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<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt; text-indent: 0in; text-align: left"><b>NOTE
1 - GENERAL:</b></p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.75in"></td><td style="width: 0.25in"><b>a.</b></td><td style="text-align: left">Nano-X Imaging Ltd, an Israeli Company (hereinafter “the Company” or “Nanox IL”
or “the Successor Company”), was incorporated on December 20, 2018 and commenced its operations on September 3, 2019.</td></tr></table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">On September 19, 2019, Nanox IL
established Nanox Imaging Inc. (hereinafter “Nanox Inc.”), a wholly owned subsidiary in Japan.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">On September 25, 2020, Nanox IL
established Nano-X Korea Inc. (hereinafter “Nanox Korea”), a wholly owned subsidiary in Korea.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">In August 2020, the Company
completed an initial public offering (“IPO”) on the Nasdaq Global Select Market (the “Nasdaq”), in which
it issued 9,178,744 ordinary shares, at a price per share of $18. During August 2020 the underwriters exercised their over-allotment
option and purchased an additional 1,376,812 ordinary shares at the same price per share. The proceeds received from the IPO were
$190 million (the net proceeds were approximately $169 million after deducting underwriting commissions and other offering expenses).</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.75in"></td><td style="width: 0.25in"><b>b.</b></td><td style="text-align: left">Nanox Imaging PLC is a public limited company incorporated in Gibraltar in 2012 (hereinafter “Nanox
PLC” or “the predecessor company”). Nanox PLC developed certain technological capabilities
aimed to design and build various applications for x-ray based imaging. Nanox PLC has been a development-stage company since its
inception. Nanox PLC has a wholly owned subsidiary, Nanox Japan Inc. (hereinafter “Nanox Japan”). Nanox
Japan primarily provided research and development services to Nanox PLC.</td></tr></table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">On September 3, 2019 (hereinafter
“Transaction Date”), Nanox IL signed an Assets Purchase Agreement which was later amended on December 3, 2019 and December
31, 2019 (hereinafter “the APA”) with Nanox PLC.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">Under the terms of the APA,
Nanox IL purchased from Nanox PLC patents, patent applications and all other intellectual property rights, as well as all cash
of Nanox PLC (less an amount of $200 thousand), with an exclusion of certain assets as defined in the APA (hereinafter “Acquired
Assets”).</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">Under the terms of the APA,
Nanox IL shall pay Nanox PLC $6.127 million as consideration for the purchase of the Acquired Assets, which reflects the fair value
of the Acquired Assets (excluding cash) plus the cash balance as of the date of the APA, less $200 thousand. The purchase price
shall be due and payable upon the closing of one of the following events: (a) an M&A event of Nanox IL, (b) an IPO of Nanox
IL, or (c) a qualified equity financing of Nanox IL at a minimum company pre-money valuation of $100 million, with proceeds totaling
at least $30 million.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">In the event of an IPO or a
qualified equity financing, Nanox IL has the option to pay for the Acquired Assets in cash or by the issuance of Nanox IL shares
of the same series to be issued upon such event, in an amount reflecting a 25% discount on the per share price to be determined
in such IPO or qualified equity financing. If Nanox IL chooses to pay for the Acquired Assets in cash in any of the events described
above, then Nanox PLC has the right, at its sole discretion and in good faith, to reject such payment in cash, and require Nanox
IL to pay for the Acquired Assets by the issuance of securities of the same series to be issued upon such equity financing events,
in such amount which shall reflect a 25% discount on the per share price to be determined in such equity financing events.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">In November 2019, Nanox PLC
transferred to Nanox IL an amount of $7.2 million, which reflects the cash consideration under the APA. The total consideration
of the purchase of the Acquired Assets is $13.3 million. The outstanding balance of $17.8 million reflects the related
party liability of the expected future payment using the Company’s shares, refer to note 6.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">In return to the Acquired Assets,
the Company issued to Nanox PLC 1,109,245 ordinary shares during January 2020. See also note 6.</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.75in"></td><td style="width: 0.25in"><b>c.</b></td><td style="text-align: left">As of September, 3 2019, Nanox IL and Nanox PLC had the same shareholders and, therefore, the transaction
was treated as a transaction under common control for accounting purposes.</td></tr></table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">The financial statements of
the Company prior to the Transaction Date are the historical financial statements of Nanox PLC, which have been adjusted to reflect
the fact that:</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 1in"></td><td style="width: 0.25in">1)</td><td style="text-align: left">only the net assets that were transferred in the transaction according to the APA. Net assets which
were not transferred in the transaction are not reflected in these consolidated financial statements.</td></tr></table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 1in"></td><td style="width: 0.25in">2)</td><td style="text-align: left">no interests of Nanox Japan were transferred under the APA. The consolidated statements of operation
include the costs incurred for services provided by Nanox Japan to Nanox PLC.</td></tr></table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 1in"></td><td style="width: 0.25in">3)</td><td style="text-align: left">the consideration in the transaction (the “Related Party Liability”) was recorded at the
beginning of the earliest period presented against a decrease in shareholders’ equity.</td></tr></table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 1in"></td><td style="width: 0.25in">4)</td><td style="text-align: left">all of the share-related information reflects the share information of Nanox IL.</td></tr></table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.75in"></td><td style="width: 0.25in"><b>d.</b></td><td style="text-align: left">The Company’s solution, referred to as the Nanox System, has two integrated components –
“Nanox.ARC” and “Nanox. CLOUD”. Nanox.ARC is a medical imaging system incorporating the Company’s novel
digital X-ray source. Nanox. CLOUD is a cloud-based system designed to provide end-to-end medical imaging services, including services
such as image repository, radiologist matching, online and offline diagnostics review and annotation, connectivity to diagnostic
assistive AI systems, billing and reporting.</td></tr></table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">In January 2020, the Company submitted
a 510(k) application for the Nanox Cart X-Ray System, which is a single-source version of the Nanox.ARC (the “Nanox Cart X-Ray System”)
to an accredited Review Organization under the FDA’s 510(k) third party review program. During 2020 and the first quarter of 2021,
the Company received additional information requests and submitted its official responses. On April 1, 2021, the Company received clearance
from the FDA to market the Company's Nanox Cart X-Ray System. The Company plans to submit an additional 510(k) premarket notification
to the FDA with respect to the multi-source Nanox.ARC and the Nanox.CLOUD during 2021.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">The Company has experienced
net losses and negative cash flows from operations since its inception. The Company anticipates such losses will continue
until its product candidates reach commercial profitability. In August 2020, the Company completed an IPO on Nasdaq with net proceeds
received from the IPO of approximately $<font style="font-family: Times-Roman,serif">1</font>69 million .Based on the Company’s
financing activities during the year ended December 31, 2020, the Company has sufficient funds for its plans for the next twelve
months from the issuance of these financial statements.</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.75in"></td><td style="width: 0.25in"><b>e.</b></td><td style="text-align: left">Current Impact of COVID-19</td></tr></table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">Following the December
2019 outbreak of Coronavirus (COVID-19) in China, it has spread into most countries across the world, including Israel, Japan
and all 50 states within the U.S. The COVID-19 pandemic is evolving, and to date has led to the implementation of various
responses, including government-imposed quarantines, travel restrictions and other public health safety measures. The
COVID-19 pandemic has adversely impacted the Company’s operations in various ways. For example, the Company’s engineers are
unable to make work-related trips to Korea or Israel to test and optimize the Nanox.ARC or to begin development of x-ray chip
manufacturing in Korea. The potential business partners are unable to make on-site visits to the Company’s facilities or
attend industry conferences and meetings to experience the Nanox.ARC, which has negatively impacted the Company’s business
development and deployment activities. The external labs the Company works with have also been affected by COVID-19,
resulting in delays in the Company’s timelines for obtaining regulatory approval. COVID-19 has also caused shutdowns or
disruptions of business for our manufactures and suppliers. The continued spread of COVID-19 globally could adversely impact
the Company’s development, manufacture or deployment of the Nanox Systems, which could adversely affect the Company’s ability
to obtain regulatory approval for and to commercialize the Nanox Systems, increase the operating expenses and have a material
adverse effect on the Company’s financial results. (For the process with the FDA, see note 1d above).</p><br/>
9178744
18
1376812
190000000
Nanox IL shall pay Nanox PLC $6.127 million as consideration for the purchase of the Acquired Assets, which reflects the fair value of the Acquired Assets (excluding cash) plus the cash balance as of the date of the APA, less $200 thousand. The purchase price shall be due and payable upon the closing of one of the following events: (a) an M&A event of Nanox IL, (b) an IPO of Nanox IL, or (c) a qualified equity financing of Nanox IL at a minimum company pre-money valuation of $100 million, with proceeds totaling at least $30 million.
Nanox PLC transferred to Nanox IL an amount of $7.2 million, which reflects the cash consideration under the APA. The total consideration of the purchase of the Acquired Assets is $13.3 million. The outstanding balance of $17.8 million reflects the related party liability of the expected future payment using the Company’s shares, refer to note 6.
169000000
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt; text-indent: 0in; text-align: left"><b>NOTE
2 - SIGNIFICANT ACCOUNTING POLICIES:</b></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.75in; text-align: left">Our consolidated
financial statements are prepared in accordance with generally accepted accounting principles in the United States (hereinafter
-“U.S GAAP”). The preparation of our consolidated financial statements and related disclosures requires us to make
estimates and judgments that affect the reported amounts of assets, liabilities, costs and expenses and the disclosure of contingent
assets and liabilities in our financial statements. We base our estimates on historical experience, known trends and events and
various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments
about the carrying values of assets and liabilities that are not readily apparent from other sources. We evaluate our estimates
and assumptions on an ongoing basis. Our actual results may differ from these estimates under different assumptions or conditions.</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt">
<tr style="vertical-align: top">
<td style="width: 0.75in"> </td>
<td style="text-align: left; width: 0.25in"><b>a. </b></td>
<td style="text-align: left"><b>Use of estimates in the preparation of financial statements</b></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">The preparation of the consolidated
financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial
statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those
estimates and such differences may have a material impact on the Company’s consolidated financial statements. As applicable
to these consolidated financial statements, the most significant estimates relate to fair value of share-based payments.</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt">
<tr style="vertical-align: top">
<td style="width: 0.75in"> </td>
<td style="text-align: left; width: 0.25in"><b>b. </b></td>
<td style="text-align: left"><b>Functional currency</b></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">The U.S. dollar is the currency
of the primary economic environment in which the operations of the Company and its subsidiary is conducted. A substantial portion
of the operational costs are denominated in U.S. dollars. Accordingly, the functional currency of the Company is the U.S. dollar
(“primary currency”).</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">Foreign currency assets and liabilities
are translated into the primary currency using the exchange rates in effect on the consolidated balance sheet date. Equity accounts
are translated at historical rates, except for the change in accumulated deficit during the year, which is the result of the income
statement translation process. Expense accounts are translated using the weighted average exchange rate during the period. Currency
transaction gains and losses are presented in financial income and expenses, net.</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt">
<tr style="vertical-align: top">
<td style="width: 0.75in"> </td>
<td style="text-align: left; width: 0.25in"><b>c.</b></td>
<td style="text-align: left"><b>Cash and cash equivalents</b></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">The Company considers as cash
equivalents all short-term, highly liquid investments, which include short-term bank deposits with original maturities of three
months or less from the date of purchase that are not restricted as to withdrawal or use and are readily convertible to known amounts
of cash.</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt">
<tr style="vertical-align: top">
<td style="width: 0.75in"> </td>
<td style="text-align: left; width: 0.25in"><b>d.</b></td>
<td style="text-align: left"><b>Restricted Cash</b></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">As of December 31, 2020,
the Company’s restricted cash consisted of a bank deposit that was denominated in New Israeli Shekel. Restricted deposit
is presented at cost including accrued interest. This bank deposits is used as security for credit card use and collateralizing
the Company’s lease contracts.</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt">
<tr style="vertical-align: top">
<td style="width: 0.75in"> </td>
<td style="text-align: left; width: 0.25in"><b>e.</b></td>
<td style="text-align: left"><b>Property and equipment, net</b></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">Property and equipment are stated
at cost, net of accumulated depreciation. Depreciation is calculated on a straight-line basis over the following estimated useful
lives:</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: left; padding-right: 0; padding-left: 0; text-indent: 0"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><b>%</b></td><td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-right: 0; padding-left: 0; text-indent: 0">Computers and electronic equipment</td><td> </td>
<td colspan="2" style="text-align: center">10-33</td><td> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-right: 0; padding-left: 0; text-indent: 0">Office furniture and lab equipment</td><td> </td>
<td colspan="2" style="text-align: center">6-20</td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-right: 0; padding-left: 0; text-indent: 0">Machines</td><td> </td>
<td colspan="2" style="text-align: center">10-20</td><td> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="width: 88%; text-align: left; text-indent: 0; padding-left: 0; padding-right: 0">Leasehold Improvement</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: center"> </td><td style="width: 9%; text-align: center">10</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: 0; padding-left: 0; padding-right: 0">Land</td><td> </td>
<td style="text-align: center"> </td><td style="text-align: center">N/A</td><td style="text-align: left"> </td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">The depreciable life of leasehold
improvements is limited by the expected lease term, unless there is a transfer of title or a purchase option for the leased asset
reasonably certain of exercise.</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt">
<tr style="vertical-align: top">
<td style="width: 0.75in"> </td>
<td style="text-align: left; width: 0.25in"><b>f.</b></td>
<td style="text-align: left"><b>Impairment of long-lived assets </b></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">The Company tests long-lived
assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be
recoverable. Recoverability of long-lived assets is measured by comparing the carrying amount of the long-lived asset to the estimated
undiscounted future cash flows expected to be generated by the asset. If the sum of the expected undiscounted cash flow is less
than the carrying amount of the asset, the Company recognizes an impairment loss, which is the excess of the carrying amount over
the fair value of the asset, using the expected future discounted cash flows.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left"> As of December
31, 2020, 2019 and 2018, the Company did not recognize an impairment loss on its long-lived assets.</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt">
<tr style="vertical-align: top">
<td style="width: 0.75in"> </td>
<td style="text-align: left; width: 0.25in"><b>g.</b></td>
<td style="text-align: left"><b>Severance pay</b></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">Israeli labor law generally
requires severance pay be granted upon dismissal of an employee or upon termination of employment under certain other circumstances.
