A.

GlucoTrack Inc. (the “Company”) was incorporated on May 18, 2010 under the laws of the State of Delaware. The Company is a medical device company, focused on the design, development and commercialization of novel technologies for use by people with diabetes. The Company is currently developing an Implantable Continuous Glucose Monitor (CGM) for persons with Type 1 diabetes and insulin-dependent Type 2 diabetes.

B.

Liquidity and capital resources

To date, the Company has not yet generated significant revenues from GlucoTrack product, a non-invasive spot measurement glucose sensor that has been discontinued. In addition, development and commercialization of the Implantable CGM is expected to require substantial expenditures; therefore, the Company is dependent upon external sources for financing its operations. As of September 30, 2023, the Company has incurred accumulated deficit of $107,441 thousand. Furthermore, the Company has generated operating losses and negative operating cash flow for all reported periods.

Management has considered the significance of such conditions in relation to the Company’s ability to meet its current obligations and to achieve its business targets and determined that these conditions do not raise substantial doubt about the Company’s ability to continue as a going concern, taking into consideration the net proceeds received in total amount of $8,730 thousand upon closing of a public offering through prospectus supplement on Form S-3 on April 17, 2023 (see also Note 3A below). As of September 30, 2023, our cash on hand will provide sufficient working capital to fund its current operations and animal trial program for the development of its Implantable CGM for a period of twelve-months subsequent to the reporting period.