Seegnal — Management Reports 2025

Sep 8, 2025

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Kalron Holdings Ltd.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

For the three and six-month periods ended June 30, 2025

Management's Discussion and Analysis

The following Management’s Discussion and Analysis (the “MD&A”) of the financial condition and results of operations of Kalron Holdings Ltd. (“Kalron”, “we”, “our”, “us”, or the “Company”) constitutes management’s review of the factors that affected the Company’s financial and operating performance for the three and six month periods ended June 30, 2025. This discussion should be read in conjunction with the Company’s audited annual consolidated financial statements for the year ended December 31, 2024 and the unaudited condensed interim consolidated financial statements for the three and six month periods ended June 30, 2025, together with the notes thereto (the “Financial Statements”). These financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS® Accounting Standards") as issued by the International Accounting Standards Board. This MD&A contains forward-looking information that is subject to risk factors including those set out under “Forward Looking Information” below and elsewhere in this MD&A, including under “Risks and Uncertainties”. All amounts are reported in US dollars, unless otherwise noted. This MD&A has been prepared as at September 8, 2025, unless otherwise indicated.

For the purposes of preparing this MD&A, management, in conjunction with the board of directors of the Company (the “Board”), considers the materiality of information with reference to all relevant circumstances, including potential market sensitivity.

Certain information and discussion included in this MD&A constitutes forward-looking information. Readers are encouraged to refer to the cautionary notes contained in the section Forward-Looking Statements at the end of the MD&A.

Cautionary Note Regarding Forward-Looking Information

Statements contained in this MD&A that are not historical facts are forward-looking information and forward-looking statements as defined in applicable securities laws (collectively referred to herein as “forward-looking statements”) that involve risks and uncertainties. These statements relate to future events or the Company’s future performance. All statements other than statements of historical fact are forward-looking statements. In certain cases, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”.

In making such forward-looking statements, the Company has made assumptions regarding, amongst other things, statements with respect to the future revenues; capital expenditures; costs, timing and future plans concerning the timing of signing new customers; currency fluctuations; requirements for additional capital; government regulation. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to operations; termination or amendment of existing contracts; labor disputes and other risks of the industry; as well as those factors discussed in the section entitled “Risks and Uncertainties” in this MD&A. Although the Company has attempted to identify important factors that may cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended.

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There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date of this MD&A or as of the date specified in such statement and the Company assumes no obligation to update or revise them to reflect new events or circumstances, except as may be required by law.

Description of Business

Corporate Structure and Business Description

Kalron is a privately held holding corporation established under Israel's laws in 2017. Kalron is the sole shareholder of Seegnal eHealth Ltd. ("Seegnal"), an Israeli based corporation incorporated under the Companies Law, 1999 (Israel) on September 25, 2005, as a wholly owned subsidiary of Teva Pharmaceuticals Industries Ltd. ("Teva"). Seegnal originally operated under the name "Teva Biogenetics Ltd.", as an empty shelf company until 2015, when the name was changed to "Mediseen eHealth Ltd." and the entity started operations. Mediseen eHealth Ltd. changed its name to "Seegnal eHealth Ltd." on December 4, 2019.

Seegnal has developed, owns, and is marketing software products for the provisioning of patient-tailored medication at the point of care, with the goal of safeguarding patients (and physicians) from adverse drug reactions, which, according to the World Health Organization, has been determined among the top six most common causes of death worldwide. In the relevant jurisdictions of its operations, Seegnal's products fall under the clinical decision support software ("CDSS") category and are classified as non-regulated medical devices and considered as excluded from the FDA's jurisdiction. Seegnal's platform incorporates certain drug databases licensed from prominent international databases, the current main one being First DataBank International Inc. ("FDB") The software as a service ("SaaS") common framework, which serves as the heart of Seegnal's products, encompasses a distinct patient-tailored (patient-centric) approach, patented single-screen glance, patented workflow, and over 1,500 proprietary algorithms.

The Company's head office is located at Hashikma St 1, Savyon, Israel.

On June 5, 2019, Seegnal established Seegnal US Inc, a wholly owned subsidiary ("Seegnal US") which is focusing on sales and marketing of the Company's products in North America. During 2024, the operations of Seegnal US have been reduced significantly and at the date of this MD&A, Seegnal US does not have active operations.

Significant developments during and subsequent to the six months period ended June 30, 2025.

Seegnal primarily operates in Israel and the UAE, while actively pursuing business expansion opportunities in the United Kingdom and Poland. Two of Israel's four health maintenance organizations are using the system by virtue of long-term licensing agreements in national deployment as well as one of the largest hospital facilities in the country pursuant to a public tender process win. The largest hospital in Tel Aviv completed its onboarding of Seegnal in March 2025.

In April 2025, the Israeli Ministry of Health confirmed that Seegnal won the public tender process and has been chosen to implement its innovative clinical co-pilot system in all governmental hospitals in Israel. The tender, which had been published in 2023, provides for the implementation of Seegnal's propriety drug safety clinical decision support system in all government hospitals in Israel for the next 10 years. As part of the tender Seegnal has partnered with a leading local System Integrator who will carry out the integration with the EMR, implementation, help-desk and technical maintenance services as a prime contractor.

1 World Health Organization 2023: Global burden of preventable medication-related harm in health care: a systematic review. ISBN 978-92-4-008888-7 (electronic version).

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Kalron intends to continue its current business and operations in 2025.

Material Transaction

On September 23, 2023, Reem Capital Corp. (“Reem”) entered into a definitive agreement with Kalron, Seegnal, certain securityholders of Kalron and certain securityholders of Seegnal, which was subsequently amended on January 27, 2025 (the “Definitive Agreement”) pursuant to which Reem would complete its qualifying transaction (the “Transaction”) pursuant to TSXV Policy 2.4 - Capital Pool Companies (the "CPC Policy"), and whereby Reem as it exists upon completion of the Transaction (the “Resulting Issuer”) will continue the business of Kalron. On August 29, 2025, Reem announced the completion of the Transaction effective August 28, 2025.

Pursuant to the Transaction:

• On August 21, 2025, both Reem and Kalron completed non-brokered private placements of subscription receipts (the “Subscription Receipts”) for aggregate gross proceeds of $3,466,732, as further described in the press release of Reem dated August 21, 2025;
• immediately prior to closing of the Qualifying Transaction, all outstanding convertible debentures and SAFEs of Kalron converted, in accordance with their terms, into ordinary shares of Kalron; and
• at the time of closing of the Transaction, among other things:
• Reem completed an acquisition of all of the issued and outstanding ordinary shares in the capital of Kalron from all of the shareholders of Kalron in exchange for Reem Shares and warrants of Reem, pursuant to the terms in the Definitive Agreement;
• each Subscription Receipt converted into one Reem Share and one warrant of Reem, each warrant entitling the holder thereof to purchase one Seegnal Share at an exercise price of $1.20 per share at any time on or before the 24-month anniversary from the date of issuance (a “Warrant”); and
• certain holders of convertible debentures of Kalron received, pursuant to the terms of the purchase agreements for such convertible debentures, Warrants.

As a result of the Transaction, Kalron is now a wholly-owned subsidiary of Reem and Reem changed its name to Seegnal Inc.

For further information regarding the Transaction, Seegnal or Kalron, please see the long form prospectus of Seegnal dated July 30, 2025, and prior press releases related to the Qualifying Transaction, which can be found on Seegnal’s SEDAR+ profile at www.sedarplus.ca.

Business of Kalron

Seegnal was founded in 2015 as a wholly owned subsidiary of Teva Pharmaceuticals Industries Ltd. to develop a clinical decision support system software for clinicians at the point of care to improve patient care, experience, and outcomes, streamlining clinician prescription management workflow to substantially lower healthcare expenditures. Seegnal started by developing and marketing patient-tailored SAAS CDSS to reduce the “Alert Fatigue” phenomena that were perceived as the cause of ADRs. According to the World Health Organization, "Adverse drug reactions (ADRs) are estimated to be between the 4th and 6th most common cause of death worldwide, taking their place among other prevalent causes of mortality such as heart disease, cancer, and stroke."

