NOTE 3 – INVESTMENT IN AN AFFILIATE
| | a. | On April 24, 2021, CR Ltd. invested $250 representing 19.99% of the
share capital of Revoltz Ltd. (“Revoltz”), an Israeli private company focusing on research, development and production of
micro-mobility vehicles for the urban environment for the business and the private markets. |
| | b. | On July 28, 2022, CR Ltd. entered into a convertible loan agreement
with Revoltz pursuant to which CR Ltd. was required to loan an amount of $60 (the “Loan Principal Amount”) in Revoltz. In
addition, CR Ltd. will provide an additional loan to Revoltz in an amount of up to $340 (the “Additional Amount” and, together
with the Loan Principal Amount, the “Total Loan Amount”). The Total Loan Amount will carry interest at the minimum rate prescribed
by Israeli law. |
The Total Loan Amount will be converted into shares of Revoltz
upon the occurrence of any of the following events (each, a “Trigger Event”):
| | i) | The consummation of funding by Revoltz of an aggregate amount of $1,000 at a pre-money Revoltz valuation of at least $7,000 (in the form of Simple Agreement for Future Equity, equity or otherwise); or |
| | ii) | Revoltz has generated an aggregate of $1,000 or more in revenue. |
In the event that a Trigger Event will
not occur on or prior to the 24-month anniversary of the date on which the Loan Principal Amount is actually extended to Revoltz, the
loan will be due and repayable by Revoltz to the Company.
On December 31, 2024, the balance of
the Loan Principal Amount granted and accrued interest, was $64. To date, no Additional Amounts have been funded.
| | c. | The following table summarizes the equity method accounting for the
investment in Revoltz: |
| Balance, January 1, 2023 | |
$ | 152 | |
| Equity in losses | |
| (27 | ) |
| Foreign currency translation | |
| (15 | ) |
| Balance, December 31, 2023 | |
| 110 | |
| Equity in losses | |
| (36 | ) |
| Foreign currency translation | |
| (1 | ) |
| Balance, December 31, 2024 | |
$ | 73 | |
|