability to the state is reviewed every reporting period, with changes in the liability resulting from a change in the expected royalties recognized in profit or loss. SECURITY MATTERS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (US$ in thousands, except per share data) NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (CONT.):
Fair value measurement	Fair value measurement Fair value is the price that would be received when selling 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: A. In the principal market for the asset or liability; or B. 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 Group. 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. 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 Group 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 financial instruments by fair value hierarchy	Classification of financial instruments by fair value hierarchy The financial instruments presented in the statements 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).
Financial assets	Financial assets The Group classifies its financial assets into one of the following categories, depending on the purpose for which the asset was acquired. The Group’s accounting policy for each category is as follows: Other receivables: These assets are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They arise principally through the provision of goods and services, but also incorporate other types of contractual monetary asset. These assets are carried at amortized cost less any provision for impairment. The Group has no financial assets classified at Fair value through profit or loss.
Financial liabilities	Financial liabilities financial liabilities measured at amortized cost: Financial liabilities are initially recognized at fair value less transaction costs that are directly attributable to the issue of the financial liability. After initial recognition, the Group measures all financial liabilities at amortized cost using the effective interest rate method, which ensures that any interest expense over the period is at a constant interest rate on the balance of the liability carried in the statement of financial position, except for measured at fair value through profit or loss: These financial liabilities comprise of derivatives that are options which are to be settled in equity instruments but nevertheless do not meet the definitions of equity instrument. At initial recognition, the Group measures those financial liabilities at fair value. Transaction costs are recognized in profit or loss. After initial recognition, changes in fair value are recognized in profit or loss. SECURITY MATTERS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (US$ in thousands, except per share data) NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (CONT.):
Impairment of financial assets	Impairment of financial assets The Group recognizes a loss allowance for expected credit losses on financial assets which are either measured at amortized cost or fair value through other comprehensive income. The measurement of the loss allowance depends upon the Group’s assessment at the end of each reporting period as to whether the financial instrument’s credit risk has increased significantly since initial recognition, based on reasonable and supportable information that is available, without undue cost or effort to obtain. Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-month expected credit loss allowance is estimated. This represents a portion of the asset’s lifetime expected credit losses that is attributable to a default event that is possible within the next 12 months. Where a financial asset has become credit impaired or where it is determined that credit risk has increased significantly, the loss allowance is based on the asset’s lifetime expected credit losses. The amount of expected credit loss recognized is measured on the basis of the probability weighted present value of anticipated cash shortfalls over the life of the instrument discounted at the original effective interest rate. The loss allowance is recognized in profit or loss.
Impairment of non-financial assets	Impairment of non-financial assets Intangible assets that have an indefinite useful life are not subject to amortization and are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. Other non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. Recoverable amount is the higher of an asset’s fair value less costs of disposal and value-in-use. The value-in-use is the present value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to the asset or cash-generating unit to which the asset belongs. Assets that do not have independent cash flows are grouped together to form a cash-generating unit.
Property, plant and equipment	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 DEPRECIATION RATES OF PROPERTY, PLANT AND EQUIPMENT % Computers 33 Machines and equipment 20 Furniture and office equipment 10 Leasehold improvements 5 Leasehold improvements are depreciated over the term of the expected lease including optional extension, or the estimated useful lives of the improvements, whichever is shorter.
Reimbursement of research and development expenses	Reimbursement of research and development expenses Reimbursements in proof of concept (POC) agreements of expenditures on research and development in order to achieve commercial agreement once this activity will be result successful, are offset in profit or loss against the related expenses (research and development expenses). Any IP generated from this activity remains at the ownership of the Group. SECURITY MATTERS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (US$ in thousands, except per share data) NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (CONT.):
Right-of-use assets	Right-of-use assets All leases are accounted for by recognizing a right-of-use asset and a lease liability, excluding leases where the lease term is 12 months or less, or where the underlying asset is of low-value. These leases expenditures are recognized on a straight-line basis over the lease term. A right-of-use asset is recognized at the commencement date of a lease. The right-of-use asset is measured at cost, which comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or before the commencement date net of any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated useful life of the asset, whichever is the shorter. Where the Group expects to obtain ownership of the leased asset at the end of the lease term, the depreciation is over its estimated useful life. Right-of use assets are subject to impairment or adjusted for any remeasurement of lease liabilities.
Lease liabilities	Lease liabilities All leases are accounted for by recognizing a right-of-use asset and a lease liability. Lease liabilities are measured at the present value of the contractual payments due to the lessor over the lease term, with the discount rate determined by reference to the rate implicit in the lease unless (as is typically the case) this is not readily determinable, in which case the Group’s incremental borrowing rate on commencement of the lease is used. Variable lease payments are only included in the measurement of the lease liability if they depend on an index or rate. In such cases, the initial measurement of the lease liability assumes the variable element will remain unchanged throughout the lease term. Other variable lease payments are expensed in the period to which they relate. On initial recognition, the carrying value of the lease liability also includes: ● amounts expected to be payable under any residual value guarantee. ● the exercise price of any purchase option granted in favor of the Group if it is reasonably certain to exercise that option. ● any penalties payable for terminating the lease, if the term of the lease has been estimated on the basis of termination option being exercised. Subsequent to initial measurement lease liabilities increase as a result of interest charged at a constant rate on the balance outstanding and are reduced for lease payments made. Lease liabilities are remeasured when there is a change in future lease payments arising from a change in an index or rate or when there is a change in the assessment of the term of any lease the remeasurement being recognized in front of the right of use assets.
Employee benefits	Employee benefits The Group has several employee benefit plans as to Israeli 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 Group 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. The Group has defined for most of its employees contribution plans pursuant to Section 14 to the Israel Severance Pay Law since 2004 under which the Group pays fixed contributions and will have no legal or constructive obligation to pay further contributions if the fund does not hold sufficient amounts to pay all employee benefits relating to employee service in the current and prior periods. 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. SECURITY MATTERS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (US$ in thousands, except per share data) NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (CONT.):
Intangible assets	Intangible assets Intangible assets include capitalized technology development costs. Expenditures on research activities are recognized in profit or loss as incurred. Expenditures on internally developed products are mainly employee salaries and legal fees for filing of patents and are capitalized when the Group demonstrates all the following criteria: a. The technical feasibility of completing the intangible asset so that it will be available for use or sale. b. The intention to complete the intangible asset and use or sell it. c. The ability to use or sell the intangible asset. d. The probability of the intangible asset to generate future economic benefits. Among other things, the Group considers the existence of a market for the output of the intangible asset or the intangible asset itself or, if it is to be used internally, the usefulness of the intangible asset. e. The availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset. f. The ability to measure reliably the expenditures attributable to the intangible asset during its development. The recognition criteria above are considered by the Group at each stage of development to determine when the criteria have been initially met in full. The technical feasibility criteria is determined to be met when the milestone of initial marking and reading capabilities is satisfied. The milestone’s identification occurs only following a detailed broad mapping of the raw material characteristics and establishing the formula for the chemical marker architecture to be embedded into the raw material based on industry standards and regulations. The result is the initial evidence that the x-ray algorithm of the designated reader is in a stage that can identify the marker and convey information. At this stage, the Group believes that the technical feasibility of completing the development for use is probable. The Group notes that technical feasibility has been established and the achieved technology is ready for the next stage which consists of performing a proof-of-concept pilot with an industry partner, in order to adapt the technology for the relevant industry and adjust the development to meet the industry’s needs. Currently, the Group’s capitalized development activities focus on: 1. Development of marker architecture to be embedded topically or in-situ (application) for each material/product within the optimal industrial manufacturing phase, based on industry standards and regulations. 2. Semi Industrial scale – technology implementation in semi-industrial production. 3. Development of a digital platform to support the end-to-end traceability from raw material to final product to recycling. The Group’s management has the full intention to complete the development of the technology and ultimately to sell it. This intention is demonstrated by initiating partnerships with industry market leaders and continuing the development into the next phase. The Group’s intention is also reflected in the Group’s approved budget. The Group’s management intends to concentrate its future sales and marketing efforts in the U.S. market, including recruitment of sales and marketing personnel. It plans to advance successful proof-of-concept pilots performed with industry leading partners, and further advance its innovative technology and commercialization efforts and collaborations in the segments relevant to its technology. The Group’s business model targets leading brands and manufacturers in order to create a new market standard for circular economy solutions, brand authentication and supply chain integrity. The Group’s technology is applicable for multiple industries such as gold, fashion, electronics and circular economy – plastic and rubber. The Group is able to provide an adaptive solution for multiple market segments, based on a unified technology solution, through collaborative relationships with leading market companies which provide it with access to various potential entities to sell its solution. This is part of the Group’s strategy to create strategic partnerships with market leaders across its main segments of activity. The Group believes that this close collaboration with market leaders, and developing a product that meets their requests, suggest that there is a strong potential market for its development. SECURITY MATTERS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (US$ in thousands, except per share data) NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (CONT.): Intangible assets (Cont.) Adequate technical and financial resources are available to complete the development; the development will be completed by the Group’s technology team which consists of professional experienced scientists and engineers, with a track record in the industrial sector and with financial resources successfully raised through the issuance of ordinary shares and loans. The Group has already accomplished its core technology development and is currently focused on development of specific adjustments for different market segments. This stage is focused and short-termed, therefore, management believes that limited financial resources are required for completing the development and that there is high probability for commencing commercial agreements following the successful proof-of-concept pilots. The Group has financial systems in place that allow it to maintain records in sufficient detail that enable it to measure reliably the expenditures attributable to the intangible asset during its development. Development expenditures not satisfying all the above criteria are recognized in the consolidated statement of comprehensive income as incurred. Subsequent measurement In subsequent periods, capitalized development expenditures are measured at cost less accumulated amortization and accumulated impairment losses. An asset is ready for its intended use, when the developed technology becomes operational and the Group completes an initial customization for a client’s specific needs, which means that the technology is fully implemented in the customer’s manufacturing processes and ready for its intended use. The management estimates that in approximately two years such customization will be completed, and amortization will commence. Intangible assets with a finite useful life are amortized over their estimated useful lives and reviewed for impairment whenever there is an indication that the asset may be impaired. The amortization period and the amortization method for intangible assets are reviewed at least at each year end. The carrying amount of these assets is reviewed whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. If the asset is considered to be impaired, the amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired asset. An expenditure incurred in development activities, including the Group’s software development is capitalized only where it clearly increases the economic benefits to be derived from the asset to which it relates, the expenditure will lead to new or substantially improved products, the products are technically and commercially feasible and the Group has sufficient resources to complete the development and reach the stage for which the product is ready for use. All other expenditure, including those incurred in order to maintain an intangible assets current level of performance, is expensed as incurred.
Share-based compensation	Share-based compensation The Group measures the share-based expense and the cost of equity-settled transactions with employees and service providers by reference to the fair value of the equity instruments at the date at which they are granted. The Group selected the Black-Scholes model as the Group’s option pricing model to estimate the fair value of the Group’s options awards. The model is based on share price, grant date and on assumptions regarding expected volatility, expected life of the options, expected dividend, and a no risk interest rate. As for granted options which are settled in equity instruments, the fair value of the options at the grant date is charged to the statement of comprehensive loss 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.
New standards, interpretations and amendments not yet effective	New standards, interpretations and amendments not yet effective The Group has not early adopted any standard, interpretation or amendment that has been issued but is 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 Group has decided not to adopt early. The following amendments are effective for the period beginning January 1, 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 January 1, 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 Group is currently assessing the impact of these new accounting standards and amendments. The Group does not expect any other standards issued by the IASB, but not yet effective, to have a material impact on the Group.