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Over time, Seegnal identified that placing the individual patient at the center (instead of the medication) by tailoring logic specific to that same certain patient is the key to reducing adverse drug reactions. Currently, Seegnal’s base product is an electronic medical record add-on that allows physicians in a single-glance window to manage and mitigate any possible medication risks within seconds, only when needed. In a study done in Brigham’s Women’s Hospital, Seegnal stopped physicians only 4% of the time (once per patient) compared to Seegnal’s competitor, EPIC electronic medical record which they use (the electronic medical record market leader in the U.S. with 51.5% of the total number of hospitals beds in the U.S.) which stopped them 59.5% of the time, having much better sensitivity and specificity in comparison. The Seegnal software has been accredited as a Health Insurance Portability and Accountability Act (“HIPPAA”) compliant during 2022 purposely to market and deploy the system in the U.S.

In 2017, Seegnal was purchased from Teva by Kalron. As part of the acquisition, Kalron committed to continuing to employ Seegnal’s employees and paying Teva certain royalties on sales. Kalron, through its subsidiary Seegnal, has developed a vast intellectual property portfolio. The SaaS based technology contains over 1500 specific algorithms, and includes three registered patents in the United States, one registered patent in Canada, and one registered patent in the State of Israel, all in the areas of graphical user interface and workflow. The Seegnal system’s functional disruptive graphical user interface approach, on the one hand, and the technical capability to introduce the individual patient at the center when providing clinical recommendations, on the other hand, reduces the physicians’ workload by over 60% compared to EPIC’s system, while providing over 98% alert accuracy and automating alternative therapy resolution suggestions, saving physicians time from researching for alternatives manually.

In 2023, Seegnal finished an actual live proof of concept in a hospital, demonstrating the capability of its newest product (expansion of the base product), providing precision medication recommendations while reducing adverse drug reactions-. With that, Seegnal is one of the few companies worldwide that can provide end-to-end precision medication recommendations with significantly reduced adverse drug reactions, both because of contraindications and patient-to-medication interaction.

In December 2023, Kalron signed a pilot agreement with Supra Inwest for the piloting and subsequent further distribution of the Seegnal system in Poland. Poland has a substantial healthcare infrastructure with over 250,000 hospitalization beds, ranking it as one of the largest healthcare systems in Europe in terms of monetary value. The Seegnal platform is currently a “standard of care” system for over 10,000 clinicians who use it daily to prescribe medications to their patients. The product scans over one million therapies every day.

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Selected Financial Information

The following is a discussion of the results of operations which have been derived from the unaudited condensed interim consolidated financial statements of the Company for the three and six month periods ended June 30, 2025 (in Thousands of US dollars):

	Three months ended June 30,		Six months ended June 30,
	2025	2024	2025	2024
Revenues	$ 306	$ 353	$ 609	$ 707
Cost of revenues	(261)	(314)	(575)	(674)
Gross profit	45	39	34	33
Research and development costs	131	101	249	248
Sales and marketing expenses	167	190	315	383
General and administration costs	335	282	618	692
Operating Loss	(588)	(534)	(1,148)	(1,290)
Change in fair value of instruments	(260)	(223)	(469)	(598)
Interest expenses	(22)	(43)	(61)	(93)
Foreign exchange gain	13	64	28	101
	(269)	(202)	(502)	(590)
Net loss and comprehensive loss for the period	$ (857)	$ (736)	$ (1,650)	$ (1,880)
Basic and fully diluted loss per share	$ (0.13)	$ (0.11)	$ (0.25)	$ (0.29)
Weighted Average Number Of Shares Outstanding (*)	6,560,310	6,560,310	6,560,310	6,560,310

Three-month period ended June 30, 2025, compared to the three-month period ended June 30, 2024

Revenues

For the three-month period ended June 30, 2025, revenues amounted to $306 thousand compared to the three-month period ended June 30, 2024 of $353 thousand. The slight decrease in in 2025 is due to reduced revenues in Abu Dhabi.

Cost of revenues

For the three-month period ended June 30, 2025, cost of revenues amounted to $261 thousand compared to the three-month period ended June 30, 2024 of $314 thousand. The decrease in cost of revenues during the three-month period ended June 30, 2025 is as a result of decrease in databases and IT expenses and depreciation.

Research and development costs, net

For the three-month period ended June 30, 2025, research and development costs amounted to $131 thousand compared to the three-month period ended June 30, 2024 of $101 thousand. The increase during the three-month period ended June 30, 2025, relates to an increase in payroll and related expenses, subcontractors and depreciation in respect of further development of the Company's lead product.

Sales and marketing expenses

For the three-month period ended June 30, 2025, Sales and marketing expenses amounted to $167 thousand compared to the three-month period ended June 30, 2024 to $190 thousand. The decrease in marketing expenses during the three-month period ended June 30, 2025, relates to a decrease in share based compensation expense.

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General and administrative expenses

For the three-month period ended June 30, 2025, general and administrative expenses amounted to $335 thousand compared to the three-month period ended June 30, 2024 of $282 thousand. The increase during the three-month period ended June 30, 2025, relates to a increase in professional fees in connection with the listing process off-set by a decrease in share based compensation expenses.

Finance expenses

For the three-month period ended June 30, 2025, financial expenses amounted to $269 thousand compared to the three-month period ended June 30, 2024 of $202 thousand. The financial expenses consist of change in fair value of instruments of $260 thousand, interest expenses of $22 thousand and foreign exchange gain of $13 thousand compared to a change in fair value of instruments of $223 thousand the three-month period ended June 30, 2024, interest expenses of $43 thousand and foreign exchange gain of $64 thousand.

Net loss

The Company reported a net and comprehensive loss for the three-month period ended June 30, 2025 of $857 thousand compared to the three-month period ended June 30, 2024 $736 thousand.

Inflation

During the three-month period ended June 30, 2025 and 2024, inflation has not had a material impact on the Company's operations.

Six-month period ended June 30, 2025, compared to the six-month period ended June 30, 2024

Revenues

For the six-month period ended June 30, 2025, revenues amounted to $609 thousand compared to the six-month period ended June 30, 2024 - $707 thousand. The slight decrease in in 2025 is due to reduced revenues in Abu Dhabi.

Cost of revenues

For the six-month period ended June 30, 2025, cost of revenues amounted to $575 thousand compared to the six-month period ended June 30, 2024 of $674 thousand. The decrease in cost of revenues during the six-month period ended June 30, 2025 is as a result of decrease in databases and IT expenses and depreciation.

Research and development costs, net

For the six-month period ended June 30, 2025, research and development costs amounted to $249 thousand compared to the six-month period ended June 30, 2024 of $248 thousand.

Sales and marketing expenses

For the six-month period ended June 30, 2025, Sales and marketing expenses amounted to $315 thousand compared to the six-month period ended June 30, 2024 of $383 thousand. The decrease in marketing expenses during the six-month period ended June 30, 2025, relates to a decrease in share based compensation expense.

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General and administrative expenses

For the six-month period ended June 30, 2025, general and administrative expenses amounted to $618 thousand compared to the six-month period ended June 30, 2024 of $692 thousand. The decrease during the six-month period ended June 30, 2025, relates to a decrease in share based compensation expense, offset by an increase in professional expenses in connection with the listing.

Finance expenses

For the six-month period ended June 30, 2025, financial expenses amounted to $502 thousand compared to the six-month period ended June 30, 2024 of $590 thousand. The financial expenses consist of change in fair value of instruments of $469 thousand, interest expenses of $61 thousand and foreign exchange gain of $28 thousand six-month period ended June 30, 2024—change in fair value of instruments of $598 thousand, interest expenses of $93 thousand and foreign exchange gain of $101 thousand.

Net loss

The Company reported a net and comprehensive loss for the six-month period ended June 30, 2025 of $1650 thousand compared to the six-month period ended June 30, 2024—$1,880 thousand.

Inflation

During the six-month period ended June 30, 2025 and 2024, inflation has not had a material impact on the Company’s operations.

Liquidity

Liquidity is a measure of a company’s ability to meet potential cash requirements. The Company has historically met its capital requirements through the issuance of common shares.

Since its inception, the Company had invested majority of its funds in development of the Seegnal platform resulting in accumulated losses amounting to approximately $32 million and presented negative cash flows from its operating activities. The continuance of the Company’s operations is subject to continued financing from its shareholders and other investors. These conditions indicate the existence of material uncertainties that may cast significant doubt on the entity’s ability to continue as a going concern. Management's plans in this regard include continued development, marketing and selling of its services as well as seeking additional financial arrangements. Management believes that these plans are appropriate and feasible and is confident that the entity will be able to meet its obligations as they fall due. Therefore, the financial statements have been prepared on a going concern basis, which assumes that the entity will continue in operational existence for the foreseeable future.

However, if the entity is unable to achieve the expected outcomes of these initiatives, it may be unable to realize its assets and discharge its liabilities in the normal course of business. Under these circumstances, adjustments may be required to reduce the carrying value of assets to their recoverable amounts, reclassify non-current assets and liabilities as current, and provide for additional liabilities.

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Financial position

As at June 30, 2025, the Company had total assets of $1,885 thousand and a net deficit position of $16,587 thousand. This compares with total assets of $580 thousand and a net deficit position of $15,228 thousand as at December 31, 2024. The Company had current liabilities of $17,344 thousand as at June 30, 2025, as compared with $15,808 thousand as at December 31, 2024.

As at June 30, 2025, the Company had negative working capital of $15,545 thousand compared to a negative working capital of $15,240 thousand as at December 31, 2024. The Company had cash on hand of $1,703 thousand as at June 30, 2025, compared with $200 thousand as at December 31, 2024.

As of June 30, 2025, the Company has an accumulated deficit of $32,079 thousand compared with $30,429 thousand as of December 31, 2024.

Six-month period ended June 30, 2025 compared to the six-month period June 30, 2024

During the six-month period ended June 30, 2025, the Company’s overall position of cash increased by $1,474 thousand. This increase can be attributed to the following activity:

• Cash flows used in operating activities were $548 thousand compare to $550 thousand for the prior period.
• Cash flow generated from investing activities for the six-month period ended June 30, 2025 of $144 thousand compared to $20 for the prior period. In both periods, the cash generated was the result of a decrease in restricted deposits.
• Cash flow generated from financing activities for the six-month period ended June 30, 2025 of $1,878 thousand compared to $896 thousand in the prior period. In 2020, this was the result of the receipt of subscription receipts and shareholder loans received, offset by the repayment of certain bank loans.

Capital Resources

As of June 30, 2025, the Company has a negative working capital of $15,545 thousand compared to December 31, 2024 – negative working capital of $15,240 thousand. However, including in the negative working capital are $13.4 million of convertible loans and $1.8 million of subscription receipts. On August 21, 2025, the Company completed the Karon Private Placement for an aggregate of $1,500 and on August 29, 2025, all the company convertice securities were converted into equity such the working capital has significantly improved in the third quarter of 2024.

Commitments

There are no material changes in the Company's commitments not disclosed in the Company’s audited annual consolidated financial statements.

Litigation

As of June 30, 2025, and 2024, the Company was not a party to any litigation or other legal proceedings that the Company believes could reasonably be expected to have a material adverse effect on the Company’s business, results of operations and financial condition.

Disclosure of Outstanding Share Data

As of the date of this report and as of June 30, 2025, the Company has 184,709 ordinary shares outstanding and no options or warrants outstanding.

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Management of Capital

The Company's capital comprises share capital, additional paid in capital, warrant, and accumulated losses. The Company manages its capital structure, and makes adjustments to it, based on the funds available to the Company in order to support the Company's business activities. The Board of Directors does not establish quantitative return on capital criteria for management; it relies on the expertise of the Company's management to sustain future development of the business.

The intellectual property in which the Company currently has an interest is in the development stage; as such, the Company is dependent on external financing to fund its activities. In order to carry out the Seegnal Planned research and development and pay for administrative costs, the Company intends to raise additional amounts as needed.

Management reviews its capital management approach on an ongoing basis and believes that this approach, given the relative size of the Company, is reasonable.

Off-Balance Sheet arrangements

See "Commitments" above.

Transactions with Related Parties

Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making operating and financial decisions. This would include the Company's senior management, who are considered to be key management personnel by the Company.

Parties are also related if they are subject to common control or significant influence. Related parties may be individuals or corporate entities. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties.