Pursuant to Section 14 of the Severance Compensation Act, 1963 (“Section 14”), all of the Company’s employees in
Israel are entitled to monthly deposits, at a rate of 8.33% of their monthly salary, made in their name with insurance companies.
Payments under Section 14 relieve the Company from any future severance payment obligation with respect to those employees and,
as such, the Company may only utilize the insurance policies for the purpose of disbursement of severance pay. As a result, the
Company does not recognize an asset nor liability for these employees.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">In 2020, all of the Company’s
employees in Israel are subject to Section 14.</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt">
<tr style="vertical-align: top">
<td style="width: 0.75in"> </td>
<td style="text-align: left; width: 0.25in"><b>h.</b></td>
<td style="text-align: left"><b>Legal and other contingencies</b></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">Certain conditions, such as
legal proceedings, may exist as of the date the consolidated financial statements are issued that may result in a loss to the
Company, but that will only be resolved when one or more future events occur or fail to occur. In assessing loss
contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such
proceedings, the Company’s management evaluates with its legal advisors the perceived merits of any legal proceedings
or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought. Such assessment
inherently involves an exercise of judgment. Legal fees are expensed as incurred.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">Management applies the guidance
in ASC 450-20-25 when assessing losses resulting from contingencies. If the assessment of a contingency indicates that it is probable
that a material loss would be incurred and the amount of the liability can be estimated, then the Company records an accrued expense
in the Company’s consolidated financial statements based on its best estimate. Loss contingencies considered to be remote
by management are generally not disclosed unless material. In September 2020, securities class action complaints were filed in
the United States by certain of the Company’s shareholders against the Company and certain of the Company’s current
officers and directors. For additional information see note 7.</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt">
<tr style="vertical-align: top">
<td style="width: 0.75in"> </td>
<td style="text-align: left; width: 0.25in"><b>i.</b></td>
<td style="text-align: left"><b>Research and development expenses</b></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">Research and development expenses
are charged to the statement of operations as incurred and consist primarily of personnel, materials and supplies for research
and development activities.</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt">
<tr style="vertical-align: top">
<td style="width: 0.75in"> </td>
<td style="text-align: left; width: 0.25in"><b>j.</b></td>
<td style="text-align: left"><b>Income tax </b></td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 1in"></td><td style="width: 0.25in">1)</td><td style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">The Company accounts for income taxes in accordance with ASC 740, “Income Taxes” (“ASC 740”).
ASC 740 prescribes the use of the liability method whereby deferred tax asset and liability account balances are determined based
on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates
and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary,
to reduce deferred tax assets to their estimated realizable value if it is more likely than not that a portion or all of the deferred
tax assets will not be realized, based on the weight of available positive and negative evidence. Deferred tax liabilities and
assets are classified as non-current in accordance with ASU 2015-17.</td></tr></table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 1in"></td><td style="width: 0.25in">2)</td><td style="text-align: left">Taxes that would apply in the event of disposal of investments in foreign subsidiaries have not been
taken into account in computing the deferred income taxes, as it is the Company’s intent and ability to hold these investments.</td></tr></table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: left">The Company accounts for uncertain
tax positions in accordance with ASC 740-10. ASC 740-10 contains a two-step approach to recognizing and measuring uncertain tax
positions. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight
of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position
will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure
the tax benefit as the largest amount that is more than 50% (cumulative probability) likely to be realized upon ultimate settlement.
The Company accrues interest and penalties related to unrecognized tax benefits under taxes on income (tax benefit).</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt">
<tr style="vertical-align: top">
<td style="width: 0.75in"> </td>
<td style="text-align: left; width: 0.25in"><b>k.  </b></td>
<td style="text-align: left"><b>Share-based compensation</b></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">The Company accounts for share-based
compensation under ASC 718, “Compensation - Stock Compensation,” which requires the measurement and recognition of
compensation expense based on estimated fair values for all share-based payment awards made to non-employees, employees, officers
and directors.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">ASC 718 requires companies to
estimate the fair value of equity-based payment awards on the date of grant. The Company uses the Black-Scholes-Merton option-pricing
model as part of such estimation.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">Prior to the adoption of ASU
2018-07, warrants issued to consultants and other non-employees, as compensation for services provided to the Company, were accounted
for based upon the fair value of the warrants. The fair value of the warrants granted was measured on a final basis at the end
of the related service period and was recognized over the related service period using the straight-line method. After the adoption
of ASU 2018-07, the measurement date for non-employee awards is the date of the grant. The compensation expense for non-employees
is recognized without changes in the fair value of the award, over the requisite service period, which is the vesting period of
the respective award using the straight line. The Company adopted ASU 2018-07 as of January 1, 2019 with no impact on its consolidated
financial statements as all of the Company’s awards were fully vested at the adoption date.</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt">
<tr style="vertical-align: top">
<td style="width: 0.75in"> </td>
<td style="text-align: left; width: 0.25in"><b>l.</b></td>
<td style="text-align: left"><b>Loss per share</b></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">Basic earnings per share is
computed by dividing net income (loss) attributable to holders of ordinary shares of the Company by the weighted average number
of ordinary shares outstanding for each reporting period.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">In computing the Company’s
diluted earnings per share, the denominator for diluted earnings per share is a computation of the weighted-average number of ordinary
shares and the potential dilutive ordinary shares outstanding during the period. Potential dilutive ordinary shares outstanding
include the dilutive effect of in-the-money options using the treasury stock method.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">The Company did not take into account
any dilutive instruments, such as investor warrants and share-based payments, since their effect, on a fully diluted basis, is
anti-dilutive.</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt">
<tr style="vertical-align: top">
<td style="width: 0.75in"> </td>
<td style="text-align: left; width: 0.25in"><b>m.</b></td>
<td style="text-align: left"><b>Fair value measurement</b></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">Fair value is based on the price
that would be received from the sale of an asset or that would be paid to transfer a liability in an orderly transaction between
market participants at the measurement date. In order to increase consistency and comparability in fair value measurements, the
guidance establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into
three broad levels, which are described as follows:</p><br/><table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt">
<tr style="vertical-align: top">
<td style="width: 1in"> </td>
<td style="text-align: left; width: 0.5in">Level 1:</td>
<td style="text-align: left">Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value
hierarchy gives the highest priority to Level 1 inputs.</td></tr>
<tr style="vertical-align: top">
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td style="text-align: left">Level 2: </td>
<td style="text-align: left">Observable prices that are based on inputs not quoted on active markets, but corroborated by market data.</td></tr>
<tr style="vertical-align: top">
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td style="text-align: left">Level 3: </td>
<td style="text-align: left">Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to
Level 3 inputs.</td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">In determining fair value, the
Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to
the extent possible and considers counterparty credit risk in its assessment of fair value.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">The Company’s financial instruments
consist mainly of cash and cash equivalents, restricted cash accounts payable, accrued expenses and other liabilities. The fair
value of these financial instruments approximates their carrying values.</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt">
<tr style="vertical-align: top">
<td style="width: 0.75in"> </td>
<td style="text-align: left; width: 0.25in"><b>n.</b></td>
<td style="text-align: left"><b>Concentration of Credit Risks</b></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">Financial instruments that potentially
subject the Company to concentrations of credit risk consist principally of cash and cash equivalents and restricted cash.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">The Company’s cash and cash
equivalents and restricted cash are invested with major banks in Israel, Korea and Japan. Generally, these investments may be redeemed
upon demand and the Company believes that the financial institutions that hold the Company’s cash balances are financially
sound and, accordingly, bear minimal risk.</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt">
<tr style="vertical-align: top">
<td style="width: 0.75in"> </td>
<td style="text-align: left; width: 0.25in"><b>o.</b></td>
<td style="text-align: left"><b>Offering Costs </b></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">Deferred offering costs directly
relating to the Company’s private and initial public offering, were capitalized and offset against proceeds upon the consummation
of the private and IPO transactions in shareholders’ equity.</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt">
<tr style="vertical-align: top">
<td style="width: 0.75in"> </td>
<td style="text-align: left; width: 0.25in"><b>p.</b></td>
<td style="text-align: left"><b>Leases</b></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 70.9pt; text-align: left">On January 1, 2019 the Company
adopted ASU No. 2016-02, Leases (Topic 842), The Company determines if an arrangement is a lease at inception. Balances related
to operating leases are included in operating lease right-of-use (“ROU”) assets, current maturities of operating leases
and Non-current operating leases in the consolidated balance sheets.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 70.9pt; text-align: left">The Company also elected not
separating lease components from non-lease components and to keep leases with an initial term of 12 months or less off the balance
sheet and recognize the associated lease payments in the consolidated statements of operations on a straight-line basis over the
lease term.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">ROU assets represent the Company’s
right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease
payments arising from the lease. Operating lease ROU assets and liabilities are recognized as of the commencement date based on
the present value of lease payments over the lease term. The Company’s lease terms may include options to extend or terminate
the lease when it is reasonably certain that the Company will exercise that option. The discount rate for the lease is the rate
implicit in the lease unless that rate cannot be readily determined. As the Company’s leases do not provide an implicit rate,
the Company’s uses its estimated incremental borrowing rate based on the information available at the commencement date in
determining the present value of lease payments. Lease expense for lease payments is recognized on a straight-line basis over the
lease term (see also note 5).</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt">
<tr style="vertical-align: top">
<td style="width: 0.75in"> </td>
<td style="text-align: left; width: 0.25in"><b>q. </b></td>
<td style="text-align: left"><b>Newly issued and recently adopted accounting pronouncements:</b></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left"><b><i>Accounting Pronouncements
Adopted in Current year</i></b></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left"><font style="font-family: Times New Roman, Times, Serif">In
June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326) - Measurement of Credit Losses on
Financial Instruments (“the Standard”). This guidance replaces the current incurred loss impairment methodology.
Under the new guidance, on initial recognition and at each reporting period, an entity is required to recognize an allowance
that reflects its current estimate of credit losses expected to be incurred over the life of the financial instrument based
on historical experience, current conditions and reasonable and supportable forecasts. In November 2018, the FASB issued ASU
2018-19, Codification Improvements to Topic 326, Financial Instruments - Credit Losses. ASU 2018-19 clarifies that
receivables from operating leases are accounted for using the lease guidance and not as financial instruments.</font> Since
the Company has no financial instruments the Standard does not impact the Company’s consolidated financial
statements.</p><br/>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"><td style="text-align: left; width: 0.25in"><b>a. </b></td>
<td style="text-align: left"><b>Use of estimates in the preparation of financial statements</b></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">The preparation of the consolidated
financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial
statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those
estimates and such differences may have a material impact on the Company’s consolidated financial statements. As applicable
to these consolidated financial statements, the most significant estimates relate to fair value of share-based payments.</p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"><td style="text-align: left; width: 0.25in"><b>b. </b></td>
<td style="text-align: left"><b>Functional currency</b></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">The U.S. dollar is the currency
of the primary economic environment in which the operations of the Company and its subsidiary is conducted. A substantial portion
of the operational costs are denominated in U.S. dollars. Accordingly, the functional currency of the Company is the U.S. dollar
(“primary currency”).</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">Foreign currency assets and liabilities
are translated into the primary currency using the exchange rates in effect on the consolidated balance sheet date. Equity accounts
are translated at historical rates, except for the change in accumulated deficit during the year, which is the result of the income
statement translation process. Expense accounts are translated using the weighted average exchange rate during the period. Currency
transaction gains and losses are presented in financial income and expenses, net.</p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"><td style="text-align: left; width: 0.25in"><b>c.</b></td>
<td style="text-align: left"><b>Cash and cash equivalents</b></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">The Company considers as cash
equivalents all short-term, highly liquid investments, which include short-term bank deposits with original maturities of three
months or less from the date of purchase that are not restricted as to withdrawal or use and are readily convertible to known amounts
of cash.</p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"><td style="text-align: left; width: 0.25in"><b>d.</b></td>
<td style="text-align: left"><b>Restricted Cash</b></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">As of December 31, 2020,
the Company’s restricted cash consisted of a bank deposit that was denominated in New Israeli Shekel. Restricted deposit
is presented at cost including accrued interest. This bank deposits is used as security for credit card use and collateralizing
the Company’s lease contracts.</p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"><td style="text-align: left; width: 0.25in"><b>e.</b></td>
<td style="text-align: left"><b>Property and equipment, net</b></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">Property and equipment are stated
at cost, net of accumulated depreciation. Depreciation is calculated on a straight-line basis over the following estimated useful
lives:</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: left; padding-right: 0; padding-left: 0; text-indent: 0"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><b>%</b></td><td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-right: 0; padding-left: 0; text-indent: 0">Computers and electronic equipment</td><td> </td>
<td colspan="2" style="text-align: center">10-33</td><td> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-right: 0; padding-left: 0; text-indent: 0">Office furniture and lab equipment</td><td> </td>
<td colspan="2" style="text-align: center">6-20</td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-right: 0; padding-left: 0; text-indent: 0">Machines</td><td> </td>
<td colspan="2" style="text-align: center">10-20</td><td> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="width: 88%; text-align: left; text-indent: 0; padding-left: 0; padding-right: 0">Leasehold Improvement</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: center"> </td><td style="width: 9%; text-align: center">10</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: 0; padding-left: 0; padding-right: 0">Land</td><td> </td>
<td style="text-align: center"> </td><td style="text-align: center">N/A</td><td style="text-align: left"> </td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">The depreciable life of leasehold
improvements is limited by the expected lease term, unless there is a transfer of title or a purchase option for the leased asset
reasonably certain of exercise.</p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"><td style="text-align: left; width: 0.25in"><b>f.</b></td>
<td style="text-align: left"><b>Impairment of long-lived assets </b></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">The Company tests long-lived
assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be
recoverable. Recoverability of long-lived assets is measured by comparing the carrying amount of the long-lived asset to the estimated
undiscounted future cash flows expected to be generated by the asset. If the sum of the expected undiscounted cash flow is less
than the carrying amount of the asset, the Company recognizes an impairment loss, which is the excess of the carrying amount over
the fair value of the asset, using the expected future discounted cash flows.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left"> As of December
31, 2020, 2019 and 2018, the Company did not recognize an impairment loss on its long-lived assets.</p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"><td style="text-align: left; width: 0.25in"><b>g.</b></td>
<td style="text-align: left"><b>Severance pay</b></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">Israeli labor law generally
requires severance pay be granted upon dismissal of an employee or upon termination of employment under certain other circumstances.
Pursuant to Section 14 of the Severance Compensation Act, 1963 (“Section 14”), all of the Company’s employees in
Israel are entitled to monthly deposits, at a rate of 8.33% of their monthly salary, made in their name with insurance companies.
Payments under Section 14 relieve the Company from any future severance payment obligation with respect to those employees and,
as such, the Company may only utilize the insurance policies for the purpose of disbursement of severance pay. As a result, the
Company does not recognize an asset nor liability for these employees.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">In 2020, all of the Company’s
employees in Israel are subject to Section 14.</p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"><td style="text-align: left; width: 0.25in"><b>h.</b></td>
<td style="text-align: left"><b>Legal and other contingencies</b></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">Certain conditions, such as
legal proceedings, may exist as of the date the consolidated financial statements are issued that may result in a loss to the
Company, but that will only be resolved when one or more future events occur or fail to occur. In assessing loss
contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such
proceedings, the Company’s management evaluates with its legal advisors the perceived merits of any legal proceedings
or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought. Such assessment
inherently involves an exercise of judgment. Legal fees are expensed as incurred.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">Management applies the guidance
in ASC 450-20-25 when assessing losses resulting from contingencies. If the assessment of a contingency indicates that it is probable
that a material loss would be incurred and the amount of the liability can be estimated, then the Company records an accrued expense
in the Company’s consolidated financial statements based on its best estimate. Loss contingencies considered to be remote
by management are generally not disclosed unless material. In September 2020, securities class action complaints were filed in
the United States by certain of the Company’s shareholders against the Company and certain of the Company’s current
officers and directors. For additional information see note 7.</p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"><td style="text-align: left; width: 0.25in"><b>i.</b></td>
<td style="text-align: left"><b>Research and development expenses</b></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">Research and development expenses
are charged to the statement of operations as incurred and consist primarily of personnel, materials and supplies for research
and development activities.</p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"><td style="text-align: left; width: 0.25in"><b>j.</b></td>
<td style="text-align: left"><b>Income tax </b></td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 1in"></td><td style="width: 0.25in">1)</td><td style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">The Company accounts for income taxes in accordance with ASC 740, “Income Taxes” (“ASC 740”).
ASC 740 prescribes the use of the liability method whereby deferred tax asset and liability account balances are determined based
on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates
and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary,
to reduce deferred tax assets to their estimated realizable value if it is more likely than not that a portion or all of the deferred
tax assets will not be realized, based on the weight of available positive and negative evidence. Deferred tax liabilities and
assets are classified as non-current in accordance with ASU 2015-17.</td></tr></table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 1in"></td><td style="width: 0.25in">2)</td><td style="text-align: left">Taxes that would apply in the event of disposal of investments in foreign subsidiaries have not been
taken into account in computing the deferred income taxes, as it is the Company’s intent and ability to hold these investments.</td></tr></table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: left">The Company accounts for uncertain
tax positions in accordance with ASC 740-10. ASC 740-10 contains a two-step approach to recognizing and measuring uncertain tax
positions. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight
of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position
will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure
the tax benefit as the largest amount that is more than 50% (cumulative probability) likely to be realized upon ultimate settlement.
The Company accrues interest and penalties related to unrecognized tax benefits under taxes on income (tax benefit).</p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"><td style="text-align: left; width: 0.25in"><b>k.  </b></td>
<td style="text-align: left"><b>Share-based compensation</b></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">The Company accounts for share-based
compensation under ASC 718, “Compensation - Stock Compensation,” which requires the measurement and recognition of
compensation expense based on estimated fair values for all share-based payment awards made to non-employees, employees, officers
and directors.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">ASC 718 requires companies to
estimate the fair value of equity-based payment awards on the date of grant. The Company uses the Black-Scholes-Merton option-pricing
model as part of such estimation.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">Prior to the adoption of ASU
2018-07, warrants issued to consultants and other non-employees, as compensation for services provided to the Company, were accounted
for based upon the fair value of the warrants. The fair value of the warrants granted was measured on a final basis at the end
of the related service period and was recognized over the related service period using the straight-line method. After the adoption
of ASU 2018-07, the measurement date for non-employee awards is the date of the grant. The compensation expense for non-employees
is recognized without changes in the fair value of the award, over the requisite service period, which is the vesting period of
the respective award using the straight line. The Company adopted ASU 2018-07 as of January 1, 2019 with no impact on its consolidated
financial statements as all of the Company’s awards were fully vested at the adoption date.</p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"><td style="text-align: left; width: 0.25in"><b>l.</b></td>
<td style="text-align: left"><b>Loss per share</b></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">Basic earnings per share is
computed by dividing net income (loss) attributable to holders of ordinary shares of the Company by the weighted average number
of ordinary shares outstanding for each reporting period.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">In computing the Company’s
diluted earnings per share, the denominator for diluted earnings per share is a computation of the weighted-average number of ordinary
shares and the potential dilutive ordinary shares outstanding during the period. Potential dilutive ordinary shares outstanding
include the dilutive effect of in-the-money options using the treasury stock method.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">The Company did not take into account
any dilutive instruments, such as investor warrants and share-based payments, since their effect, on a fully diluted basis, is
anti-dilutive.</p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"><td style="text-align: left; width: 0.25in"><b>m.</b></td>
<td style="text-align: left"><b>Fair value measurement</b></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">Fair value is based on the price
that would be received from the sale of an asset or that would be paid to transfer a liability in an orderly transaction between
market participants at the measurement date. In order to increase consistency and comparability in fair value measurements, the
guidance establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into
three broad levels, which are described as follows:</p><br/><table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt">
<tr style="vertical-align: top">
<td style="width: 1in"> </td>
<td style="text-align: left; width: 0.5in">Level 1:</td>
<td style="text-align: left">Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value
hierarchy gives the highest priority to Level 1 inputs.</td></tr>
<tr style="vertical-align: top">
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td style="text-align: left">Level 2: </td>
<td style="text-align: left">Observable prices that are based on inputs not quoted on active markets, but corroborated by market data.</td></tr>
<tr style="vertical-align: top">
<td> </td>
<td style="text-align: left"> </td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td style="text-align: left">Level 3: </td>
<td style="text-align: left">Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to
Level 3 inputs.</td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">In determining fair value, the
Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to
the extent possible and considers counterparty credit risk in its assessment of fair value.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">The Company’s financial instruments
consist mainly of cash and cash equivalents, restricted cash accounts payable, accrued expenses and other liabilities. The fair
value of these financial instruments approximates their carrying values.</p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"><td style="text-align: left; width: 0.25in"><b>n.</b></td>
<td style="text-align: left"><b>Concentration of Credit Risks</b></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">Financial instruments that potentially
subject the Company to concentrations of credit risk consist principally of cash and cash equivalents and restricted cash.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">The Company’s cash and cash
equivalents and restricted cash are invested with major banks in Israel, Korea and Japan. Generally, these investments may be redeemed
upon demand and the Company believes that the financial institutions that hold the Company’s cash balances are financially
sound and, accordingly, bear minimal risk.</p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"><td style="text-align: left; width: 0.25in"><b>o.</b></td>
<td style="text-align: left"><b>Offering Costs </b></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">Deferred offering costs directly
relating to the Company’s private and initial public offering, were capitalized and offset against proceeds upon the consummation
of the private and IPO transactions in shareholders’ equity.</p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"><td style="text-align: left; width: 0.25in"><b>p.</b></td>
<td style="text-align: left"><b>Leases</b></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 70.9pt; text-align: left">On January 1, 2019 the Company
adopted ASU No. 2016-02, Leases (Topic 842), The Company determines if an arrangement is a lease at inception. Balances related
to operating leases are included in operating lease right-of-use (“ROU”) assets, current maturities of operating leases
and Non-current operating leases in the consolidated balance sheets.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 70.9pt; text-align: left">The Company also elected not
separating lease components from non-lease components and to keep leases with an initial term of 12 months or less off the balance
sheet and recognize the associated lease payments in the consolidated statements of operations on a straight-line basis over the
lease term.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">ROU assets represent the Company’s
right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease
payments arising from the lease. Operating lease ROU assets and liabilities are recognized as of the commencement date based on
the present value of lease payments over the lease term. The Company’s lease terms may include options to extend or terminate
the lease when it is reasonably certain that the Company will exercise that option. The discount rate for the lease is the rate
implicit in the lease unless that rate cannot be readily determined. As the Company’s leases do not provide an implicit rate,
the Company’s uses its estimated incremental borrowing rate based on the information available at the commencement date in
determining the present value of lease payments. Lease expense for lease payments is recognized on a straight-line basis over the
lease term (see also note 5).</p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top"><td style="text-align: left; width: 0.25in"><b>q. </b></td>
<td style="text-align: left"><b>Newly issued and recently adopted accounting pronouncements:</b></td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left"><b><i>Accounting Pronouncements
Adopted in Current year</i></b></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left"><font style="font-family: Times New Roman, Times, Serif">In
June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326) - Measurement of Credit Losses on
Financial Instruments (“the Standard”). This guidance replaces the current incurred loss impairment methodology.
