0001166834Q2false--12-31
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
 
Form 6-K
 
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of September 2024
Commission File Number: 001-41641

SHL TELEMEDICINE LTD.
(Translation of registrant’s name into English)
 
90 Yigal Alon Street
Tel Aviv 67891, Israel
(Address of principal executive offices)
 
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
 
Form 20-F ☒             Form 40-F ☐
 
 
EXPLANATORY NOTE
 
On September 26, 2024, SHL Telemedicine Ltd. (the “Company”) issued a press release, an investor presentation and a report with respect to its half-year 2024 financial results, copies of which are furnished herewith as Exhibits 99.1, 99.2 and 99.3, respectively, and which are incorporated by reference herein. The press release, investor presentation and report all contain forward-looking statements and include cautionary statements identifying important factors that could cause actual results to differ materially from those in the forward-looking statements.
 
On September 26, 2024, the Company also published unaudited interim condensed consolidated financial statements as of and for the six months ended June 30, 2024, a copy of which is furnished herewith as Exhibit 99.4 and which is incorporated by reference herein. The financial statements are formatted in Inline eXtensible Business Reporting Language (“iXBRL”) as Exhibit 101 in accordance with Rule 405 of Regulation S-T and paragraph C.(6)(a)(ii) of the General Instructions to Form 6-K.
 
This Form 6-K is incorporated by reference into the Company's Registration Statement on Form S-8 filed with the Securities and Exchange Commission on June 9, 2023 (Registration No. 333-272546).
 
 
Exhibit 
 Description
 
99.1
99.2
99.3
99.4
 
101.INS
Inline XBRL Instance Document.
101.SCH
Inline XBRL Taxonomy Extension Schema Document.
101.CAL
Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF
Inline XBRL Taxonomy Extension Definition Linkbase.
101.LAB
Inline XBRL Taxonomy Extension Label Linkbase.
101.PRE
Inline XBRL Taxonomy Extension Presentation Linkbase.
 
 
SIGNATURE
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 
SHL Telemedicine Ltd.
 
By: /s/ Amir Hai
      Amir Hai
      Chief Financial Officer
 
September 26, 2024

 

Exhibit 99.1
Press release
Ad hoc announcement pursuant to Art. 53 LR

SHL announces half-year results 2024

Tel Aviv / Zurich / New York, 26 September 2024 – SHL Telemedicine Ltd. (NASDAQ: SHLT; SIX Swiss Exchange: SHLTN) (“SHL” or the “Company”), a leading provider and developer of advanced personal telemedicine solutions, today announced its financial results for the first half of 2024.

During this period, Ido Neuberger and Nir Rotenberg joined as board members, and recently Dr. Itamar Offer was appointed as new chairman and Mr. David Arnon as new CEO. The appointed leadership brings extensive experience in building effective strategies, strengthening management capabilities, and leading sales and marketing efforts across diverse healthcare sectors.

From a financial perspective, adjusted EBITDA in Israel increased by 4%, while significantly reducing operational losses in Germany by USD 1m. Additionally, SHL expanded its investments in direct-to-consumer (D2C) operations in the US by USD 0.7m.

H1 2024 Financial Highlights:

*All comparable figures from previous periods are in constant currency1.

 •
Total revenues were USD 27.9m, a slight decrease of 2% from USD 28.4m in 1HY2023.

•
Revenues from the company’s operation in Israel were at the same level compared to 1HY2023, with revenues standing at USD 20.9m.

•
Revenues from the company’s operation in Germany amounted to USD 6.6m, slightly down from USD 6.8m in 1HY2023.

•
The adjusted EBITDA2 was USD 0.5m, slight increase from USD 0.3m in 1HY2023, mainly due to operational improvement.

1Constant currency – to enable meaningful comparison between HY2024 and HY2023 results, HY2023 results are also presented at HY2024 exchange rates which are calculated as annual average based on the average monthly exchange rates of each of the USD and the EUR versus the NIS, as published by the Bank of Israel. The management believes that this presentation enables a more meaningful comparison between the periods due to the significant fluctuations in NIS/USD/EUR exchange rates during the period.
2 Please see the EBITDA, Adjusted EBITDA and Adjusted EBIT Table below, and Reconciliation Table of Adjusted EBITDA and Adjusted EBIT to net profit each presented below as required by the rules of the U.S. Securities and Exchange Commission with respect to non-GAAP financial measures.

 •
Financial income, net was USD 0.5m compared to USD 3.0m in the first half of 2023, the decrease is mainly due to the income of USD 1.8m from investors options evaluation (Non- cash item) which was recognized in the first half of 2023 , and to the exchange rate differences between the US dollar and the New Israeli Shekel.

•
Net loss was USD 3.9m, compared to a net loss of USD 2.2m in 1HY2023, mainly due to the decrease in financial income.

•
Cash on hand and short-term cash investments were USD 20.3m as of June 30, 2024. (USD 26.2m as of December 31, 2023).

David Arnon, CEO of SHL, commented:” The new leadership team has been successfully embarked and set the stage for the next strategic steps. The focus remains on identifying growth drivers in all territories, by expanding our service offerings and enhancing our solutions platform, and exploring cost reductions in our overall activities. In Germany, we continue to manage our cost expenses effectively, while in the US, we are exploring direct-to-consumer opportunities. I’m particularly pleased with the preliminary results from our randomized study at the Mayo Clinic, which indicate a positive trend toward reducing emergency room visits and re-hospitalizations for patients using SHL devices.”

Conference Call at 10.00 am CET
The Company will host a conference call for investors, journalists and analysts to discuss the Half-Year 2024 results today at 10.00 am CET. The conference call will be hosted by David Arnon, CEO, and Amir Hai, CFO, and will be held in English.

Dial-in numbers:
From Europe: +41 (0)58 310 50 00
From UK: +44 (0) 207 107 06 13
From USA: +1 (1) 631 570 56 13
From Israel: +972 3763 1173

The presentation is available on: www.shl-telemedicine.com/reports
The Half-Year Report 2024 is available on: www.shl-telemedicine.com/reports
SEC submission of the Half-Year Report and presentation is available on:
https://www.shl-telemedicine.com/sec-filing/

About SHL Telemedicine
SHL Telemedicine is engaged in developing and marketing personal telemedicine systems and the provision of medical call center services, with a focus on cardiovascular and related diseases, to end users and to the healthcare community. SHL Telemedicine offers its services and personal telemedicine devices to subscribers utilizing telephonic and Internet communication technology. SHL is listed on the SIX Swiss Exchange (SHLTN, ISIN: IL0010855885, Security No.: 1128957) and on the Nasdaq Stock Exchange (SHLT, ISIN: US78423T2006, CUSIP: 78423T200). For more information, please visit our web site at www.shl-telemedicine.com.

Financial calendar
5 December 2024, Annual General Meeting. Tel Aviv, Israel

Financial information:
For a comprehensive understanding of the Company’s financial reports and related management’s discussion and analysis for applicable periods, please visit the Company’s profile at https://www.sec.gov/edgar or the Company’s full report on its site: www.shl-telemedicine.com/reports

For further information please contact:
Fabienne Farner, IRF, Phone : +41 43 244 81 42, farner@irf-reputation.ch

Key Figures for HY2024
 
Key figures (as reported):
 
in USD million (except per share amounts)
  
HY2024
    
HY2023
    
% change
  
Revenues for the period
    
27.9
      
29.0
      
(4
)
Revenues
                        
Revenues
                        
•          Germany
    
6.6
      
6.8
      
(4
)
•          Israel
    
20.9
      
21.6
       (3 )
•          Rest of the World
    
0.4
      
0.6
       (32 )
EBIT
    
(3.9
)
    
(4.4
)
        
EBITDA*
    
(0.2
)
    
(0.9
)
        
Net profit (loss)
    
(3.9
)
    
(2.1
)
        
EPS (Basic loss)
    
(0.24
)
    
(0.14
)
        
Operating cash flow
    
(0.3
)
    
(3.3
)
        

* EBITDA: operating profit excluding depreciation and amortization expenses of USD 3.7m, and USD 3.5m in the comparable period

Adjusted key figures (in constant currency):
In the table below, HY2023 results have been presented at HY2024 exchange rates. Management believes that this presentation enables a more meaningful comparison between the periods due to the significant fluctuations in NIS/USD/EUR exchange rates during the period.

In USD million
  
HY2024
    
HY2023
    
% change
  
Revenues
    
27.9
      
28.4
      
(2
)
Revenues
                        
•          Germany
    
6.6
      
6.8
      
(4
)
•          Israel
    
20.9
      
21.0
      
-
  
•          Rest of the World
    
0.4
      
0.6
      
(32
)
Adjusted EBIT**
    
(3.2
)
    
(3.2
)
        
Adjusted EBITDA ***
    
0.5
      
0.3
          

**Adjusted EBIT: Please see the EBITDA, Adjusted EBITDA and Adjusted EBIT Table below.
***Adjusted EBITDA: Please see the EBITDA, Adjusted EBITDA and Adjusted EBIT Table below.

EBITDA, Adjusted EBITDA and Adjusted EBIT Tables (HY2023 results are presented in HY2024 exchange rates)

EBITDA:
            
in USD Thousand
  
HY2024
    
HY2023
  
Operating loss
    
(3.9
)
    
(4.4
)
Plus:
                
Depreciation and amortization expenses
    
3.7
      
3.4
  
                 
EBITDA
    
(0.2
)
    
(1.0
)
 
                
 
  
HY2024
    
HY2023
  
Operating loss – EBIT
    
(3.9
)
    
(4.4
)
Plus:
                
Cost of share-based payments
    
0.3
      
0.8
  
Non-recurring expenses
    
0.4
      
0.5
  
Adjusted EBIT
    
(3.2
)
    
(3.1
)

 
  
HY2024
    
HY2023
  
EBITDA
    
(0.2
)
    
(1.0
)
Plus:
                
Cost of share based payments
    
0.3
      
0.8
  
Non-recurring expenses
    
0.4
      
0.5
  
Adjusted EBITDA
    
0.5
      
0.3
  

Reconciliation of Adjusted EBITDA and Adjusted EBIT to net profit as required by the rules of the U.S. Securities and Exchange Commission with respect to non-GAAP financial measures (HY2023 results are presented also in HY2024 exchange rates)
 
   
HY2024
    
HY2023
    
HY2023(CC)
  
Net profit (loss)
    
(3.9
)
    
(2.1
)
    
(2.2
)
Financial income, net
    
(0.5
)
    
(3.0
)
    
(3.0
)
Tax expenses
    
0.5
      
0.7
      
0.7
  
Depreciation and amortization expenses
    
3.7
      
3.5
      
3.5
  
                         
EBITDA
    
(0.2
)
    
(0.9
)
    
(1.0
)
                         
Cost of share-based payment
    
0.3
      
0.8
      
0.8
  
Non- recurring expenses
    
0.4
      
0.5
      
0.5
  
                         
Adjusted EBITDA
    
0.5
      
0.4
      
0.3
  

The Company believes Adjusted EBITDA and Adjusted EBIT provide useful information regarding the Company’s financial and operating performance. Adjusted EBITDA and Adjusted EBIT are not U.S. GAAP measures. You should not construe Adjusted EBITDA and Adjusted EBIT as alternatives to operating profit or cash flows from operating activities determined in accordance with U.S. GAAP or as a measure of liquidity. Adjusted EBITDA and Adjusted EBIT are not defined in the same manner by all companies and may not be comparable to other similarly titled measures of other companies.

Forward Looking Statements:
This announcement contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, specifically Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, are forward-looking statements, including the Company’s anticipation with respect to changes in its results of operations from prior periods. Readers are cautioned that forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from historical results or any future results expressed or implied by forward-looking statements.  Factors that can cause actual results to differ from expectations and those contained in forward-looking statements include those risks described in Item 3.D. “Key Information—Risk Factors” contained in the Company’s Annual Report on Form 20-F filed with the U.S. Securities Exchange Commission (the “SEC”) on March 28, 2024, as amended by the Annual Report on Form 20-F/A filed with the SEC on July 24, 2024, and in its subsequent filings and submissions with the SEC, including, but not limited to, the Company’s ability to operate and comply with the complex and evolving regulations in the highly regulated healthcare industry; the continued development, consumer acceptance and market adoption of the Company’s products and services in the relatively new, unproven and volatile and rapidly changing telehealth market; the Company’s ability to develop and introduce new products and solutions and enhancements to existing ones; the significant and increasing levels of competition in the telemedicine market; the Company’s ability to continue to attract and retain key employees and personal in the highly competitive healthcare industry;  the loss or breach of the Company’s proprietary rights and data security and privacy risks; political, judicial, legal, economic and military conditions in Israel and the surrounding region; global economic and financial market conditions and the Company’s ability to adapt to and comply with the different business and market factors, conditions, requirements and laws and regulations in the various countries in which the Company operates internationally; currency fluctuations; labor disputes; the Company’s ability to manage growth and integrate acquired businesses and expanding operations; the Company’s dependence on key suppliers and sub-contractors and other third parties; and other matters and risks not yet known to the Company or not currently considered material by it. You should not place undue reliance on these forward-looking statements.  All written and oral forward-looking statements, attributable to the Company, or persons acting on its behalf, are qualified in their entirety by these cautionary statements.  Unless required by law, the Company undertakes no obligation to publicly update or revise any forward-looking statements.

Exhibit 99.2

 SHL Telemedicine  HY Results 2024Presentation  1 
 
 Forward looking statements   2  This presentation was prepared for the purpose of providing and presenting information in a summary only and cannot replace a review of the reports of SHL Telemedicine (hereinafter: "the Company"). Many of the statements included in this presentation, as well as oral statements that may be made by us or by officers, directors or employees acting on behalf of us, contain “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, specifically Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, are forward-looking statements. Readers are cautioned that forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from historical results or any future results expressed or implied by forward-looking statements. Factors that can cause actual results to differ from expectations and those contained in forward-looking statements include those risks described in Item 3.D. “Key Information—Risk Factors” contained in the Company’s Registration Statement on Form 20-F or most recent Annual Report on Form 20-F filed with the U.S. Securities Exchange Commission (the “SEC”) and in its subsequent filings and submissions with the SEC, including, but not limited to, the Company’s ability to operate and comply with the complex and evolving regulations in the highly regulated healthcare industry; continued development, consumer acceptance and market adoption in the relatively new, unproven and volatile and rapidly changing telehealth market; the Company’s ability to develop and introduce new products and solutions and enhancements to existing ones; the significant and increasing levels of competition in the telemedicine market; the impacts of COVID-19 and future pandemics and epidemics; the Company’s ability to continue to attract and retain key employees and personal in the highly competitive healthcare industry; the loss or breach of the Company’s proprietary rights and data security and privacy risks; political, judicial, legal, economic and military conditions in Israel and the surrounding region; global economic and financial market conditions and the Company’s ability to adapt to and comply with the different business and market factors, conditions, requirements and laws and regulations in the various countries in which the Company operates internationally; currency fluctuations; labor disputes; the Company’s ability to manage growth and integrate acquired businesses and expanding operations; the Company’s ability to obtain adequate levels of insurance to cover potential losses; the Company’s dependence on key suppliers and sub-contractors and other third parties; and other matters and risks not yet known to the Company or not currently considered material by it. You should not place undue reliance on these forward-looking statements. All written and oral forward-looking statements, attributable to the Company, or persons acting on its behalf, are qualified in their entirety by these cautionary statements.  For the avoidance of doubt, it is clarified that the company does not undertake to update the information, in whole or in part, contained in this presentation, whether as a result of new information, a future event or for other reasons, except as required by law. It is also clarified that the company's plans and strategy contained in this presentation are correct at the time of their publication and can and will change in accordance with the decisions of the company's board of directors, as they will be from time to time, and/or due to their being dependent, in whole or in part, on third parties that are not under the control of the company as well as on additional risk factors to which the company is exposed .  This presentation contains trade names, trademarks and service marks of other companies. The trade names, trademarks, and service marks of other parties are not used or displayed to imply a relationship with, or endorsement or sponsorship of, those other parties. 
 
 SHL Telemedicine at a glance  3  Nasdaq: SHLT  SWX: SHLTN  Listed on  $27.9M  1HY 2024 revenues  30+ years of experience  SHL is a leading provider and developer of advanced telehealth technology and services with unmatched 30 years of medical & ECG data-base  24/7 telehealth monitoring global service capabilities   3M  interactions and data readings per year  Telemedicine centers in Israel & Germany Significant strategic partners in the US market 
 
 R&D Gross Expenses  $3.0M  Operational CASH Flow  REVENUES  $27.9M  Adjusted EBITDA(*)  $ 0.5M  CASH On HAND  $20.3M  30 June 2024  (*) Please see Supplemental Information at end of presentation for a reconciliation of Adjusted EBITDA and Adjusted EBIT to net profit as required by the rules of the U.S. Securities Exchange Commission with respect to non-GAAP financial measures  HY 2024 Overview Financial Data(*)  4  $ (0.3)M 
 
 Germany:  5  Remote medical services such as: Virtual Visit and Monitoring of chronic patients, are becoming the Standard of Care  The company has agreements with leading health insurers, covering about 30% of the German health insurance market (about 25 million insured)  SHL is the market leader in Germany and operates in a B2B model - managing and stabilizing chronic patients and saving costs for health insurers  1HY2024  2HY2023  1HY2023  REVENUES  $6.6M  Adjusted EBITDA(**)  $(0.3)M  REVENUES(*)  $7.2M  Adjusted EBITDA(**)  $1M  REVENUES(*)  $6.8M  Adjusted EBITDA(**)  $(1.2)M  (*) compared to 1HY 2023 in constant currency, Please see Supplemental Information at end of presentation for a description of the basis of presentation of the constant currency amount calculations as required by the rules of the U.S. Securities Exchange Commission with respect to non-GAAP financial measures  (**) Please see Supplemental Information at end of presentation for a reconciliation of Adjusted EBITDA and Adjusted EBIT to net profit as required by the rules of the U.S. Securities Exchange Commission with respect to non-GAAP financial measures 
 
 ECG repository  Cloud based  24/7 ECG review center  24/7 USA  cardiologist network  Provider portal  USA   6  Increase in uses of the SmartHeart platform  DTC plan: working on customer acquisition cost reduction   (*) Please see Supplemental Information at end of presentation for a reconciliation of Adjusted EBITDA and Adjusted EBIT to net profit as required by the rules of the U.S. Securities Exchange Commission with respect to non-GAAP financial measures  Patented technology. SmartHeart is a registered Trademark  REVENUES  $0.4M  Adjusted EBITDA(*)  $(2.2)M  Tier1 Strategic customers relationships strengthen our reputation in support of the SmartHeart® direct-to-consumer move   Leveraging the network of cardiologists that is already set up across the US  Already FDA cleared 510(k) process for OTC clearance  
 
 Israel  7  High contribution to the company's profitability and cash flow  The leader in B2C Telemedicine Services   B2B advanced Medical Services   Sale of cardiac monitoring services to consumers: personal 12 Lead ECG devices for transmission of remote medical data, 24/7 telemedicine center, Mobile Intensive Care Units in coverage areas.  Over 100 institutional customers - Mediton Group is a leading B2B healthcare services provider in Israel to the largest and leading companies in Israel, government institutions, the Ministry of Defense, National Insurance, health funds and insurance companies  (*) compared to 1HY 2023 in constant currency, Please see Supplemental Information at end of presentation for a description of the basis of presentation of the constant currency amount calculations as required by the rules of the U.S. Securities Exchange Commission with respect to non-GAAP financial measures  (**) Please see Supplemental Information at end of presentation for a reconciliation of Adjusted EBITDA and Adjusted EBIT to net profit as required by the rules of the U.S. Securities Exchange Commission with respect to non-GAAP financial measures  Telemedicine Center  4 advanced Medical Centers  Network pf 500+ specialist doctors  Customer Service Center  Mobile Intensive Care Units with extensive coverage areas  1HY2024  2HY2023  1HY2023  REVENUES  $20.9M  Adjusted EBITDA(**)  $5.7M  REVENUES(*)  $21.5M  Adjusted EBITDA(*)(**)  $5.7M  REVENUES(*)  $21.0M  Adjusted EBITDA(*)(**)  $5.5M 
 
 Financials – P&L  8  (*) compared to HY 2023 in constant currency, Please see Supplemental Information at end of presentation for a description of the basis of presentation of the constant currency amount calculations as required by the rules of the U.S. Securities Exchange Commission with respect to non-GAAP financial measures  (**) Please see Supplemental Information at end of presentation for a reconciliation of Adjusted EBITDA and Adjusted EBIT to net profit as required by the rules of the U.S. Securities Exchange Commission with respect to non-GAAP financial measures  In USD million (except per share amounts)  1HY 2024  1HY 2023cc*  Revenues for the period  27.9  28.4  Revenues by territories  Germany  6.6  6.8  Israel  20.9  21.0  Rest of the World  0.4  0.6  Adjusted EBIT(**)  (3.2)  (3.2)  Adjusted EBITDA(**)  0.5  0.3  Net loss  (3.9)  (2.2)  EPS (Basic) attribute to equity holders  (0.24)  (0.14) 
 
 Financials – Balance sheet & Cash flow  9  In USD million   1HY 2024  1HY 2023  Cash and cash equivalents  10.9  10.4  Short term investments  9.4  19.0  Total cash and short-term investments  20.3  29.4  Short term bank debt  2.1  2.1  Long term bank debt  9.0  11.3  Total bank debt  11.1  13.4  Capital and reserves   151.4  151.8  Accumulated deficit  (84.1)  (75.3)  Total Equity  67.3  76.5  Increase (Decrease) in cash and short-term investments  (5.9)  10.7  Operational cash flow  (0.3)  (3.3) 
 
 Thank You  SHL Telemedicine  10 
 
 Supplement Information   11  **Adjusted EBIT: Please see the Adjusted EBITDA and Adjusted EBIT Table below.  ***Adjusted EBITDA: Please see the Adjusted EBITDA and Adjusted EBIT Table below  In the table below, HY 2023 results have been presented at HY 2023 exchange rates1. Management believes that this presentation enables a more meaningful comparison between the periods due to the significant fluctuations in NIS/USD/EUR exchange rates during the period.  Adjusted key figures (in constant currency1)  in USD million  1HY2024  1HY2023  % change  Revenues   27.9  28.4  (1.9)  Revenues   Germany  Israel  Rest of the World  6.6  6.8  (4)  20.9  21.0  (0.4)  0.4  0.6  (32.3)  Adjusted EBIT**  (3.2)  (3.2)  Adjusted EBITDA ***  0.5  0.3  Key figures (as reported):  in USD million  (except per share amounts)  1HY 2024  1HY 2023  % change  Revenues for the period  27.9  29.0  (3.9)  Revenues  Revenues   Germany  Israel  Rest of the World  6.6  6.8  (4)  20.9  21.6  (3.2)  0.4  0.6  (32.3)  EBIT  (3.9)  (4.4)  EBITDA  (0.2)  (0.9)  Net profit (loss)  (3.9)  (2.1)     EPS (Basic loss)  (0.24)  (0.14)     Operating cash flow  (0.3)  (3.3)     Reconciliation of Adjusted EBITDA and Adjusted EBIT to net profit as required by the rules of the U.S. Securities Exchange Commission with respect to non-GAAP financial measures 
 
 Supplement Information   12  (1) Constant currency – to enable meaningful comparison between 1HY2024 and 1HY2023 results, results are also presented at 1HY2024 exchange rates which are calculated as annual average based on the average monthly exchange rates of each of the USD and the EUR versus the NIS, as published by the Bank of Israel. The management believes that this presentation enables a more meaningful comparison between the periods due to the significant fluctuations in NIS/USD/EUR exchange rates during the period.  Reconciliation of Adjusted EBITDA and Adjusted EBIT to net profit as required by the rules of the U.S. Securities Exchange Commission with respect to non-GAAP financial measures (HY2022 results are presented also in HY2023 exchange rates1)  The Company believes Adjusted EBITDA and Adjusted EBIT provide useful information regarding the Company’s financial and operating performance. Adjusted EBITDA and Adjusted EBIT are not IFRS or U.S. GAAP measures. You should not construe Adjusted EBITDA and Adjusted EBIT as alternatives to operating profit or cash flows from operating activities determined in accordance with IFRS or U.S. GAAP or as a measure of liquidity. Adjusted EBITDA and Adjusted EBIT are not defined in the same manner by all companies and may not be comparable to other similarly titled measures of other companies  in USD million  1HY2024  1HY2023  1HY2023(CC1)  Net profit (loss)  (3.9)  (2.1)  (2.2)  Financial income net  (0.5)  (3.0)  (3.0)  Tax expenses  0.5  0.7  0.7  Depreciation and amortization expenses  3.7  3.5  3.5  EBITDA  (0.2)  (0.9)  (1.0)  Share-based compensation  0.3  0.8  0.8  Non- recurring expenses  0.4  0.5  0.5  Adjusted EBITDA  0.5  0.4  0.3 
 

 

Exhibit 99.3

 

Half Year Report 2024 

 

 

2 SHL Telemedicine Ltd. 1 January - 30 June, 2024 Letter to Shareholders Dear Shareholders As we reflect the first half of 2024, we see it as a transitional period for the company’s leadership. During this period, there were changes in the board of directors, and recently Mr. David Arnon was appointed as new CEO of SHL Telemedicine and Dr. Itamar Offer was appointed as new chairman of the board. The first half of 2024 was marked by both challenges and achievements. Despite these challenges we have maintained stable revenues, accomplished significant strategic progress across all operations while maintaining a sufficient cash position to execute our business plans. Despite the challenging conditions with a war in our Israeli domestic market, our Israeli operation remained stable and profitable, we build on our strong customer base(sick funds) in Germany and were able to double the volume of the Doctors’ Virtual Visits services vs previous year with the second largest sick fund. We initiated our direct-to-consumer (B2C) sales of the SmartHeart® ECG platform in the USA, all demonstrating the company’s innovative approach to telemedicine and our commitment to broadening healthcare accessibility. Total revenues for the period were USD 27.9 million, a slight decrease compared to USD 28.4 million in the first half of 2023 in constant currency1. Adjusted EBITDA2 for the period was USD 0.5 million, compared to USD 0.3 million in 2023 in constant currency. Negative cash flow from operations was of USD 0.3 million, compared to negative cash flow of USD 3.3 million in 2023. Net loss for the period was USD 3.9 million, compared to a net loss of USD 2.2 million in the first half of 2023 in constant currency. This was mainly due to decrease in financial income of USD 2.5 million, of which USD 1.8 million related to investor options evaluation (a non-cash item), which was recognized in the first half of 2023, and to exchange rate differences between the US dollar and the New Israeli Shekel. Letter to Shareholders 1 Constant currency – to enable meaningful comparison between 2024 and 2023 results, 2023 results are also presented at 2024 exchange rates which are calculated as annual average based on the average monthly exchange rates of each of the USD and the EUR versus the NIS, as published by the Bank of Israel. The management believes that this presentation enables a more meaningful comparison between the periods due to the significant fluctuations in NIS/USD/EUR exchange rates during the period. 2 EBITDA excluding stock base compensation expenses and extraordinary expenses. 

 

 

Letter to Shareholders 3 Israel Revenues for the period remain stable, at the level of USD 20.9 million with a slight increase in profitability, attributed to operational improvement. The B2B services of our Mediton subsidiary which were affected by the war in Gaza during the last quarter of 2023 are now back to normal. Our Israel operation remains highly profitable and allows SHL to maintain significant financial stability. Germany Revenues for the period were USD 6.6 million compared to USD 6.8 million for the first half of 2023 in constant currency. Following significant effort of cost reduction efforts, SHL Germany improved the bottom line by USD 1 million. While we experienced a slight decline in the number of Heart monitoring customers at the beginning of the year, we are now back on track. The Virtual Visits to the BARMER insureds have been doubled compared to 2023, and new contracts have been signed within the Heart Monitoring business with the largest sick fund in Germany and two smaller ones. USA In the US revenues were USD 0.4 million, compared to USD 0.5 million revenues in the first half of 2023. Throughout the year we made significant strides in our direct-to-consumer strategy, prioritizing promotion of the SmartHeart® ECG technology, utilizing the infrastructure of a network of cardiologists that is already set up across the US and is available to perform a remote review and interpretation of SmartHeart® ECG from anywhere. In addition, preliminary results from the randomized study at Mayo Clinic demonstrated a trend toward a decrease in emergency room visits and re-hospitalization for patients who were using the SHL device. On behalf of the Board of Directors and the management team, we thank all employees for their hard work and our business partners and shareholders for the trust they have placed in SHL. Sincerely, Dr. Itamar Offer David Arnon Chairman of the Board CEO 

 

 

Financial Statements 4 INDEX 5 | Review of Interim Condensed Consolidated Financial Statements 6 | Consolidated Balance Sheets 8 | Consolidated Statements of Comprehensive Income 9 | Consolidated Statements of Changes in Equity 11 | Consolidated Statements of Cash Flows 13 | Notes to Interim Condensed Consolidated Financial Statements 

 

 

Financial Statements 5 The Shareholders and Board of Directors SHL Telemedicine Ltd. Auditors’ Review Report to the Shareholders and Board of Directors of SHL Telemedicine Ltd. Introduction We have reviewed the accompanying interim condensed consolidated financial statements of SHL Telemedicine Ltd. (“the Company”) and its subsidiaries as of June 30, 2024, which comprise the interim consolidated balance sheet as of June 30, 2024, and the related interim consolidated statements of comprehensive income, changes in equity and cash flows for the six month period then ended and explanatory notes. Management is responsible for the preparation and presentation of this interim financial information in accordance with International Accounting Standard 34, “Interim Financial Reporting” (“IAS 34”). Our responsibility is to express a conclusion on this interim financial information based on our review. Scope of review We conducted our review in accordance with International Standard on Review Engagements 2410, “Review of Interim Financial Information Performed by the Independent Auditor of the Entity”. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed consolidated financial statements are not prepared, in all material respects, in accordance with IAS 34. Tel-Aviv, Israel September 26, 2024 KOST FORER GABBAY & KASIERER A Member of Ernst & Young Global 

 

 

Financial Statements 6 CONSOLIDATED BALANCE SHEETS U.S. dollars in thousands June 30, December 31, 2024 2023 2023 Unaudited Audited ASSETS CURRENT ASSETS: Cash and cash equivalents 10,890 10,435 6,693 Short-term investments 9,435 19,004 19,557 Trade receivables 7,805 8,788 8,557 Inventory 2,902 3,995 3,459 Other accounts receivable 2,080 2,176 1,792 33,112 44,398 40,058 NON-CURRENT ASSETS: Inventory 1,915 1,572 1,913 Prepaid expenses 2,941 3,234 3,220 Call option to non-controlling interests, net - - 147 Long-term deposits 317 334 328 Right-of-use assets 6,909 10,695 7,214 Deferred taxes 1,601 2,213 2,055 13,683 18,048 14,877 PROPERTY AND EQUIPMENT, NET 4,997 4,814 4,892 GOODWILL 31,814 32,320 32,965 INTANGIBLE ASSETS, NET 19,238 20,244 20,257 Total assets 102,844 119,824 113,049 The accompanying notes are an integral part of the interim condensed consolidated financial statements. 

 

 

Financial Statements 7 CONSOLIDATED BALANCE SHEETS U.S. dollars in thousands June 30, December 31, 2024 2023 2023 Unaudited Audited LIABILITIES AND EQUITY CURRENT LIABILITIES: Credit from banks and others 2,112 2,101 2,160 Current maturities of lease liabilities 2,137 2,398 2,435 Deferred revenues 382 218 304 Income taxes payable 98 144 119 Trade payables 3,501 3,668 3,884 Other payables 7,007 7,353 8,536 15,237 15,882 17,438 NON-CURRENT LIABILITIES: Loans from banks 9,030 11,320 10,460 Deferred taxes 2,086 2,417 2,313 Lease liabilities 4,632 8,847 4,804 Employee benefit liabilities 1,591 1,488 1,573 Put option to non-controlling interests, net - 241 - 17,339 24,313 19,150 Total liabilities 32,576 40,195 36,588 EQUITY: Attributable to equity holders of the Company: Issued capital 48 48 48 Additional paid-in capital 156,637 155,874 156,334 Treasury shares (2) (2) (2) Foreign currency translation reserve (7,803) (6,693) (5,294) Capital reserve for options 1,514 1,514 1,514 Capital reserve for remeasurement gains on defined benefit plans 1,058 1,000 1,058 Accumulated deficit (84,131) (75,291) (80,130) 67,321 76,450 73,528 Non-controlling interests 2,947 3,179 2,933 Total equity 70,268 79,629 76,461 Total liabilities and equity 102,844 119,824 113,049 The accompanying notes are an integral part of the interim condensed consolidated financial statements. September 26, 2024 Date of approval of the Nir Rotenberg David Arnon financial statements Director CEO 

 

 

Financial Statements 8 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME U.S. dollars in thousands (except per share data) Six months ended Year ended June 30, December 31, 2024 2023 2023 Note Unaudited Audited Revenues 27,869 29,005 57,075 Cost of revenues 14,774 16,228 31,814 Gross profit 13,095 12,777 25,261 Research and development costs 2,597 2,389 5,260 Selling and marketing expenses 5,578 5,620 10,581 General and administrative expenses 8,427 8,689 16,228 Other expenses 415 529 2,198 Operating loss (3,922) (4,450) (9,006) Financial income 1,316 4,462 4,833 Financial expenses (819) (1,426) (1,791) Loss before taxes on income (3,425) (1,414) (5,964) Taxes on income 465 706 891 Net loss (3,890) (2,120) (6,855) Other comprehensive income: Other comprehensive income not to be reclassified to profit or loss in subsequent periods: Re-measurement gain on defined benefit plans - - 52 Other comprehensive loss to be reclassified to profit or loss in subsequent periods: Foreign currency translation reserve (2,614) (3,571) (2,119) Total other comprehensive loss (2,614) (3,571) (2,067) Total comprehensive loss (6,504) (5,691) (8,922) Net income (loss) attributable to: Equity holders of the Company (4,001) (2,217) (7,056) Non-controlling interests 111 97 201 (3,890) (2,120) (6,855) Total comprehensive income (loss) attributable to: Equity holders of the Company (6,510) (5,619) (9,001) Non-controlling interests 6 (72) 79 (6,504) (5,691) (8,922) Earnings per share attributable to equity holders of the Company: Basic loss (0.24) (0.14) (0.43) Diluted loss (0.24) (0.25) (0.54) The accompanying notes are an integral part of the interim condensed consolidated financial statements. 

 

 

Financial Statements 9 CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY U.S. dollars in thousands Capital Foreign Capital reserve for Additional currency reserve remeasurement Non- Issued paid-in Treasury translation for gains on defined Accumulated controlling Total capital capital shares reserve options benefit plans deficit Total interests equity Balance as of January 1, 2024 (audited) 48 156,334 (2) (5,294) 1,514 1,058 (80,130) 73,528 2,933 76,461 Share-based payments - 284 - - - - - 284 27 311 Equity component of transaction with non-controlling interest - 19 - - - - - 19 (19) - Net profit (loss) - - - - - - (4,001) (4,001) 111 (3,890) Total other comprehensive loss - - - (2,509) - - - (2,509) (105) (2,614) Balance as of June 30, 2024 (unaudited) 48 156,637 (2) (7,803) 1,514 1,058 (84,131) 67,321 2,947 70,268 Capital Foreign Capital reserve for Additional currency reserve remeasurement Non- Issued paid-in Treasury translation for gains on defined Accumulated controlling Total capital capital shares reserve options benefit plans deficit Total interests equity Balance as of January 1, 2023 (audited) 43 130,009 (2) (3,291) 1,002 1,000 (73,074) 55,687 3,602 59,289 Exercise of share options 5 25,114 - - 512 - - 25,631 - 25,631 Share-based payments - 691 - - - - - 691 85 776 Equity component of transaction with non-controlling interest - 60 - - - - - 60 (60) - Net profit (loss) - - - - - - (2,217) (2,217) 97 (2,120) Total other comprehensive loss - - - (3,402) - - - (3,402) (169) (3,571) Dividend to non-controlling interests - - - - - - - - (376) (376) Balance as of June 30, 2023 (unaudited) 48 155,874 (2) (6,693) 1,514 1,000 (75,291) 76,450 3,179 79,629 The accompanying notes are an integral part of the interim condensed consolidated financial statements. 

 

 

Financial Statements 10 CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY U.S. dollars in thousands Capital Foreign Capital reserve for Additional currency reserve remeasurement Non- Issued paid-in Treasury translation for gains on defined Accumulated controlling Total capital capital shares reserve options benefit plans deficit Total interests equity Balance as of January 1, 2023 (audited) 43 130,009 (2) (3,291) 1,002 1,000 (73,074) 55,687 3,602 59,289 Exercise of share options 5 25,114 - - 512 - - 25,631 - 25,631 Exercise of Employee options * * - - - - - - - - Share-based payments - 1,116 - - - - - 1,116 136 1,252 Equity component of transaction with non-controlling interest - 95 - - - - - 95 (95) - Dividend paid to non-controlling interests - - - - - - - - (789) (789) Net profit (loss) - - - - - - (7,056) (7,056) 201 (6,855) Total other comprehensive income (loss) - - - (2,003) - 58 - (1,945) (122) (2,067) Balance as of December 31, 2023 (audited) 48 156,334 (2) (5,294) 1,514 1,058 (80,130) 73,528 2,933 76,461 * Represents less than $1. The accompanying notes are an integral part of the interim condensed consolidated financial statements. 

 

 

Financial Statements 11 CONSOLIDATED STATEMENTS OF CASH FLOWS U.S. dollars in thousands Six months ended Year ended June 30, December 31, 2024 2023 2023 Unaudited Audited Cash flows from operating activities: Net loss (3,890) (2,120) (6,855) Adjustments required to reconcile net loss to net cash used in operating activities: Income and expenses not involving operating cash flows: Depreciation and amortization 3,715 3,512 7,692 Capital loss from disposals of property and equipment 51 16 278 Capital gain from amendment of lease liabilities - - (399) Change in employee benefit liabilities, net 74 69 180 Financial expenses (income), net 14 (2,432) (2,446) Valuation gains of short-term investments (557) (723) (848) Cost of share-based payments 311 776 1,252 Tax expenses 465 706 891 4,073 1,924 6,600 Changes in operating assets and liabilities: Decrease (increase) in trade receivables, net 458 (1,413) (975) Decrease (increase) in inventory 359 (411) (156) Decrease (increase) in prepaid expenses 169 (35) 44 Decrease (increase) in other accounts receivable (356) (368) 62 Increase (decrease) in trade payables (251) 98 235 Increase (decrease) in deferred revenues 90 (30) 51 Increase (decrease) in other accounts payable (916) (460) 965 (447) (2,619) 226 Cash paid and received: Interest received 900 566 621 Interest paid (575) (709) (1,296) Income tax received - 9 8 Income taxes paid (407) (344) (800) (82) (478) (1,467) Net cash used in operating activities (346) (3,293) (1,496) The accompanying notes are an integral part of the interim condensed consolidated financial statements. 

 

 

Financial Statements 12 CONSOLIDATED STATEMENTS OF CASH FLOWS U.S. dollars in thousands Six months ended Year ended June 30, December 31, 2024 2023 2023 Unaudited Audited Cash flows from investing activities: Purchase of property and equipment (867) (578) (1,289) Investment in intangible assets (1,629) (2,196) (4,203) Investment in short-term deposits - (9,783) (9,840) Proceeds from short-term deposits 10,032 5,900 5,855 Purchase of short-term investments (1,578) (963) (2,291) Proceeds from sale of short-term investments 1,344 1,022 2,422 Net cash provided by (used in) investing activities 7,302 (6,598) (9,346) Cash flows from financing activities: Dividend paid to non-controlling interests - (376) (789) Payment of lease liabilities (1,369) (1,237) (2,648) Exercise of share options - 20,298 20,298 Payment of long-term loans (1,054) (1,055) (2,070) Payment of liability to underwriter - (1,124) (1,124) Other - 12 - Net cash provided by (used in) financing activities (2,423) 16,518 13,667 Effect of exchange rate changes on cash and cash equivalents (336) (675) (615) Increase in cash and cash equivalents 4,197 5,952 2,210 Cash and cash equivalents at the beginning of the period 6,693 4,483 4,483 Cash and cash equivalents at the end of the period 10,890 10,435 6,693 Non-cash transactions: Right-of-use asset recognized with corresponding lease liability 1,147 1,065 (1,265) Liability derecognized and recorded in equity upon exercise of share options - 5,333 5,333 The accompanying notes are an integral part of the interim condensed consolidated financial statements. 

 

 

Financial Statements 13 NOTE 1 | GENERAL a. These consolidated financial statements have been prepared in a condensed format as of June 30, 2024 and for the six months then ended. These condensed consolidated financial statements should be read in conjunction with the annual consolidated financial statements and accompanying notes of SHL Telemedicine Ltd. (“the Company”) as of December 31, 2023 and for the year then ended (“the annual financial statements”). b. The effects of the Swords of Iron War: In continuation of the description in Note 1 to the annual consolidated financial statements regarding the effects of the Swords of Iron War (“the war”), the Company believes that the effects of the war on the Company’s business activities in the reporting period are not material. c. Following are data regarding the Israeli CPI and the exchange rates of the Euro, U.S. dollar and the Swiss Franc in relation to the new Israeli Shekel (NIS): Israeli Exchange rate CPI € 1 U.S. $ 1 CHF 1 For the period ended Points N I S June 30, 2024 253.8 4.02 3.76 4.18 June 30, 2023 246.7 4.02 3.7 4.11 December 31, 2023 248.6 4.01 3.63 4.31 Change during the period % June 2024 (6 months) 2.1 0.2 3.6 (3.1) June 2023 (6 months) 2.2 7.2 5.1 7.6 December 31, 2023 3 6. 9 3.1 12.8 * The index on an average basis of 1993 = 100. NOTE 2 | SIGNIFICANT ACCOUNTING POLICIES a. Basis of preparation of the interim condensed consolidated financial statements: The interim condensed consolidated financial statements for the six months ended June 30, 2024 have been prepared in accordance with generally accepted accounting principles for the preparation of financial statements for interim periods, as prescribed in IAS 34, “Interim Financial Reporting. The significant accounting policies and methods of computation adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the annual financial statements except as described in b. below. b. Initial adoption of amendments to International Financial Reporting Standards: Amendment to IAS 1, “Presentation of Financial Statements”: In January 2020, the IASB issued an amendment to IAS 1, “Presentation of Financial Statements” regarding the criteria for determining the classification of liabilities as current or non-current (“the Original Amendment”). In October 2022, the IASB issued a subsequent amendment (“the Subsequent Amendment”). According to the Subsequent Amendment: • Only financial covenants with which an entity must comply on or before the reporting date will affect a liability’s classification as current or non-current. • In respect of a liability for which compliance with financial covenants is to be evaluated within twelve months from the reporting date, disclosure is required to enable users of the financial statements to assess the risks related to that liability. The Subsequent Amendment requires disclosure of the carrying amount of the liability, information about the financial covenants, and the facts and circumstances at the end of the reporting period that could result in the conclusion that NOTES TO CONSOLIDATED STATEMENTS U.S. dollars in thousands 

