Annual report [Section 13 and 15(d), not S-K Item 405]

Warrants

v3.26.1
Warrants
 12 Months Ended
Dec. 31, 2025
Warrants [Abstract]  
WARRANTS

NOTE 10 - WARRANTS:

 

The company has several types of warrants. The warrants classified as liability are presented in this note, and the equity warrants are presented under note 11.

 

  a. On August 24, 2016, the Company issued warrants to Comerica Bank (“Comerica”) for the purchase of 731 shares of the Company’s Series B Redeemable Preferred Stock at an exercise price of $102.672 per share contemporaneously with obtaining a loan from Comerica which was fully repaid in 2018 (the “Comerica Warrants”). The Comerica Warrants are exercisable at any time during the contract period which ends on August 24, 2026.

 

Additionally, in connection with the consummation of the IPO which occurred in May 2022, and the change of the type of the stock from redeemable preferred stock to common stock at conversion, the Company reassessed the Comerica Warrants. As part of the contractual terms and conditions of Comerica’s Warrants, a portion of the warrants are exercisable, as of the IPO date, into the Company’s common stock.

The Company has evaluated whether the Comerica Warrants are still classified as liabilities and concluded that due to a change-of-control provision which may affect the exercise price or entitle Comerica to demand cash, instead of shares, to settle the warrants, Comerica’s Warrants will continue to be classified as liabilities and will be exercisable into the Company’s common shares. The Comerica Warrants are still outstanding as of December 31, 2025.

 

  b.

On December 31, 2025, the Company recognized a pre-funded warrant liability in connection with the issuance of Commitment Shares as consideration for White Lion’s irrevocable commitment to purchase shares of the Company’s Common Stock pursuant to the Equity Line of Credit Purchase Agreement (the “ELOC Purchase Agreement”) (see Note 11(g)).

 

Pursuant to the ELOC Purchase Agreement, the Company agreed to issue Commitment Shares equal to the Commitment Amount of $750. The fair value of the Commitment Shares, totaling $750, was recognized as an expense within other financial income (expense), net, in the Consolidated Statements of Loss for the year ended December 31, 2025.