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LOANS
 3 Months Ended
Mar. 31, 2024
Receivables [Abstract]  
LOANS

NOTE 6: LOANS

 

  A. Composition of long-term and short-term loans of the Group:

 

   Interest rate  

As of

March 31, 2024

  

As of

December 31, 2023

 
             
Short-term bank loan – Gix Media   SOFR + 4.08%   3,057    3,500 
Short-term bank loan – Cortex   SOFR + 3.93%   1,300    1,500 
Long-term bank loan, including current maturity – Gix Media (received on October 13, 2021)   SOFR + 4.12%   2,963    2,963 
Long-term bank loan, including current maturity – Gix Media (received on January 17, 2023)   SOFR + 5.37%   1,107    1,107 
Long-term loan – Viewbix Israel   9%   436    434 
                
Bank Loan        8,863    9,504 

 

  B. Bank Financing for Cortex’s capital shares additional Purchase:

 

On January 23, 2023, Gix Media acquired an additional 10% of Cortex’s capital shares which was financed by Gix Media’s existing cash balances and by a long-term bank loan received on January 17, 2023, in the amount of $1,500 to be repaid in 42 monthly payments at an annual interest rate of SOFR + 5.37%.

 

  C. Cortex’s Loan Agreement:

 

On September 21, 2022, Cortex and Leumi entered into an addendum to an existing loan agreement between the parties, dated August 15, 2020 (“Cortex Loan Agreement”). As part of the addendum to the Cortex Loan Agreement, Leumi provided Cortex with a monthly renewable credit line of $1,500 (the “Cortex Credit Line”). The Cortex Credit Line is determined every month at the level of 70% of Cortex’s customers’ balance. The amounts that are drawn from the Cortex Credit Line bear an annual interest of SOFR + 3.52%.

 

On April 27, 2023, Leumi increased the Cortex Credit Line by $1,000. In September 2023, Cortex and Leumi entered into an additional addendum to the Cortex Loan Agreement, in which Leumi extended the Cortex Credit Line of $2,500 by one year which will expire on September 20, 2024. The amounts that are drawn from the Cortex Credit Line bear an annual interest of SOFR + 4.08%.

 

As of March 31, 2024, Cortex has drawn $1,300 of the Cortex Credit Line.

 

 

VIEWBIX INC.

NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited

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

 

NOTE 6: LOANS (Cont.)

 

  D. Long term loan and issuance of warrants:

 

On November 15, 2023, Viewbix Israel entered into a Loan Agreement (the “2023 Loan”) with certain lenders (the “Lenders”) whereby the Lenders provided Viewbix Israel with loans in the aggregate amount of $480, of which, $200 was provided by the Ultimate Parent. In accordance with the terms of the 2023 Loan, the principal amount bears an annual interest at a rate of 9% and will be repaid over the course of two years following January 1, 2024 (the “Repayment Period”). During the Repayment Period, for the first 12 months, Viewbix Israel will repay the interest on a quarterly basis and for the remaining 12 months, Viewbix Israel will repay the principal amount on a quarterly basis (in 4 equal payments) along with the interest. If Viewbix Israel fails to repay all or part of the 2023 Loan amount, the Lenders have the option to convert the outstanding 2023 Loan amount into shares of Common Stock of the Company.

 

In connection with the 2023 Loan, the Company issued to each lender a warrant to purchase shares of Common Stock (the “2023 Warrants”). The 2023 Warrants are exercisable to 480,000 shares, at an exercise price of $0.50 per share and will expire and cease to be exercisable on December 31, 2025. The Company recorded the 2023 Warrants as an equity instrument.

 

The Company allocated the total amount of $480 in respect of the warrants issued and the 2023 Loan extended based on their relative fair values. As a result of the allocation, a discount of $55 was attributed as the fair value of the 2023 Warrants. The discount is amortized over the term of the Loan as finance expense.

 

The allocation of the total proceeds of $480 to the liability and equity components was as follows:

 

Instrument  Fair Value   % of Fair
Value		   Allocated
Amount		 
Loan   428    88.63    425 
Warrants   55    11.37    55 
Total   483    100.00    480 

 

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

 

      
Loan   480 
Discount   (55)
Long term loan, net   425 

 

For the three months ended March 31, 2024, the Company recorded amortization expenses of $2 as financial expenses in the consolidated statements of operations.

 

 

VIEWBIX INC.

NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited

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