v3.26.1
SEGMENT REPORTING
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
SEGMENT REPORTING

NOTE 12: SEGMENT REPORTING

 

The Group operates in such a way that each company in the Group represents a separate business segment. These business segments currently do not include Metagramm’s operations as they do not meet the segment definition criteria.

 

Search segment - the search segment develops a variety of technological software solutions, which perform automation, optimization and monetization of internet campaigns, for the purposes of obtaining and routing internet user traffic to its customers. The search segment activity is conducted by Gix Media.

 

Digital content segment - the digital content segment was engaged in the creation and editing of content, in different languages, for different target audiences, for the purposes of generating revenues from leading advertising platforms, including Google, Facebook, Yahoo and Apple, by utilizing such content to obtain internet user traffic for its customers. The digital content segment activity was conducted by Cortex until November 9, 2025 (see note 6.A), after which the Group ceased operations in this segment and continued to operate solely in the search segment (see note 3).

 

Quantum technology segment – the quantum technology segment generally comprises three principal areas: quantum computing, quantum communication, and quantum sensing. Quantum computing applies principles of quantum mechanics to perform certain computational tasks more efficiently than classical systems and to address problems that are not practically solvable using conventional computing. Quantum communication focuses on the transmission of information using quantum methods and is designed to enhance the security of data exchange. Quantum sensing involves the use of quantum-based systems to measure physical phenomena, such as electromagnetic fields, gravity, and time, with significantly greater sensitivity than traditional sensors. The quantum technology segment activity is conducted by Quantum Israel.

 

The segments’ results include items that directly serve and/or are used by the segment’s business activity and are directly allocated to the segment. As such they do not include depreciation and amortization expenses for intangible assets created at the time of the purchase of those companies and financing expenses incurred on loans taken for the purpose of purchasing those companies. Therefore, these items are not allocated to the various segments.

 

The chief executive officer, who is the Company’s chief operating decision maker (“CODM”), assesses performance for these segments and decides how to allocate resources based the segments’ operating income or loss and income or loss before tax. Segments’ assets and liabilities are not reviewed by the CODM and therefore were not reflected in the segment reporting. The significant expense categories comprising segments profit and loss regularly reviewed by the CODM for the periods ended June 30, 2026 and 2025 are set forth in the table below.

 

 

QUANTUM X LABS INC. (formerly known as Viewbix Inc.)

NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

U.S. dollars in thousands (except share data)

 

NOTE 12: SEGMENT REPORTING (Cont.)

 

A substantial portion of non-current assets is derived from Israel and a substantial portion of revenues is derived from the United States.

 

Segments revenues and operating results:

 

  

Search

segment

  

Quantum technology

segment

  

Adjustments

and eliminations

(See below)

   Total 
   For the six months ended June 30, 2026 
  

Search

segment

  

Quantum technology

segment

  

Adjustments

and eliminations

(See below)

   Total 
                 
Revenues from external customers   626    -    20    646 
Traffic-acquisition and related   266    -    -    266 
Research and development expenses   -    185    -    185 
Sales and marketing expenses   51    -    -    51 
General and administrative expenses   90    444    981    1,515 
Depreciation and amortization   -    -    452    452 
Other expenses (income), net   133    (50)   39    122 
Segment operating income (loss)   86    (579)   (1,452)   (1,945)
Gain from deconsolidation of a subsidiary   -    -    3,831    3,831 
Financial expenses (income), net   (81)   25    (128)   (184)
Segment income (loss), before income taxes   5    (554)   2,251    1,702 

 

  

Search

Segment

  

Adjustments

and eliminations

(See below)

   Total 
   For the six months ended June 30, 2025 
  

Search

Segment

  

Adjustments

and eliminations

(See below)

   Total 
             
Revenues from external customers   883    16    899 
Traffic-acquisition and related costs   184    -    184 
Research and development expenses   36    -    36 
Sales and marketing expenses   50    -    50 
General and administrative expenses   145    610    755 
Depreciation and amortization   -    408    408 
Other expenses, net   -    544    544 
Segment operating income (loss)   468    (1,546)   (1,078)
Financial expenses, net   (40)   (10,488)(*)   (10,528)
Segment income (loss), before income taxes   428    (12,034)   (11,606)

 

  

Search

segment

  

Quantum technology

segment

  

Adjustments

and eliminations

(See below)

   Total 
   For the three months ended June 30, 2026 
  

Search

segment

  

Quantum technology

segment

  

Adjustments

and eliminations

(See below)

   Total 
                 
Revenues from external customers   283    -    10    293 
Traffic-acquisition and related   134    -    -    134 
Research and development expenses   -    185    -    185 
Sales and marketing expenses   26    -    -    26 
General and administrative expenses   37    444    534    1,015 
Depreciation and amortization   -    -    228    228 
Other expenses (income), net   127    (50)   23    100 
Segment operating income (loss)   (41)   (579)   (775)   (1,395)
Gain from deconsolidation of a subsidiary   -    -    3,831    3,831 
Financial expenses (income), net   (77)   25    (61)   (113)
Segment income (loss), before income taxes   (118)   (554)   2,995    2,323 

 

  

Search

Segment

  

Adjustments

and eliminations

(See below)

   Total 
   For the three months ended June 30, 2025 
  

Search

Segment

  

Adjustments

and eliminations

(See below)

   Total 
             
Revenues from external customers   354    16    370 
Traffic-acquisition and related costs   50    -    50 
Research and development expenses   20    -    20 
Sales and marketing expenses   30    -    30 
General and administrative expenses   70    488    558 
Depreciation and amortization   -    235    235 
Other expenses, net   -    500    500 
Segment operating income (loss)   184    (1,207)   (1,023)
Financial expenses, net   (35)   (7,626)(*)   (7,661)
Segment income (loss), before income taxes   149    (8,833)   (8,684)

 

  (*) Mainly consist of financial expenses arising from changes in the fair value of financial assets measured at fair value through profit or loss (see note 8).

 

 

QUANTUM X LABS INC. (formerly known as Viewbix Inc.)

NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

U.S. dollars in thousands (except share data)

 

NOTE 12: SEGMENT REPORTING (Cont.)

 

The “adjustments and eliminations” column for segment operating income includes unallocated selling, general, and administrative expenses and certain items which management excludes from segment results when evaluating segment performance, as follows:

 

  

For the six
months ended

June 30,
2026

  

For the six
months ended

June 30,
2025

 
         
Depreciation and amortization expenses not attributable to segments (**)   (452)   (408)
Revenues, research and development expenses, sales and marketing expenses, general and administrative expenses and other expenses, net not attributable to the segments (***)   (1,000)   (1,138)
Gain from deconsolidation of a subsidiary   3,831    - 
    2,379    (1,546)

 

  

For the three
months ended

June 30,
2026

  

For the three
months ended

June 30,
2025

 
         
Depreciation and amortization expenses not attributable to segments (**)   (228)   (235)
Revenues, research and development expenses, sales and marketing expenses, general and administrative expenses and other expenses, net not attributable to the segments (***)   (547)   (972)
Gain from deconsolidation of a subsidiary   3,831    - 
    3,056    (1,207)

 

  (*) Mainly consist of financial expenses arising from changes in the fair value of financial assets measured at fair value through profit or loss (see note 8).

 

  (**) Mainly consist of technology and customer relations amortization costs from business combinations.
     
  (***) Mainly consist of general and administrative expenses such as salaries and related expenses and professional services.

 

 

QUANTUM X LABS INC. (formerly known as Viewbix Inc.)

NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

U.S. dollars in thousands (except share data)