v3.26.1
Fair Value Measurements
 6 Months Ended
Jun. 30, 2026
Fair Value Measurements [Abstract]  
FAIR VALUE MEASUREMENTS

NOTE 3 – FAIR VALUE MEASUREMENTS

 

The Company accounts for financial instruments in accordance with ASC 820, “Fair Value Measurements and Disclosures” (“ASC 820”). ASC 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under ASC 820 are described below:

 

Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

 

Level 2 – Quoted prices in non-active markets or in active markets for similar assets or liabilities, observable inputs other than quoted prices, and inputs that are not directly observable but are corroborated by observable market data.

 

Level 3 – Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.

 

There were no changes in the fair value hierarchy levelling during the three and six months ended June 30, 2026 or the year ended December 31, 2025.

 

The Company’s financial assets that are measured at fair value on a recurring basis by level within the fair value hierarchy are as follows:

 

    As of June 30, 2026  
    Level 1     Level 2     Level 3     Total  
    US$  
Assets:                        
Cash equivalents:                        
Money market funds     13       -       -       13  
Total assets     13       -       -       13  

 

    As of December 31, 2025  
    Level 1     Level 2     Level 3     Total  
    US$  
Assets:                        
Cash equivalents:                        
Money market funds     3,084       -       -       3,084  
Total assets     3,084       -       -       3,084  

 

The Company’s financial liabilities that are measured at fair value on a recurring basis by level within the fair value hierarchy are as follows:

 

    As of June 30, 2026  
    Level 1     Level 2     Level 3     Total  
    US$  
Liabilities:                        
Warrant liability issued as consideration for subsidiary acquisition                     2,082       2,082  
Warrants     -       -       87       87  
Total liabilities     -       -       2,169       2,169  

 

    As of December 31, 2025  
    Level 1     Level 2     Level 3     Total  
    US$  
Liabilities:                        
Warrants     -       -       706       706  
Total liabilities     -       -       706       706  

 

The Company determined the fair value of the embedded conversion derivative using the Binomial Option Pricing Model, a Level 3 measurement, within the fair value hierarchy (see Note 8A).

 

The following table presents the changes in fair value of the level 3 liabilities for the period of six month ended June 30, 2026 and 2025:

 

    Six months ended     Six months ended  
    June 30,
2026		     June 30,
2025		  
Liability:            
Beginning balance     706       2,287  
Issuance of Common Warrants (*)     8,422       4,531  
Repricing of warrants under the Inducement Letter Agreements (**)     -       3,300  
Exercise of warrants into common stock     (13,485 )     (1 )
Change in terms of warrant liability     (1,218 )     -  
Change in fair value     7,744       (5,712 )
Ending balance     2,169       4,405  

 

(*) Including $3,340 of loss upon entering the transaction.
(**) Repricing and exercise of the warrants under the Inducement Letter Agreements, which was charged to profit and loss.

 

The Company determined the fair value of the liabilities for the warrants using the Black-Scholes model, a Level 3 measurement, within the fair value hierarchy.

 

    Six months ended     Six months ended  
    June 30,
2026		     June 30,
2025		  
             
Underlying value of Common Stock ($)     0.35 – 4.98       0.45  
Exercise price ($)     1 - 43.91       0.93-2.31  
Expected volatility (%)     53-163.3       114-122.4  
Expected terms (years)     0.02-4.79       1-4.8  
Risk-free interest rate (%)     3.7-4.2       3.8-3.9