NOTE 10 - BASIC AND DILUTED LOSS PER SHARE:

Basic net loss per share is computed using the weighted average number of common stock and fully vested RSUs outstanding during the period and takes into account the weighted average amount of shares repurchased during the period. In computing diluted loss per share, basic loss per share is adjusted to take into account the potential dilution that could occur upon: (i) the exercise of options and non-vested RSUs granted under employee stock compensation plans, and the exercise of warrants using the treasury stock method; and (ii) the conversion of the convertible preferred stock, convertible note and convertible loan using the “if-converted” method, by adding to net loss the change in the fair value of the convertible loan and convertible note, net of tax benefits, and by adding the weighted average number of shares issuable upon assumed conversion of these instruments. For further details on the effects on the instruments described below, please see note 1(d) above.

Options to purchase 940,183 and 891,218 shares of common stock at an average exercise price of $0.453 and $0.150 per share were outstanding as of September 30, 2022, and September 30, 2021, respectively, but were not included in the computation of diluted EPS because to do so would have had antidilutive effect on the basic loss per share.

Preferred stock, which was convertible into 7,731,083 shares of common stock was outstanding as of September 30, 2021 but was not included in the computation of diluted EPS because to do so would have had antidilutive effect on the basic loss per share.

The convertible loan was not included in the calculation of the diluted loss per share as the loan was convertible into shares of common stock only upon the occurrence of a contingent event which had yet to occur as of September 30, 2021. For more details see note 5.

Warrants are convertible into 178,281 of the Company’s preferred stock were outstanding as of September 30, 2021 but were not included in the computation of diluted EPS because to do so would have had antidilutive effect on the basic loss per share.

Warrants are convertible into 73,048 and 48,082 of the Company’s common stock were outstanding as of September 30, 2022, and 2021 but were not included in the computation of diluted EPS because to do so would have had antidilutive effect on the basic loss per share.

Warrants convertible into 294,875 of the Company’s common stock were outstanding as of September 30, 2022 but were not included in the computation of diluted EPS because to do so would have had an antidilutive effect on the basic loss per share.