The
Company’s deferred tax assets are as follows:
SCHEDULE
OF DEFERRED TAX ASSETS
| | |
2025 | | |
2024 | |
| | |
December 31 | |
| | |
2025 | | |
2024 | |
| | |
U.S. dollars in thousands | |
| Deferred Tax assets: | |
| | | |
| | |
| Net operating losses carryforward | |
| 16,566 | | |
| 11,163 | |
| Operating lease liabilities | |
| 167 | | |
| 210 | |
| Employee benefits | |
| 69 | | |
| 64 | |
| Inventory write off | |
| 664 | | |
| 277 | |
| Warrants liability | |
| - | | |
| 6 | |
| Unrealized loss on digital assets (*) | |
| 6,971 | | |
| - | |
| Research and development expenses | |
| 998 | | |
| 1,143 | |
| Issuance costs | |
| 209 | | |
| 11 | |
| Total deferred tax assets | |
| 25,644 | | |
| 12,874 | |
| Less deferred tax liabilities (related to right of use assets) | |
| (167 | ) | |
| (224 | ) |
| Deferred tax assets, net | |
| 25,477 | | |
| 12,650 | |
| Less valuation allowance for deferred tax assets | |
| (25,477 | ) | |
| (12,650 | ) |
| Deferred tax assets | |
| - | | |
| - | |
ZOOZ
STRATEGY LTD
NOTES
TO THE FINANCIAL STATEMENTS (continued)
| | |
December 31 | |
| | |
2025 | | |
2024 | |
| | |
U.S. dollars in thousands | |
| Valuation allowance at beginning of year | |
| (12,650 | ) | |
| (9,792 | ) |
| Changes in valuation allowance | |
| (12,827 | ) | |
| (2,858 | ) |
| Valuation allowance at end of year | |
| (25,477 | ) | |
| (12,650 | ) |
| (*) | | The Company establishes
a deferred tax asset if the fair market value of bitcoin at the reporting date is lower than the cost basis of the Company’s bitcoin
holdings at such reporting date, and any subsequent increases or decreases in the fair market value of bitcoin increases or decreases
the deferred tax asset. The Company has established a valuation allowance against the deferred tax asset as there is currently no expectation
of taxable income from bitcoin or realization of gains. If the fair market value of bitcoin increases to the point where the fair market
value exceeds the Company’s tax basis in bitcoin, the deferred tax asset reverses and a deferred tax liability for the unrealized
gain would be recorded. |
|