SIGNIFICANT ACCOUNTING POLICI_3

SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2022
Security Matters Limited [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
SCHEDULE OF DEPRECIATION RATES OF PROPERTY, PLANT AND EQUIPMENT	SCHEDULE OF DEPRECIATION RATES OF PROPERTY, PLANT AND EQUIPMENT % Computers 33 Machines and equipment 20 Furniture and office equipment 10 Leasehold improvements 5

OTHER CURRENT ASSETS (Tables)

OTHER CURRENT ASSETS (Tables)	12 Months Ended
	Dec. 31, 2022
Security Matters Limited [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
SCHEDULE OF OTHER CURRENT ASSETS	SCHEDULE OF OTHER CURRENT ASSETS December 31, 2022 December 31, 2021 Prepaid expenses (*) 3,157 454 Tax authorities 358 280 Proof of concept receivables 86 116 Other 72 70 Total 3,673 920 * The prepaid expenses include 3,123

PROPERTY AND EQUIPMENT, NET (Ta

PROPERTY AND EQUIPMENT, NET (Tables)	12 Months Ended
	Dec. 31, 2022
Security Matters Limited [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT	SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT Leasehold improvements Machines and Equipment Furniture and Office Equipment Computers Right of use assets Total Cost At January 1, 2022 81 1,233 83 99 628 2,124 Additions - 135 - 17 49 201 Deductions (21 ) (21 ) Depreciation 4 202 7 19 39 271 Currency translation adjustments (18 ) (221 ) (18 ) (14 ) (64 ) (335 ) At December 31, 2022 63 1,147 65 102 592 1,969 Accumulated depreciation At January 1, 2022 20 645 33 72 162 932 Depreciation 4 202 7 19 39 271 Currency translation adjustments (6 ) (148 ) (9 ) (17 ) (23 ) (203 ) At December 31, 2022 18 699 31 74 178 1,000 Net book value at December 31, 2022 45 448 34 28 414 969 Leasehold improvements Machines and Equipment Furniture and Office Equipment Computers Right of use assets Total Cost At January 1, 2021 69 847 73 72 606 1,667 Additions 3 275 1 18 - 297 Depreciation 5 187 7 16 72 287 Currency translation adjustments 9 111 9 9 22 160 At December 31, 2021 81 1,233 83 99 628 2,124 Accumulated depreciation At January 1, 2021 13 399 23 49 85 569 Depreciation 5 187 7 16 72 287 Currency translation adjustments 2 59 3 7 5 76 At December 31, 2021 20 645 33 72 162 932 Net book value at December 31, 2021 61 588 50 28 466 1,192

INVESTMENTS IN ASSOCIATED COM_2

INVESTMENTS IN ASSOCIATED COMPANIES (Tables)	12 Months Ended
	Dec. 31, 2022
Security Matters Limited [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
SCHEDULE OF INFORMATION ABOUT CONSOLIDATED STRUCTURED ENTITIES	Reconciliation of the consolidated entity’s carrying amount SCHEDULE OF INFORMATION ABOUT CONSOLIDATED STRUCTURED ENTITIES December 31, 2022 December 31, 2021 December 31, 2020 Security Matters Limited’s share of net assets 115 248 249 Company’s share in net profits (losses) of associated companies 106 (101 ) (1 ) Closing carrying amount 221 147 248

INTANGIBLE ASSETS, NET (Tables)

INTANGIBLE ASSETS, NET (Tables)	12 Months Ended
	Dec. 31, 2022
Security Matters Limited [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
SUMMARY OF INTANGIBLE ASSETS NET	SUMMARY OF INTANGIBLE ASSETS NET Capitalization of development cost Purchased license Total US$ in thousands US$ in thousands US$ in thousands COST As of January 1, 2022 4,024 - 4,024 Cost, beginning balance 4,024 - 4,024 Capitalized development cost 975 721 1,696 Currency translation adjustments (500 ) (66 ) (566 ) As of December 31, 2022 4,499 655 5,154 Cost, ending balance 4,499 655 5,154 Accumulated amortization As of January 1, 2022 116 - 116 Accumulated amortization, beginning balance 116 - 116 Amortization 14 - 14 Currency translation adjustments (3 ) - (3 ) As of December 31, 2022 127 - 127 Accumulated amortization, ending balances 127 - 127 Net book value as of December 31, 2022 4,372 655 5,027 Net book value 4,372 655 5,027 SECURITY MATTERS LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (US$ in thousands, except per share data) NOTE 8 – Intangible assets, NET Capitalization of development cost US$ in thousands COST As of January 1, 2021 2,332 Cost, beginning balance 2,332 Capitalized development cost 1,468 Currency translation adjustments 224 As of December 31, 2021 4,024 Cost, ending balance 4,024 Accumulated amortization As of January 1, 2021 88 Accumulated amortization, beginning balance 88 Amortization 28 As of December 31, 2021 116 Accumulated amortization, ending balance 116 Net book value as of December 31, 2021 3,908 Net book value 3,908

LEASES (Tables)

LEASES (Tables) - Security Matters Limited [Member]	12 Months Ended
	Dec. 31, 2022
Guarantor and Issuer, Guaranteed Security [Line Items]
SCHEDULE OF RIGHT OF USE ASSETS	Set out below are the carrying amounts of right-of-use assets recognized and the movements during the period: SCHEDULE OF RIGHT OF USE ASSETS Office and lab facilities Motor vehicles Total At January 1, 2022 446 20 466 Right-of-use assets, beginning balance 446 20 466 Additions 49 — 49 Foreign currency translation (35 ) (6 ) (41 ) Deductions (7 ) (14 ) (21 ) Depreciation expense (39 ) — (39 ) As at December 31, 2022 414 — 414 Right-of-use 414 — 414
SCHEDULE OF LEASE LIABILITY	Set out below are the carrying amounts of lease liabilities and the movements during the period: SCHEDULE OF LEASE LIABILITY December 31, 2022 December 31, 2021 At January 1, 503 589 Lease liability, beginning balance 503 589 Additions 49 — Deductions (21 ) — Accretion of interest 51 47 Foreign exchange differences (57 ) (35 ) Lease Payments (55 ) (98 ) As at December 31, 470 503 Lease liability, ending balance 470 503 Current 30 37 Non-current 440 466
SCHEDULE OF CARRYING AMOUNTS OF LEASE LIABILITIES RECOGNIZED IN PROFIT OR LOSS	The following are the amounts recognized in profit or loss: SCHEDULE OF CARRYING AMOUNTS OF LEASE LIABILITIES RECOGNIZED IN PROFIT OR LOSS December 31, 2022 December 31, 2021 Depreciation expense of right-of-use assets 39 72 Interest expense on lease liabilities 51 47 Foreign Exchange different 16 (35 ) Expense relating to short-term leases - - Total amount recognized in profit or loss 106 84

OTHER PAYABLES (Tables)

OTHER PAYABLES (Tables)	12 Months Ended
	Dec. 31, 2022
Security Matters Limited [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
SCHEDULE OF OTHER PAYABLES	SCHEDULE OF OTHER PAYABLES December 31, 2022 December 31, 2021 Employees, salaries and related liabilities 392 500 Related party 56 24 Liabilities for grants received (Note 19) 50 30 Accrued expenses — 49 Derivative financial liability (Note 13) — 32 Other 152 38 Total 650 673

BORROWINGS FROM RELATED PARTI_2

BORROWINGS FROM RELATED PARTIES (Tables)	12 Months Ended
	Dec. 31, 2022
Security Matters Limited [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
SCHEDULE OF BORROWINGS FROM RELATED PARTIES	SCHEDULE OF BORROWINGS FROM RELATED PARTIES December 31, 2022 December 31, 2021 Balance at January 1, 270 280 Borrowings from related parties, beginning balance 270 280 Payment of borrowings (172 ) (103 ) Provision for bonus (include interest) 621 89 Exchange rate differences (9 ) 4 Balance at December 31, 710 270 Borrowings from related parties, ending balance 710 270

SHAREHOLDERS_ EQUITY (Tables)

SHAREHOLDERS’ EQUITY (Tables)	12 Months Ended
	Dec. 31, 2022
Guarantor and Issuer, Guaranteed Security [Line Items]
SCHEDULE OF ORDINARY SHARES	SCHEDULE OF ORDINARY SHARES Number of shares December 31, 2022 July 1, 2022 Authorized Issued and outstanding Authorized Issued and outstanding Ordinary shares USD 0.0001 500,000,000 1 500,000,000 1 Deferred Shares 1 25,000 25,000 - -
Security Matters Limited [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
SCHEDULE OF ORDINARY SHARES	SCHEDULE OF ORDINARY SHARES Number of shares December 31, 2022 December 31, 2021 Authorized Issued and outstanding Authorized Issued and outstanding Ordinary shares 167,854,581 167,854,581 165,532,264 165,532,264
SCHEDULE OF SHARE OPTION GRANTED	SCHEDULE OF SHARE OPTION GRANTED Year ended December 31, 2022 Year ended December 31, 2021 Number of options (in thousands) Weighted average Exercise price (AUD) Number of options (in thousands) Weighted average Exercise price (AUD) Outstanding at beginning of year 11,280 0.27 9,530 0.23 Issue of options 1,000 0.27 1,850 0.45 Expired (7,600 ) 0.22 (100 ) 0.34 Outstanding at end of year 4,680 0.35 11,280 0.27 Exercisable options 2,835 0.28 4,318 0.27
SCHEDULE OF OPTIONS TO EMPLOYEES OUTSTANDING	The options to employees outstanding as of December 31, 2022, are comprised, as follows: SCHEDULE OF OPTIONS TO EMPLOYEES OUTSTANDING Exercise price (AUD) Outstanding as of December 31, 2022 Weighted average remaining contractual term Exercisable as of December 31, 2022 Weighted average remaining contractual term (years) (years) 0.12 0.2 800 4.59 400 4.64 0.2 955 0.67 878 0.67 0.31 0.357 2075 2.56 1432 2.15 0.6 100 2.24 100 2.24 0.7 750 3.97 25 3.74 4,680 2,835

RESEARCH AND DEVELOPMENT EXPE_2

RESEARCH AND DEVELOPMENT EXPENSES, NET (Tables)	12 Months Ended
	Dec. 31, 2022
Security Matters Limited [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
SCHEDULE OF RESEARCH AND DEVELOPMENT EXPENSE	SCHEDULE OF RESEARCH AND DEVELOPMENT EXPENSE December 31, 2022 December 31, 2021 December 31, 2020 Salaries and related expenses 2,166 1,795 1,186 Subcontractors and consultants 374 631 509 Research expenses 316 252 155 Depreciation and amortization 255 287 243 Share based compensation 127 100 47 Travel expenses 50 42 11 Freight 30 23 33 Other 6 - 53 Reimbursement from paid pilots and proof of concept projects (1,426 ) (1,091 ) (548 ) Total 1,898 2,039 1,689

GENERAL AND ADMINISTRATIVE EX_2

GENERAL AND ADMINISTRATIVE EXPENSES (Tables)	12 Months Ended
	Dec. 31, 2022
Security Matters Limited [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
SCHEDULE OF GENERAL AND ADMINISTRATIVE EXPENSES	SCHEDULE OF GENERAL AND ADMINISTRATIVE EXPENSES December 31, 2022 December 31, 2021 December 31, 2020 Professional services 1,105 1,089 1,257 Wages and salaries related 935 752 409 Travel expenses 223 - 65 Office and maintenance 145 116 120 Share based compensation 137 331 436 Insurance 60 102 101 Depreciation and amortization 35 28 16 Other 83 64 43 Total 2,723 2,482 2,447

TAXES ON INCOME (Tables)

TAXES ON INCOME (Tables)	12 Months Ended
	Dec. 31, 2022
Security Matters Limited [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE	SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE December 31, 2022 December 31, 2021 December 31, 2020 Reconciliation of income tax at the statutory rate Loss before income tax (6,184 ) (4,939 ) (4,573 ) Theoretical tax rate of 27.5 (1,701 ) (1,358 ) (1,257 ) Tax effect amounts which are not deductible/(taxable) in calculating taxable income: Non-deductible expenditure and others 335 118 132 Unrecognized temporary differences and tax losses for which deferred tax weren’t recognized 1,366 1,240 1,125 Income tax / (benefit) — — —

LOSS PER SHARE (Tables)

LOSS PER SHARE (Tables)	12 Months Ended
	Dec. 31, 2022
Security Matters Limited [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
SCHEDULE OF LOSS PER SHARE	SCHEDULE OF LOSS PER SHARE December 31, 2022 December 31, 2021 December 31, 2020 Net loss attributable to the owners of the company (6,184 ) (4,939 ) (4,573 ) Basic and diluted loss per share (0.04 ) (0.03 ) (0.04 ) Weighted average number of ordinary shares Weighted average number of ordinary shares used in calculating basic and diluted loss per share 167,855 151,850 125,960

RELATED PARTIES (Tables)

RELATED PARTIES (Tables) - Security Matters Limited [Member]	12 Months Ended
	Dec. 31, 2022
Guarantor and Issuer, Guaranteed Security [Line Items]
SCHEDULE OF KEY MANAGEMENT PERSONNEL	The totals of remuneration paid to Key Management Personnel and related parties during the years are as follows : SCHEDULE OF KEY MANAGEMENT PERSONNEL 1. Transactions with related parties: December 31, 2022 December 31, 2021 Issuance of options to related party 721 - Short-term salary and fees 508 475 Loan repayment 172 103 Share based payments 98 105 Post-employment retirement benefits 94 92 Payment for Administrative services 36 39 Non-monetary benefits 29 11 Proof of Concept projects paid by affiliated companies (1,064 ) (695 ) Total (594 ) 130
SCHEDULE OF BALANCE WITH RELATED PARTIES	SCHEDULE OF BALANCE WITH RELATED PARTIES 2. Balance with related parties: December 31, 2022 December 31, 2021 Key management Salary and related (99 ) (86 ) Directors Salary and related (82 ) (11 ) Shareholders Borrowings from related parties (710 ) (270 ) Shareholders Other accounts payable (56 ) (24 ) Joint Ventures Other receivables 59 74 Joint Ventures Investment in subsidiary 221 147 (667 ) (170 )

GOVERNMENT GRANTS (Tables)

GOVERNMENT GRANTS (Tables)	12 Months Ended
	Dec. 31, 2022
Security Matters Limited [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
SCHEDULE OF GOVERNMENT GRANTS	SCHEDULE OF GOVERNMENT GRANTS December 31, 2022 December 31, 2021 Short term liability at year end 50 30 Long term liability at year end 85 85 Total 135 115

CONTROLLED ENTITIES (Tables)

CONTROLLED ENTITIES (Tables)	12 Months Ended
	Dec. 31, 2022
Security Matters Limited [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
SCHEDULE OF ASSETS AND LIABILITIES	SCHEDULE OF ASSETS AND LIABILITIES Controlled entity Country of Incorporation Percentage Owned December 31, 2022 Percentage Owned December 31, 2021 Security Matters Ltd. Israel 100 % 100 % Security Matters Canada Ltd. Canada 100 % 100 % Security Matters France Ltd. France 100 % 100 % SMX Beverages Pty Ltd. Australia 100 % 50 %

FINANCIAL INSTRUMENTS AND RIS_2

FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Tables) - Security Matters Limited [Member]	12 Months Ended
	Dec. 31, 2022
Guarantor and Issuer, Guaranteed Security [Line Items]
SCHEDULE OF FOREIGN CURRENCY RISK	The carrying amounts of the Group foreign currency denominated monetary liability at the reporting date are as follows: SCHEDULE OF FOREIGN CURRENCY RISK Assets Liabilities December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 USD 1,214 481 (99 ) — EUR 28 135 (73 ) — 1,242 616 (172 ) —
SCHEDULE OF SENSITIVITY ANALYSIS PROFIT AND OTHER EQUITY	SCHEDULE OF SENSITIVITY ANALYSIS PROFIT AND OTHER EQUITY December 31, 2022 December 31, 2021 Assets less liabilities 1,115 481 10 % 10 % 112 48
SCHEDULE OF FINANCIAL ASSETS AND IMPACT OF CREDIT EXPOSURE	The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the reporting date was: SCHEDULE OF FINANCIAL ASSETS AND IMPACT OF CREDIT EXPOSURE December 31, 2022 December 31, 2021 Cash and cash equivalents 1,398 4,171 Other receivables 158 920 Total 1,556 5,091
SCHEDULE OF UNDISCOUNTED FINANCIAL LIABILITIES	SCHEDULE OF UNDISCOUNTED FINANCIAL LIABILITIES As of December 31, 2022 Less than 1 year 1-5 years Over 5 years Financial liabilities at amortized cost Trade and other payables 3,622 — — Bridge loans (Note 23) — 989 — Government grants 75 84 — Lease liability 72 371 270 Borrowings 710 — — Total 4,479 1,444 270 As of December 31, 2021 Less than 1 year 1-5 years Over 5 years Financial liabilities at amortized cost Trade and other payables 1,589 — — Lease liability 37 272 193 Borrowings 270 — — Total 1,896 272 193

FAIR VALUE MEASUREMENT (Tables)

FAIR VALUE MEASUREMENT (Tables)	12 Months Ended
	Dec. 31, 2022
Security Matters Limited [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
SCHEDULE OF UNOBSERVABLE FOR ASSETS OR LIABILITY	SCHEDULE OF UNOBSERVABLE FOR ASSETS OR LIABILITY As of December 31, 2022 Level 1 Level 2 Level 3 Total US$ in thousands Liabilities Derivative financial liabilities (Note 22) — — 2,693 2,693 Total — — 2,693 2,693 As of December 31, 2021 Level 1 Level 2 Level 3 Total US$ in thousands Liabilities Derivative financial liability — 32 — 32 Total — 32 — 32

GENERAL (Details Narrative)

GENERAL (Details Narrative) - Lionheart [Member] - Business Combination Agreement [Member] - Security Matters Limited [Member] $ in Thousands	Jul. 26, 2022 USD ($)
IfrsStatementLineItems [Line Items]
Redemption percentage of business combination	97.58%
Remaining funds in trust account	$ 3,061
Transaction cost	$ 17,300

SCHEDULE OF DEPRECIATION RATES

SCHEDULE OF DEPRECIATION RATES OF PROPERTY, PLANT AND EQUIPMENT (Details) - Security Matters Limited [Member]	12 Months Ended
	Dec. 31, 2022
Computer equipment [member]
IfrsStatementLineItems [Line Items]
Depreciation rate	33%
Machinery [member]
IfrsStatementLineItems [Line Items]
Depreciation rate	20%
Furniture and Office Equipment [Member]
IfrsStatementLineItems [Line Items]
Depreciation rate	10%
Leasehold improvements [member]
IfrsStatementLineItems [Line Items]
Depreciation rate	5%

SCHEDULE OF OTHER CURRENT ASSET

SCHEDULE OF OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands		Dec. 31, 2022	Dec. 31, 2021
Guarantor and Issuer, Guaranteed Security [Line Items]
Total		$ 3,673	$ 920
Security Matters Limited [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
Prepaid expenses	[1]	3,157	454
Tax authorities		358	280
Proof of concept receivables		86	116
Other		72	70
Total		$ 3,673	$ 920
[1]The prepaid expenses include 3,123

SCHEDULE OF OTHER RECEIVABLES (

SCHEDULE OF OTHER RECEIVABLES (Details) (Parenthetical) $ in Thousands	Dec. 31, 2022 USD ($)
Special Purpose Acquisition Company [Member] | Security Matters Limited [Member]
IfrsStatementLineItems [Line Items]
Prepaid expense	$ 3,123