Under the new guidance, on initial recognition and at each reporting period, an entity is required to recognize an allowance
that reflects its current estimate of credit losses expected to be incurred over the life of the financial instrument based
on historical experience, current conditions and reasonable and supportable forecasts. In November 2018, the FASB issued ASU
2018-19, Codification Improvements to Topic 326, Financial Instruments - Credit Losses. ASU 2018-19 clarifies that
receivables from operating leases are accounted for using the lease guidance and not as financial instruments.</font> Since
the Company has no financial instruments the Standard does not impact the Company’s consolidated financial
statements.</p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: left; padding-right: 0; padding-left: 0; text-indent: 0"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><b>%</b></td><td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-right: 0; padding-left: 0; text-indent: 0">Computers and electronic equipment</td><td> </td>
<td colspan="2" style="text-align: center">10-33</td><td> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-right: 0; padding-left: 0; text-indent: 0">Office furniture and lab equipment</td><td> </td>
<td colspan="2" style="text-align: center">6-20</td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-right: 0; padding-left: 0; text-indent: 0">Machines</td><td> </td>
<td colspan="2" style="text-align: center">10-20</td><td> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="width: 88%; text-align: left; text-indent: 0; padding-left: 0; padding-right: 0">Leasehold Improvement</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: center"> </td><td style="width: 9%; text-align: center">10</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: 0; padding-left: 0; padding-right: 0">Land</td><td> </td>
<td style="text-align: center"> </td><td style="text-align: center">N/A</td><td style="text-align: left"> </td></tr>
</table>
10-33
6-20
10-20
10
N/A
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt; text-indent: 0in; text-align: left"><b>NOTE
3 - PROPERTY AND EQUIPMENT, NET:</b></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: left">Composition of property and equipment
grouped by major classifications is as follows:</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-align: center; padding-left: 10pt; text-indent: -10pt"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: center; padding-left: 10pt; text-indent: -10pt"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center; padding-left: 10pt; text-indent: -10pt"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">(U.S. Dollars <br/>
in thousands)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left; padding-left: 10pt; text-indent: -10pt">Office furniture and lab equipment</td><td style="width: 1%; font-family: Georgia, Times, Serif"> </td>
<td style="width: 1%; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="width: 9%; font-family: Times New Roman, Times, Serif; text-align: right">820</td><td style="width: 1%; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">325</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-left: 10pt; text-indent: -10pt">Computers and electronic equipment</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">151</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">39</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 10pt; text-indent: -10pt">Machinery</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,762</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-left: 10pt; text-indent: -10pt">Leasehold improvement</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">16</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 10pt; text-indent: -10pt">Land – See b below</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">6,297</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-left: 10pt; text-indent: -10pt">Prepayments on account of production line in construction - See b below</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">5,318</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">14,364</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">364</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt; padding-left: 10pt; text-indent: -10pt">Less: accumulated depreciation</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(344</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(136</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt; padding-left: 10pt; text-indent: -10pt">Total property and equipment, net</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">14,020</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">228</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 58.5pt"></td><td style="width: 18pt"><b>a.</b></td><td style="text-align: left">Total depreciation in respect of property and equipment were approximately $208 thousand, $53 thousand
and $35 thousand for the years ended December 31, 2020, 2019 and 2018, respectively.</td></tr>
<tr style="vertical-align: top">
<td> </td><td> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: top">
<td style="width: 58.5pt"></td><td style="width: 18pt"><b>b.</b></td><td style="text-align: left">In December 2020, Nanox Korea purchased a land for approximately $6.2 million upon which it intends
to build a manufacturing facility. Nanox Korea also rented a temporary fabrication plant and is in the process of preparing for
the commencement of full manufacturing activities, including purchasing certain equipment and transferring certain technology.</td></tr></table><br/>
6200000
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-align: center; padding-left: 10pt; text-indent: -10pt"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: center; padding-left: 10pt; text-indent: -10pt"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center; padding-left: 10pt; text-indent: -10pt"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">(U.S. Dollars <br/>
in thousands)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left; padding-left: 10pt; text-indent: -10pt">Office furniture and lab equipment</td><td style="width: 1%; font-family: Georgia, Times, Serif"> </td>
<td style="width: 1%; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="width: 9%; font-family: Times New Roman, Times, Serif; text-align: right">820</td><td style="width: 1%; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">325</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-left: 10pt; text-indent: -10pt">Computers and electronic equipment</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">151</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">39</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 10pt; text-indent: -10pt">Machinery</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,762</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-left: 10pt; text-indent: -10pt">Leasehold improvement</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">16</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 10pt; text-indent: -10pt">Land – See b below</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">6,297</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-left: 10pt; text-indent: -10pt">Prepayments on account of production line in construction - See b below</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">5,318</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">14,364</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">364</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt; padding-left: 10pt; text-indent: -10pt">Less: accumulated depreciation</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(344</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(136</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt; padding-left: 10pt; text-indent: -10pt">Total property and equipment, net</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">14,020</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">228</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table>
820000
325000
151000
39000
1762000
16000
6297000
5318000
14364000
364000
344000
136000
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt; text-indent: 0in; text-align: left"><font style="text-transform: uppercase"><b>NOTE
4 - CASH, CASH EQUIVALENTS AND RESTRICTED CASH:</b></font></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: left">The following table provides a
reconciliation of cash, cash equivalents and restricted cash reported on the consolidated balance sheet that sum to the same total
amount as shown in the consolidated statement of cash flows.</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">(U.S. Dollars<br/>
in thousands)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left">Cash and cash equivalents</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">213,468</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">8,072</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt">Restricted bank deposit</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">316</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">145</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 4pt; text-indent: -11.5pt; padding-left: 11.5pt">Total cash, cash equivalents and restricted cash shown in the statement of cash flows</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">213,784</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">8,217</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table><br/>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: center"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">(U.S. Dollars<br/>
in thousands)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left">Cash and cash equivalents</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">213,468</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">8,072</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt">Restricted bank deposit</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">316</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">145</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 4pt; text-indent: -11.5pt; padding-left: 11.5pt">Total cash, cash equivalents and restricted cash shown in the statement of cash flows</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">213,784</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">8,217</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
316000
145000
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt; text-indent: 0in; text-align: left"><b>NOTE
5 - LEASES:</b></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: left">As of December 31, 2020, the Company
has four operating lease agreements for its car and facilities, as follows:</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: left">During the fourth quarter of
2019, the Company entered into an office lease agreement. This agreement is through December 31, 2021 with an option by the Company
to extend the period for an additional 24 months. The monthly rent payment is approximately $13 thousand.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: left">During June 2020, the Company
entered into an additional office lease agreement, expanded the space leased in 2019, through June 30, 2023. The monthly rent payment
for this agreement is approximately $15 thousand.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: left">During November 2020, following
the increase of the Company’s employees, the Company signed an additional lease agreement, for a leasing of another office
complex through June 30, 2023. The monthly rent payment for this agreement is approximately $12 thousand.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: left">During November 2020, the Company
engaged with car lease company, for leasing of 6 vehicles. This agreement is effective through June 30, 2023 and the monthly payment
for this agreement is approximately $6.5 thousand.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: left">The table below presents the
effects on the amounts relating to the Company’s total lease costs:</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="white-space: nowrap; text-align: left"> </td><td style="white-space: nowrap; font-weight: bold"> </td>
<td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center">Year ended <br/>
December 31,</td><td style="white-space: nowrap; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold"> </td>
<td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center">Year ended <br/>
December 31,</td><td style="white-space: nowrap; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">(U.S. Dollars<br/>
in thousands)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center; white-space: nowrap">(U.S. Dollars <br/>
In thousands)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Operating lease cost:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left">Fixed payments</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">276</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">25</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt">Short-term lease cost</td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right">65</td><td style="padding-bottom: 1.5pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">112</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 4pt">Total operating lease cost</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">341</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">137</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: left">The table below presents supplemental
cash flow information related to operating leases:</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="white-space: nowrap; text-align: left; padding-left: 10pt; text-indent: -10pt"> </td><td style="white-space: nowrap; font-weight: bold"> </td>
<td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center">Year ended <br/>
December 31,</td><td style="white-space: nowrap; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; white-space: nowrap">Year ended <br/>
December 31,</td><td style="white-space: nowrap; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center; white-space: nowrap">(U.S. Dollars<br/>
in thousands)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center; white-space: nowrap">(U.S. Dollars<br/>
in thousands)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -10pt; padding-left: 10pt">Cash paid for amounts included in the measurement of lease liabilities:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left; padding-bottom: 4pt; text-indent: -10pt; padding-left: 10pt">Operating cash flows from operating leases</td><td style="width: 1%; padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; width: 1%; text-align: left"> </td><td style="border-bottom: Black 4pt double; width: 9%; text-align: right">169</td><td style="width: 1%; padding-bottom: 4pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; width: 1%; text-align: left"> </td><td style="border-bottom: Black 4pt double; width: 9%; text-align: right">25</td><td style="width: 1%; padding-bottom: 4pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -10pt; padding-left: 10pt">Right-of-use assets obtained in exchange for lease obligations (non-cash):</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 4pt; text-indent: -10pt; padding-left: 10pt">Operating leases</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">1,085</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">548</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: left">The table below presents supplemental
balance sheet information related to operating leases:</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="white-space: nowrap; text-align: left; padding-left: 10pt; text-indent: -10pt"> </td><td style="white-space: nowrap; font-weight: bold"> </td>
<td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center">December 31,</td><td style="white-space: nowrap; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold"> </td>
<td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center">December 31,</td><td style="white-space: nowrap; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">(U.S. Dollars in thousands)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">(U.S. Dollars in thousands)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -10pt; padding-left: 10pt">Operating leases:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left; text-indent: -10pt; padding-left: 10pt">Operating lease right-of-use assets</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">1,359</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">526</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -10pt; padding-left: 10pt">Current maturities of operating leases</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">519</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">140</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -10pt; padding-left: 10pt">Non-current operating leases</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">923</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">386</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 4pt; text-indent: -10pt; padding-left: 10pt">Total operating lease liabilities</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">1,442</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">526</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"><b>December 31,</b></td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"><b>December 31,</b></td><td style="font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -10pt; padding-left: 10pt"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -10pt; padding-left: 10pt">Weighted average remaining lease term</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -10pt; padding-left: 10pt">Operating leases</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2.67</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3.96</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -10pt; padding-left: 10pt">Weighted average discount rate</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -10pt; padding-left: 10pt">Operating leases</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5.83</td><td style="text-align: left">%</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5.6</td><td style="text-align: left">%</td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: left">The table below presents maturities
of operating lease liabilities:</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="white-space: nowrap; text-align: left"> </td><td style="white-space: nowrap; font-weight: bold"> </td>
<td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center">December 31,</td><td style="white-space: nowrap; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">(U.S. Dollars <br/> in thousands)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left"> </td><td> </td>
<td colspan="2" style="text-align: left"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">2020</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="width: 88%; text-align: left">2021</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">588</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">2022</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">588</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">2023</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">382</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt">2024 and thereafter</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Total operating lease payments</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,558</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt">Less: imputed interest</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">116</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 4pt">Present value of lease liabilities</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">1,442</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table><br/>
This agreement is through December 31, 2021 with an option by the Company to extend the period for an additional 24 months.
13000
During June 2020, the Company entered into an additional office lease agreement, expanded the space leased in 2019, through June 30, 2023.
15000
During November 2020, following the increase of the Company’s employees, the Company signed an additional lease agreement, for a leasing of another office complex through June 30, 2023.
12000
the Company engaged with car lease company, for leasing of 6 vehicles. This agreement is effective through June 30, 2023
$6.5
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="white-space: nowrap; text-align: left"> </td><td style="white-space: nowrap; font-weight: bold"> </td>
<td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center">Year ended <br/>
December 31,</td><td style="white-space: nowrap; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold"> </td>
<td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center">Year ended <br/>
December 31,</td><td style="white-space: nowrap; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">(U.S. Dollars<br/>
in thousands)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center; white-space: nowrap">(U.S. Dollars <br/>
In thousands)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Operating lease cost:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left">Fixed payments</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">276</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">25</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt">Short-term lease cost</td><td style="font-family: Times New Roman, Times, Serif; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; font-family: Times New Roman, Times, Serif; text-align: right">65</td><td style="padding-bottom: 1.5pt; font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">112</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 4pt">Total operating lease cost</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">341</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">137</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
276000
25000
65000
112000
341000
137000
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="white-space: nowrap; text-align: left; padding-left: 10pt; text-indent: -10pt"> </td><td style="white-space: nowrap; font-weight: bold"> </td>
<td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center">Year ended <br/>
December 31,</td><td style="white-space: nowrap; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; white-space: nowrap">Year ended <br/>
December 31,</td><td style="white-space: nowrap; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center; white-space: nowrap">(U.S. Dollars<br/>
in thousands)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center; white-space: nowrap">(U.S. Dollars<br/>
in thousands)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -10pt; padding-left: 10pt">Cash paid for amounts included in the measurement of lease liabilities:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left; padding-bottom: 4pt; text-indent: -10pt; padding-left: 10pt">Operating cash flows from operating leases</td><td style="width: 1%; padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; width: 1%; text-align: left"> </td><td style="border-bottom: Black 4pt double; width: 9%; text-align: right">169</td><td style="width: 1%; padding-bottom: 4pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; width: 1%; text-align: left"> </td><td style="border-bottom: Black 4pt double; width: 9%; text-align: right">25</td><td style="width: 1%; padding-bottom: 4pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -10pt; padding-left: 10pt">Right-of-use assets obtained in exchange for lease obligations (non-cash):</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 4pt; text-indent: -10pt; padding-left: 10pt">Operating leases</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">1,085</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">548</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
169000
25000
1085000
548000
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="white-space: nowrap; text-align: left; padding-left: 10pt; text-indent: -10pt"> </td><td style="white-space: nowrap; font-weight: bold"> </td>
<td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center">December 31,</td><td style="white-space: nowrap; font-weight: bold"> </td><td style="white-space: nowrap; font-weight: bold"> </td>
<td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center">December 31,</td><td style="white-space: nowrap; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">(U.S. Dollars in thousands)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">(U.S. Dollars in thousands)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -10pt; padding-left: 10pt">Operating leases:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left; text-indent: -10pt; padding-left: 10pt">Operating lease right-of-use assets</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">1,359</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">526</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -10pt; padding-left: 10pt">Current maturities of operating leases</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">519</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">140</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -10pt; padding-left: 10pt">Non-current operating leases</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">923</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">386</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 4pt; text-indent: -10pt; padding-left: 10pt">Total operating lease liabilities</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">1,442</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">526</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"><b>December 31,</b></td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right"><b>December 31,</b></td><td style="font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -10pt; padding-left: 10pt"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -10pt; padding-left: 10pt">Weighted average remaining lease term</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -10pt; padding-left: 10pt">Operating leases</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2.67</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3.96</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; text-indent: -10pt; padding-left: 10pt">Weighted average discount rate</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; text-indent: -10pt; padding-left: 10pt">Operating leases</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5.83</td><td style="text-align: left">%</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5.6</td><td style="text-align: left">%</td></tr>
</table>
519000
140000
923000
386000
1442000
526000
P2Y244D
P3Y350D
0.0583
0.056
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="white-space: nowrap; text-align: left"> </td><td style="white-space: nowrap; font-weight: bold"> </td>
<td colspan="2" style="white-space: nowrap; font-weight: bold; text-align: center">December 31,</td><td style="white-space: nowrap; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">(U.S. Dollars <br/> in thousands)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left"> </td><td> </td>
<td colspan="2" style="text-align: left"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">2020</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="width: 88%; text-align: left">2021</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">588</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">2022</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">588</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">2023</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">382</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt">2024 and thereafter</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Total operating lease payments</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,558</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt">Less: imputed interest</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">116</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 4pt">Present value of lease liabilities</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">1,442</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
588000
588000
382000
1558000
116000
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt; text-indent: 0in; text-align: left"><b>NOTE
6 - RELATED PARTY LIABILITY</b></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: left; text-indent: 0in">According to ASC
480, “Distinguishing Liabilities From Equity,” a financial instrument that embodies an unconditional obligation, or a
financial instrument other than an outstanding share that embodies a conditional obligation, that the issuer must or may settle
by issuing a variable number of its equity shares shall be classified as a liability if, at inception, the monetary value of the
obligation is based solely or predominantly on a fixed monetary amount known at inception. These liabilities are measured subsequently
at fair value with changes in fair value recognized in earnings.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: left; text-indent: 0in">The Company analyzed
the instrument’s provisions and concluded that it meets the above ASC 480 criteria and therefore accounted the expected future
payment under the APA in accordance with ASC 480.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: left; text-indent: 0in">As of December
31, 2019, the Company recorded a Related Party Liability in an amount of $17.8 million, which represents the fair value of the
shares that have been issued to Nanox PLC, based on the last financing round of the Company.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: left; text-indent: 0in">During January
2020, subject to entering into a share purchase agreement in the aggregate amount of at least $6 million, and a pre-money valuation
of more than $100 million, the Nanox IL’s Board approved the issuance and allotment of 1,109,245 ordinary shares to Nanox
PLC with the purchase price of $12.00 per share, which reflects a discount of 25% from the price of the last financing round of
the Company. As a result, on January 30, 2020 the related party liability was settled into equity.</p><br/>
17800000
subject to entering into a share purchase agreement in the aggregate amount of at least $6 million, and a pre-money valuation of more than $100 million, the Nanox IL’s Board approved the issuance and allotment of 1,109,245 ordinary shares to Nanox PLC with the purchase price of $12.00 per share, which reflects a discount of 25% from the price of the last financing round of the Company. As a result, on January 30, 2020 the related party liability was settled into equity.
