| GENERAL |
NOTE
1 – GENERAL:
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a. |
Odysight.ai
Inc. (the “Company”) was incorporated under the laws of the State of Nevada on March 22, 2013. |
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The
Company’s wholly owned subsidiary, Odysight.ai Ltd (“Odysight.ai”), was incorporated in the State of Israel on
January 3, 2019, and was merged into the Company on December 31, 2019 in a share exchange transaction, following which the surviving
operations of the merged entity were the operations of Odysight.ai. |
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On
February 28, 2024, D. View Ltd., a wholly owned subsidiary of the Company was incorporated in the State of Israel to act as a representative for the defense market. |
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On
January 9, 2025, Odysight.ai Eu S.r.l., a wholly owned subsidiary of the Company was incorporated
under the laws of Italy.
References
to the Company include the subsidiaries unless the context indicates otherwise. |
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The
Company, through its subsidiaries, provides vision-based solutions for the Predictive Maintenance (PdM) and Condition Based Monitoring
(CBM) markets. The Company’s visual sensor-based solutions and its embedded software, and AI algorithms are deployed in hard-to-reach
locations and harsh environments across a variety of PdM and CBM use cases and allow maintenance and operations teams visibility
into areas which are inaccessible under normal operation, or where the operating ambience is not suitable for continuous real-time
monitoring. By combining advanced visual sensing, real-time analytics, and AI-driven
insights, the Company helps organizations improve safety, efficiency, and operational intelligence. |
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On
February 11, 2025, the Company’s common stock began trading on the Nasdaq Capital Market under the symbol “ODYS”.
Prior to such date, the Company was quoted on the OTCQB under the same symbol. On April 9, 2026, the Company’s common stock
began trading on Tel Aviv Stock Exchange under the symbol “ODYS”. |
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b. |
Since
incorporation of Odysight.ai and through June 30, 2026, the Company accumulated a deficit of approximately $72.5
million and its activities have been funded mainly by its shareholders. The Company’s management believes the Company’s
cash and cash resources will allow the Company to fund its operating plan through at least the next 12 months from the filing date
of these interim condensed consolidated financial statements. However, the Company expects to continue to incur significant
operational expenses related to its ongoing activities, requiring the Company to obtain additional funding in order to continue its
future operations until becoming profitable. |
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c. |
On February 28, 2026, the United States and Israel preemptively
attacked Iran. As part of this conflict, Iran launched missile and drone attacks
toward population centers and military installations in Israel, Europe and neighboring countries in the Gulf region, and also launched
counter-strikes against U.S. forces and allied bases throughout the Gulf region. These events have resulted in civilian casualties and
property damage in Israel. In early March 2026, Hezbollah joined the conflict and carried out missile attacks against Israel, leading
to Israeli retaliatory strikes and an extended ground incursion. While temporary ceasefires between the United States, Israel, and Iran, and between Israel and Lebanon, were reached
in April 2026, hostilities between Israel and Hezbollah remain ongoing with occasional flare ups between the United States and Iran, there
can be no assurance that the temporary ceasefires will be upheld or that a permanent ceasefire will be reached, and the situation remains
volatile and highly unstable.
As
a result of the above-described events, the Company experienced delays in customer orders and in deliveries in existing projects.
In
the Company’s assessment, should the security situation continue for an extended period and/or escalate, its consequences may
have a material adverse effect on the Israeli economy, including on the Company. Given that this is a dynamic event characterized
by significant uncertainty, the extent of the impact of the security situation on the Company’s future operations is currently
unknown. |
ODYSIGHT.AI
INC.
NOTES
TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
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