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BUSINESS COMBINATION | 9 Months Ended
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Sep. 30, 2022
Business Combination and Asset Acquisition [Abstract] |
BUSINESS COMBINATION | NOTE 7: BUSINESS COMBINATION Cortex Acquisition On October 13, 2021, Gix Media acquired 70% (on a fully diluted basis) of the shares of Cortex (“Cortex Transaction”), a private company operating in the field of online media and advertising. In consideration for Cortex Transaction, Gix Media paid NIS 35 million in cash (approximately $11 million), out of which an amount of $0.5 million was deposited in trust for a period of 12 months from the closing date. The Cortex Transaction also included the following main terms:
| ● | Gix Media will acquire 30% of Cortex’s shares in three equal stages, (at the beginning of 2023, at the beginning of 2024 and at the beginning of 2025) (the “Remaining Balance Shares”), so that following the completion of the acquisition of all of the Remaining Balance Shares, Gix Media will hold 100% of Cortex’s share capital on a fully diluted basis.
| ● | The obligation (and right) to acquire the Remaining Balance Shares will expire in the event of an initial public offering of Cortex’s shares or in the event of a 50% or more decrease in Cortex’s annual net income, for a period of 12 consecutive months, compared to the net income during the period of 12 months ended July 31, 2021. As of the date of filling of these financial statements, this right and obligation has not expired.
| ● | If Gix Media does not fulfill its obligation to acquire the Remaining Balance Shares, within 90 days from the Designated Acquisition Date as stated above, the selling shareholders of Cortex (the original shareholders of Cortex) will be released from their obligation not to sell or transfer their holdings in Cortex to a third party, in relation to the same stage of the balance of the shares not acquired as aforesaid. If Gix Media does not fulfilled its obligation to acquire the Remaining Balance Shares in a certain stage, its right to acquire the Remaining Balance Shares in the subsequent stage, will be conditioned upon the acquisition of the Remaining Balance Shares not purchased by it in the previous stage as well, provided that the Remaining Balance Shares were not transferred or pledged by the selling shareholders of Cortex to a third party.
The Cortex Transaction was financed by Gix Media’s existing cash balances and substantially by debt through a bank financing in the aggregate amount of $9.5 million, that consists of a line of credit of up to $3.5 million and a long-term loan of $6 million (see note 10). VIEWBIX INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) U.S. dollars in thousands (except share data) NOTE 7: BUSINESS COMBINATION (Cont.) Cortex Acquisition (Cont.) Fair Value of Cortex’s Identifiable Assets and Liabilities: SCHEDULE OF BUSINESS COMBINATION OF ASSETS AND LIABILITIES
Cash and cash equivalents |  |  | 775 |
Restricted deposits |  |  | 29 |
Trade receivables |  |  | 10,662 |
Other accounts receivables |  |  | 346 |
Property and Equipment, net |  |  | 9 |
Goodwill arising from the acquisition |  |  | 9,581 |
Intangible assets |  |  | 6,134 |
Total assets |  |  | 27,716 |
Accounts payables |  |  | 8,906 |
Short-term loan |  |  | 1,500 |
Accrued expenses and other current liabilities |  |  | 854 |
Deferred taxes and taxes payable |  |  | 758 |
Non-Controlling Interests |  |  | 4,709 |
Total liabilities |  |  | 16,727 |
Total acquisition cost |  |  | 10,989 |
Gix Media recorded acquisition costs in the amount of $197 with respect to Cortex Transaction. Net Cash Flow from the Cortex Transaction:
Consideration paid in cash |  |  | 10,989 |
Less cash and cash equivalents and restricted deposits received from acquisition of Cortex |  |  | (804 | )
Total net cash paid |  |  | 10,185 |
VIEWBIX INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) U.S. dollars in thousands (except share data)

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI https://asc.fasb.org/topic&trid=2303972 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 5 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=128092470&loc=d3e4946-128472 + Details
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