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt; text-indent: 0in; text-align: left"><b>NOTE
7 - COMMITMENTS AND CONTINGENCIES</b>:</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.75in"></td><td style="width: 0.25in"><b>a.</b></td><td style="text-align: left">In September 2020, securities class action complaints were filed in the United States by certain of
the Company’s shareholders against the Company and certain of the Company’s current officers and directors alleging
violations of securities laws and seeking unspecified damages. On December 7, 2020, the proposed lead plaintiffs’ submissions
were fully briefed. The Company believes these lawsuits are without merit and intends to defend the cases vigorously. As of the
date of issuance of these financial statements, the Company is unable to estimate a range of loss, if any, that could result were
there to be an adverse final decision in these cases.</td></tr>
<tr style="vertical-align: top">
<td> </td><td> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: top">
<td style="width: 0.75in"></td><td style="width: 0.25in"><b>b.</b></td><td style="text-align: left">For services with SixAI Ltd. (“SixAI”), see Note 10d.</td></tr>
</table><br/>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt; text-indent: 0in; text-align: left"><b>NOTE
8 - SHAREHOLDERS’ EQUITY:</b></p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.75in"></td><td style="width: 0.25in"><b>a.</b></td><td style="text-align: left"><b>Share capital</b></td></tr></table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">Each holder of the Company’s
ordinary shares is entitled to one vote. The holders of ordinary shares are also entitled to receive dividends whenever funds are
legally available, and declared by the Company’s Board of Directors (the “Board”). Since inception, the Company
has not declared any dividends.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left"><i>Issuance
of Equity</i></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left"><i>Ordinary Share issuances
prior to the APA</i></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">During the year ended December
31, 2018, Nanox PLC entered into several agreements with third party investors, pursuant to which it raised an aggregate amount
of $3,684 thousand at a purchase price of $2.21 per share.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">On June 17, 2019, Nanox PLC
issued 2,262,443 ordinary shares to third party investors for an aggregate purchase price of approximately $5,000 thousand. Certain
investors were also granted warrants to acquire 2,262,443 of ordinary shares at an exercise price of $20.87 per share.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">Additionally, during 2019, Nanox
PLC entered into several agreements with certain third-party investors, pursuant to which it raised an aggregate amount of
$4,038 thousand, net of issuance costs, at a purchase price of $2.21 per share.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left"><i>Ordinary Share issuances
after the APA</i></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">On December 31, 2019, the Company
issued 312,500 ordinary shares to a third-party investor for an aggregate purchase price of approximately $5 million.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">During the year 2020, the Company
issued an aggregate of 4,624,500 ordinary shares to the certain investors, at a price per share of $16.00, for an aggregate purchase
price of approximately $74 million (the net proceeds were approximately $71 million after deducting issuance costs).</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left"><font style="font-family: Times New Roman, Times, Serif">In
August 2020, the Company completed an initial public offering (“IPO”) on the Nasdaq Global Market (the “Nasdaq”),
in which it issued 9,178,744 ordinary shares at a price per share of $18. During August 2020, the underwriters exercised
their over-allotment option and purchased an additional 1,376,812 ordinary shares at the same price per share. The proceeds received
from the IPO were $190 million (the net proceeds were approximately $169 million after deducting underwriting commissions and
other offering expenses).</font></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left"><i>Settlement
of Related Party Liability</i></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">Pursuant to the Asset Purchase
Agreement between Nanox IL and Nanox PLC, as more fully described in the Company’s annual financial statements, in January 2020,
the Company issued 1,109,245 ordinary shares to Nanox PLC with a purchase price of $12.00 per share, which reflected a discount
of 25% from the price of the last financing round of the Company. As a result, the related party liability was settled into shareholders’
equity.</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.75in"></td><td style="width: 0.25in"><b>b.</b></td><td style="text-align: left"><b>Share based compensation </b></td></tr></table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">On September 3, 2019, the Company’s
Board resolved to adopt an equity incentive plan (the “Plan”). Based on such Plan, each option will be exercisable for
one ordinary share of the Company and will become exercisable at such terms and during such periods, as the Board shall determine.
Pursuant to the Plan (and further increase of option pool approved by the Board), 8,041,936 ordinary shares of NIS 0.01 par value
of the Company are reserved for issuance upon the exercise of the same amount of awards to be granted to some of the Company’s
employees, directors and consultants. As of December 31, 2020, 2,978,247 ordinary shares reserved for the equity incentive plan.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">The Board also approved the
Plan for the purpose of selecting the capital gains tax track, under Section 102 of the Israeli Income Tax Ordinance, for options
granted to the Company’s Israeli employees.</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: left">
<td style="width: 1in"></td><td style="width: 0.25in; text-align: left">1)</td><td style="text-align: left">Share-based compensation to non-employees</td>
</tr></table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: left">The following table summarizes
share-based awards to non-employees for the years ended December 31, 2020 and December 31, 2019:</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="padding-bottom: 1.5pt; font-weight: bold; text-align: center">Year ended December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="padding-bottom: 1.5pt; font-weight: bold; text-align: center">Year ended December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center; padding-left: 10pt; text-indent: -10pt"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">Number of</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">Weighted</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">Number of</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">Weighted</td><td style="font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">share-based</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">average</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">share-based</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">average</td><td style="font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">payment</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">exercise</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">payment</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">exercise</td><td style="font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">awards</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">price</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">awards</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">price</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 52%; text-align: left; padding-left: 10pt; text-indent: -10pt">Outstanding at beginning of year</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">3,410,406</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1.89</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">1,592,874</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1.32</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-left: 10pt; text-indent: -10pt">Changes during the year:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 0.25in; text-indent: -10pt">Granted</td><td style="font-family: Georgia, Times, Serif"> </td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; text-align: right">1,327,957</td><td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">13.70</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,271,698</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">2.77</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-left: 0.25in; text-indent: -10pt">Exercised</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">*(1,267,012</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">8.94</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(454,166</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">0.3</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 0.25in; text-indent: -10pt">Forfeited</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-left: 0.25in; text-indent: -10pt">Expired</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt; padding-left: 0.25in; text-indent: -10pt">Cancelled</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(98,725</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1.92</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 4pt; padding-left: 10pt; text-indent: -10pt">Outstanding at end of year</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">3,372,626</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">5.27</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">3,410,406</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">1.89</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 4pt; padding-left: 10pt; text-indent: -10pt">Exercisable at end of year</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">2,191,042</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">5.67</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">1,830,809</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">3.79</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: left">
<td style="width: 0.25in; text-align: left">*</td><td style="text-align: left">Out of which 1,027,151 awards were exercised on a
cashless basis.</td>
</tr></table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: left">The fair value of each granted award
is estimated at the date of grant using the Black- Scholes option-pricing model. The assumptions used for the years ended December
31, 2020 and 2019 are as follows:</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 0; text-indent: 0"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left; padding-bottom: 1.5pt; text-indent: 0; padding-left: 0">Dividend yield</td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: center"> </td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: center">0</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: center"> </td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: center">0</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: 0; padding-left: 0">Expected volatility</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: center"> </td><td style="border-bottom: Black 1.5pt solid; text-align: center; white-space: nowrap">57.34%-44.40%</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: center"> </td><td style="border-bottom: Black 1.5pt solid; text-align: center; white-space: nowrap">41.11% - 50.59%</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: 0; padding-left: 0">Risk-free interest rate</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: center"> </td><td style="border-bottom: Black 1.5pt solid; text-align: center">0.27%-1.61%</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: center"> </td><td style="border-bottom: Black 1.5pt solid; text-align: center">1.55%-1.76%</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: 0; padding-left: 0">Contractual term (years)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: center"> </td><td style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">5-10</p></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: center"> </td><td style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">0.50 – 10.00</p></td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: left">The expected volatility is based
on the historical volatility of comparable companies.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: left">The risk-free interest rate assumption
is based on observed interest rates appropriate for the expected term of the awards granted in dollar terms.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: left">The Company does not have sufficient
historical exercise data to provide a reasonable basis upon which to estimate expected term. Accordingly, as to ordinary course
options granted, the expected term was determined using the simplified method, which takes into consideration the option’s
contractual life and the vesting periods (for non-employees, the expected term is equal to the option’s contractual life).</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: left">The following table summarizes
information concerning outstanding and exercisable awards as of December 31, 2020 and 2019:</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td colspan="18" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Awards outstanding</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Awards exercisable</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="text-align: center"> </td><td> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">Number of</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">Weighted</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">Number of</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">Weighted</td><td style="font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="text-align: center"> </td><td> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">awards</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">average</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">award</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">average</td><td style="font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="text-align: center"> </td><td> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">outstanding</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">remaining</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">exercisable</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">remaining</td><td style="font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="font-weight: bold; text-align: center">Exercise</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">at end of</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">contractual</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">at end of</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">contractual</td><td style="font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">price</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">year</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">life (years)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">year</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">life (years)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">0.01</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 17%; text-align: right">186,815</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 17%; text-align: right">0.33</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 17%; text-align: right">186,815</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 17%; text-align: right">0.33</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">$</td><td style="text-align: right">1.92</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">269,714</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1.18</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">269,714</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1.18</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">$</td><td style="text-align: right">2.21</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,191,349</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">6.22</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,188,914</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">6.22</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">$</td><td style="text-align: right">16.00</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">444,748</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">8.89</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">283,933</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">8.89</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">$</td><td style="text-align: right">18.00</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">260,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3.86</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">260,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3.86</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">$</td><td style="text-align: right">30.93</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">20,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">9.81</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,666</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">9.81</td><td style="text-align: left"> </td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td colspan="18" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Awards outstanding</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Awards exercisable</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="text-align: center"> </td><td> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">Number of</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">Weighted</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">Number of</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">Weighted</td><td style="font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="text-align: center"> </td><td> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">awards</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">average</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">awards</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">average</td><td style="font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="text-align: center"> </td><td> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">outstanding</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">remaining</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">exercisable</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">remaining</td><td style="font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="font-weight: bold; text-align: center">Exercise</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">at end of</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">contractual</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">at end of</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">contractual</td><td style="font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">price</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">year</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">life (years)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">year</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Life (years)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">0.01</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 17%; text-align: right">186,815</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 17%; text-align: right">1.33</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 17%; text-align: right">186,815</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 17%; text-align: right">1.33</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">$</td><td style="text-align: right">1.92</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">472,606</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1.81</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">472,606</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1.81</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">$</td><td style="text-align: right">2.21</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,727,028</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5.27</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,163,402</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5.27</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">$</td><td style="text-align: right">20.87</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">23,957</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5.69</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">7,986</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5.69</td><td style="text-align: left"> </td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 1in"></td><td style="width: 0.25in">2)</td><td style="text-align: left">Share-based compensation to employees, officers and directors</td></tr></table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: left">During 2020, the Company granted
to certain employees, officers and directors awards to purchase 730,734 of the Company’s ordinary shares for an average exercise
price of $13.53.</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-align: center; white-space: nowrap"> </td><td style="font-weight: bold; padding-bottom: 1.5pt; white-space: nowrap; text-align: center"> </td>
<td colspan="6" style="padding-bottom: 1.5pt; font-weight: bold; text-align: center; white-space: nowrap">Year ended December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold; white-space: nowrap; text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt; white-space: nowrap; text-align: center"> </td>
<td colspan="6" style="padding-bottom: 1.5pt; font-weight: bold; text-align: center; white-space: nowrap">Year ended December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold; white-space: nowrap; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center; white-space: nowrap"> </td><td style="font-weight: bold; padding-bottom: 1.5pt; white-space: nowrap; text-align: center"> </td>
<td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center; white-space: nowrap">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold; white-space: nowrap; text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt; white-space: nowrap; text-align: center"> </td>
<td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center; white-space: nowrap">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold; white-space: nowrap; text-align: center"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: center; white-space: nowrap"> </td><td style="font-weight: bold; white-space: nowrap; text-align: center"> </td>
<td style="font-weight: bold; text-align: center; white-space: nowrap"> </td><td style="font-weight: bold; text-align: center; white-space: nowrap"><b>Number of</b></td><td style="font-weight: bold; text-align: center; white-space: nowrap"> </td><td style="font-weight: bold; white-space: nowrap; text-align: center"> </td>
<td style="font-weight: bold; text-align: center; white-space: nowrap"> </td><td style="font-weight: bold; text-align: center; white-space: nowrap"><b>Weighted </b></td><td style="font-weight: bold; text-align: center; white-space: nowrap"> </td><td style="font-weight: bold; white-space: nowrap; text-align: center"> </td>
<td style="font-weight: bold; text-align: center; white-space: nowrap"> </td><td style="font-weight: bold; text-align: center; white-space: nowrap"><b>Number of</b></td><td style="font-weight: bold; text-align: center; white-space: nowrap"> </td><td style="font-weight: bold; white-space: nowrap; text-align: center"> </td>
<td style="font-weight: bold; text-align: center; white-space: nowrap"> </td><td style="font-weight: bold; text-align: center; white-space: nowrap"><b>Weighted </b></td><td style="font-weight: bold; text-align: center; white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: center; white-space: nowrap"> </td><td style="font-weight: bold; white-space: nowrap; text-align: center"> </td>
<td style="font-weight: bold; text-align: center; white-space: nowrap"> </td><td style="font-weight: bold; text-align: center; white-space: nowrap"><b>share-based</b></td><td style="font-weight: bold; text-align: center; white-space: nowrap"> </td><td style="font-weight: bold; white-space: nowrap; text-align: center"> </td>
<td style="font-weight: bold; text-align: center; white-space: nowrap"> </td><td style="font-weight: bold; text-align: center; white-space: nowrap"><b>average </b></td><td style="font-weight: bold; text-align: center; white-space: nowrap"> </td><td style="font-weight: bold; white-space: nowrap; text-align: center"> </td>
<td style="font-weight: bold; text-align: center; white-space: nowrap"> </td><td style="font-weight: bold; text-align: center; white-space: nowrap"><b>share-based</b></td><td style="font-weight: bold; text-align: center; white-space: nowrap"> </td><td style="font-weight: bold; white-space: nowrap; text-align: center"> </td>
<td style="font-weight: bold; text-align: center; white-space: nowrap"> </td><td style="font-weight: bold; text-align: center; white-space: nowrap"><b>average </b></td><td style="font-weight: bold; text-align: center; white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: center; padding-bottom: 1.5pt; white-space: nowrap"> </td><td style="font-weight: bold; padding-bottom: 1.5pt; white-space: nowrap; text-align: center"> </td>
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center; white-space: nowrap"> </td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center; white-space: nowrap"><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>payment awards</b></p></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: center; white-space: nowrap"> </td><td style="font-weight: bold; padding-bottom: 1.5pt; white-space: nowrap; text-align: center"> </td>
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center; white-space: nowrap"> </td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center; white-space: nowrap"><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>exercise price</b></p></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: center; white-space: nowrap"> </td><td style="font-weight: bold; padding-bottom: 1.5pt; white-space: nowrap; text-align: center"> </td>
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center; white-space: nowrap"> </td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center; white-space: nowrap"><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>payment awards</b></p></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: center; white-space: nowrap"> </td><td style="font-weight: bold; padding-bottom: 1.5pt; white-space: nowrap; text-align: center"> </td>