 

 

Financial Statements 14 the entity may have difficulty in complying with the financial covenants. According to the Original Amendment, the conversion option of a liability affects the classification of the entire liability as current or non-current unless the conversion component is an equity instrument. The Original Amendment and Subsequent Amendment are applied retrospectively for annual periods beginning on January 1, 2024. The Amendments did not have a material impact on the Company’s interim consolidated financial statements. c. Disclosure of new Standarts in the period prior to adoption IFRS 18, “Presentation and Disclosure in Financial Statements”: In April 2024, the International Accounting Standards Board (“the IASB”) issued IFRS 18, “Presentation and Disclosure in Financial Statements” (“IFRS 18”) which replaces IAS 1, “Presentation of Financial Statements”. IFRS 18 is aimed at improving comparability and transparency of communication in financial statements. IFRS 18 retains certain existing requirements of IAS 1 and introduces new requirements on presentation within the statement of profit or loss, including specified totals and subtotals. It also requires disclosure of managementdefined performance measures and includes new requirements for aggregation and disaggregation of financial information. IFRS 18 does not modify the recognition and measurement provisions of items in the financial statements. However, since items within the statement of profit or loss must be classified into one of five categories (operating, investing, financing, taxes on income and discontinued operations), it may change the entity’s operating NOTES TO CONSOLIDATED STATEMENTS U.S. dollars in thousands profit. Moreover, the publication of IFRS 18 resulted in consequential narrow scope amendments to other accounting standards, including IAS 7, “Statement of Cash Flows”, and IAS 34, “Interim Financial Reporting”. IFRS 18 is effective for annual reporting periods beginning on or after January 1, 2027, and is to be applied retrospectively. Early adoption is permitted but will need to be disclosed. The Company is evaluating the effects of IFRS 18, including the effects of the consequential amendments to other accounting standards, on its consolidated financial statements. NOTE 3 | REVENUES Six months ended Year ended June 30, December 31, 2024 2023 2023 Unaudited Audited Revenues from services performed during the period 27,375 28,195 55,678 Revenues from sale of devices 494 810 1,397 27,869 29,005 57,075 NOTE 4 | MATERIAL EVENTS DURING THE REPORTING PERIOD a. In March, 2024 the Company announced that Erez Nachtomy, the Company’s CEO, will be stepping down as CEO in mid-June 2024. In June, 2024 the Company announced that Mr. Nachtomy has agreed to remain as the CEO until the end of August 2024. See also Note 6a regarding the appointment of a new CEO. 

 

 

Financial Statements 15 b. During the period, the Company’s Board of Directors approved the grant of 20,000 options to a consultant, under the 2021 Executive and Key Employee Israeli Share Incentive Plan. The options shall vest over a period of 3 years (25% after 1 year, and 9.375% each quarter thereafter). The fair value of options granted is CHF 1.403 ($ 1.571). The fair value was estimated based on the binomial model using the following data and assumptions: share price - CHF 4.89; exercise price – CHF 8.50; expected volatility – 53.06%; risk free interest rate – 0.65%; expected dividend – 0%; and expected average life of options 4.6 years. c. According to the terms of the Put and Call Options granted in the acquisition of the Mediton Group in 2021, the Put Option may be exercised for a period of one year commencing from September 2024. The fair value of the Put and Call options based on economic assumptions as to exercise date is insignificant as of June 30, 2024. See also Note 6e regarding the notice of exercising of the PUT option by non-controlling interests. NOTE 5 | SEGMENT INFORMATION As presented in the annual financial statements, the Group operates in three geographic segments: Israel, Europe (principally Germany) and Rest of the world (“Row”). Management monitors the operating results of its geographical units separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on segment profit. SG&A Group expenses and some research and development expenses are mostly allocated to the separate geographic units. Some corporate expenses, some research and development expenses, finance costs and finance income and income taxes are managed on a group basis and are not allocated to the geographic segments. Revenues are allocated based on the location of the end customer. The Group presents disaggregated revenue information based on types of customers: Individual customers and communities, Institutions and payers (income from service agreements with institutions, insurance companies and HMOs), and others. a. Segment revenues: Individuals Institutions and and communities payers Others Total Six months ended June 30, 2024 (unaudited): Europe - 6,557 - 6,557 Israel 10,195 10,745 - 20,940 Row - - 372 372 Total revenues 10,195 17,302 372 27,869 Six months ended June 30, 2023 (unaudited): Europe - 6,831 - 6,831 Israel 10,909 10,716 - 21,625 Row - - 549 549 Total revenues 10,909 17,547 549 29,005 Year ended December 31, 2023 (audited): Europe - 14,067 - 14,067 Israel 20,913 21,179 - 42,092 Row - - 916 916 Total revenues 20,913 35,246 916 57,075 NOTES TO CONSOLIDATED STATEMENTS U.S. dollars in thousands 

 

 

Financial Statements 16 b. Segment profit (loss): Six months ended Year ended June 30, December 31, 2024 2023 2023 Unaudited Audited Europe (1,699) (2,672) (5,347) Israel 3,912 3,976 8,424 Row (2,195) (1,488) (3,622) 18 (184) (545) Unallocated income and expenses: Corporate and R&D expenses (3,525) (3,737) (6,263) Other expenses (415) (529) (2,198) Operating loss (3,922) (4,450) (9,006) Financial income, net 497 3,036 3,042 Loss before taxes on income (3,425) (1,414) (5,964) NOTE 6 | FINANCIAL INSTRUMENTS a. In July, 2024 the Company announced that it has appointed Mr. David Arnon as CEO of the Company. b. In August, 2024 the Company announced that Mr. Yariv Alroy, Chairman of the Company, has informed the Company that he will be stepping down as Chairman and is resigning from the Board of Directors effective immediately. c. In September, 2024 the Company announced that it has appointed Dr. Itamar Ofer as the new Chairman of the Company. d. In September, 2024, following the approval of the Company’s Board of Directors, the Company’s Special General Meeting of the shareholders approved the grant of 400,000 options to the Company’s CEO, under the 2021 Executive and NOTES TO CONSOLIDATED STATEMENTS U.S. dollars in thousands Key Employee Israeli Share Incentive Plan. The options shall vest over a period of 4 years in equal annual installments (100,000 options for each installment). The exercise price for options to purchase up to 200,000 Ordinary Shares is CHF 7.12 ($ 8) per share, and for the remaining options to purchase 200,000 Ordinary Shares is CHF 5.34 ($ 6) per share. e. In September, 2024, the main non-controlling interest (“the Sellers”) provided notice to the Company that they were exercising their right (the “Put Option Right”) to require the Company to purchase all of the Sellers’ remaining holdings in Mediton Group according to the Share Purchase Agreement of Mediton in 2021. 

 

 

Financial Statements 17 Information For Investors Capital structure The issued share capital is divided into 16,391,382 registered shares with a par value of NIS 0.01 each (excluding 1,372 ordinary shares of NIS 0.01 par value each held by SHL) Significant shareholders % % Number of Including Excluding Ordinary Treasury Treasury Shares Held shares shares Mrs. Cai Mengke and Kun Shen 5,969,413 36.41% 36.42% More Provident Funds 1,812,525 11.06% 11.06% Value Base Group 1,368,837 8.35% 8.35% Sphera Funds Management Ltd 819,776 5.00% 5.00% Yariv Alroy 801,456 4.89% 4.89% Danbar Finance Ltd. 760,000 4.64% 4.64% SHL Treasury shares 1,372 0.01% - As of June 30, 2024, SHL was aware of the following shareholders with more than 3% of all voting rights in the company. The above table of Significant Shareholders reflects both actual holdings as of June 30, 2024, after deducting from the total number of shares outstanding 1,372 Ordinary Shares held by SHL, and actual holding as of June 30, 2024calculated including ordinary shares held by SHL, all as indicated above, but does not reflect holding on a fully diluted basis. All in accordance with notifications received by the Company from shareholders and the SAG registrar as of June 30, 2024. Statistics on SHL Telemedicine as at June 30, 2024 Registered shares with a par value of NIS 0.01 each Securities number 1128957 Number of shares* 16,391,382 Market price high/low (CHF) 7.0/3.5 Market capitalization high/low (CHF million) 114.7/57.4 Market capitalization 30/06/24 (CHF million) 75.4 Share capital – nominal value (NIS) 146,823 * Excluding 1,372 ordinary shares held by SHL. Share price development Listing All SHL shares are listed on SIX Swiss Exchange Ticker symbol: SHLTN Currency: CHF Listing date: November 15, 2000 SHL American Depository Shares (“ADS”) are listed on the Nasdaq Capital Market Exchange Ticker symbol: SHLT Currency: USD Listing date: April 3, 2003 Depository bank: Bank of New York Mellon Investor relations SHL Telemedicine Ltd. David Arnon, CEO Email: davida@shl-telemedicine.com Amir Hai, Chief Financial Officer Email: amirh@shl-telemedicine.com 90 Yigal Alon St., Tel Aviv 6789130, Israel Tel. ++972 3 561 2212 Fax: ++972 3 624 2414 

 

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Exhibit 99.4

 

SHL TELEMEDICINE LTD.
 
