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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

9 Months Ended

Sep. 30, 2023

A. Basis of Presentation

	1.	Accounting Principles

		The accompanying unaudited condensed consolidated interim financial statements and related notes should be read in conjunction with the consolidated financial statements and related notes contained in the Annual Report on Form 10-K for the fiscal year ended December 31, 2022, filed with the Securities and Exchange Commission (“SEC”) on March 31, 2023. The unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the SEC related to interim financial statements. As permitted under those rules, certain information and footnote disclosures normally required or included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The financial information contained herein is unaudited; however, management believes all adjustments have been made that are considered necessary to present fairly the results of the Company’s financial position and operating results for the interim periods. All such adjustments are of a normal recurring nature.

		The results for the period of nine months ended September 30, 2023 are not necessarily indicative of the results to be expected for the year ending December 31, 2023 or for any other interim period or for any future period.

	2.	Principles of Consolidation

		The consolidated financial statements include the accounts of the Company and its subsidiary. Significant intercompany balances and transactions have been eliminated in consolidation.

GLUCOTRACK INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT.)

A. Basis of Presentation

	3.	Net Loss Per Common Stock

		Basic net loss per Common Stock is computed by dividing the loss for the period applicable for holders of Common Stock and pre-funded warrants (after considering the effect of deemed dividend related to trigger of down round protection feature) dividend by the weighted average number of outstanding shares of Common Stock and shares of Common Stock to be issued upon exercise of pre-funded warrants (see Note 3A below) or shares of Common Stock to be issued upon achievement of performance milestone (see Note 3B below) during the period. Diluted loss per share gives effect to all potentially dilutive common shares outstanding during the period using the treasury stock method with respect to stock options and certain stock warrants. In computing diluted loss per share, the average stock price for the period is used in determining the number of Common Stock assumed to be purchased from the exercise of stock options or stock warrants.

		Shares to be issued upon exercise of all stock options and stock warrants have been excluded from the calculation of the diluted net loss per Common Stock for all the reported periods for which net loss was reported because the effect of the Common Stock issuable upon exercise of these instruments was anti-dilutive.

		The net loss and the weighted average number of shares of Common Stock used in computing basic and diluted net loss per share for the period of three and nine months ended September 30, 2023 and 2022, is as follows:

	2023			2022			2023			2022
		US dollars in thousands (except share data)					US dollars in thousands (except share data)
		Three-month period ended September 30,					Nine-month period ended September 30,
		(Unaudited)					(Unaudited)
		2023			2022		2023			2022

Numerator:
Net loss	$	2,223		$	928		$	4,685		$	3,148
Deemed dividend related to trigger of down round protection feature (see Note 3A below)		-			-			855			-
Net loss attributable to common stockholders	$	2,223		$	928		$	5,540		$	3,148

Denominator:
Shares of Common Stock used in computing basic and diluted net loss per common stock		20,892,193			15,473,521			18,792,950			15,468,279
Shares of Common Stock to be issued upon exercise of pre-funded warrants		-			1,976,470			1,206,228			-
Shares of Common Stock to be issued upon achievement of performance milestone					100,000			33,456
Basic and diluted net loss per common stock	$	(0.10	)	$	(0.06	)	$	(0.28	)	$	(0.2	)