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center; white-space: nowrap"> </td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center; white-space: nowrap"><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>exercise price</b></p></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: center; white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 52%; text-align: left">Outstanding at beginning of year</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">1,667,267</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">2.21</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">1,667,267</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">2.21</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Changes during the year:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 8.8pt">Granted</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">730,734</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">13.53</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-left: 8.8pt">Exercised</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 8.8pt">Forfeited</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-left: 8.8pt">Expired</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt; padding-left: 8.8pt">Cancelled</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(16,876</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">2.21</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 4pt">Outstanding at end of year</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">2,381,125</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">4.14</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">1,667,267</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">2.21</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 4pt">Exercisable at end of year</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">1,061,778</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">2.80</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">450,557</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">2.21</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.75in; text-align: left">The fair value of each granted
award is estimated at the date of grant using the Black- Scholes option-pricing model. The assumptions used as of December 31,
2020 and 2019 are as follows:</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-align: left; white-space: nowrap"> </td><td style="font-weight: bold; white-space: nowrap"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center; white-space: nowrap">2020</td><td style="font-weight: bold; white-space: nowrap"> </td><td style="font-weight: bold; white-space: nowrap"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center; white-space: nowrap">2019</td><td style="font-weight: bold; white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left; white-space: nowrap">Dividend yield</td><td style="width: 1%; white-space: nowrap"> </td>
<td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: center; white-space: nowrap"> </td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: center; white-space: nowrap">0</td><td style="width: 1%; text-align: left; white-space: nowrap"> </td><td style="width: 1%; white-space: nowrap"> </td>
<td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: center; white-space: nowrap"> </td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: center; white-space: nowrap">0</td><td style="width: 1%; text-align: left; white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; white-space: nowrap">Expected volatility</td><td style="white-space: nowrap"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: center; white-space: nowrap"> </td><td style="border-bottom: Black 1.5pt solid; text-align: center; white-space: nowrap"><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">45.11%-55.97%</p></td><td style="text-align: left; white-space: nowrap"> </td><td style="white-space: nowrap"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: center; white-space: nowrap"> </td><td style="border-bottom: Black 1.5pt solid; text-align: center; white-space: nowrap"><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">45.11%-55.97%</p></td><td style="text-align: left; white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; white-space: nowrap">Risk-free interest rate</td><td style="white-space: nowrap"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: center; white-space: nowrap"> </td><td style="border-bottom: Black 1.5pt solid; text-align: center; white-space: nowrap"><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">0.23%-1.61%</p></td><td style="text-align: left; white-space: nowrap"> </td><td style="white-space: nowrap"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: center; white-space: nowrap"> </td><td style="border-bottom: Black 1.5pt solid; text-align: center; white-space: nowrap"><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">0.23%-1.61%</p></td><td style="text-align: left; white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; white-space: nowrap">Contractual term (years)</td><td style="white-space: nowrap"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: center; white-space: nowrap"> </td><td style="border-bottom: Black 1.5pt solid; text-align: center; white-space: nowrap">10</td><td style="text-align: left; white-space: nowrap"> </td><td style="white-space: nowrap"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: center; white-space: nowrap"> </td><td style="border-bottom: Black 1.5pt solid; text-align: center; white-space: nowrap">10</td><td style="text-align: left; white-space: nowrap"> </td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: left; text-indent: 0">The expected
volatility is based on the historical volatility of comparable companies.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: left; text-indent: 0">The risk-free
interest rate assumption is based on observed interest rates appropriate for the expected term of the awards granted in dollar
terms.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: left; text-indent: 0">The Company
does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term. Accordingly,
as to ordinary course options granted, the expected term was determined using the simplified method, which takes into consideration
the option’s contractual life and the vesting periods.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: left; text-indent: 0">The following
table summarizes information concerning outstanding and exercisable awards as of December 31, 2020 and 2019:</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td colspan="18" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Awards outstanding</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Awards exercisable</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="text-align: center"> </td><td> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">Number of</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">Weighted</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">Number of</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">Weighted</td><td style="font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="text-align: center"> </td><td> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">awards</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">average</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">awards</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">average</td><td style="font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="text-align: center"> </td><td> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">outstanding</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">remaining</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">exercisable</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">remaining</td><td style="font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="font-weight: bold; text-align: center">Exercise</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">at end of</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">contractual</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">at end of</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">contractual</td><td style="font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">price</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">year</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">life (years)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">year</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">life (years)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 1%; text-align: left"></td><td style="width: 18%; text-align: center">$2.21</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 17%; text-align: right">1,995,625</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 17%; text-align: right">9.05</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 17%; text-align: right">1,019,695</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 17%; text-align: right">9.05</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left"></td><td style="text-align: center">$16.00</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">205,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">9.62</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">37,917</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">9.62</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: center">$26.56-$59.20</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">180,500</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">9.93</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,167</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">9.93</td><td style="text-align: left"> </td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td colspan="18" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Awards outstanding</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Awards exercisable</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="text-align: center"> </td><td> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">Number of</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">Weighted</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">Number of</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">Weighted</td><td style="font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="text-align: center"> </td><td> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">awards</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">average</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">awards</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">average</td><td style="font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="text-align: center"> </td><td> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">outstanding</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">remaining</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">exercisable</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">remaining</td><td style="font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="font-weight: bold; text-align: center">Exercise</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">at end of</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">contractual</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">at end of</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">contractual</td><td style="font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">price</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">year</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">life (years)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">year</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">life (years)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 1%; text-align: left"></td><td style="width: 18%; text-align: center">$2.21</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 17%; text-align: right">1,667,267</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 17%; text-align: right">9.90</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 17%; text-align: right">450,557</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 17%; text-align: right">9.90</td><td style="width: 1%; text-align: left"> </td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 1in"></td><td style="width: 0.25in">3)</td><td style="text-align: left">Share-based compensation expenses</td></tr></table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Year Ended December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">(U.S. dollars in thousands)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; text-align: left">Research and development</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">3,384</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">661</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Marketing (*)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">9,252</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">617</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt">General and administrative</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">12,145</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">14,967</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">115</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 4pt"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">24,781</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">16,245</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">115</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><tr style="vertical-align: top; text-align: left">
<td style="width: 0"></td><td style="width: 0.25in; text-align: left"><b>(*)</b></td><td style="text-align: left">On October 26, 2020, the Company entered into an amendment
to a business development agreement (“the Agreement”) dated February 4, 2020 with two service providers pursuant to
which the Company paid an aggregate one-time payment of $400 thousand plus VAT and issued to them warrants to purchase an aggregate
of 650,000 ordinary shares at an exercise price of $18 per share with a graded vesting ending 10 weeks following the grant date
(subject to a standard cashless exercise provision). As a result, the Company recorded an expense of $6.1 million for the warrants
granted. The service providers waived any and all past, present and future compensation to which they are or may be entitled pursuant
to the Agreement and all activities undertaking on behalf of the Company, including the right to a percentage from future revenues
from any of the Company’s systems and the issuance of warrants.</td>
</tr></table><br/>
3684000
2.21
2262443
5000000
2262443
20.87
4038000
2210
312500
5000000
4624500
16.00
74000000
71000000
9178744
18
190000000
1109245
12.00
0.25
8041936
0.01
2978247
1027151
730734
13.53
the Company entered into an amendment to a business development agreement (“the Agreement”) dated February 4, 2020 with two service providers pursuant to which the Company paid an aggregate one-time payment of $400 thousand plus VAT and issued to them warrants to purchase an aggregate of 650,000 ordinary shares at an exercise price of $18 per share with a graded vesting ending 10 weeks following the grant date (subject to a standard cashless exercise provision). As a result, the Company recorded an expense of $6.1 million for the warrants granted. The service providers waived any and all past, present and future compensation to which they are or may be entitled pursuant to the Agreement and all activities undertaking on behalf of the Company, including the right to a percentage from future revenues from any of the Company’s systems and the issuance of warrants.
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="padding-bottom: 1.5pt; font-weight: bold; text-align: center">Year ended December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="padding-bottom: 1.5pt; font-weight: bold; text-align: center">Year ended December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center; padding-left: 10pt; text-indent: -10pt"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">Number of</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">Weighted</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">Number of</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">Weighted</td><td style="font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">share-based</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">average</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">share-based</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">average</td><td style="font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">payment</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">exercise</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">payment</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">exercise</td><td style="font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">awards</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">price</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">awards</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">price</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 52%; text-align: left; padding-left: 10pt; text-indent: -10pt">Outstanding at beginning of year</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">3,410,406</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1.89</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">1,592,874</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1.32</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-left: 10pt; text-indent: -10pt">Changes during the year:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 0.25in; text-indent: -10pt">Granted</td><td style="font-family: Georgia, Times, Serif"> </td>
<td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td style="font-family: Times New Roman, Times, Serif; text-align: right">1,327,957</td><td style="font-family: Times New Roman, Times, Serif; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">13.70</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,271,698</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">2.77</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-left: 0.25in; text-indent: -10pt">Exercised</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">*(1,267,012</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">8.94</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(454,166</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">0.3</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 0.25in; text-indent: -10pt">Forfeited</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-left: 0.25in; text-indent: -10pt">Expired</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt; padding-left: 0.25in; text-indent: -10pt">Cancelled</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(98,725</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1.92</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 4pt; padding-left: 10pt; text-indent: -10pt">Outstanding at end of year</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">3,372,626</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">5.27</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">3,410,406</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">1.89</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 4pt; padding-left: 10pt; text-indent: -10pt">Exercisable at end of year</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">2,191,042</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">5.67</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">1,830,809</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">3.79</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
3410406
1.89
1592874
1.32
1327957
13.70
2271698
2.77
1267012
8.94
454166
0.3
98725
1.92
3372626
5.27
2191042
5.67
1830809
3.79
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 0; text-indent: 0"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left; padding-bottom: 1.5pt; text-indent: 0; padding-left: 0">Dividend yield</td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: center"> </td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: center">0</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: center"> </td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: center">0</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: 0; padding-left: 0">Expected volatility</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: center"> </td><td style="border-bottom: Black 1.5pt solid; text-align: center; white-space: nowrap">57.34%-44.40%</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: center"> </td><td style="border-bottom: Black 1.5pt solid; text-align: center; white-space: nowrap">41.11% - 50.59%</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: 0; padding-left: 0">Risk-free interest rate</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: center"> </td><td style="border-bottom: Black 1.5pt solid; text-align: center">0.27%-1.61%</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: center"> </td><td style="border-bottom: Black 1.5pt solid; text-align: center">1.55%-1.76%</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: 0; padding-left: 0">Contractual term (years)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: center"> </td><td style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">5-10</p></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: center"> </td><td style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">0.50 – 10.00</p></td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
</table>
0.00
0.00
0.5734
0.4440
0.4111
0.5059
0.0027
0.0161
0.0155
0.0176
P5Y
P10Y
P6M
P10Y
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td colspan="18" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Awards outstanding</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Awards exercisable</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="text-align: center"> </td><td> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">Number of</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">Weighted</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">Number of</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">Weighted</td><td style="font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="text-align: center"> </td><td> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">awards</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">average</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">award</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">average</td><td style="font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="text-align: center"> </td><td> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">outstanding</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">remaining</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">exercisable</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">remaining</td><td style="font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="font-weight: bold; text-align: center">Exercise</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">at end of</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">contractual</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">at end of</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">contractual</td><td style="font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">price</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">year</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">life (years)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">year</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">life (years)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">0.01</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 17%; text-align: right">186,815</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 17%; text-align: right">0.33</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 17%; text-align: right">186,815</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 17%; text-align: right">0.33</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">$</td><td style="text-align: right">1.92</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">269,714</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1.18</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">269,714</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1.18</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">$</td><td style="text-align: right">2.21</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,191,349</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">6.22</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,188,914</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">6.22</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">$</td><td style="text-align: right">16.00</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">444,748</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">8.89</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">283,933</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">8.89</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">$</td><td style="text-align: right">18.00</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">260,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3.86</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">260,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3.86</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">$</td><td style="text-align: right">30.93</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">20,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">9.81</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,666</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">9.81</td><td style="text-align: left"> </td></tr>
</table><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td colspan="18" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Awards outstanding</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Awards exercisable</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="text-align: center"> </td><td> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">Number of</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">Weighted</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">Number of</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">Weighted</td><td style="font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="text-align: center"> </td><td> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">awards</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">average</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">awards</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">average</td><td style="font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="text-align: center"> </td><td> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">outstanding</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">remaining</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">exercisable</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">remaining</td><td style="font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="font-weight: bold; text-align: center">Exercise</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">at end of</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">contractual</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">at end of</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">contractual</td><td style="font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">price</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">year</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">life (years)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">year</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Life (years)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">0.01</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 17%; text-align: right">186,815</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 17%; text-align: right">1.33</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 17%; text-align: right">186,815</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 17%; text-align: right">1.33</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">$</td><td style="text-align: right">1.92</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">472,606</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1.81</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">472,606</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1.81</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">$</td><td style="text-align: right">2.21</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,727,028</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5.27</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,163,402</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5.27</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">$</td><td style="text-align: right">20.87</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">23,957</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5.69</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">7,986</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">5.69</td><td style="text-align: left"> </td></tr>
