NOTE 12 - GOODWILL AND INTANGIBLE ASSETS

Composition of intangible assets and accumulated amortization thereon, grouped by major classifications, and changes therein in 2024 are as follows:

	Capitalized development costs **			Distribution rights and brand*			Customer relationships purchased *			Technology **			Goodwill (a)			Patents **		Total
	US Dollars in thousands
Cost:
Balance as of January 1, 2024		66,415			8,323			15,916			24,574			12,866			806		128,900
Additions		20,930			-			-			1,681			-			-		22,611
Acquired through business combinations		-			1,292			4,882			3,591			7,163			-		16,928
Translation differences		(38	)		(211	)		(644	)		(615	)		(766	)		-		(2,274	)
Balance as of December 31, 2024		87,307			9,404			20,154			29,231			19,263			806		166,165

Accumulated amortization:
Balance as of January 1, 2024		23,451			2,576			3,260			3,031			-			171		32,489
Amortization		6,428			969			3,684			5,078			-			62		16,221
Translation differences		(3	)		(12	)		(68	)		(132	)		-			-		(215	)
Balance as of December 31, 2024		29,876			3,533			6,876			7,977			-			233		48,495

Net book value:
As of December 31, 2024		57,431			5,871			13,278			21,254			19,263			573		117,670

Composition of intangible assets and accumulated amortization thereon, grouped by major classifications, and changes therein in 2023 are as follows:

	Capitalized development costs **			Distribution rights and brand *		Customer relationships purchased *			Technology **			Goodwill (a)			Patents **		Total
	US Dollars in thousands
Cost:
Balance as of January 1, 2023		49,806			5,292		8,884			4,456			10,196			806		79,440
Additions		16,773			-		-			-			-			-		16,773
Acquired through business combinations		-			3,031		7,092			20,148			2,814			-		33,085
Disposals		(138	)		-		-			-			-			-		(138	)
Translation differences		(26	)		-		(60	)		(30	)		(144	)		-		(260	)
Balance as of December 31, 2023		66,415			8,323		15,916			24,574			12,866			806		128,900

Accumulated amortization:
Balance as of January 1, 2023		18,206			2,261		1,693			2,055			-			109		24,324
Amortization		5,386			315		1,574			984			-			62		8,321
Disposals		(138	)		-		-			-			-			-		(138	)
Translation differences		(3	)		-		(7	)		(8	)		-			-		(18	)
Balance as of December 31, 2023		23,451			2,576		3,260			3,031			-			171		32,489

Net book value:
As of December 31, 2023		42,964			5,747		12,656			21,543			12,866			635		96,411

Composition of intangible assets and accumulated amortization thereon, grouped by major classifications, and changes therein in 2022 are as follows:

	Capitalized development costs **			Distribution rights *		Customer relationships purchased *			Technology **			Goodwill (a)			Patents **		Total
	US Dollars in thousands
Cost:
Balance as of January 1, 2022		34,209			5,292		4,188			2,921			8,271			806		55,687
Additions		14,615			-		-			-			-			-		14,615
Acquired through business combinations		1,261			-		5,046			1,711			2,724			-		10,742
Translation differences		(279	)		-		(350	)		(176	)		(799	)		-		(1,604	)
Balance as of December 31, 2022		49,806			5,292		8,884			4,456			10,196			806		79,440

Accumulated amortization:
Balance as of January 1, 2022		13,454			1,996		843			1,546			-			47		17,886
Amortization		3,642			265		902			564			-			62		5,435
Acquisitions during the year		1,116			-													1,116
Translation differences		(6	)		-		(52	)		(55	)		-			-		(113	)
Balance as of December 31, 2022		18,206			2,261		1,693			2,055			-			109		24,324

Net book value:
As of December 31, 2022		31,600			3,031		7,191			2,401			10,196			697		55,116

*	Amortization of customer relationship and distribution rights are included under selling, general and administrative expenses.

**	Amortization of technology, patents and development costs are included in “Depreciation and amortization in respect of technology and capitalized development costs ”.

(a)

Goodwill

The group tests whether goodwill has suffered any impairment on an annual basis. For the 2024 reporting period, the recoverable amount of the cash-generating units (CGUs) was determined based on value-in-use calculations which require the use of assumptions. The calculations use cash flow projections based on financial budgets approved by management. The discount rate was a pre-tax measure using a rate of return that reflects the relative risk of the investment, as well as the time value of money. Five years of cash flows were included in the discounted cash flow model. Cash flows beyond the five-year period are extrapolated using the estimated growth rates stated below. These growth rates are consistent with forecasts included in industry reports specific to the industry in which each CGU operates.

VMtecnologia LTDA. - During the fiscal year 2024, the Company completed the acquisition of VM Technologia LTDA (hereinafter – "VM") resulting in the recognition of goodwill (see note 6a). Under IAS 36 Impairment of Assets, the company is required to perform an annual impairment test on goodwill. As part of the business combination for the purchase of VM, the Company recognized goodwill in the total amount of $4,309 thousand. The following key assumptions were used to determine the value in use of the CGU as at December 31, 2024:

	VM

Growth rate		3.5	%
Discount rate		23	%