SCHEDULE OF PROPERTY, PLANT AND

SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
IfrsStatementLineItems [Line Items]
Property and equipment, beginning balance	$ 1,192
Property and equipment, ending balance	969	$ 1,192
Security Matters Limited [Member]
IfrsStatementLineItems [Line Items]
Property and equipment, beginning balance	1,192
Property and equipment, ending balance	969	1,192
Gross carrying amount [member] | Security Matters Limited [Member]
IfrsStatementLineItems [Line Items]
Property and equipment, beginning balance	2,124	1,667
Additions	201	297
Deductions	(21)
Depreciation	271	287
Currency translation adjustments	(335)	160
Property and equipment, ending balance	1,969	2,124
Accumulated Depreciation [Member] | Security Matters Limited [Member]
IfrsStatementLineItems [Line Items]
Property and equipment, beginning balance	932	569
Depreciation	271	287
Currency translation adjustments	(203)	76
Property and equipment, ending balance	1,000	932
Leasehold improvements [member] | Security Matters Limited [Member]
IfrsStatementLineItems [Line Items]
Property and equipment, beginning balance	61
Property and equipment, ending balance	45	61
Leasehold improvements [member] | Gross carrying amount [member] | Security Matters Limited [Member]
IfrsStatementLineItems [Line Items]
Property and equipment, beginning balance	81	69
Additions		3
Depreciation	4	5
Currency translation adjustments	(18)	9
Property and equipment, ending balance	63	81
Leasehold improvements [member] | Accumulated Depreciation [Member] | Security Matters Limited [Member]
IfrsStatementLineItems [Line Items]
Property and equipment, beginning balance	20	13
Depreciation	4	5
Currency translation adjustments	(6)	2
Property and equipment, ending balance	18	20
Machinery [member] | Security Matters Limited [Member]
IfrsStatementLineItems [Line Items]
Property and equipment, beginning balance	588
Property and equipment, ending balance	448	588
Machinery [member] | Gross carrying amount [member] | Security Matters Limited [Member]
IfrsStatementLineItems [Line Items]
Property and equipment, beginning balance	1,233	847
Additions	135	275
Depreciation	202	187
Currency translation adjustments	(221)	111
Property and equipment, ending balance	1,147	1,233
Machinery [member] | Accumulated Depreciation [Member] | Security Matters Limited [Member]
IfrsStatementLineItems [Line Items]
Property and equipment, beginning balance	645	399
Depreciation	202	187
Currency translation adjustments	(148)	59
Property and equipment, ending balance	699	645
Furniture and Office Equipment [Member] | Security Matters Limited [Member]
IfrsStatementLineItems [Line Items]
Property and equipment, beginning balance	50
Property and equipment, ending balance	34	50
Furniture and Office Equipment [Member] | Gross carrying amount [member] | Security Matters Limited [Member]
IfrsStatementLineItems [Line Items]
Property and equipment, beginning balance	83	73
Additions		1
Depreciation	7	7
Currency translation adjustments	(18)	9
Property and equipment, ending balance	65	83
Furniture and Office Equipment [Member] | Accumulated Depreciation [Member] | Security Matters Limited [Member]
IfrsStatementLineItems [Line Items]
Property and equipment, beginning balance	33	23
Depreciation	7	7
Currency translation adjustments	(9)	3
Property and equipment, ending balance	31	33
Computer equipment [member] | Security Matters Limited [Member]
IfrsStatementLineItems [Line Items]
Property and equipment, beginning balance	28
Property and equipment, ending balance	28	28
Computer equipment [member] | Gross carrying amount [member] | Security Matters Limited [Member]
IfrsStatementLineItems [Line Items]
Property and equipment, beginning balance	99	72
Additions	17	18
Depreciation	19	16
Currency translation adjustments	(14)	9
Property and equipment, ending balance	102	99
Computer equipment [member] | Accumulated Depreciation [Member] | Security Matters Limited [Member]
IfrsStatementLineItems [Line Items]
Property and equipment, beginning balance	72	49
Depreciation	19	16
Currency translation adjustments	(17)	7
Property and equipment, ending balance	74	72
Right-of-use assets [member] | Security Matters Limited [Member]
IfrsStatementLineItems [Line Items]
Property and equipment, beginning balance	466
Property and equipment, ending balance	414	466
Right-of-use assets [member] | Gross carrying amount [member] | Security Matters Limited [Member]
IfrsStatementLineItems [Line Items]
Property and equipment, beginning balance	628	606
Additions	49
Deductions	(21)
Depreciation	39	72
Currency translation adjustments	(64)	22
Property and equipment, ending balance	592	628
Right-of-use assets [member] | Accumulated Depreciation [Member] | Security Matters Limited [Member]
IfrsStatementLineItems [Line Items]
Property and equipment, beginning balance	162	85
Depreciation	39	72
Currency translation adjustments	(23)	5
Property and equipment, ending balance	$ 178	$ 162

CONVERTIBLE NOTE (Details Narra

CONVERTIBLE NOTE (Details Narrative) $ in Thousands	1 Months Ended
	May 31, 2022 USD ($) shares	May 31, 2022 AUD ($) shares	Mar. 07, 2023 shares	Dec. 31, 2022 USD ($)	Aug. 31, 2022 shares	Jul. 31, 2022 shares	May 31, 2022 AUD ($)	Dec. 31, 2021 USD ($) shares	Oct. 31, 2021 shares	May 31, 2021 shares
Guarantor and Issuer, Guaranteed Security [Line Items]
Convertible note | $				$ 563,000
Security Matters Limited [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
Number of convertible notes issued	828,240	828,240
Face value of convertible notes	$ 700						$ 1
Issue of convertible instruments	$ 569,000	$ 828
Convertible notes maturity period	6 months	6 months
Convertible note conversion price description	(i) if the Company executes a binding agreement for an M&A transaction or receives	(i) if the Company executes a binding agreement for an M&A transaction or receives
Convertible note | $				$ 563,000
Number of shares issued					2,000,000			1,774,744	8,938,666	15,270,249
Security Matters Limited [Member] | Major ordinary share transactions [member]
Guarantor and Issuer, Guaranteed Security [Line Items]
Convertible notes converted into ordinary shares			1,000,000
Security Matters Limited [Member] | Convertible Notes Agreements [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
Number of shares issued						1,000,000

SCHEDULE OF INFORMATION ABOUT C

SCHEDULE OF INFORMATION ABOUT CONSOLIDATED STRUCTURED ENTITIES (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Guarantor and Issuer, Guaranteed Security [Line Items]
Closing carrying amount	$ 221	$ 147
Security Matters Limited [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
Closing carrying amount	221	147	$ 248
Security Matters Limited [Member] | Security Matters Limited's share of net assets [member]
Guarantor and Issuer, Guaranteed Security [Line Items]
Closing carrying amount	115	248	249
Security Matters Limited [Member] | Company's share in net profits (losses) of associated companies [member]
Guarantor and Issuer, Guaranteed Security [Line Items]
Company’s share in net profits (losses) of associated companies	$ 106	$ (101)	$ (1)

INVESTMENTS IN ASSOCIATED COM_3

INVESTMENTS IN ASSOCIATED COMPANIES (Details Narrative) - Security Matters Limited [Member]		12 Months Ended
	Dec. 24, 2021 AUD ($) shares	Dec. 31, 2022	Dec. 31, 2021	Dec. 24, 2021 USD ($)	Dec. 24, 2021 AUD ($) $ / shares
SMX Beverages Pty Ltd [Member]
IfrsStatementLineItems [Line Items]
Remaining ownership percentage in joint venture	50%
Shares issued for exercise of stock options, shares | shares	8,000,001
Exercise price | $ / shares					$ 0.4
Opion expiration date	Mar. 25, 2027
Total fair value				$ 721,424	$ 960,000
Risk free interest rate options	2.50%
Options expected life	5 years
Global BevCo Pty Ltd. [member] | Consulting agreement [member]
IfrsStatementLineItems [Line Items]
Consulting fees | $	$ 13,500
Percentage of entitys revenue	5%
Yahaloma Technologies Inc [Member]
IfrsStatementLineItems [Line Items]
Country of incorporation		Canada
Percentage owned		50%	50%
True Gold Consortium Pty Ltd [Member]
IfrsStatementLineItems [Line Items]
Country of incorporation		Australia
Percentage owned		44.40%	45.50%
SMX Beverages Pty Ltd [Member]
IfrsStatementLineItems [Line Items]
Country of incorporation		Australia
Percentage owned		100%	50%

SUMMARY OF INTANGIBLE ASSETS NE

SUMMARY OF INTANGIBLE ASSETS NET (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
IfrsStatementLineItems [Line Items]
Net book value	$ 5,027	$ 3,908
Security Matters Limited [Member]
IfrsStatementLineItems [Line Items]
Amortization	145
Net book value	5,027
Capitalised development expenditure [member] | Security Matters Limited [Member]
IfrsStatementLineItems [Line Items]
Net book value	4,372	3,908
Licences [member] | Security Matters Limited [Member]
IfrsStatementLineItems [Line Items]
Net book value	655
Gross carrying amount [member] | Security Matters Limited [Member]
IfrsStatementLineItems [Line Items]
Cost, beginning balance	4,024
Capitalized development cost	1,696
Currency translation adjustments	(566)
Cost, ending balance	5,154	4,024
Currency translation adjustments	566
Gross carrying amount [member] | Capitalised development expenditure [member] | Security Matters Limited [Member]
IfrsStatementLineItems [Line Items]
Cost, beginning balance	4,024	2,332
Capitalized development cost	975	1,468
Currency translation adjustments	(500)	(224)
Cost, ending balance	4,499	4,024
Currency translation adjustments	500	224
Gross carrying amount [member] | Licences [member] | Security Matters Limited [Member]
IfrsStatementLineItems [Line Items]
Cost, beginning balance
Capitalized development cost	721
Currency translation adjustments	(66)
Cost, ending balance	655
Currency translation adjustments	66
Accumulated Depreciation Amortisation [Member] | Security Matters Limited [Member]
IfrsStatementLineItems [Line Items]
Currency translation adjustments	(3)
Accumulated amortization, beginning balance	116
Amortization	14
Accumulated amortization, ending balance	127	116
Currency translation adjustments	3
Accumulated Depreciation Amortisation [Member] | Capitalised development expenditure [member] | Security Matters Limited [Member]
IfrsStatementLineItems [Line Items]
Currency translation adjustments	(3)
Accumulated amortization, beginning balance	116	88
Amortization	14	28
Accumulated amortization, ending balance	127	116
Currency translation adjustments	3
Accumulated Depreciation Amortisation [Member] | Licences [member] | Security Matters Limited [Member]
IfrsStatementLineItems [Line Items]
Currency translation adjustments
Accumulated amortization, beginning balance
Amortization
Accumulated amortization, ending balance
Currency translation adjustments

INTANGIBLE ASSETS, NET (Details

INTANGIBLE ASSETS, NET (Details Narrative) - Security Matters Limited [Member] - USD ($)		12 Months Ended
	Dec. 24, 2021	Dec. 31, 2022
Guarantor and Issuer, Guaranteed Security [Line Items]
Amortization intangible assets other than goodwill		$ 145,000
SMX Beverages Pty Ltd [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
Remaining ownership percentage in joint venture	50%
Other intangible assets [member] | SMX Beverages Pty Ltd [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
Intangible assets under development		$ 721
Remaining ownership percentage in joint venture		50%