</table>
186815
P120D
186815
P120D
269714
P1Y65D
269714
P1Y65D
2191349
P6Y80D
1188914
P6Y80D
444748
P8Y324D
283933
P8Y324D
260000
P3Y313D
260000
P3Y313D
20000
P9Y295D
1666
P9Y295D
186815
P1Y120D
186815
P1Y120D
472606
P1Y295D
472606
P1Y295D
2727028
P5Y98D
1163402
P5Y98D
23957
P5Y251D
7986
P5Y251D
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-align: center; white-space: nowrap"> </td><td style="font-weight: bold; padding-bottom: 1.5pt; white-space: nowrap; text-align: center"> </td>
<td colspan="6" style="padding-bottom: 1.5pt; font-weight: bold; text-align: center; white-space: nowrap">Year ended December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold; white-space: nowrap; text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt; white-space: nowrap; text-align: center"> </td>
<td colspan="6" style="padding-bottom: 1.5pt; font-weight: bold; text-align: center; white-space: nowrap">Year ended December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold; white-space: nowrap; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center; white-space: nowrap"> </td><td style="font-weight: bold; padding-bottom: 1.5pt; white-space: nowrap; text-align: center"> </td>
<td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center; white-space: nowrap">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold; white-space: nowrap; text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt; white-space: nowrap; text-align: center"> </td>
<td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center; white-space: nowrap">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold; white-space: nowrap; text-align: center"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: center; white-space: nowrap"> </td><td style="font-weight: bold; white-space: nowrap; text-align: center"> </td>
<td style="font-weight: bold; text-align: center; white-space: nowrap"> </td><td style="font-weight: bold; text-align: center; white-space: nowrap"><b>Number of</b></td><td style="font-weight: bold; text-align: center; white-space: nowrap"> </td><td style="font-weight: bold; white-space: nowrap; text-align: center"> </td>
<td style="font-weight: bold; text-align: center; white-space: nowrap"> </td><td style="font-weight: bold; text-align: center; white-space: nowrap"><b>Weighted </b></td><td style="font-weight: bold; text-align: center; white-space: nowrap"> </td><td style="font-weight: bold; white-space: nowrap; text-align: center"> </td>
<td style="font-weight: bold; text-align: center; white-space: nowrap"> </td><td style="font-weight: bold; text-align: center; white-space: nowrap"><b>Number of</b></td><td style="font-weight: bold; text-align: center; white-space: nowrap"> </td><td style="font-weight: bold; white-space: nowrap; text-align: center"> </td>
<td style="font-weight: bold; text-align: center; white-space: nowrap"> </td><td style="font-weight: bold; text-align: center; white-space: nowrap"><b>Weighted </b></td><td style="font-weight: bold; text-align: center; white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: center; white-space: nowrap"> </td><td style="font-weight: bold; white-space: nowrap; text-align: center"> </td>
<td style="font-weight: bold; text-align: center; white-space: nowrap"> </td><td style="font-weight: bold; text-align: center; white-space: nowrap"><b>share-based</b></td><td style="font-weight: bold; text-align: center; white-space: nowrap"> </td><td style="font-weight: bold; white-space: nowrap; text-align: center"> </td>
<td style="font-weight: bold; text-align: center; white-space: nowrap"> </td><td style="font-weight: bold; text-align: center; white-space: nowrap"><b>average </b></td><td style="font-weight: bold; text-align: center; white-space: nowrap"> </td><td style="font-weight: bold; white-space: nowrap; text-align: center"> </td>
<td style="font-weight: bold; text-align: center; white-space: nowrap"> </td><td style="font-weight: bold; text-align: center; white-space: nowrap"><b>share-based</b></td><td style="font-weight: bold; text-align: center; white-space: nowrap"> </td><td style="font-weight: bold; white-space: nowrap; text-align: center"> </td>
<td style="font-weight: bold; text-align: center; white-space: nowrap"> </td><td style="font-weight: bold; text-align: center; white-space: nowrap"><b>average </b></td><td style="font-weight: bold; text-align: center; white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: center; padding-bottom: 1.5pt; white-space: nowrap"> </td><td style="font-weight: bold; padding-bottom: 1.5pt; white-space: nowrap; text-align: center"> </td>
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center; white-space: nowrap"> </td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center; white-space: nowrap"><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>payment awards</b></p></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: center; white-space: nowrap"> </td><td style="font-weight: bold; padding-bottom: 1.5pt; white-space: nowrap; text-align: center"> </td>
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center; white-space: nowrap"> </td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center; white-space: nowrap"><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>exercise price</b></p></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: center; white-space: nowrap"> </td><td style="font-weight: bold; padding-bottom: 1.5pt; white-space: nowrap; text-align: center"> </td>
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center; white-space: nowrap"> </td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center; white-space: nowrap"><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>payment awards</b></p></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: center; white-space: nowrap"> </td><td style="font-weight: bold; padding-bottom: 1.5pt; white-space: nowrap; text-align: center"> </td>
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center; white-space: nowrap"> </td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center; white-space: nowrap"><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>exercise price</b></p></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: center; white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 52%; text-align: left">Outstanding at beginning of year</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">1,667,267</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">2.21</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">1,667,267</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">2.21</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Changes during the year:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 8.8pt">Granted</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">730,734</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">13.53</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-left: 8.8pt">Exercised</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 8.8pt">Forfeited</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-left: 8.8pt">Expired</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt; padding-left: 8.8pt">Cancelled</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(16,876</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">2.21</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 4pt">Outstanding at end of year</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">2,381,125</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">4.14</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">1,667,267</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">2.21</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 4pt">Exercisable at end of year</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">1,061,778</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">2.80</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">450,557</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">2.21</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
1667267
2.21
1667267
2.21
730734
13.53
-16876
2.21
2381125
4.14
1061778
2.80
450557
2.21
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-align: left; white-space: nowrap"> </td><td style="font-weight: bold; white-space: nowrap"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center; white-space: nowrap">2020</td><td style="font-weight: bold; white-space: nowrap"> </td><td style="font-weight: bold; white-space: nowrap"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center; white-space: nowrap">2019</td><td style="font-weight: bold; white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left; white-space: nowrap">Dividend yield</td><td style="width: 1%; white-space: nowrap"> </td>
<td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: center; white-space: nowrap"> </td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: center; white-space: nowrap">0</td><td style="width: 1%; text-align: left; white-space: nowrap"> </td><td style="width: 1%; white-space: nowrap"> </td>
<td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: center; white-space: nowrap"> </td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: center; white-space: nowrap">0</td><td style="width: 1%; text-align: left; white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; white-space: nowrap">Expected volatility</td><td style="white-space: nowrap"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: center; white-space: nowrap"> </td><td style="border-bottom: Black 1.5pt solid; text-align: center; white-space: nowrap"><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">45.11%-55.97%</p></td><td style="text-align: left; white-space: nowrap"> </td><td style="white-space: nowrap"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: center; white-space: nowrap"> </td><td style="border-bottom: Black 1.5pt solid; text-align: center; white-space: nowrap"><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">45.11%-55.97%</p></td><td style="text-align: left; white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; white-space: nowrap">Risk-free interest rate</td><td style="white-space: nowrap"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: center; white-space: nowrap"> </td><td style="border-bottom: Black 1.5pt solid; text-align: center; white-space: nowrap"><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">0.23%-1.61%</p></td><td style="text-align: left; white-space: nowrap"> </td><td style="white-space: nowrap"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: center; white-space: nowrap"> </td><td style="border-bottom: Black 1.5pt solid; text-align: center; white-space: nowrap"><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">0.23%-1.61%</p></td><td style="text-align: left; white-space: nowrap"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; white-space: nowrap">Contractual term (years)</td><td style="white-space: nowrap"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: center; white-space: nowrap"> </td><td style="border-bottom: Black 1.5pt solid; text-align: center; white-space: nowrap">10</td><td style="text-align: left; white-space: nowrap"> </td><td style="white-space: nowrap"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: center; white-space: nowrap"> </td><td style="border-bottom: Black 1.5pt solid; text-align: center; white-space: nowrap">10</td><td style="text-align: left; white-space: nowrap"> </td></tr>
</table>
0.00
0.00
0.4511
0.5597
0.4511
0.5597
0.0023
0.0161
0.0023
0.0161
P10Y
P10Y
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td colspan="18" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Awards outstanding</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Awards exercisable</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="text-align: center"> </td><td> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">Number of</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">Weighted</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">Number of</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">Weighted</td><td style="font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="text-align: center"> </td><td> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">awards</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">average</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">awards</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">average</td><td style="font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="text-align: center"> </td><td> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">outstanding</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">remaining</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">exercisable</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">remaining</td><td style="font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="font-weight: bold; text-align: center">Exercise</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">at end of</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">contractual</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">at end of</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">contractual</td><td style="font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">price</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">year</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">life (years)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">year</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">life (years)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 1%; text-align: left"></td><td style="width: 18%; text-align: center">$2.21</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 17%; text-align: right">1,995,625</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 17%; text-align: right">9.05</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 17%; text-align: right">1,019,695</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 17%; text-align: right">9.05</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left"></td><td style="text-align: center">$16.00</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">205,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">9.62</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">37,917</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">9.62</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: center">$26.56-$59.20</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">180,500</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">9.93</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,167</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">9.93</td><td style="text-align: left"> </td></tr>
</table><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td colspan="18" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Awards outstanding</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Awards exercisable</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="text-align: center"> </td><td> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">Number of</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">Weighted</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">Number of</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">Weighted</td><td style="font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="text-align: center"> </td><td> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">awards</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">average</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">awards</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">average</td><td style="font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="text-align: center"> </td><td> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">outstanding</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">remaining</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">exercisable</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">remaining</td><td style="font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="font-weight: bold; text-align: center">Exercise</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">at end of</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">contractual</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">at end of</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">contractual</td><td style="font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">price</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">year</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">life (years)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">year</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">life (years)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 1%; text-align: left"></td><td style="width: 18%; text-align: center">$2.21</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 17%; text-align: right">1,667,267</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 17%; text-align: right">9.90</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 17%; text-align: right">450,557</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 17%; text-align: right">9.90</td><td style="width: 1%; text-align: left"> </td></tr>
</table>
1995625
P9Y18D
1019695
P9Y18D
205000
P9Y226D
37917
P9Y226D
180500
P9Y339D
4167
P9Y339D
1667267
P9Y328D
450557
P9Y328D
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Year Ended December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">(U.S. dollars in thousands)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; text-align: left">Research and development</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">3,384</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">661</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left">Marketing (*)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">9,252</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">617</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt">General and administrative</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">12,145</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">14,967</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">115</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 4pt"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">24,781</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">16,245</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">115</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
3384000
661000
9252000
617000
12145000
14967000
115000
24781000
16245000
115000
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: left">
<td style="width: 0.75in; text-align: left"><b>NOTE 9 -</b></td><td style="text-align: left"><b>INCOME TAX:</b></td>
</tr></table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.75in"></td><td style="width: 0.25in"><b>a.</b></td><td style="text-align: left"><b>Basis of taxation</b></td></tr></table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: left">Current tax is calculated with
reference to the profit of the Company and its subsidiary in their respective countries of operation. Set out below are details
in respect of the significant jurisdictions where the Company and its subsidiary operates and the factors that influenced the current
and deferred taxation in those jurisdictions:</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: left"><b><i>Israel</i></b></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: left">The Company is taxed under the
laws of the State of Israel at a corporate tax rate of 23%. In 20<font style="font-family: Georgia, Times, Serif">20</font>, the
Company was at a loss position and therefore had no corporate tax liability.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: left"><b><i>Korea</i></b></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: left">Nanox Korea is subject to a Corporate
income tax with accordance with the Korean tax law. The tax rate ranges between 10% to 25%, depending on the companies’ taxable
income. In Addition, Nanox Korea is subject to a Local income tax of 10%. In 2020, Nanox Korea was at a loss position and therefore
had no corporate tax liability.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: left"><b><i>Japan</i></b></p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: left">Nanox Inc. is subject to national
corporate income tax, and enterprise tax, which, in the aggregate resulted in effective tax rate of approximately 33.59% for the
year ended December 31, 2020.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: left">Under Japanese tax law and regulations,
every company is required to submit an annual tax return to tax authorities. The statute of limitations to request a correction
of prior year tax liabilities is five years from when the original tax return was filed. After filling of tax return, the tax authorities
may conduct tax inspections on an irregular basis.</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.75in"></td><td style="width: 0.25in"><b>b.</b></td><td style="text-align: left"><b>Tax assessments</b></td></tr></table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: left">Nanox IL , Nanox Korea and Nanox
Inc. have not been assessed since inception.</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.75in"></td><td style="width: 0.25in"><b>c.</b></td><td style="text-align: left"><b>Deferred tax assets </b></td></tr></table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: left">Nanox IL’s deferred tax asset as
of December 31, 2020 was related to tax losses accumulated since September 3, 2019 and carryforward.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: left">A full valuation allowance was
created against deferred tax assets arisen from the carryforward tax losses, since the realization of any future benefit from the
carryforward tax losses cannot be sufficiently assured as of December 31, 2020.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: left">The reconciling item between the
statutory tax rate of the Company and the effective tax rate is the change in valuation allowance in respect of tax benefits from
carried forward tax losses due to uncertainty of the realization of such tax benefits.</p><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: left">Change in valuation allowance for
the year ended December 31, 2020 was $3,262 thousand.</p><br/>
0.23
0.10
0.25
0.10
0.3359
3262000
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt; text-indent: 0in; text-align: left"><b>NOTE
10 - RELATED PARTIES - TRANSACTIONS AND BALANCES:</b></p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.75in"></td><td style="width: 0.25in"><b>a.</b></td><td style="text-align: left"><b>Balances with related parties:</b></td></tr></table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td><td style="padding: 0 0 1.5pt; font-weight: bold; text-indent: 0"> </td>
<td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">December 31,</td><td style="padding: 0 0 1.5pt; font-weight: bold; text-indent: 0"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td><td style="padding: 0 0 1.5pt; font-weight: bold; text-indent: 0"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">2020</td><td style="padding: 0 0 1.5pt; font-weight: bold; text-indent: 0"> </td><td style="padding: 0 0 1.5pt; font-weight: bold; text-indent: 0"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">2019</td><td style="padding: 0 0 1.5pt; font-weight: bold; text-indent: 0"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td><td style="padding: 0 0 1.5pt; font-weight: bold; text-indent: 0"> </td>
<td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">(U.S. Dollars in thousands)</td><td style="padding: 0 0 1.5pt; font-weight: bold; text-indent: 0"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding: 0 0 4pt; width: 76%; text-align: left; text-indent: 0">Related party accrued liability</td><td style="padding: 0 0 4pt; width: 1%; font-family: Arial, Helvetica, Sans-Serif; text-indent: 0"> </td>
<td style="border-bottom: Black 4pt double; width: 1%; font-family: Arial, Helvetica, Sans-Serif; text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td><td style="border-bottom: Black 4pt double; width: 9%; font-family: Arial, Helvetica, Sans-Serif; text-align: right; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">-</td><td style="padding: 0 0 4pt; width: 1%; font-family: Arial, Helvetica, Sans-Serif; text-align: left; text-indent: 0"> </td><td style="padding: 0 0 4pt; width: 1%; text-indent: 0"> </td>
<td style="border-bottom: Black 4pt double; width: 1%; text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td><td style="border-bottom: Black 4pt double; width: 9%; text-align: right; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">72</td><td style="padding: 0 0 4pt; width: 1%; text-align: left; text-indent: 0"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="padding: 0 0 4pt; text-align: left; text-indent: 0">Related party liability, refer to note 6</td><td style="padding: 0 0 4pt; text-indent: 0"> </td>
<td style="border-bottom: Black 4pt double; text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td><td style="border-bottom: Black 4pt double; text-align: right; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">-</td><td style="padding: 0 0 4pt; text-align: left; text-indent: 0"> </td><td style="padding: 0 0 4pt; text-indent: 0"> </td>
<td style="border-bottom: Black 4pt double; text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td><td style="border-bottom: Black 4pt double; text-align: right; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">17,748</td><td style="padding: 0 0 4pt; text-align: left; text-indent: 0"> </td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.75in"></td><td style="width: 0.25in"><b>b.</b></td><td style="text-align: left"><b>Related parties transactions:</b></td></tr></table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Year ended December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">(U.S. Dollars in thousands)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; text-align: left; padding-bottom: 4pt">Research and development – see c and d below</td><td style="width: 1%; padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; width: 1%; text-align: left"> </td><td style="border-bottom: Black 4pt double; width: 9%; text-align: right">355</td><td style="width: 1%; padding-bottom: 4pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; width: 1%; text-align: left"> </td><td style="border-bottom: Black 4pt double; width: 9%; text-align: right">154</td><td style="width: 1%; padding-bottom: 4pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; width: 1%; text-align: left"> </td><td style="border-bottom: Black 4pt double; width: 9%; text-align: right">542</td><td style="width: 1%; padding-bottom: 4pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 4pt">General and administrative – See c, e and f below</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">(167</td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">5,824</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">892</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.75in"></td><td style="width: 0.25in"><b>c.</b></td><td style="text-align: left"><b>Six-Eye Interactive agreements for services </b></td></tr></table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">On June 1 2015, Nanox PLC entered
into a consulting agreement with Six-Eye, a company owned by Ran Poliakine, the Company’s CEO and one of major shareholders, pursuant
to which Ran Poliakine agreed to provide services as Chief Strategy Officer and a member of the Executive Committee to Nanox PLC.