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
AS OF JUNE 30, 2024
 
U.S. DOLLARS IN THOUSANDS
 
UNAUDITED
 
INDEX
 
 
Page
   
F - 2
   
F - 3 - F - 4
   
F - 5
   
F - 6 - F - 7
   
F - 8 - F - 9
   
F - 10 - F - 15
 
 
 
image0.jpg
Kost Forer Gabbay & Kasierer
144 Menachem Begin Road, Building A,
Tel-Aviv 6492102, Israel
Tel: +972-3-6232525
Fax: +972-3-5622555
ey.com
 
Auditors' Review Report to the Shareholders and Board of Directors of SHL Telemedicine Ltd.
 
Introduction
 
We have reviewed the accompanying interim condensed consolidated financial statements of SHL Telemedicine Ltd. ("the Company") and its subsidiaries as of June 30, 2024, which comprise the interim consolidated balance sheet as of June 30, 2024, and the related interim consolidated statements of comprehensive income, changes in equity and cash flows for the six month period then ended and explanatory notes. Management is responsible for the preparation and presentation of this interim financial information in accordance with International Accounting Standard 34, "Interim Financial Reporting" ("IAS 34"). Our responsibility is to express a conclusion on this interim financial information based on our review.
 
Scope of review
 
We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
 
Conclusion
 
Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed consolidated financial statements are not prepared, in all material respects, in accordance with IAS 34.
 
Tel-Aviv, Israel
KOST FORER GABBAY & KASIERER
September 26 , 2024
A Member of Ernst & Young Global
 
F - 2
SHL TELEMEDICINE LTD.

 

CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
 
   
June 30,
    
December 31,
  
   
2024
    
2023
    
2023
  
   
Unaudited
    
Audited
  
ASSETS
                  
                   
CURRENT ASSETS:
                  
Cash and cash equivalents
    
10,890
      
10,435
      
6,693
  
Short-term investments
    
9,435
      
19,004
      
19,557
  
Trade receivables
    
7,805
      
8,788
      
8,557
  
Inventory
    
2,902
      
3,995
      
3,459
  
Other accounts receivable
    
2,080
      
2,176
      
1,792
  
                         
     
33,112
      
44,398
      
40,058
  
                         
NON-CURRENT ASSETS:
                        
Inventory
    
1,915
      
1,572
      
1,913
  
Prepaid expenses
    
2,941
      
3,234
      
3,220
  
Call option to non-controlling interests, net
    
-
      
-
      
147
  
Long-term deposits
    
317
      
334
      
328
  
Right-of-use assets
    
6,909
      
10,695
      
7,214
  
Deferred taxes
    
1,601
      
2,213
      
2,055
  
                         
     
13,683
      
18,048
      
14,877
  
                         
PROPERTY AND EQUIPMENT, NET
    
4,997
      
4,814
      
4,892
  
                         
GOODWILL
    
31,814
      
32,320
      
32,965
  
                         
INTANGIBLE ASSETS, NET
    
19,238
      
20,244
      
20,257
  
                         
Total assets
    
102,844
      
119,824
      
113,049
  
 
The accompanying notes are an integral part of the interim condensed consolidated financial statements.
 
F - 3
SHL TELEMEDICINE LTD.

 

CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
 
   
June 30,
    
December 31,
  
   
2024
    
2023
    
2023
  
   
Unaudited
    
Audited
  
LIABILITIES AND EQUITY
                  
                   
CURRENT LIABILITIES:
                  
Credit from banks and others
    
2,112
      
2,101
      
2,160
  
Current maturities of lease liabilities
    
2,137
      
2,398
      
2,435
  
Deferred revenues
    
382
      
218
      
304
  
Income taxes payable
    
98
      
144
      
119
  
Trade payables
    
3,501
      
3,668
      
3,884
  
Other payables
    
7,007
      
7,353
      
8,536
  
                         
     
15,237
      
15,882
      
17,438
  
                         
NON-CURRENT LIABILITIES:
                        
Loans from banks
    
9,030
      
11,320
      
10,460
  
Deferred taxes
    
2,086
      
2,417
      
2,313
  
Lease liabilities
    
4,632
      
8,847
      
4,804
  
Employee benefit liabilities
    
1,591
      
1,488
      
1,573
  
Put option to non-controlling interests, net
    
-
      
241
      
-
  
                         
     
17,339
      
24,313
      
19,150
  
                         
Total liabilities
    
32,576
      
40,195
      
36,588
  
                         
EQUITY:
                        
Attributable to equity holders of the Company:
                        
Issued capital
    
48
      
48
      
48
  
Additional paid-in capital
    
156,637
      
155,874
      
156,334
  
Treasury shares
    
(2
)
    
(2
)
    
(2
)
Foreign currency translation reserve
    
(7,803
)
    
(6,693
)
    
(5,294
)
Capital reserve for options
    
1,514
      
1,514
      
1,514
  
Capital reserve for remeasurement gains on defined benefit plans
    
1,058
      
1,000
      
1,058
  
Accumulated deficit
    
(84,131
)
    
(75,291
)
    
(80,130
)
                         
     
67,321
      
76,450
      
73,528
  
                         
Non-controlling interests
    
2,947
      
3,179
      
2,933
  
                         
Total equity
    
70,268
      
79,629
      
76,461
  
                         
Total liabilities and equity
    
102,844
      
119,824
      
113,049
  
 
The accompanying notes are an integral part of the interim condensed consolidated financial statements.
 
September 26, 2024
          
Date of approval of the
  
Nir Rotenberg
  
David Arnon
financial statements
  
Director
  
CEO
 
F - 4
SHL TELEMEDICINE LTD.

 

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
U.S. dollars in thousands (except per share data)
 
     
Six months ended
June 30,
    
Year ended
December 31,
  
 
Note
  
2024
    
2023
    
2023
  
     
Unaudited
    
Audited
  
                     
Revenues
      
27,869
      
29,005
      
57,075
  
Cost of revenues
      
14,774
      
16,228
      
31,814
  
                           
Gross profit
      
13,095
      
12,777
      
25,261
  
                           
Research and development costs
      
2,597
      
2,389
      
5,260
  
Selling and marketing expenses
      
5,578
      
5,620
      
10,581
  
General and administrative expenses
      
8,427
      
8,689
      
16,228
  
Other expenses
      
415
      
529
      
2,198
  
                           
Operating loss
      
(3,922
)
    
(4,450
)
    
(9,006
)
Financial income
      
1,316
      
4,462
      
4,833
  
Financial expenses
      
(819
)
    
(1,426
)
    
(1,791
)
                           
Loss before taxes on income
      
(3,425
)
    
(1,414
)
    
(5,964
)
Taxes on income
      
465
      
706
      
891
  
                           
Net loss
      
(3,890
)
    
(2,120
)
    
(6,855
)
                           
Other comprehensive income:
                          
                           
Other comprehensive income not to be reclassified to profit or loss in subsequent periods-
                          
Re-measurement gain on defined benefit plans
      
-
      
-
      
52
  
                           
Other comprehensive loss to be reclassified to profit or loss in subsequent periods:
                          
Foreign currency translation reserve
      
(2,614
)
    
(3,571
)
    
(2,119
)
                           
Total other comprehensive loss
      
(2,614
)
    
(3,571
)
    
(2,067
)
                           
Total comprehensive loss
      
(6,504
)
    
(5,691
)
    
(8,922
)
                           
Net income (loss) attributable to:
                          
Equity holders of the Company
      
(4,001
)
    
(2,217
)
    
(7,056
)
Non-controlling interests
      
111
      
97
      
201
  
                           
       
(3,890
)
    
(2,120
)
    
(6,855
)
Total comprehensive income (loss) attributable to:
                          
Equity holders of the Company
      
(6,510
)
    
(5,619
)
    
(9,001
)
Non-controlling interests
      
6
      
(72
)
    
79
  
                           
       
(6,504
)
    
(5,691
)
    
(8,922
)
Earnings per share attributable to equity holders of the Company:
                          
Basic loss
      
(0.24
)
    
(0.14
)
    
(0.43
)
Diluted loss
      
(0.24
)
    
(0.25
)
    
(0.54
)
 
The accompanying notes are an integral part of the interim condensed consolidated financial statements.