The following are the expenses incurred with related parties for the six month periods ended June 30, 2025 and 2024, and the balances owing as of June 30, 2025 and December 31, 2024 (in Thousands of US dollars):

	Three months ended June 30,		Six months ended June 30,
	2025	2024	2025	2024
Chief Executive Officer	$ 46	$ 58	$ 107	$ 118
Chief Financial Officer	20	17	35	35
Share based payments- CEO	123	236	246	472
	$ 189	$ 311	$ 388	$ 625

Balances with related parties:

	June 30, 2025	December 31, 2024
Chief Executive Officer	$ 8	$ 22
Chief Financial Officer	18	23
Convertible debentures from shareholders	8,580	8,279
Shareholders loans	1,086	-
	$ 9,692	$ 8,324

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Change in Accounting Policies

There have been no changes in accounting policies for the six-month period ended June 30, 2025.

Significant Accounting Judgements and Estimates

Our results of operation and financial condition are based on our consolidated financial statements, which are presented in accordance with IFRS Accounting Standards. Certain accounting principles require us to make certain estimates, judgments and assumptions. We believe that the estimates, judgments and assumptions upon which we rely are reasonable based upon information available to us at that time. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the financial statements, as well as the reported amounts of revenues and expenses during the periods presented. To the extent there are material differences between these estimates, judgments or assumptions and actual results, our financial statements will be affected. The significant accounting policies and estimates that we believe are the most critical to aid in fully understanding and evaluating our reported financial results include the following:

• The Company uses the Black-Scholes option pricing model to estimate the fair value of options. The key assumptions used in the model are the expected future volatility in the price of the Company's shares and the expected life of the option.
• The Company uses the Black-Scholes option pricing model to estimate the fair value of the convertible loans. The key assumptions used in the model are the expected future volatility in the price of the Company's shares and the expected life of the instrument.

Risks and Uncertainties

Credit risk

Credit risk arises when a failure by counterparties to discharge their obligations could reduce the amount of future cash inflows from financial assets on hand at the end of the reporting period.

Credit risks are treated at the Company level. Credit risks arise typically from cash and cash equivalents, trade receivables and other current assets.

No credit limits were exceeded during the reported periods and Company's management does not expect any losses from non-performance of these parties.

Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in obtaining funds to meet current obligations and future commitments. The Company's approach to managing liquidity risk is to forecast cash requirements to provide reasonable assurance that it will have sufficient funds to meet its liabilities when due. As of June 30, 2025, the Company had cash of $1,703 thousand to settle current liabilities in the amount of $17,344 thousand compared to December 31, 2024 – cash of $200 thousand to settle current liabilities in the amount of $15,808 thousand. The tables below present the maturity profile of the Company's financial liabilities based on contractual undiscounted payments:

As of June 30, 2025 (in Thousands of US dollars):

	Carrying amount	Within 1 year	1-2 years
Accounts payables	$ 415	$ 415	$ -
Other accounts payable and royalty	911	911	-
Lease liability	100	66	44
Convertible debentures from shareholders	8,580	8,580	-
Convertible debentures	4,878	4,878	-
Loan from bank	388	406	-
Subscription receipts	1,834	1,834	-
Shareholders loans	1,086	-	1,186
	$ 18,192	$ 17,090	$ 1,230

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Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk is comprised of two types of risk: interest rate risk, and foreign currency risk.

(i) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows will fluctuate as a result of changes in interest rates. The Company has long-term debt with variable interest rate and accordingly, any increase in interest rates could lead to higher interest payments and adversely affect its financial performance.

As of June 30, 2025, the impact on profit and loss and net assets of a 1% change in the interest rate would be approximately $2 thousand.

(ii) Currency risk

Currency risk is the risk that the value of financial instruments will fluctuate due to changes in foreign exchange rates.

The Company operates internationally and is exposed to foreign exchange risks due to exposure to foreign currencies. Foreign exchange risk arises from future commercial transactions, assets or liabilities denominated in foreign currency.

The Company’s policy to reduce the exposure to changes in exchange rates is based on maintaining, where possible, the balances of current monetary assets, according to the currency of the current liabilities.

As of June 30, 2025, if the Company’s functional (USD) had strengthened/ weakened by 5% against the ILS, with all other variables held constant, the loss for the period would decrease /increase by approximately $45 thousand.

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