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SHORT TERM LOAN

9 Months Ended

Sep. 30, 2021

NOTE 6: SHORT TERM LOAN

On December 18, 2020, the company entered into a Loan Agreement (the “Loan”) and Stock Subscription Agreement with certain Investors as described in note 1e, pursuant to which the Investors lent an aggregate amount of $69,000 (the “Principal Amount”). In accordance with the terms of the Loan, the company prepaid the interest on the Principal Amount of 8% compounded annually to the Investors as an issuance of 552,000 shares of Common Stock, at a price per share of $0.01. Under the Stock Subscription Agreement, the Investors transferred an amount of $ 30,587 to the company as consideration for the issued shares.

The Company allocated the total proceeds in respect of the shares issued and the Loan extended based on its relative fair values. As a result of the allocation, a discount of $19 was recorded on the loan. The discount is amortized over the term of the loan as finance expense.

The allocation of the proceeds to the fair value distribution of the liability and equity components on the transactions date was as follows:

Instrument	Fair Value		% of total fair		Allocated amount
Short term loan and prepaid interest		55,200		49.45		49,246
Investment in the company’s shares		54,000		50.55		50,340
Total		109,200		100		99,586

The composition of short term loan balance as of the transaction is as follows:

	As of September 30 2021			As of December 31 2020
Short term loan	$	69		$	69
Discount on Short term loan		(5	)		(19	)
Short term loan, Net	$	64		$	50

VIEWBIX INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

U.S. dollars in thousands (except share data)