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PARENT COMPANY LOAN
 6 Months Ended
Jun. 30, 2022
Parent Company Loan  
PARENT COMPANY LOAN

 

NOTE 5: PARENT COMPANY LOAN

 

Balances:

  

As of

June 30

     As of
December 31		 
   2022   2021 
         
Parent company loan  $2,383   $2,116 

 

According to an agreement between the parties, the parent company (“Gix”) financed certain expenses with respect to the Company’s ongoing operation (mainly salary expenses and other general and administrative expenses).

 

No amounts were repaid by the Company to Gix during 2022 and 2021.

 

The Company entered into an agreement with Gix, pursuant to which, effective as of December 31, 2021 (“Modification Date”), 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.

 

The Company accounted for the modification as an extinguishment of the parent company payable and the issuance of a new debt. As of the Modification Date, the Gix Loan was recorded at its fair value of $2,116, with the difference of $184 between its fair value and the carrying value of the payable to Gix. This difference was 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 Gix Loan, to be amortized as finance expense in the Company’s Consolidated Statements of Comprehensive Loss over the term of the Gix Loan.

 

 

VIEWBIX INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

 

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