NOTE 3: NEW ACCOUNTING POLICIES AND RECENT ACCOUNTING PRONOUNCEMENTS

SAB122, “Accounting for Obligations to Safeguard Crypto-Assets an Entity Holds for its Platform Users”:

SAB 122 cancels the guidance in SAB 121 which requires entities that had an obligation to safeguard customers’ cryptocurrencies to record the liability in its statement of financial position with a corresponding asset measured at the fair value of the cryptocurrencies.

Under SAB 122, an entity is required to determine whether a liability for the risk of loss is to be recorded on the balance sheet by applying the guidance in IAS 37, “Provisions, Contingent Liabilities and Contingent Assets”.

SAB 122 has been initially applied in 2025, with retrospective effect. The application of SAB122 resulted in derecognition as of December 31, 2024, of the asset Customer Funds and the corresponding liability in the amount of $6,555. The application of SAB 122 had no effect on the Company’s profit or loss and its equity.

IFRS 18, “Presentation and Disclosure in Financial Statements”:

In April 2024, the International Accounting Standards Board (“the IASB”) issued IFRS 18, “Presentation and Disclosure in Financial Statements” (“IFRS 18”) which replaces IAS 1, “Presentation of Financial Statements”.

IFRS 18 is aimed at improving comparability and transparency of communication in financial statements.

IFRS 18 retains certain existing requirements of IAS 1 and introduces new requirements on presentation within the statement of profit or loss, including specified totals and subtotals. It also requires disclosure of management-defined performance measures and includes new requirements for aggregation and disaggregation of financial information.

IFRS 18 does not modify the recognition and measurement provisions of items in the financial statements. However, since items within the statement of profit or loss must be classified into one of five categories (operating, investing, financing, taxes on income and discontinued operations), it may change the entity’s operating profit.

Moreover, the publication of IFRS 18 resulted in consequential narrow scope amendments to other accounting standards, including IAS 7, “Statement of Cash Flows”, and IAS 34, “Interim Financial Reporting”.

IFRS 18 is effective for annual reporting periods beginning on or after January 1, 2027, and is to be applied retrospectively. Early adoption is permitted but will need to be disclosed. The Company is evaluating the effects of IFRS 18, including the effects of the consequential amendments to other accounting standards, on its consolidated financial statements.