v3.26.1
Segment Reporting
 6 Months Ended 12 Months Ended
Jun. 30, 2026
Dec. 31, 2025
Segment Reporting [Abstract]    
SEGMENT REPORTING

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  

NOTE 19 – SEGMENT REPORTING

 

During 2025, the Company sold its previously existing operations, which are now presented as discontinued operations (see Note 3). On December 30, 2025, the Company acquired a subsidiary operating in the Defense Software sector (see Note 4).

 

As of December 31, 2025, the Company identifies one reportable segment.

 

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 net income (loss) that is also reported on the income statement as net income (loss).

 

The measurement of segment assets is reported on the balance sheet as total consolidated assets.

 

The chief operating decision maker uses net income (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.

 

All of Company’s long-lived assets are located in Israel.

 

Since the acquisition of the Defense Software subsidiary was completed on December 30, 2025, the results of operations for this segment for the year ended December 31, 2025, were immaterial.

 

Net income (loss), financial expenses (as appear in the statement of comprehensive loss) and information on expenses included in note 15 are used to monitor budget versus actual results. The chief operating decision maker also uses net income (loss) in competitive analysis by benchmarking to the Company’s competitors. The competitive analysis along with monitoring of budget versus actual results are used in assessing performance of the segment and in establishing management’s compensation.