SCHEDULE OF RIGHT OF USE ASSETS

SCHEDULE OF RIGHT OF USE ASSETS (Details) - Security Matters Limited [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
IfrsStatementLineItems [Line Items]
Right-of-use assets, beginning balance	$ 466
Additions	49
Foreign currency translation	(41)
Deductions	(21)
Depreciation expense	(39)	$ (72)
Right-of-use assets, ending balance	414	466
Office equipment [member]
IfrsStatementLineItems [Line Items]
Right-of-use assets, beginning balance	446
Additions	49
Foreign currency translation	(35)
Deductions	(7)
Depreciation expense	(39)
Right-of-use assets, ending balance	414	446
Motor vehicles [member]
IfrsStatementLineItems [Line Items]
Right-of-use assets, beginning balance	20
Additions
Foreign currency translation	(6)
Deductions	(14)
Depreciation expense
Right-of-use assets, ending balance		$ 20

SCHEDULE OF LEASE LIABILITY (De

SCHEDULE OF LEASE LIABILITY (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Guarantor and Issuer, Guaranteed Security [Line Items]
Lease Payments	$ (55)	$ (98)	$ (12)
Current	30	37
Non current	440	466
Security Matters Limited [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
Lease liability, beginning balance	503	589
Additions	49
Deductions	(21)
Accretion of interest	51	47
Foreign exchange differences	(57)	(35)
Lease Payments	(55)	(98)
Lease liability, ending balance	470	503	$ 589
Current	30	37
Non current	$ 440	$ 466

SCHEDULE OF CARRYING AMOUNTS OF

SCHEDULE OF CARRYING AMOUNTS OF LEASE LIABILITIES RECOGNIZED IN PROFIT OR LOSS (Details) - Security Matters Limited [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Guarantor and Issuer, Guaranteed Security [Line Items]
Depreciation expense of right-of-use assets	$ 39	$ 72
Interest expense on lease liabilities	51	47
Foreign Exchange different	16	(35)
Expense relating to short-term leases
Total amount recognized in profit or loss	$ 106	$ 84

LEASES (Details Narrative)

LEASES (Details Narrative) - Security Matters Limited [Member]	12 Months Ended
	Dec. 31, 2022
Office equipment [member]
IfrsStatementLineItems [Line Items]
Lease expiration	12 years
Motor vehicles [member]
IfrsStatementLineItems [Line Items]
Lease expiration	3 years

SCHEDULE OF OTHER PAYABLES (Det

SCHEDULE OF OTHER PAYABLES (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Guarantor and Issuer, Guaranteed Security [Line Items]
Total	$ 650	$ 673
Security Matters Limited [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
Employees, salaries and related liabilities	392	500
Related party	56	24
Liabilities for grants received (Note 19)	50	30
Accrued expenses		49
Derivative financial liability (Note 13)		32
Other	152	38
Total	$ 650	$ 673

SCHEDULE OF BORROWINGS FROM REL

SCHEDULE OF BORROWINGS FROM RELATED PARTIES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Guarantor and Issuer, Guaranteed Security [Line Items]
Borrowings from related parties, beginning balance	$ 270
Payment of borrowings	(172)	$ (103)	$ (144)
Provision for bonus (include interest)	621	89
Borrowings from related parties, ending balance	710	270
Security Matters Limited [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
Borrowings from related parties, beginning balance	270	280
Payment of borrowings	(172)	(103)
Provision for bonus (include interest)	621	89
Exchange rate differences	(9)	4
Borrowings from related parties, ending balance	$ 710	$ 270	$ 280

BORROWINGS FROM RELATED PARTI_3

BORROWINGS FROM RELATED PARTIES (Details Narrative) $ in Thousands, ₪ in Millions	1 Months Ended		12 Months Ended
	Aug. 31, 2022 USD ($)	Aug. 31, 2022 ILS (₪)	Dec. 31, 2022 USD ($)	Dec. 31, 2022 ILS (₪)	Dec. 31, 2021 USD ($)	Dec. 31, 2015 USD ($)	Dec. 31, 2015 ILS (₪)	Dec. 31, 2020 USD ($)
Guarantor and Issuer, Guaranteed Security [Line Items]
Short term borrowings			$ 710		$ 270
Security Matters Limited [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
Cash received and loan from related parties						$ 513	₪ 2
Borrowing interest rate			4%
Bonus payments	$ 710	₪ 2.5
Increase in carrying amount of liability			$ 621		87
Short term borrowings			710		$ 270			$ 280
Security Matters Limited [Member] | Lender one [member]
Guarantor and Issuer, Guaranteed Security [Line Items]
Bonus payments			965	₪ 3
Security Matters Limited [Member] | Lender two [member]
Guarantor and Issuer, Guaranteed Security [Line Items]
Bonus payments			$ 965	₪ 3

BRIDGE LOANS AND DERIVATIVE F_2

BRIDGE LOANS AND DERIVATIVE FINANCIAL LIABILITY (Details Narrative) $ / shares in Units, $ in Thousands

1 Months Ended

3 Months Ended

5 Months Ended

12 Months Ended

Jun. 30, 2022 $ / shares

May 31, 2022 $ / shares

Aug. 31, 2021 $ / shares

Jul. 31, 2021 $ / shares

Dec. 31, 2022 $ / shares shares

Dec. 31, 2022 USD ($)

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

Dec. 31, 2022 $ / shares

Dec. 31, 2021 USD ($)

Dec. 31, 2021 $ / shares

Dec. 31, 2020 USD ($)

Dec. 31, 2020 $ / shares

Jan. 31, 2015

IfrsStatementLineItems [Line Items]

Proceeds from loans and warrants | $

$ 3,310

$ 32

Security Matters Limited [Member]

IfrsStatementLineItems [Line Items]

Borrowings, interest rate

4%

4%

4%

4%

Exercise price of share warrants

$ 0.4

$ 0.11

$ 0.7

$ 0.351

Warrants to purchase, shares

2%

Security Matters Limited [Member] | Three valuation models [member]

IfrsStatementLineItems [Line Items]

Risk free rate percenatge

3.99%

Volatility of asset percentage

81.03%

Description of expected term warrants

5 years 2 months 4 days

Security Matters Limited [Member] | Top of range [member]

IfrsStatementLineItems [Line Items]

Exercise price of share warrants

$ 0.8

$ 0.14

$ 0.70

$ 0.70

Bridge loan agreements [member] | Security Matters Limited [Member]

IfrsStatementLineItems [Line Items]

Borrowings, interest rate

10%

10%

10%

10%

Bridge loan agreements [member] | Security Matters Limited [Member] | Bonus warrants [member]

IfrsStatementLineItems [Line Items]

Loans maturity date

five years

Warrants to purchase, shares | shares

215,500

Exercise price of share warrants

$ 11.50

Bridge loan agreements [member] | Security Matters Limited [Member] | Bonus warrants [member] | Black and scholes model [member]

IfrsStatementLineItems [Line Items]

Fair value of warrants | $

$ 24

Bridge loan agreements [member] | Security Matters Limited [Member] | Redeemable warrants type 1 [Member]

IfrsStatementLineItems [Line Items]

Loans maturity date

five years

Warrants to purchase, shares | shares

342,000

Exercise price of share warrants

$ 5

Exercise price of share warrants

$ 11.50

Warrants to purchase, shares

50%

50%

50%

50%

Description of approach used to determine discount rates

Each investor has the option to decide that the Company will satisfy any or each redemption through the issuance of ordinary shares of SMX PLC based upon a 20% discount to the 20 trading day VWAP preceding each such anniversary

Bridge loan agreements [member] | Security Matters Limited [Member] | Redeemable warrants type 1 [Member] | Third anniversary [member]

IfrsStatementLineItems [Line Items]

Exercise price of share warrants

$ 5

Warrants to purchase, shares

25%

25%

25%

25%

Bridge loan agreements [member] | Security Matters Limited [Member] | Redeemable warrants type 1 [Member] | Fourth anniversary [member]

IfrsStatementLineItems [Line Items]

Exercise price of share warrants

$ 5

Warrants to purchase, shares

25%

25%

25%

25%

Bridge loan agreements [member] | Security Matters Limited [Member] | Redeemable warrants type 1 [Member] | Monte carlo simulation model [member]

IfrsStatementLineItems [Line Items]

Fair value of warrants | $

$ 1,973

Bridge loan agreements [member] | Security Matters Limited [Member] | Redeemable warrants type 2 [member]

IfrsStatementLineItems [Line Items]

Loans maturity date

five years

Warrants to purchase, shares | shares

120,000

Exercise price of share warrants

$ 11.50

Description of approach used to determine discount rates

Each investor has the option to decide that the Company will satisfy any or each redemption through the issuance of ordinary shares of SMX PLC based upon a 20% discount to the 20 trading day VWAP preceding each such anniversary

Bridge loan agreements [member] | Security Matters Limited [Member] | Redeemable warrants type 2 [member] | First anniversary [member]

IfrsStatementLineItems [Line Items]

Exercise price of share warrants

$ 5

Warrants to purchase, shares

50%

50%

50%

50%

Bridge loan agreements [member] | Security Matters Limited [Member] | Redeemable warrants type 2 [member] | Second anniversary [member]

IfrsStatementLineItems [Line Items]

Exercise price of share warrants

$ 5

Warrants to purchase, shares

50%

50%

50%

50%

Bridge loan agreements [member] | Security Matters Limited [Member] | Redeemable warrants type 2 [member] | Monte carlo simulation model [member]

IfrsStatementLineItems [Line Items]

Fair value of warrants | $

$ 696

Bridge loan agreements [member] | Security Matters Limited [Member] | Top of range [member]

IfrsStatementLineItems [Line Items]

Loans maturity date

two years

Bridge loan agreements [member] | Seven lenders [member] | Security Matters Limited [Member]

IfrsStatementLineItems [Line Items]

Proceeds from loans and warrants | $

$ 3,310

SCHEDULE OF ORDINARY SHARES (De

SCHEDULE OF ORDINARY SHARES (Details) - shares	Dec. 31, 2022	Jul. 01, 2022	Dec. 31, 2021
Guarantor and Issuer, Guaranteed Security [Line Items]
Number of shares authorized	500,000,000	500,000,000
Number of shares issued and outstanding	1	1
Deferred Shares [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
Number of shares authorized	25,000
Number of shares issued and outstanding	25,000
Security Matters Limited [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
Number of shares authorized	167,854,581		165,532,264
Number of shares issued and outstanding	167,854,581		165,532,264

SCHEDULE OF SHARE OPTION GRANTE

SCHEDULE OF SHARE OPTION GRANTED (Details) - Security Matters Limited [Member] shares in Thousands	12 Months Ended
	Dec. 31, 2022 shares $ / shares	Dec. 31, 2021 shares $ / shares
Guarantor and Issuer, Guaranteed Security [Line Items]
Number of options outstanding Beginning balance | shares	11,280	9,530
Weighted average exercise price, outstanding beginning balance | $ / shares	$ 0.27	$ 0.23
Number of issue of options | shares	1,000	1,850
Weighted average exercise price, issued of options | $ / shares	$ 0.27	$ 0.45
Number of options, Expired | shares	(7,600)	(100)
Weighted average exercise price, Expired | $ / shares	$ 0.22	$ 0.34
Number of options outstanding Beginning balance | shares	4,680	11,280
Weighted average exercise price, outstanding beginning balance | $ / shares	$ 0.35	$ 0.27
Number of options, Exercisable | shares	2,835	4,318
Weighted average exercise price, Exercisable | $ / shares	$ 0.28	$ 0.27

