| BALANCES AND TRANSACTIONS WITH RELATED PARTIES |
NOTE
22 - BALANCES AND TRANSACTIONS WITH RELATED PARTIES
| A. | Balances
with related parties |
| | |
December 31 | |
| | |
2024 | | |
2023 | |
| | |
| | |
| |
| Accounts payable and accruals (included in employees and liabilities in respect thereof) | |
| 122 | | |
| 131 | |
| | |
| | | |
| | |
| Loans from related parties (see Note 10) | |
| - | | |
| 43 | |
| B. | Benefits
to related parties |
| | |
For the year ended December 31, | |
| | |
2024 | | |
2023 | | |
2022 | |
| | |
| | |
| | |
| |
| Payroll and related expenses in respect of employed related parties (*) | |
| 758 | | |
| 868 | | |
| 443 | |
| | |
| | | |
| | | |
| | |
| Number of related parties | |
| 3 | | |
| 4 | | |
| 3 | |
| (*) | Including $147 and $500 in share-based payment in 2024 and 2023 respectively. |
| C. | Benefits
to senior officers |
| | |
For the year ended December 31, | |
| | |
2024 | | |
2023 | | |
2022 | |
| | |
| | |
| | |
| |
| Short-term benefits (*) | |
| 1,092 | | |
| 3,656 | | |
| 471 | |
| | |
| | | |
| | | |
| | |
| No. of recipients | |
| 3 | | |
| 3 | | |
| 3 | |
| (*) | Including $505 in share-based payment in 2024 and $3,216 in 2023. |
| D. | Profit
and loss data (*) |
| | |
For the year ended December 31, | |
| | |
2024 | | |
2023 | | |
2022 | |
| | |
| | |
| | |
| |
| Cost of revenue | |
| 233 | | |
| 233 | | |
| 107 | |
| | |
| | | |
| | | |
| | |
| Research and development expenses | |
| 78 | | |
| 421 | | |
| 182 | |
| | |
| | | |
| | | |
| | |
| Selling and marketing expenses | |
| 733 | | |
| 2,796 | | |
| 330 | |
| | |
| | | |
| | | |
| | |
| General and administrative expenses | |
| 806 | | |
| 1,074 | | |
| 295 | |
| | |
| | | |
| | | |
| | |
| (*) | Including
benefits to related parties and officers, included in subsections b and c above. |
| E. | Employment
terms of related parties |
| (1) | In
2005, SOS entered into an employment agreement with Mr. Nir Klein (as amended on August 29, 2013); under the agreement, Mr. Klein serves
as SOS’s CEO on a full-time basis, in consideration for a gross monthly salary of $11 (NIS 35 thousand) (CPI-linked), plus social
benefits, car maintenance, mobile phone and a laptop, and reimbursement of reasonable expenses expensed as part of doing his job. The
agreement was amended in January 2024 for a gross salary of $16 (NIS 60 thousand) and is for an unlimited term, and each party is entitled
to conclude it by prior notice in writing, two months in advance. It was also set out in the agreement that upon the conclusion of his
employment with SOS for a reason that does not establish cause for termination pursuant to the terms of the agreement, Mr. Klein will
be entitled to an advance notice period of four additional months. Furthermore, Mr. Klein will also be entitled to an annual bonus subject
to meeting targets as defined by the Company’s board of directors; in the reporting periods, such targets were not defined, and
therefore Mr. Klein was not entitled to a bonus. |
With
regards to the award of options to Mr. Klein in respect of his service as the Company’s CEO, see Note 17.A. above.
With
regard to Mr. Klein’s announcement to the effect that he waives the Company’s debt to him in respect of salary that has not yet
been paid to him - see Note 10.B.
| (2) | In
2005, SOS entered into an employment agreement with Ms. Gal Nir Klein, the wife of Mr. Nir Klein, who serves as the Company’s CEO.
Under the agreement, Ms. Klein serves as SOS’s VP Marketing and Sales Israel on a full-time basis, in consideration for a gross
monthly salary of $6 (NIS 22 thousand) (CPI-linked), plus social benefits, car maintenance, mobile phone and a laptop, and reimbursement
of reasonable expenses expensed as part of doing her job. The agreement was amended on January 2024 for a gross salary of 10 (NIS 39
thousand) and is for an unlimited term, and each party is entitled to conclude it by prior notice in writing, two months in advance.
It was also set in out in the agreement that upon the conclusion of her employment with SOS for a reason that does not establish cause
for termination pursuant to the terms of the agreement, Ms. Klein will be entitled to an advance notice period of 4 additional months.
Furthermore, Ms. Klein will also be entitled to commission from sales and an annual bonus subject to meeting targets as defined by the
Company’s board of directors; in the reporting periods, such targets were not defined, and therefore Ms. Klein was not entitled
to a bonus. |
With
regard to the award of options to Ms. Klein in respect of her service in SOS as stated above - see Note 17.A. above.
| (3) | In
January 2024, Silynxcom entered into an agreement with Mr. Ron Klein, the brother of Mr. Nir Klein. Under the agreement, Mr. Ron Klein
serves as the Company’s chairman of the board of directors, in consideration for a monthly payment of $7 (NIS 25 thousand). |
With
regard to the award of options to Mr. Klein in respect of his service as Silynxcom’s chairman of the board - see Note 17.A. above.
| F. | On
the Company’s incorporation date (August 22, 2021) Mr. Ron Klein, Mr. Nir Klein and Mr. Ilan Akselrod were appointed as chairman
of the Company’s board of directors, Company’s CEO and Director, and Company’s CFO, respectively. |
| G. | With
regard to loans provided to the Company by interested parties thereof, and the waiver of some of the aforesaid loans subject to the completion
of the IPO - see Note 10. |
|