NOTE 7: - ADVANCE TOWARDS SHARE SUBSCRIPTION

On June 14, 2026, the Company entered into an Advance Subscription Agreement, or the Advance Subscription, with Chutzpah Holdings LP, or Chutzpah Holdings, pursuant to which Chutzpah Holdings advanced $1,250 to the Company. The funds were received on June 16, 2026.

Under the Advance Subscription, the advance was intended to be applied towards the Chutzpah Holdings’ participation in a future financing transaction, subject to the approval of the Board and the consummation of such financing by August 14, 2026, which date was subsequently extended by the Company’s Board to October 14, 2026. In the event that the contemplated financing transaction was not completed on or before October 14, 2026, or if all or a portion of the advance cannot be applied toward the purchase of securities in such financing, the advance amount was expected to be applied toward the purchase of securities in a subsequent financing transaction, subject to the approval of the Board and compliance with applicable corporate and regulatory requirements.

As of August 28, 2026, following the August SPA (see note 8(2)), the number of shares to be issued under the advance agreement became fixed, and the conditions for the issuance of the underlying equity instruments were met in accordance with ASC 815-40. Accordingly, the advance towards share subscription was reclassified to equity, and no change in fair value was recorded (see note 8(3)).