SCHEDULE OF OPTIONS TO EMPLOYEE

SCHEDULE OF OPTIONS TO EMPLOYEES OUTSTANDING (Details) - Security Matters Limited [Member] shares in Thousands	12 Months Ended
	Dec. 31, 2022 shares $ / shares	Dec. 31, 2021 shares	Dec. 31, 2020 shares
IfrsStatementLineItems [Line Items]
Number of outstanding shares	4,680	11,280	9,530
Number of exercisable shares	2,835	4,318
Exercise price one [member]
IfrsStatementLineItems [Line Items]
Number of outstanding shares	800
Weighted average remaining contractual life of outstanding share options	4 years 7 months 2 days
Number of exercisable shares	400
Weighted average remaining contractual life of exercisable share options	4 years 7 months 20 days
Exercise price one [member] | Bottom of range [member]
IfrsStatementLineItems [Line Items]
Exercise price of outstanding share options | $ / shares	$ 0.12
Exercise price one [member] | Top of range [member]
IfrsStatementLineItems [Line Items]
Exercise price of outstanding share options | $ / shares	0.2
Exercise price two [member]
IfrsStatementLineItems [Line Items]
Exercise price of outstanding share options | $ / shares	$ 0.2
Number of outstanding shares	955
Weighted average remaining contractual life of outstanding share options	8 months 1 day
Number of exercisable shares	878
Weighted average remaining contractual life of exercisable share options	8 months 1 day
Exercise price three [member]
IfrsStatementLineItems [Line Items]
Number of outstanding shares	2,075
Weighted average remaining contractual life of outstanding share options	2 years 6 months 21 days
Number of exercisable shares	1,432
Weighted average remaining contractual life of exercisable share options	2 years 1 month 24 days
Exercise price three [member] | Bottom of range [member]
IfrsStatementLineItems [Line Items]
Exercise price of outstanding share options | $ / shares	$ 0.31
Exercise price three [member] | Top of range [member]
IfrsStatementLineItems [Line Items]
Exercise price of outstanding share options | $ / shares	0.357
Exercise price four [member]
IfrsStatementLineItems [Line Items]
Exercise price of outstanding share options | $ / shares	$ 0.6
Number of outstanding shares	100
Weighted average remaining contractual life of outstanding share options	2 years 2 months 26 days
Number of exercisable shares	100
Weighted average remaining contractual life of exercisable share options	2 years 2 months 26 days
Exercise price five [member]
IfrsStatementLineItems [Line Items]
Exercise price of outstanding share options | $ / shares	$ 0.7
Number of outstanding shares	750
Weighted average remaining contractual life of outstanding share options	3 years 11 months 19 days
Number of exercisable shares	25
Weighted average remaining contractual life of exercisable share options	3 years 8 months 26 days

SHAREHOLDERS_ EQUITY (Details N

SHAREHOLDERS’ EQUITY (Details Narrative) $ / shares in Units, $ in Thousands	1 Months Ended									12 Months Ended
	Aug. 31, 2022 USD ($) shares	Jul. 31, 2022 USD ($) shares	Jun. 30, 2022 USD ($) shares $ / shares	May 31, 2022 USD ($) shares $ / shares	Oct. 31, 2021 USD ($)	Aug. 31, 2021 shares $ / shares	Jul. 31, 2021 USD ($) shares $ / shares	May 31, 2021 USD ($) shares	Aug. 31, 2018 shares $ / shares	Dec. 31, 2022 USD ($) shares $ / shares	Dec. 31, 2022 USD ($) $ / shares $ / shares	Dec. 31, 2021 USD ($) shares	Dec. 31, 2021 USD ($) $ / shares shares	Dec. 31, 2020 USD ($) shares	Dec. 31, 2020 USD ($) $ / shares	Dec. 31, 2022 € / shares	Oct. 31, 2021 $ / shares shares
Guarantor and Issuer, Guaranteed Security [Line Items]
Ordinary shares par value | (per share)										$ 0.0001	$ 0.0001					€ 1
Net proceeds of share capital | $										$ 182		$ 5,892		$ 6,857
Net proceeds of share capital | $												$ 395
Security Matters Limited [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
Ordinary shares par value | $ / shares										$ 0	$ 0
Net proceeds of share capital | $	$ 254
Share capital fee paid | $	$ 22				$ 115
Number of shares issued warrants | shares	2,000,000							15,270,249				1,774,744	1,774,744				8,938,666
Net proceeds of share capital | $					$ 1,890			$ 4,034
Number of shares issued warrants | shares												1,774,744	1,774,744				4,469,333
Warrants exercise price | $ / shares																	$ 0.4
Warrants expiration date					March 2022
Warrants to purchase shares in converted shares, description					Upon exercise the holder would receive one ordinary share and another unlisted warrant that bears an exercise price of AUD 0.7, converted to one ordinary share and expired on January 20, 2023
Net proceeds of share capital | $												$ 395
Options granted | shares		200,000	200,000	250,000			1,100,000
Options granted exercise price | $ / shares			$ 0.4	$ 0.11		$ 0.7	$ 0.351
Description of vesting requirements for share-based payment arrangement		25% on the first anniversary of the Vesting Commencement Date and additional 6.25% at the end of each three months of continuous services thereafter. However, if Company or a parent thereof commences trading on NASDAQ, all options shall become fully vested				the Company raises an aggregated amount of at least 10 million in one raise (including by way of a merger with a company with such amount in its treasury) 80% of the options will become vested. If an amount of 20 million or more is raised in one raise all options will become vested.	(1) Company raised an aggregated amount of at least 20 million (including by way of a merger with a company with such amount in its treasury) (2) 25% of the options shall vest after one year and thereafter 6.25% at the end of every three months (3) the employees must continue to provide services to Company			vesting period up to 4 years from the grant date, contractual life of the options under the Plan is 5 years		vesting period up to 4 years from the grant date, contractual life of the options under the Plan is 5 years		vesting period up to 4 years from the grant date, contractual life of the options under the Plan is 5 years
Fair value grant | $	$ 98	$ 10	$ 5	$ 19			$ 214			$ 154	$ 154	$ 622	$ 622	$ 533	$ 533
Expenses for option | $										$ 152
Option expiration date		July 2027	June 2027	May 26, 2027		December 6, 2026	July – September 2026
Security Matters Limited [Member] | Black scholes pricing model [member]
Guarantor and Issuer, Guaranteed Security [Line Items]
Description of expected term warrants										5 years		5 years
Expected dividend percentage										0%		0%
Security Matters Limited [Member] | Bottom of range [member]
Guarantor and Issuer, Guaranteed Security [Line Items]
Options granted exercise price | $ / shares			$ 0.7								$ 0.03		$ 0.35		$ 0.20
Security Matters Limited [Member] | Bottom of range [member] | Black scholes pricing model [member]
Guarantor and Issuer, Guaranteed Security [Line Items]
Risk free rate percenatge										0.11%		0.11%
Volatility of asset percentage										64%		64%
Security Matters Limited [Member] | Top of range [member]
Guarantor and Issuer, Guaranteed Security [Line Items]
Options granted exercise price | $ / shares			$ 0.8								$ 0.14		$ 0.70		$ 0.70
Security Matters Limited [Member] | Top of range [member] | Black scholes pricing model [member]
Guarantor and Issuer, Guaranteed Security [Line Items]
Risk free rate percenatge										3.55%		3.55%
Volatility of asset percentage										118%		118%
Security Matters Limited [Member] | Employees [member]
Guarantor and Issuer, Guaranteed Security [Line Items]
Options granted | shares										600,000		250,000		1,055,000
Security Matters Limited [Member] | Consultants [member]
Guarantor and Issuer, Guaranteed Security [Line Items]
Options granted | shares										1,600,000		5,400,000		750,000
Security Matters Limited [Member] | Board members [member]
Guarantor and Issuer, Guaranteed Security [Line Items]
Options granted | shares										322,317		257,562		2,500,000
Fair value grant | $										$ 54	$ 54	$ 53	$ 53
Security Matters Limited [Member] | Two Executive Director [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
Options granted | shares									10,000,000
Options granted exercise price | $ / shares									$ 0.2
Option expiration date									These milestones are reviewed by the Board of Directors and need to be achieved in 4 years since the date it was granted. If the milestones are not reached in 4 years, the options will expire
Security Matters Limited [Member] | Executive director [member]
Guarantor and Issuer, Guaranteed Security [Line Items]
Options granted | shares						167,000
Security Matters Limited [Member] | Key management personnel of entity or parent [member]
Guarantor and Issuer, Guaranteed Security [Line Items]
Options granted | shares						500,000

SCHEDULE OF RESEARCH AND DEVELO

SCHEDULE OF RESEARCH AND DEVELOPMENT EXPENSE (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Guarantor and Issuer, Guaranteed Security [Line Items]
Share based compensation	$ 252	$ 431	$ 483
Total	1,898	2,039	1,689
Security Matters Limited [Member] | Research and development expenses [member]
Guarantor and Issuer, Guaranteed Security [Line Items]
Salaries and related expenses	2,166	1,795	1,186
Subcontractors and consultants	374	631	509
Research expenses	316	252	155
Depreciation and amortization	255	287	243
Share based compensation	127	100	47
Travel expenses	50	42	11
Freight	30	23	33
Other	6		53
Reimbursement from paid pilots and proof of concept projects	(1,426)	(1,091)	(548)
Total	$ 1,898	$ 2,039	$ 1,689

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
Guarantor and Issuer, Guaranteed Security [Line Items]
Share based compensation	$ 252	$ 431	$ 483
Total	2,723	2,482	2,447
Security Matters Limited [Member] | General and administrative expenses [member]
Guarantor and Issuer, Guaranteed Security [Line Items]
Professional services	1,105	1,089	1,257
Wages and salaries related	935	752	409
Travel expenses	223		65
Office and maintenance	145	116	120
Share based compensation	137	331	436
Insurance	60	102	101
Depreciation and amortization	35	28	16
Other	83	64	43
Total	$ 2,723	$ 2,482	$ 2,447

