NOTE
4 - CONVERTIBLE LOANS AND WARRANTS
The
following table summarizes fair value measurements by level as of June 30, 2026 and December 31, 2025 measured at fair value on a recurring
basis:
SCHEDULE OF FAIR VALUE RECURRING BASIS
| June 30, 2026 | |
Level 1 | | |
Level 2 | | |
Level 3 | | |
Total | |
| | |
In U.S. dollars | |
| Assets | |
| | | |
| | | |
| | | |
| | |
| None | |
| - | | |
| - | | |
| - | | |
| - | |
| | |
| | | |
| | | |
| | | |
| | |
| Liabilities | |
| | | |
| | | |
| | | |
| | |
| Convertible Loans | |
| - | | |
| - | | |
| 948 | | |
| 948 | |
| Derivative liability – Anti-dilution rights | |
| - | | |
| - | | |
| 8,320 | | |
| 8,320 | |
| December 31, 2025 | |
Level 1 | | |
Level 2 | | |
Level 3 | | |
Total | |
| | |
In U.S. dollars | |
| Assets | |
| | | |
| | | |
| | | |
| | |
| None | |
| - | | |
| - | | |
| - | | |
| - | |
| | |
| | | |
| | | |
| | | |
| | |
| Liabilities | |
| | | |
| | | |
| | | |
| | |
| Convertible Loans | |
| - | | |
| - | | |
| 901 | | |
| 901 | |
| Derivative liability – Anti-dilution rights | |
| - | | |
| - | | |
| 7,103 | | |
| 7,103 | |
The
Convertible Loans changes consist of the following as of June 30, 2026 and December 31, 2025:
SCHEDULE OF CONVERTIBLE LOANS AT FAIR VALUE CHANGES
| | |
|
|
|
|
| |
| | |
Convertible Loans at Fair Value | |
| | |
June 30, 2026 | | |
December 31, 2025 | |
| | |
$000 | |
| Opening Balance, (including short term loans from related party which is also convertible) | |
| 901 | | |
| 4,163 | |
| Transition from amortized cost to convertible loans measured at fair value | |
| - | | |
| (869 | ) |
| Change in fair value of convertible loans liability | |
| 47 | | |
| (2,393 | ) |
| Closing balance | |
| 948 | | |
| 901 | |
The
estimated fair values of the Convertible loans were measured according to the Monte Carlo Model using the following assumptions:
SCHEDULE
OF FAIR VALUES OF WARRANTS AND CONVERTIBLE LOAN ASSUMPTION USED
| | |
As of June 30, 2026 | | |
As of December 31, 2025 | |
| Expected term (in years) | |
| 1.67 | | |
| 2 | |
| Expected average (Monte Carlo) volatility | |
| 65 | % | |
| 55.38 | % |
| Expected dividend yield | |
| - | | |
| - | |
| Risk-free interest rate | |
| 4.09 | % | |
| 3.4 | % |
| WACC | |
| 27 | % | |
| 26 | % |
The Derivative liability – Anti-dilution
rights changes consist of the following as of June 30, 2026 and December 31, 2025:
SCHEDULE OF ANTI DILUTION DERIVATIVE
LIABILITY
| |
|
June 30, 2026 |
|
|
December 31, 2025 |
|
| |
|
Anti-Dilution Liabilities at Fair Value |
|
|
|
|
| |
|
June 30, 2026 |
|
|
December 31, 2025 |
|
| |
|
$000 |
|
|
|
|
| Opening Balance |
|
|
7,103 |
|
|
|
- |
|
| Recognition of anti-dilution rights granted to new investors (see Note 8 – Capital raise) |
|
|
329 |
|
|
|
7,103 |
|
| Fair value adjustment |
|
|
888 |
|
|
|
- |
|
| Closing balance |
|
|
8,320 |
|
|
|
7,103 |
|
TECHLOTT
INC.
NOTES
TO THE UNAUDITED FINANCIAL STATEMENTS
|