| EVENTS OCCURRED DURING THE PERIOD |
NOTE 4 – EVENTS OCCURRED DURING THE PERIOD:
| | a. | The Company’s Israeli subsidiary has an operating lease agreement for a facility in Israel, which was renewed on December 28, 2023, and expired on December 31, 2025. The lease payments are denominated in NIS and are indexed to the consumer price index. The Company has extended its lease agreement in a different space owned by the same landlord from February 23, 2026, for two years, expiring on February 22, 2028. The monthly lease fee is a total of $21. In addition, the Subsidiary leases vehicles under operating leases. As of September 30, 2026, the weighted-average remaining lease term of the Company’s operating leases was 1.43 years. | As of February 23, 2026, the Company recorded the related asset and liability at the present value of payments over the lease term, discounted using the lessee’s incremental borrowing rate, which was 7.6%. As of September 30, 2026, the maturity of lease liabilities under our non-cancelable operating leases was as follows:
| 2026 (remaining three months) | | | 72 | |
| 2027 | | | 287 | |
| 2028 | | | 53 | |
| Total future minimum lease payments | | | 412 | |
| Less: interest | | | (19 | ) |
| Present value of operating lease liabilities | | | 393 | |
| | b. | The Company entered into a bridge loan agreement with Bank Mizrahi-Tefahot on December 3, 2025, pursuant to which it received a loan in the principal amount of $350. The loan bears effective interest rate 9.63% and is repayable under the conditions set out in the agreement. The proceeds were used for the general working capital requirements of Actelis Networks, Inc. and were presented under short-term loan in the Company’s consolidated financial statements. During the three months ended March 31, 2026, the Company repaid the outstanding loan in full, including all accrued interest. |
| | c. | On March 18, 2026, the Board of Directors authorized an expansion of the Company’s share repurchase program, pursuant to which the Company may repurchase up to $1,500 of its outstanding common stock. Repurchases under the program may be made from time to time at management’s discretion through open market purchases, privately negotiated transactions, block trades, and/or pursuant to trading plans adopted in accordance with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, and other applicable laws. | In March 2026, the Company repurchased an aggregate of 2,674,709 shares of its common stock for a total consideration of $1,039. All repurchased shares were subsequently cancelled and returned to the status of authorized but unissued shares.
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