v3.26.1
Taxes on Income
 12 Months Ended
Dec. 31, 2025
Taxes on Income [Abstract]  
TAXES ON INCOME

NOTE 9 – TAXES ON INCOME

 

a.Tax rates applicable to the Company:

 

Taxable income of the Company is subject to the US Corporate tax rate, which was 21% in 2025 and 2024. At December 31, 2025, the Company had U.S. federal net operating loss carryforwards of approximately $1,387 available to reduce future taxable income.

 

b.Tax rates applicable to the Subsidiary:

 

Taxable income of the Subsidiary is subject to the Israeli Corporate tax rate, which was 23% in 2025 and 2024.

 

The Company’s Israeli subsidiaries have estimated total available carryforward operating tax losses for Israeli income tax purposes of approximately $7,830 as of December 31, 2025.

 

c.The Subsidiaries have not received final tax assessment since its inception.

 

d.Deferred income taxes:

 

As of December 31, 2025 and December 31, 2024, the Company’s deferred taxes were in respect of the following:

 

   December 31,   December 31, 
   2025   2024 
Deferred tax assets:        
Operating loss carry forward   9,218    5,540 
Deferred tax assets before valuation allowance   2,092    1,252 
Valuation allowance   (2,092)   (1,252)
           
Net deferred tax asset   
-
    
-
 
  e. Reconciliation of the theoretical tax expense to the actual tax expense:

 

The reconciliation of income tax expense computed at statutory tax rate to income tax expense in 2024 were as follows:

 

   Year Ended December 31, 
   2024 
Computed “expected” tax income   437 
Valuation allowance   (437)
      
Income tax expense  $
-
 

 

A reconciliation of the provision for income taxes to the amount computed by applying the 23% statutory Israeli income tax rate to income before income taxes after the adoption of ASU 2023-09 is as follows:

 

   December 31, 2025 
   $   % 
         
Tax at Israeli Statutory Rate  $2,749    21 
   Changes in Valuation Allowances*   (226)   (1)
Nontaxable and Nondeductible Items          
   Impairment of goodwill and intangible assets   (2,034)   (15)
   Share-based payment   (131)   (1)
Other adjustments   
-
    
-
 
Effective Tax Rate  $358    4 

 

*Arises as a result of a change in expectations of realizing losses for tax purposes