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RELATED PARTY TRANSACTIONS
 12 Months Ended
Dec. 31, 2021
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS

 

Note 4. RELATED PARTY TRANSACTIONS.

 

Balances:

 

    December 31,     December 31,  
    2021     2020  
                 
Gix – Company Payable   $ 2,116     $ 2,054  

 

As part of the agreement with Gix, the parties agreed to have the Company’s operations outsourced to Gix from the agreement date and until the acquisition is consummated. The following term were included in the agreement pursuant to the above:

 

  (a) From May 2018 all of the Company’s employees will become employees of Gix.
  (b) Between the periods of May 2018 to October 2018, Gix will pay the full expenses of the employees as well as other related expenses.
  (c) From November 2018 until to the Closing Date, the employees transferred from the Company to Gix will dedicate half of their time to the Company’s operations and correspondingly 50% of the costs to be incurred by Gix in respect of these employees are to be charged to the Company.

 

From the closing date, the actual of the expenses incurred by Gix that related to the Company will be charged to the Company.

 

No amounts were paid by the Company to Gix during 2021 and 2020.

 

The Company entered into an agreement with Gix, its parent company, pursuant to which, effective as of December 31, 2021, the parent company payable was modified into a loan, which may be increased from time to time, upon the written mutual consent of the Company and Gix (the “Gix Loan”) .The Gix Loan bears interest at a rate equivalent to the minimal interest rate recognized and attributed by the Israel Tax Authority and will be repaid, together with the accrued interest, in one payment until December 31, 2022, unless extended upon mutual consent of the Company and Gix Internet.

 

The Company accounted for the modification as an extinguishment of the parent company payable and the issuance of a new debt. The loan was recorded at its fair value of $2,115,853 as of the modification date, with the difference of $184,103 between the fair value of the loan and the carrying value of the payable to the Parent Company recorded in the Company’s Consolidated Statement of Changes in Stockholders’ Deficit as a deemed contribution to the Company by the Parent Company, with a corresponding discount on the loan, to be amortized as finance expense in the Company’s Consolidated Statements of Comprehensive Loss over the term of the loan.

 

 

Viewbix Inc.

Notes to Consolidated Financial Statements

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