v3.26.1
Discontinued Operations (Tables)
 12 Months Ended
Dec. 31, 2025
Discontinued Operations [Abstract]  
Schedule of Statement of Financial Position of Social Proxy

The following table presents the statement of financial position of Social Proxy as of December 31, 2024 and January 1, 2025 (the date of deconsolidation):

 

   December 31,
2024		   January 1,
2025		 
   U.S. dollars in thousands 
     
CURRENT ASSETS:        
Cash and cash equivalents (*)   5    5 
Trade receivable   99    99 
Prepaid expenses and other current assets   46    46 
    150    150 
           
NON-CURRENT ASSETS:          
Fixed assets, net   187    187 
Long-term bank deposit   14    14 
    201    201 
           
Total assets   351    351 
           
LIABILITIES AND EQUITY          
Loans and credit from banking corporations   138    138 
Accounts payable   1,729    1,729 
    1,867    1,867 
EQUITY          
Share capital   
-
    
-
 
Accumulated deficit   (284)   (1,516)
Net loss (****)   (1,232)   
-
 
Total equity   (1,516)   (1,516)
           
Total liabilities and equity   351    351 

 

(*)Represents the cash and cash equivalents of Social Proxy that were derecognized from the consolidated financial statements upon the deconsolidation of the subsidiary in connection with the discontinuation of its operations.
(***)Sales and Marketing expenses for the year ended December 31, 2024 is comprised of Social Proxy’s sales and marketing expenses and amortization of intangible assets (technology) recognized in connection with the Social Proxy acquisition; see breakdown in the table below.
(****)The results of the discontinued operation presented above reflect Social Proxy on a consolidated basis and therefore differ from its stand-alone results. On consolidation, the intangible assets identified in the purchase price allocation (see Note 5) are amortized at the Group level — $134 thousand charged to cost of service and $31 thousand to sales and marketing — and a related deferred tax income of $130 thousand is recognized (see Note 25). The table below reconciles Social Proxy’s stand-alone loss for 2024 to the net loss from discontinued operations presented in these financial statements.
Schedule of Results of Social Proxy

The following table presents the results of Social Proxy that have been classified as discontinued operations.

 

   2025   2024 
   U.S. dollars in thousands 
         
Revenues   
-
    451 
Cost of service (**)   
-
    (448)
Gross profit   
-
    3 
           
Research and development expenses   
-
    (82)
Sales and Marketing expenses (***)   
-
    (487)
General and administrative expenses   
-
    (666)
Intangible assets amortization   
-
    (165)
           
Operating loss   
-
    (1,397)
           
Finance expenses, net   
-
    
 
 
    
-
    (1,397)
Loss before income taxes          
           
Income taxes benefit   -    130 
           
 Net loss from discontinued operations (****)   
-
    (1,267)
           
Loss from disposal/deconsolidation   (6,210)   
-
 
           
Net loss   (6,210)   (1,267)

 

(**)Cost of Service for the year ended December 31, 2024 is comprised of Social Proxy’s cost of service and amortization of intangible assets (technology) recognized in connection with the Social Proxy acquisition; see breakdown in the table below.
(***)Sales and Marketing expenses for the year ended December 31, 2024 is comprised of Social Proxy’s sales and marketing expenses and amortization of intangible assets (technology) recognized in connection with the Social Proxy acquisition; see breakdown in the table below.
(****)The results of the discontinued operation presented above reflect Social Proxy on a consolidated basis and therefore differ from its stand-alone results. On consolidation, the intangible assets identified in the purchase price allocation (see Note 5) are amortized at the Group level — $134 thousand charged to cost of service and $31 thousand to sales and marketing — and a related deferred tax income of $130 thousand is recognized (see Note 25). The table below reconciles Social Proxy’s stand-alone loss for 2024 to the net loss from discontinued operations presented in these financial statements.
Schedule of Cost of Service and Amortization of Intangible Assets
SAAS – Social Proxy   314 
Amortization   134 
      
    448 
SAAS – Social Proxy   456 
Amortization   31 
      
    487 
Schedule of Net Loss From Discontinued Operations Presented in These Financial Statements. The table below reconciles Social Proxy’s stand-alone loss for 2024 to the net loss from discontinued operations presented in these financial statements.
 Social Proxy’s stand-alone loss for the period from acquisition to December 31, 2024   (1,232)
Amortization of acquired intangibles — Cost of Service   (134)
Amortization of acquired intangibles — Sales and Marketing   (31)
      
Operating loss from discontinued operations   (1,397)
      
Deferred tax income on amortization of acquired intangibles   130 
      
Net loss from discontinued operations   (1,267)
Schedule of Loss from Discontinued Operations

The loss from discontinued operations for the year ended December 31, 2025 of $6,210 thousand reflects the derecognition of the Company’s net investment in Social Proxy upon its deconsolidation effective January 1, 2025, including the related deferred tax liability previously recognized on the underlying intangible assets.

 

   1.1.2025 
     
Intangible assets, net   3,436 
Goodwill   3,193 
Other adjustments   (2)
    6,627 
      
Social Proxy’s equity   (1,516)
Deferred tax liability   (219)
Loan to Social Proxy (*)   1,318 
      
    6,210 

 

(*) The Company’s total loan to Social Proxy amounted to $1,626 thousand. Of this amount, $1,318 thousand, relating to the period up to December 31, 2024, was included within discontinued operations, while the remaining $308 thousand, relating to 2025, was recognized as a bad debt within continuing operations. See Note 23
Schedule of Cash Flows From the Discontinued Operations Additional information regarding the cash flows from the discontinued operations
   December 31, 
   2025   2024 (*) 
   U.S. dollars in thousands 
         
Net cash used in operating activities   (303)   (1,346)
Net cash provided by (used in) investing activities   (237)   (19)
Net cash provided by financing activities   -    893 

 

(*)Social Proxy was consolidated in the Company’s financial statements from the date of acquisition, August 14, 2024, through the end of 2024, at which point control over the company was lost and its operations were discontinued.