On May 1, 2017, Nanox PLC entered into a services agreement with Six-Eye for the supply of ongoing services, which include research
and development services, general and financial management (including accountancy), office management services and operational
and supply services. According to the agreement between the parties, Nanox PLC reimburses Six-Eye for its actual direct expenses
plus a 12% surplus charge. The agreements were terminated in September 2019. During the years ended December 31 2019 and 2018 the
total expenses to Six-Eye were $679 thousand and $1,434 thousand, respectively. In addition to the services provided by Six-Eye
during 2019, Six-Eye also paid directly to third-party consultants and suppliers on behalf of the Company in the amount of approximately
$1,015 thousand prior to the completion of the Company’s equity financing.</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.75in"></td><td style="width: 0.25in"><b>d.</b></td><td style="text-align: left"><b>SixAI Ltd Service agreement</b></td></tr></table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">On April 16,2020, the Company
entered into an agreement with SixAI Ltd. (hereinafter-“SixAI”) a company controlled by Ran Poliakine, the Company’s
CEO for certain software development and mechanical engineering services. The service agreement is effective as of March 1, 2020
and has been extended by mutual agreement of the parties to March 31, 2021. During the year ended December 31, 2020, the Company
recorded an expense of $355 thousand. Mr. Poliakine currently serves as a member of the board of directors of SixAI and Mr. Poliakine
is a significant shareholder of SixAI.</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.75in"></td><td style="width: 0.25in"><b>e.</b></td><td style="text-align: left"><b>Illumigyn Ltd. </b></td></tr></table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">Illumigyn Ltd (hereinafter
– “Illumigyn”) is a company in which Ran Poliakine, the Company’s CEO, is a significant shareholder primarily through
indirect holdings. Since November 1 2019, Illumigyn sub-leased in transaction approximately 1,800 square feet of private office
space, including access to shared public spaces, from the office spaces which the Company leases in Neve Ilan, Israel. Illumigyn
pays approximately $12 thousand per month. During the year ended December 31, 2020, the Company received approximately $163 thousand
in relation to the sub lease.</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.75in"></td><td style="width: 0.25in"><b>f.</b></td><td style="text-align: left"><b>Wellsese Technologies Ltd.</b></td></tr></table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">Wellsense
Technologies Ltd (hereinafter – “Wellsense”) is a company in which Ran Poliakine, the Company’s CEO, and Richard
Stone, a member of the Company’s board of directors, are shareholders. Since February 2020, Wellsense has sub-leased private
office space, including access to shared public spaces, from the Company in Neve Ilan, Israel. Wellsense pays approximately $7.0
thousand per month. During the year ended December 31, 2020, the Company received $59 thousand, in relation to the sub lease.</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt">
<tr style="vertical-align: top">
<td style="width: 0.75in"></td><td style="width: 0.25in"><b>g.</b></td><td style="text-align: left">Pursuant to the Asset Purchase Agreement between Nanox IL and Nanox PLC, as of December 31, 2020,
the Company has settled the related party liability balance of $192 thousand to Nanox Japan and Nanox PLC, mainly for Fixed Assets
which were transferred to the Company as part of the APA.</td></tr>
</table><br/>
On June 1 2015, Nanox PLC entered into a consulting agreement with Six-Eye, a company owned by Ran Poliakine, the Company’s CEO and one of major shareholders, pursuant to which Ran Poliakine agreed to provide services as Chief Strategy Officer and a member of the Executive Committee to Nanox PLC.
0.12
679000
1434000
1015000
355000
Since November 1 2019, Illumigyn sub-leased in transaction approximately 1,800 square feet of private office space, including access to shared public spaces, from the office spaces which the Company leases in Neve Ilan, Israel.
12000
163000
7000
59000
192000
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td><td style="padding: 0 0 1.5pt; font-weight: bold; text-indent: 0"> </td>
<td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">December 31,</td><td style="padding: 0 0 1.5pt; font-weight: bold; text-indent: 0"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td><td style="padding: 0 0 1.5pt; font-weight: bold; text-indent: 0"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">2020</td><td style="padding: 0 0 1.5pt; font-weight: bold; text-indent: 0"> </td><td style="padding: 0 0 1.5pt; font-weight: bold; text-indent: 0"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">2019</td><td style="padding: 0 0 1.5pt; font-weight: bold; text-indent: 0"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td><td style="padding: 0 0 1.5pt; font-weight: bold; text-indent: 0"> </td>
<td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">(U.S. Dollars in thousands)</td><td style="padding: 0 0 1.5pt; font-weight: bold; text-indent: 0"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding: 0 0 4pt; width: 76%; text-align: left; text-indent: 0">Related party accrued liability</td><td style="padding: 0 0 4pt; width: 1%; font-family: Arial, Helvetica, Sans-Serif; text-indent: 0"> </td>
<td style="border-bottom: Black 4pt double; width: 1%; font-family: Arial, Helvetica, Sans-Serif; text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td><td style="border-bottom: Black 4pt double; width: 9%; font-family: Arial, Helvetica, Sans-Serif; text-align: right; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">-</td><td style="padding: 0 0 4pt; width: 1%; font-family: Arial, Helvetica, Sans-Serif; text-align: left; text-indent: 0"> </td><td style="padding: 0 0 4pt; width: 1%; text-indent: 0"> </td>
<td style="border-bottom: Black 4pt double; width: 1%; text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td><td style="border-bottom: Black 4pt double; width: 9%; text-align: right; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">72</td><td style="padding: 0 0 4pt; width: 1%; text-align: left; text-indent: 0"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="padding: 0 0 4pt; text-align: left; text-indent: 0">Related party liability, refer to note 6</td><td style="padding: 0 0 4pt; text-indent: 0"> </td>
<td style="border-bottom: Black 4pt double; text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td><td style="border-bottom: Black 4pt double; text-align: right; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">-</td><td style="padding: 0 0 4pt; text-align: left; text-indent: 0"> </td><td style="padding: 0 0 4pt; text-indent: 0"> </td>
<td style="border-bottom: Black 4pt double; text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td><td style="border-bottom: Black 4pt double; text-align: right; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">17,748</td><td style="padding: 0 0 4pt; text-align: left; text-indent: 0"> </td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Year ended December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">(U.S. Dollars in thousands)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; text-align: left; padding-bottom: 4pt">Research and development – see c and d below</td><td style="width: 1%; padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; width: 1%; text-align: left"> </td><td style="border-bottom: Black 4pt double; width: 9%; text-align: right">355</td><td style="width: 1%; padding-bottom: 4pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; width: 1%; text-align: left"> </td><td style="border-bottom: Black 4pt double; width: 9%; text-align: right">154</td><td style="width: 1%; padding-bottom: 4pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; width: 1%; text-align: left"> </td><td style="border-bottom: Black 4pt double; width: 9%; text-align: right">542</td><td style="width: 1%; padding-bottom: 4pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left; padding-bottom: 4pt">General and administrative – See c, e and f below</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">(167</td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">5,824</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">892</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
355000
154000
542000
-167000
5824000
892000
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt; text-indent: 0in; text-align: left"><b>NOTE
11 </b>- <b>LOSS PER SHARE:</b></p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.75in"></td><td style="width: 0.25in"><b>a.</b></td><td style="text-align: left"><b>Basic</b></td></tr></table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">Basic loss
per share is calculated by dividing the loss attributable to the Company’s owners by the weighted average number of ordinary
shares in issue.</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Year ended December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; text-align: left; padding-bottom: 1.5pt">Net loss attributable to Company’s owners</td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">(43,815</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">)</td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">(22,563</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">)</td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">(1,909</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 4pt">The weighted average of the number of ordinary shares (in thousands)</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">35,654</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">25,181</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">20,793</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="font-weight: bold; text-align: left; padding-bottom: 4pt">Basic and diluted loss per share</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(1.23</td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(0.90</td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">(0.09</td><td style="padding-bottom: 4pt; text-align: left">)</td></tr>
</table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">For the calculation
of loss per share, the Company used the net loss attributable to Company’s owners divided by the weighted average number
of the Company’s ordinary shares for the years ended December 31, 2020, 2019 and 2018.</p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.75in"></td><td style="width: 0.25in"><b>b.</b></td><td style="text-align: left"><b>Diluted</b></td></tr></table><br/><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1in; text-align: left">As of December 31, 20<font style="font-family: Georgia, Times, Serif">20</font>
and 201<font style="font-family: Georgia, Times, Serif">9</font> the Company had 7,846,290 and 9,203,124 investor warrants and
employees and non-employees option awards, respectively. These warrants and awards were not taken into account when calculating
diluted loss per share since their effect is anti-dilutive.</p><br/>
7846290
9203124
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Year ended December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; text-align: left; padding-bottom: 1.5pt">Net loss attributable to Company’s owners</td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">(43,815</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">)</td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">(22,563</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">)</td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">(1,909</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; ">
<td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 4pt">The weighted average of the number of ordinary shares (in thousands)</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">35,654</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">25,181</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">20,793</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; ">
<td style="font-weight: bold; text-align: left; padding-bottom: 4pt">Basic and diluted loss per share</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(1.23</td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">(0.90</td><td style="padding-bottom: 4pt; text-align: left">)</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">(0.09</td><td style="padding-bottom: 4pt; text-align: left">)</td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt; text-indent: 0in; text-align: left"><b>NOTE
12 - SUBSEQUENT EVENTS:</b></p><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.75in"></td><td style="width: 0.25in"><b>a.</b></td><td style="text-align: left">During 2021, the Company granted a total of 338,929 awards with an average exercise price of $48.59
per share to employees.</td></tr></table><br/><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 0.75in"></td><td style="width: 0.25in"><b>b.</b></td><td style="text-align: left">In February 2021 the Company completed a secondary offering of 3,091,635 ordinary shares by certain
non-director, non-officer selling pre-IPO shareholders. An additional 845,044 shares were locked up for an additional period as
part of the agreed terms. The Company cooperated with the offering lead underwriter while each participating shareholder paid the
underwriters fees and the Company covered the legal, accounting, administrative and regulatory fees which totaled approximately
$818 thousand. The Company received no proceeds from the described above public secondary offering.</td></tr></table><br/>
338929
48.59
3091635
845044
818000