NOTE 13 – SEGMENT REPORTING
As of June 30, 2026, the Company's
reportable segments are (i) Rimon, (ii) ITS and (iii) Tiltan. Nimbus and Water were not considered material and are therefore included
within other segments.
The Company’s chief operating
decision maker is its chief executive officer.
The chief operating decision maker
assesses performance and decides how to allocate resources based on gross profit (loss) that is also reported on the income statement
as gross profit (loss).
The measurement of segment assets
is reported on the balance sheet as total consolidated assets.
The chief operating decision maker
uses gross profit (loss) to evaluate income generated from the segment assets (return on assets) in deciding whether to reinvest profits
into the segment or into other parts of the entity.
The following table presents information
about the Company’s reportable segments for the six months ended June 30, 2026 and 2025:
| | |
Six months ended | |
| | |
June 30 | |
| | |
2026 | | |
2025 | |
| | |
| | |
| |
| Revenue from Rimon | |
| 3,331 | | |
| - | |
| Salaries and related compensation | |
| (441 | ) | |
| | |
| Depreciation | |
| (13 | ) | |
| | |
| Other cost related to Rimon (mainly materials) | |
| (2,298 | ) | |
| - | |
| Gross Profit | |
| 579 | | |
| - | |
| | |
| | | |
| | |
| Revenue from ITS | |
| 3,450 | | |
| - | |
| Salaries and related compensation | |
| (1,820 | ) | |
| | |
| Depreciation | |
| (300 | ) | |
| | |
| Other cost related to ITS (mainly materials) | |
| (751 | ) | |
| - | |
| Gross loss | |
| 579 | | |
| - | |
| | |
| | | |
| | |
| Revenue from TILTAN | |
| 736 | | |
| - | |
| Salaries and related compensation | |
| (198 | ) | |
| | |
| Depreciation and amortization | |
| (33 | ) | |
| | |
| Cost related to TILATN | |
| (254 | ) | |
| - | |
| Gross income | |
| 251 | | |
| - | |
| | |
Six months ended | |
| | |
June 30 | |
| | |
2026 | | |
2025 | |
| Revenue from other reportable segments | |
| 132 | | |
| - | |
| Cost related to other reportable segments | |
| (157 | ) | |
| - | |
| Gross income | |
| (25 | ) | |
| - | |
| | |
| | | |
| | |
| Research and development expenses | |
| (622 | ) | |
| - | |
| Selling and marketing expenses | |
| (341 | ) | |
| - | |
| Professional services | |
| (1,928 | ) | |
| (2,555 | ) |
| Salaries and related compensation | |
| (2,043 | ) | |
| - | |
| Other general and administrative expenses | |
| (3,150 | ) | |
| - | |
| General and administrative expenses of consolidated variable interest entities | |
| (489 | ) | |
| -- | |
| Total Operating loss | |
| (7,189 | ) | |
| (2,555 | ) |
| Interest expense | |
| (3,415 | ) | |
| (372 | ) |
| Interest on related parties promissory note | |
| (354 | ) | |
| - | |
| Change in fair value - convertible note | |
| 5,392 | | |
| 588 | |
| Change in fair value - stock purchase warrant liabilities | |
| (107,641 | ) | |
| 109,406 | |
| Other (expenses) income | |
| 1,116 | | |
| (690 | ) |
| | |
| | | |
| | |
| Net loss before tax | |
| (112,091 | ) | |
| 106,377 | |
| | |
| | | |
| | |
| Discontinued operation | |
| 4,159 | | |
| (400 | ) |
| Income taxes | |
| 152 | | |
| - | |
| | |
| | | |
| | |
| Net loss | |
| (107,780 | ) | |
| 105,977 | |
|