XML 28 R17.htm IDEA: XBRL DOCUMENT
v3.22.2.2

INCOME TAXES | 9 Months Ended
--- | ---
Sep. 30, 2022
Income Tax Disclosure [Abstract] |
INCOME TAXES | NOTE 11: INCOME TAXES A. Tax rates applicable to the income of the Company: Viewbix Inc. is taxed according to U.S. tax laws. On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act (the “Act”), which among other provisions, reduced the U.S. corporate tax rate from 35% to 21%, effective January 1, 2018. Viewbix Israel is taxed according to Israeli tax laws. The Israeli corporate tax rate is 23% in the years 2022, 2021 and onwards. Gix Media and Cortex are recognized as a “Preferred-Technology Enterprise” in accordance with Section 51 of the Encouragement of Capital Investments Law, 1959 and are taxed at a reduced corporate tax rate of 12%. B. Tax assessments: As of September 30, 2022, Gix Media has a final tax assessment for tax years prior to and including the tax year ended December 31, 2014. Cortex has a final tax assessment for tax years prior to and including the tax year ended December 31, 2018. Viewbix Israel has a final tax assessment for tax years prior to and including the tax year ended December 31, 2015. During 2022, the Israeli tax authority commenced a tax assessment of Gix Media for the tax years 2017 to 2020. As of the date of issuance of these financial statements, tax assessment have not been completed. VIEWBIX INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) U.S. dollars in thousands (except share data) NOTE 11: TAXES ON INCOME (Cont.) C. Deferred taxes are comprised of the following components: Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred taxes are comprised of the following components: SCHEDULE OF DEFERRED INCOME TAXES
|  | As of September 30 |  |  | As of December 31 |
|  | 2022 |  |  | 2021 |
Deferred tax assets |  |  |  |  |  |  |  |
Deferred research and development expenses |  | $ | 34 |  |  | $ | 38 |
Employee compensation and benefits |  | $ | 12 |  |  | $ | 19 |
Operating loss carryforward |  | $ | 7,670 |  |  | $ | 7,477 |
Accrued severance pay |  | $ | 12 |  |  | $ | 13 |
Total deferred tax assets |  | $ | 7,728 |  |  | $ | 7,547 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Differences between tax basis and carrying values of loans |  | $ | - |  |  | $ | 184 |
Intangible assets associated with business combinations |  | $ | 1,853 |  |  | $ | 1,026 |
Total deferred tax liabilities |  | $ | 1,853 |  |  |  | 1,210 |
Net deferred tax assets before valuation allowance |  | $ | 5,875 |  |  | $ | 6,337 |
Valuation allowance |  |  | (7,666 | ) |  |  | (7,230 | )
Net deferred tax liabilities |  | $ | 1,791 |  |  | $ | 893 |
As of September 30, 2022, the Company has recorded a valuation allowance of $7,666 in respect of the deferred tax assets resulting primary from tax loss carryforward of Viewbix Inc., as management currently believes these deferred tax assets will not be released in the foreseeable future. VIEWBIX INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) U.S. dollars in thousands (except share data) NOTE 11: TAXES ON INCOME (Cont.) Income tax expenses are comprised as follows: SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE (BENEFITS)
|  | 2022 |  |  | 2021 |
|  | For the nine months ended September 30 |
|  | 2022 |  |  | 2021 |
Current tax expenses |  | $ | 393 |  |  | $ | 78 |
Tax benefit in respect of prior years |  | $ | (102 | ) |  | $ | (54 | )
Deferred tax income |  | $ | (227 | ) |  | $ | (65 | )
Total |  | $ | 63 |  |  | $ | (41 | )
|  | 2022 |  |  | 2021 |
|  | For the three months ended September 30 |
|  | 2022 |  |  | 2021 |
Current tax expenses |  | $ | 130 |  |  | $ | (23 | )
Taxes expenses (benefit) in respect of previous years |  | $ | 21 |  |  | $ | (18 | )
Deferred tax income |  | $ | (96 | ) |  | $ | (40 | )
Total Income tax expenses |  | $ | 55 |  |  | $ | (81 | )
D. Reconciliation of the theoretical tax expenses to the actual tax expenses: A reconciliation between the theoretical tax expense, assuming all income is taxed at the statutory tax rate applicable to income of the Company, and the actual tax expense as reported in the statement of operations is as follows: SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION
|  | 2022 |  |  | 2021 |
|  | For the nine months ended September 30 |
|  | 2022 |  |  | 2021 |
Income before income taxes as reported in the consolidated statements of operations |  | $ | 33 |  |  | $ | 44 |
Statutory tax rate in USA |  |  | 21 | % |  |  | 21 | %
Theoretical tax expense |  | $ | 7 |  |  | $ | 9 |
Increase (decrease) in tax expenses resulting from: |  |  |  |  |  |  |  |
Lower tax rates for preferred technology enterprises |  |  | (322 | ) |  |  | (29 | )
Non-deductible expenses |  |  | 5 |  |  |  | 1 |
Tax benefits in respect of prior years |  |  | (102 | ) |  |  | (54 | )
Change in valuation allowance |  |  | 436 |  |  |  | 58 |
Others |  |  | 39 |  |  |  | (26 | )
Taxes on income |  | $ | 63 |  |  | $ | (41 | )
VIEWBIX INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) U.S. dollars in thousands (except share data) NOTE 11: TAXES ON INCOME (Cont.) E. Available carryforward tax losses: As of September 30, 2022 Viewbix Israel incurred operating losses of approximately $15,015 which may be carried forward and offset against taxable income in the future for an indefinite period. As of June 30, 2022 the Company generated net operating losses in the U.S. of approximately $19,000. Net operating losses in the U.S. are available through 2035. Utilization of U.S. net operating losses may be subject to substantial annual limitation due to the “change in ownership” provisions of the Internal Revenue Code of 1986 and similar state provisions. The annual limitation may result in the expiration of net operating losses before utilization. F. Loss from continuing operations, before taxes on income, consists of the following: SCHEDULE OF LOSS (INCOME) FROM CONTINUING OPERATIONS, BEFORE TAXES ON INCOME
|  | 2022 |  |  | 2021 |  |  | 2022 |  |  | 2021 |
|  | For the nine months ended September 30 |  |  | For the three months ended September 30 |
|  | 2022 |  |  | 2021 |  |  | 2022 |  |  | 2021 |
USA |  | $ | 385 |  |  | $ | 69 |  |  | $ | 190 |  |  | $ | 27 |
Israel |  |  | 574 |  |  |  | 185 |  |  |  | 432 |  |  |  | 71 |
Total loss before taxes on income |  | $ | 959 |  |  | $ | 254 |  |  | $ | 622 |  |  | $ | 98 |

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI https://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration