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LOANS - PARENT COMPANY
 9 Months Ended
Sep. 30, 2022
Related Party Transactions [Abstract]  
LOANS - PARENT COMPANY

NOTE 15: LOANS - PARENT COMPANY

 

A. Loan to Parent Company:

  

As of

September 30

  

As of

December 31

 
   2022   2021 
           
Loan to Parent Company  $7,096   $6,384 

 

The balance with the Parent Company represents a balance of an intercompany loan under a loan agreement signed between Gix Media and the Parent Company (the “Loan”) on March 22, 2020. The Loan bears interest at a rate to be determined from time to time in accordance with Section 3(j) of the Income Tax Ordinance, new version, and the Income Tax Regulations (Determination of Interest Rate for the purposes of Section 3(j), 1986) or according to a market interest rate decision as agreed between the parties.

 

During the nine months ended September 30, 2022, and 2021, Gix Media recognized interest income in respect of the Loan in the amount of $110 and $108 respectively.

 

B. Loan from Parent Company:

  

As of

September 30

  

As of

December 31

 
   2022   2021 
           
Loan from Parent Company  $2,527   $2,116 

 

The balance with the Parent Company represents certain expenses with respect to the Company’s ongoing operation (mainly salary expenses and other general and administrative expenses) which were financed by the Parent Company (the “Intercompany Balance”).

 

The Company entered into an agreement with the Parent Company, according to which, effective as of December 31, 2021, the Intercompany Balance was modified into a loan, which may be increased from time to time, upon the written mutual consent between the Company and the Parent Company. The Parent Company 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 the Parent Company.

 

As of September 30, 2022, no amounts were repaid by the Company to the Parent Company.