SCHEDULE OF COMPONENTS OF INCOM

SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Guarantor and Issuer, Guaranteed Security [Line Items]
Loss before income tax	$ (6,184)	$ (4,939)	$ (4,573)
Tax effect amounts which are not deductible/(taxable) in calculating taxable income:
Income tax / (benefit)
Security Matters Limited [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
Loss before income tax	(6,184)	(4,939)	(4,573)
Theoretical tax rate of 27.5%	(1,701)	(1,358)	(1,257)
Tax effect amounts which are not deductible/(taxable) in calculating taxable income:
Non-deductible expenditure and others	335	118	132
Unrecognized temporary differences and tax losses for which deferred tax weren’t recognized	1,366	1,240	1,125
Income tax / (benefit)

SCHEDULE OF COMPONENTS OF INC_2

SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE (Details) (Parenthetical)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Security Matters Limited [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
Tax rate	27.50%	27.50%	27.50%

TAXES ON INCOME (Details Narrat

TAXES ON INCOME (Details Narrative) - Security Matters Limited [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Guarantor and Issuer, Guaranteed Security [Line Items]
Tax rate	27.50%	27.50%	27.50%
Tax effect of tax losses	$ 24,106	$ 17,659	$ 13,151

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
Guarantor and Issuer, Guaranteed Security [Line Items]
Loss after income tax for the year attributable to shareholders	$ (6,184)	$ (4,939)	$ (4,573)
Basic and diluted loss per share	$ (0.04)	$ (0.03)	$ (0.04)
Security Matters Limited [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
Loss after income tax for the year attributable to shareholders	$ (6,184)	$ (4,939)	$ (4,573)
Basic and diluted loss per share	$ (0.04)	$ (0.03)	$ (0.04)
Weighted average number of ordinary shares
Weighted average number of ordinary shares used in calculating basic and diluted loss per share	167,855	151,850	125,960

SCHEDULE OF KEY MANAGEMENT PERS

SCHEDULE OF KEY MANAGEMENT PERSONNEL (Details) - Security Matters Limited [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Guarantor and Issuer, Guaranteed Security [Line Items]
Issuance of options to related party	$ 721
Short-term salary and fees	508	475
Loan repayment	172	103
Share based payments	98	105
Post-employment retirement benefits	94	92
Payment for Administrative services	36	39
Non-monetary benefits	29	11
Proof of Concept projects paid by affiliated companies	(1,064)	(695)
Total	$ (594)	$ 130

SCHEDULE OF BALANCE WITH RELATE

SCHEDULE OF BALANCE WITH RELATED PARTIES (Details) - Security Matters Limited [Member] - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
IfrsStatementLineItems [Line Items]
Other accounts payable	$ (152)	$ (38)
Key management personnel of entity or parent [member]
IfrsStatementLineItems [Line Items]
Salary and related	(99)	(86)
Directors [member]
IfrsStatementLineItems [Line Items]
Salary and related	(82)	(11)
Shareholders [member]
IfrsStatementLineItems [Line Items]
Borrowings from related parties	(710)	(270)
Other accounts payable	(56)	(24)
Joint ventures [member]
IfrsStatementLineItems [Line Items]
Other receivables	59	74
Investment in subsidiary	221	147
Related parties [member]
IfrsStatementLineItems [Line Items]
Total	$ (667)	$ (170)

SCHEDULE OF GOVERNMENT GRANTS (

SCHEDULE OF GOVERNMENT GRANTS (Details) - Security Matters Limited [Member] - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Guarantor and Issuer, Guaranteed Security [Line Items]
Short term liability at year end	$ 50	$ 30
Long term liability at year end	85	85
Total	$ 135	$ 115

GOVERNMENT GRANTS (Details Narr

GOVERNMENT GRANTS (Details Narrative) - Security Matters Limited [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Guarantor and Issuer, Guaranteed Security [Line Items]
Proceeds from government grants received		$ 162
Revenue percent	3%
Payments for government grants received	$ 3

SCHEDULE OF ASSETS AND LIABILIT

SCHEDULE OF ASSETS AND LIABILITIES (Details) - Security Matters Limited [Member]	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Security Matters Ltd [member]
IfrsStatementLineItems [Line Items]
Country of incorporation	Israel
Ownership percentage	100%	100%
Security Matters Canada Ltd [member]
IfrsStatementLineItems [Line Items]
Country of incorporation	Canada
Ownership percentage	100%	100%
Security Matters France Ltd [member]
IfrsStatementLineItems [Line Items]
Country of incorporation	France
Ownership percentage	100%	100%
SMX Beverages Pty Ltd [Member]
IfrsStatementLineItems [Line Items]
Country of incorporation	Australia
Ownership percentage	100%	50%

COMMITMENTS AND CONTINGENT LI_2

COMMITMENTS AND CONTINGENT LIABILITIES (Details Narrative) $ in Thousands, ₪ in Millions		1 Months Ended		12 Months Ended
	Jan. 30, 2023 USD ($) shares	Aug. 31, 2022 USD ($) shares	Aug. 31, 2022 ILS (₪) shares	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($) shares	Oct. 31, 2021 shares	May 31, 2021 shares	Dec. 31, 2020 USD ($)	Jan. 31, 2015
Guarantor and Issuer, Guaranteed Security [Line Items]
Current borrowings				$ 710	$ 270
Security Matters Limited [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
Royalty percentage									2.20%
Contingent of consideration percentage									1%
Percentage of voting equity interests acquired									2%
Number of shares issued | shares		2,000,000	2,000,000		1,774,744	8,938,666	15,270,249
Increase in carrying amount of liability				621	$ 87
Bonus payments		$ 710	₪ 2.5
Current borrowings				710	$ 270			$ 280
Unpaid contingent liability governance				$ 166
Security Matters Limited [Member] | Nonadjusting Event [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
Number of shares issued | shares	864,000
Risk free interest rate	3.42%
Expected volatility, share options granted	81.92%
Expected Term, share options granted	3 years
Expected dividend as percentage, share options granted	0%
Additional equity fund percent	1%
Consideration paid (received)	$ 27,000
Payment of cash percent	1.50%

SCHEDULE OF FOREIGN CURRENCY RI

SCHEDULE OF FOREIGN CURRENCY RISK (Details) € in Thousands, $ in Thousands		Dec. 31, 2022 USD ($)	Dec. 31, 2022 EUR (€)	Jul. 01, 2022 EUR (€)	Dec. 31, 2021 USD ($)
IfrsStatementLineItems [Line Items]
Assets		$ 11,288			$ 10,338
Liabilities		(9,132)			(2,447)
Security Matters Limited [Member]
IfrsStatementLineItems [Line Items]
Assets | €	[1]		€ 25
Currency risk [member] | Security Matters Limited [Member]
IfrsStatementLineItems [Line Items]
Assets		1,242			616
Liabilities		(172)
United states dollar [member] | Currency risk [member] | Security Matters Limited [Member]
IfrsStatementLineItems [Line Items]
Assets		1,214			481
Liabilities		(99)
EUR [member] | Currency risk [member] | Security Matters Limited [Member]
IfrsStatementLineItems [Line Items]
Assets		28			135
Liabilities		$ (73)
[1]Less than 1 thousand

SCHEDULE OF SENSITIVITY ANALYSI

SCHEDULE OF SENSITIVITY ANALYSIS PROFIT AND OTHER EQUITY (Details) - Security Matters Limited [Member] - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Guarantor and Issuer, Guaranteed Security [Line Items]
Assets	$ 1,115	$ 481
Percentage of financial risk management	10%	10%
Amount of financial impact of financial instrument	$ 112	$ 48

SCHEDULE OF FINANCIAL ASSETS AN

SCHEDULE OF FINANCIAL ASSETS AND IMPACT OF CREDIT EXPOSURE (Details) € in Thousands, $ in Thousands		Dec. 31, 2022 USD ($)	Dec. 31, 2022 EUR (€)	Jul. 01, 2022 EUR (€)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Guarantor and Issuer, Guaranteed Security [Line Items]
Cash and cash equivalents		$ 1,398			$ 4,171	$ 4,341	$ 1,708
Total current assets		5,071			5,091
Security Matters Limited [Member]
Guarantor and Issuer, Guaranteed Security [Line Items]
Cash and cash equivalents | €	[1]		€ 25
Security Matters Limited [Member] | Credit risk [member]
Guarantor and Issuer, Guaranteed Security [Line Items]
Cash and cash equivalents		1,398			4,171
Other receivables		158			920
Total current assets		$ 1,556			$ 5,091
[1]Less than 1 thousand

SCHEDULE OF UNDISCOUNTED FINANC

SCHEDULE OF UNDISCOUNTED FINANCIAL LIABILITIES (Details) - Security Matters Limited [Member] - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Not later than one year [member]
IfrsStatementLineItems [Line Items]
Financial liabilities at amortized cost	$ 4,479	$ 1,896
Later than one year and not later than five years [member]
IfrsStatementLineItems [Line Items]
Financial liabilities at amortized cost	1,444	272
Later than five years [member]
IfrsStatementLineItems [Line Items]
Financial liabilities at amortized cost
Trade and other payables [member] | Not later than one year [member]
IfrsStatementLineItems [Line Items]
Financial liabilities at amortized cost	3,622	1,589
Trade and other payables [member] | Later than one year and not later than five years [member]
IfrsStatementLineItems [Line Items]
Financial liabilities at amortized cost
Trade and other payables [member] | Later than five years [member]
IfrsStatementLineItems [Line Items]
Financial liabilities at amortized cost
Bridge loan [member] | Not later than one year [member]
IfrsStatementLineItems [Line Items]
Financial liabilities at amortized cost
Bridge Loans [Member] | Later than one year and not later than five years [member]
IfrsStatementLineItems [Line Items]
Financial liabilities at amortized cost	989
Bridge Loans [Member] | Later than five years [member]
IfrsStatementLineItems [Line Items]
Financial liabilities at amortized cost
Government grants [member] | Not later than one year [member]
IfrsStatementLineItems [Line Items]
Financial liabilities at amortized cost	75
Government grants [member] | Later than one year and not later than five years [member]
IfrsStatementLineItems [Line Items]
Financial liabilities at amortized cost	84
Government grants [member] | Later than five years [member]
IfrsStatementLineItems [Line Items]
Financial liabilities at amortized cost
Lease liabilities [member] | Not later than one year [member]
IfrsStatementLineItems [Line Items]
Financial liabilities at amortized cost	72	37
Lease liabilities [member] | Later than one year and not later than five years [member]
IfrsStatementLineItems [Line Items]
Financial liabilities at amortized cost	371	272
Lease liabilities [member] | Later than five years [member]
IfrsStatementLineItems [Line Items]
Financial liabilities at amortized cost	270	193
Borrowing [Member] | Not later than one year [member]
IfrsStatementLineItems [Line Items]
Financial liabilities at amortized cost	710	270
Borrowing [Member] | Later than one year and not later than five years [member]
IfrsStatementLineItems [Line Items]
Financial liabilities at amortized cost
Borrowing [Member] | Later than five years [member]
IfrsStatementLineItems [Line Items]
Financial liabilities at amortized cost	$ 270	$ 193

SCHEDULE OF UNOBSERVABLE FOR AS

SCHEDULE OF UNOBSERVABLE FOR ASSETS OR LIABILITY (Details) - Security Matters Limited [Member] - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
IfrsStatementLineItems [Line Items]
Derivative financial liabilities	$ 2,693	$ 32
Derivatives [member]
IfrsStatementLineItems [Line Items]
Derivative financial liabilities	2,693	32
Level 1 of fair value hierarchy [member]
IfrsStatementLineItems [Line Items]
Derivative financial liabilities
Level 1 of fair value hierarchy [member] | Derivatives [member]
IfrsStatementLineItems [Line Items]
Derivative financial liabilities
Level 2 of fair value hierarchy [member]
IfrsStatementLineItems [Line Items]
Derivative financial liabilities		32
Level 2 of fair value hierarchy [member] | Derivatives [member]
IfrsStatementLineItems [Line Items]
Derivative financial liabilities		32
Level 3 of fair value hierarchy [member]
IfrsStatementLineItems [Line Items]
Derivative financial liabilities	2,693
Level 3 of fair value hierarchy [member] | Derivatives [member]
IfrsStatementLineItems [Line Items]
Derivative financial liabilities	$ 2,693

SCHEDULE OF ORDINARY SHARES (_2

SCHEDULE OF ORDINARY SHARES (Details) (Parenthetical) - Dec. 31, 2022	$ / shares	€ / shares
Par value per share | (per share)	$ 0.0001	€ 1

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative) $ / shares in Units, $ / shares in Units, $ in Thousands

1 Months Ended

3 Months Ended

5 Months Ended

6 Months Ended

12 Months Ended

Mar. 07, 2023 shares

Jan. 30, 2023 shares

Jan. 25, 2023 USD ($) $ / shares shares

Mar. 31, 2023 USD ($)

Feb. 28, 2023 USD ($)

Jan. 31, 2023 USD ($) $ / shares shares

Jun. 30, 2022 $ / shares

May 31, 2022 USD ($)

May 31, 2022 AUD ($) $ / shares

Oct. 31, 2021 USD ($) shares

Aug. 31, 2021 $ / shares

Jul. 31, 2021 $ / shares

May 31, 2021 USD ($) shares

Dec. 31, 2022 $ / shares shares

Dec. 31, 2022 $ / shares shares

Jan. 31, 2023 USD ($) $ / shares shares

Dec. 31, 2023 USD ($)

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

Dec. 31, 2022 $ / shares $ / shares shares

Dec. 31, 2021 USD ($) shares

Dec. 31, 2021 $ / shares shares

Dec. 31, 2020 USD ($)

Dec. 31, 2020 $ / shares

Apr. 25, 2023 shares

Dec. 31, 2022 € / shares shares

Aug. 31, 2022 shares

Jul. 01, 2022 shares

IfrsStatementLineItems [Line Items]

Proceeds from common stock

$ 182,000

$ 5,892,000

$ 6,857,000

Proceeds from loans and warrants

$ 3,310,000

$ 32,000

Per shares | (per share)

$ 0.0001

$ 0.0001

$ 0.0001

$ 0.0001

€ 1

authorized ordinary shares | shares

500,000,000

500,000,000

500,000,000

500,000,000

500,000,000

500,000,000

Board Of Directors [Member]

IfrsStatementLineItems [Line Items]

Ordinary shares grant percentage

15%

authorized ordinary shares | shares

5,082,417

Security Matters Limited [Member]

IfrsStatementLineItems [Line Items]

Number of shares issued | shares

8,938,666

15,270,249

1,774,744

1,774,744

2,000,000

Aggregate amount of convertible instruments issued

$ 569,000

$ 828

Proceeds from common stock

$ 1,890,000

$ 4,034,000

Borrowings, interest rate

4%

4%

4%

4%

4%

Exercise price of share warrants | $ / shares

$ 0.4

$ 0.11

$ 0.7

$ 0.351

Per shares | $ / shares

$ 0

$ 0

$ 0

$ 0

authorized ordinary shares | shares

167,854,581

167,854,581

167,854,581

167,854,581

165,532,264

165,532,264

167,854,581

Security Matters Limited [Member] | Bridge loan agreements [member]

IfrsStatementLineItems [Line Items]

Borrowings, interest rate

10%

10%

10%

10%

10%

Security Matters Limited [Member] | Bridge loan agreements [member] | Bonus warrants [member]

IfrsStatementLineItems [Line Items]

Loans maturity date

five years

Warrants to purchase, shares | shares

215,500

Exercise price of share warrants | $ / shares

$ 11.50

Security Matters Limited [Member] | Bottom of range [member]

IfrsStatementLineItems [Line Items]

Exercise price of share warrants | $ / shares

0.7

$ 0.03

$ 0.35

$ 0.20

Security Matters Limited [Member] | Top of range [member]

IfrsStatementLineItems [Line Items]

Exercise price of share warrants | $ / shares

$ 0.8

$ 0.14

$ 0.70

$ 0.70

Security Matters Limited [Member] | Top of range [member] | Bridge loan agreements [member]

IfrsStatementLineItems [Line Items]

Loans maturity date

two years

Security Matters Limited [Member] | Black scholes pricing model [member]

IfrsStatementLineItems [Line Items]

Description of expected term warrants

5 years

5 years

Expected dividend as percentage, share options granted

0%

0%

Security Matters Limited [Member] | Black scholes pricing model [member] | Bottom of range [member]

IfrsStatementLineItems [Line Items]

Risk free interest rate options

0.11%

0.11%

Expected volatility, share options granted

64%

64%

Security Matters Limited [Member] | Black scholes pricing model [member] | Top of range [member]

IfrsStatementLineItems [Line Items]

Risk free interest rate options

3.55%

3.55%

Expected volatility, share options granted

118%

118%

Nonadjusting Event [Member]

IfrsStatementLineItems [Line Items]

Issued capital, ordinary shares

$ 25,000

Percentage of weighted average price of common stock

96%

Proceeds from common stock

$ 3,500,000

Description for common stock received and effectiveness of resgistration

(i) USD 1,500 thousand at the initial closing (was received on March 2023) (ii) USD 2,000 thousand upon effectiveness of a registration statement that was filed on March 2023

Nonadjusting Event [Member] | Bridge loan agreements [member]

IfrsStatementLineItems [Line Items]

Borrowings, interest rate

10%

10%

Description of approach used to determine discount rates

Each investor has the option to decide that Security Matters Limited will satisfy any or each redemption through the issuance of ordinary shares of the Company based upon a 20% discount to the 20 trading day VWAP preceding each such anniversary

Nonadjusting Event [Member] | Bridge loan agreements [member] | Bonus warrants [member]

IfrsStatementLineItems [Line Items]

Loans maturity date

five years

Warrants to purchase, shares | shares

243,000

Exercise price of share warrants | $ / shares

$ 11.50

Nonadjusting Event [Member] | Bridge loan agreements [member] | Redeemable Warrants [Member]

IfrsStatementLineItems [Line Items]

Loans maturity date

five years

Warrants to purchase, shares | shares

597,000

Exercise price of share warrants | $ / shares

$ 11.50

Nonadjusting Event [Member] | Bridge loan agreements [member] | Redeemable Warrants [Member] | Warrant reserve [member]

IfrsStatementLineItems [Line Items]

Per shares | $ / shares

$ 5

$ 5

Nonadjusting Event [Member] | Bridge loan agreements [member] | Eleven Lenders [Member]

IfrsStatementLineItems [Line Items]

Proceeds from loans and warrants

$ 3,860,000

Nonadjusting Event [Member] | Bottom of range [member]

IfrsStatementLineItems [Line Items]

Percentage of common stock

97%

Nonadjusting Event [Member] | Top of range [member] | Bridge loan agreements [member]

IfrsStatementLineItems [Line Items]

Loans maturity date

two years

Nonadjusting Event [Member] | Security Matters Limited [Member]

IfrsStatementLineItems [Line Items]

Number of shares issued | shares

864,000

Risk free interest rate options

3.42%

Expected volatility, share options granted

81.92%

Expected dividend as percentage, share options granted

0%

Nonadjusting Event [Member] | Security Matters Limited [Member] | Bridge loan agreements [member]

IfrsStatementLineItems [Line Items]

Proceeds from borrowings, classified as financing activities

$ 550,000

Borrowings, interest rate

10%

Nonadjusting Event [Member] | Security Matters Limited [Member] | Isorad Ltd [member]

IfrsStatementLineItems [Line Items]

Number of shares issued | shares

864,000

864,000

Description for equity or other funding convertible

Additionally, Isorad will be entitled to 1% of any amount actually received against equity or other funding convertible into equity at the closing of the transaction and until 13 months thereafter

Payments for proceed from receiving equity or other funding convertible into equity

$ 27,000,000

Percentage of cash on exit fee

1.50%

Nonadjusting Event [Member] | Security Matters Limited [Member] | Isorad Ltd [member] | Black scholes pricing model [member]

IfrsStatementLineItems [Line Items]

Risk free interest rate options

3.42%

Expected volatility, share options granted

81.92%

Description of expected term warrants

3 years

Expected dividend as percentage, share options granted

0%

Nonadjusting Event [Member] | Security Matters Limited [Member] | SMX Public Limited Company [member]

IfrsStatementLineItems [Line Items]

Issued capital, ordinary shares

$ 25,000,000

Percentage of weighted average price of common stock

96%

Proceeds from common stock

$ 3,500,000

Description for common stock received and effectiveness of resgistration

(i)

Nonadjusting Event [Member] | Security Matters Limited [Member] | SMX Public Limited Company [member] | Bottom of range [member]

IfrsStatementLineItems [Line Items]

Percentage of common stock

97%

Nonadjusting Event [Member] | Convertible Notes [Member]

IfrsStatementLineItems [Line Items]

Number of shares issued | shares

250,000

Aggregate amount of convertible instruments issued

$ 250,000

Loans maturity date

December 31, 2024

Percentage of convertible notes

1,500%

Conversion price | $ / shares

$ 10

Nonadjusting Event [Member] | Convertible Notes [Member] | Bridge loan agreements [member]

IfrsStatementLineItems [Line Items]

Aggregate amount of convertible instruments issued

$ 1,350,000

Nonadjusting Event [Member] | Convertible Notes [Member] | Security Matters Limited [Member]

IfrsStatementLineItems [Line Items]

Number of shares issued | shares

250,000

Aggregate amount of convertible instruments issued

$ 250,000

Loans maturity date

December 31, 2024

Percentage of convertible notes

15%

Nonadjusting Event [Member] | Convertible Notes [Member] | Security Matters Limited [Member] | Bridge loan agreements [member]

IfrsStatementLineItems [Line Items]

Number of value converted

$ 1,350,000

Number of shares converted | shares

1,000,000