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SHORT TERM LOAN

6 Months Ended

Jun. 30, 2022

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 1C., pursuant to which the Investors lent an aggregate amount of $69 (the “Principal Amount”) to the Company to be repaid in one lump-sum twelve (12) months following the date of the Loan (i.e., December 18, 2021). In addition, 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 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 Fair Value		Allocated amount
Loan		55		50.55		50
Shares		54		49.45		49
Total		109		100.00		99

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


Principal amount	69
Discount on Short term loan	(19	)
Short term loan, Net	50

In January 2022, the Investors under the Loan Agreement expressed their intention to convert the Principal Amount to the Company’s shares of Common Stock, and accordingly, the Company agreed to extend the repayment date. As of June 30, 2022, the Company has not repaid the Principal Amount.

VIEWBIX INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

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