 

F - 5
SHL TELEMEDICINE LTD.

 

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
U.S. dollars in thousands
 
   
Issued
capital
    
Additional paid-in capital
    
Treasury shares
    
Foreign currency translation reserve
    
Capital reserve for options
    
Capital
reserve for remeasurement gains on defined benefit plans
    
Accumulated deficit
    
Total
    
Non-controlling interests
    
Total
equity
  
                                                             
Balance as of January 1, 2024 (audited)
    
48
      
156,334
      
(2
)
    
(5,294
)
    
1,514
      
1,058
      
(80,130
)
    
73,528
      
2,933
      
76,461
  
                                                                                 
Share-based payments
    
-
      
284
      
-
      
-
      
-
      
-
      
-
      
284
      
27
      
311
  
Equity component of transaction with non-controlling interest
    
-
      
19
      
-
      
-
      
-
      
-
      
-
      
19
      
(19
)
    
-
  
Net profit (loss)
    
-
      
-
      
-
      
-
      
-
      
-
      
(4,001
)
    
(4,001
)
    
111
      
(3,890
)
Total other comprehensive loss
    
-
      
-
      
-
      
(2,509
)
    
-
      
-
      
-
      
(2,509
)
    
(105
)
    
(2,614
)
                                                                                 
Balance as of June 30, 2024 (unaudited)
    
48
      
156,637
      
(2
)
    
(7,803
)
    
1,514
      
1,058
      
(84,131
)
    
67,321
      
2,947
      
70,268
  
 
   
Issued
capital
    
Additional paid-in capital
    
Treasury shares
    
Foreign currency translation reserve
    
Capital reserve for options
    
Capital
reserve for remeasurement gains on defined benefit plans
    
Accumulated deficit
    
Total
    
Non-controlling interests
    
Total
equity
  
                                                             
Balance as of January 1, 2023 (audited)
    
43
      
130,009
      
(2
)
    
(3,291
)
    
1,002
      
1,000
      
(73,074
)
    
55,687
      
3,602
      
59,289
  
                                                                                 
Exercise of share options
    
5
      
25,114
      
-
      
-
      
512
      
-
      
-
      
25,631
      
-
      
25,631
  
Share-based payments
    
-
      
691
      
-
      
-
      
-
      
-
      
-
      
691
      
85
      
776
  
Equity component of transaction with non-controlling interest
    
-
      
60
      
-
      
-
      
-
      
-
      
-
      
60
      
(60
)
    
-
  
Net profit (loss)
    
-
      
-
      
-
      
-
      
-
      
-
      
(2,217
)
    
(2,217
)
    
97
      
(2,120
)
Total other comprehensive loss
    
-
      
-
      
-
      
(3,402
)
    
-
      
-
      
-
      
(3,402
)
    
(169
)
    
(3,571
)
Dividend to non-controlling interests
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
(376
)
    
(376
)
                                                                                 
Balance as of June 30, 2023 (unaudited)
    
48
      
155,874
      
(2
)
    
(6,693
)
    
1,514
      
1,000
      
(75,291
)
    
76,450
      
3,179
      
79,629
  
 
The accompanying notes are an integral part of the interim condensed consolidated financial statements.
 
F - 6
SHL TELEMEDICINE LTD.

 

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
U.S. dollars in thousands
 
   
Issued
capital
    
Additional paid-in capital
    
Treasury shares
    
Foreign currency translation reserve
    
Capital reserve for options
    
Capital
reserve for remeasurement gains on defined benefit plans
    
Accumulated deficit
    
Total
    
Non-controlling interests
    
Total
equity
  
                                                             
Balance as of January 1, 2023 (audited)
    
43
      
130,009
      
(2
)
    
(3,291
)
    
1,002
      
1,000
      
(73,074
)
    
55,687
      
3,602
      
59,289
  
                                                                                 
Exercise of share options
    
5
      
25,114
      
-
      
-
      
512
      
-
      
-
      
25,631
      
-
      
25,631
  
Exercise of Employee options
    
*
)
    
*
)
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Share-based payments
    
-
      
1,116
      
-
      
-
      
-
      
-
      
-
      
1,116
      
136
      
1,252
  
Equity component of transaction with non-controlling interest
    
-
      
95
      
-
      
-
      
-
      
-
      
-
      
95
      
(95
)
    
-
  
Dividend paid to non-controlling interests
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
(789
)
    
(789
)
Net profit (loss)
    
-
      
-
      
-
      
-
      
-
      
-
      
(7,056
)
    
(7,056
)
    
201
      
(6,855
)
Total other comprehensive income (loss)
    
-
      
-
      
-
      
(2,003
)
    
-
      
58
      
-
      
(1,945
)
    
(122
)
    
(2,067
)
                                                                                 
Balance as of December 31, 2023 (audited)
    
48
      
156,334
      
(2
)
    
(5,294
)
    
1,514
      
1,058
      
(80,130
)
    
73,528
      
2,933
      
76,461
  
 
*)          Represents less than $1.
 
The accompanying notes are an integral part of the interim condensed consolidated financial statements.

 

F - 7
SHL TELEMEDICINE LTD.

 

CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
 
   
Six months ended
June 30,
    
Year ended December 31,
  
   
2024
    
2023
    
2023
  
   
Unaudited
    
Audited
  
Cash flows from operating activities:
                  
                   
Net loss
    
(3,890
)
    
(2,120
)
    
(6,855
)
                         
Adjustments required to reconcile net loss to net cash used in operating activities:
                        
                         
Income and expenses not involving operating cash flows:
                        
                         
Depreciation and amortization
    
3,715
      
3,512
      
7,692
  
Capital loss from disposals of property and equipment
    
51
      
16
      
278
  
Capital gain from amendment of lease liabilities
    
-
      
-
      
(399
)
Change in employee benefit liabilities, net
    
74
      
69
      
180
  
Financial expenses (income), net
    
14
      
(2,432
)
    
(2,446
)
Valuation gains of short-term investments
    
(557
)
    
(723
)
    
(848
)
Cost of share-based payments
    
311
      
776
      
1,252
  
Tax expenses
    
465
      
706
      
891
  
                         
     
4,073
      
1,924
      
6,600
  
Changes in operating assets and liabilities:
                        
                         
Decrease (increase) in trade receivables, net
    
458
      
(1,413
)
    
(975
)
Decrease (increase) in inventory
    
359
      
(411
)
    
(156
)
Decrease (increase) in prepaid expenses
    
169
      
(35
)
    
44
  
Decrease (increase) in other accounts receivable
    
(356
)
    
(368
)
    
62
  
Increase (decrease) in trade payables
    
(251
)
    
98
      
235
  
Increase (decrease) in deferred revenues
    
90
      
(30
)
    
51
  
Increase (decrease) in other accounts payable
    
(916
)
    
(460
)
    
965
  
                         
     
(447
)
    
(2,619
)
    
226
  
Cash paid and received:
                        
                         
Interest received
    
900
      
566
      
621
  
Interest paid
    
(575
)
    
(709
)
    
(1,296
)
Income tax received
    
-
      
9
      
8
  
Income taxes paid
    
(407
)
    
(344
)
    
(800
)
                         
     
(82
)
    
(478
)
    
(1,467
)
                         
Net cash used in operating activities
    
(346
)
    
(3,293
)
    
(1,496
)
 
The accompanying notes are an integral part of the interim condensed consolidated financial statements.
 
F - 8
SHL TELEMEDICINE LTD.
 
CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
 
   
Six months ended
June 30,
    
Year ended
December 31,
  
   
2024
    
2023
    
2023
  
   
Unaudited
    
Audited
  
Cash flows from investing activities:
                  
                   
Purchase of property and equipment
    
(867
)
    
(578
)
    
(1,289
)
Investment in intangible assets
    
(1,629
)
    
(2,196
)
    
(4,203
)
Investment in short-term deposits
    
-
      
(9,783
)
    
(9,840
)
Proceeds from short-term deposits
    
10,032
      
5,900
      
5,855
  
Purchase of short-term investments
    
(1,578
)
    
(963
)
    
(2,291
)
Proceeds from sale of short-term investments
    
1,344
      
1,022
      
2,422
  
                         
Net cash provided by (used in) investing activities
    
7,302
      
(6,598
)
    
(9,346
)
                         
Cash flows from financing activities:
                        
                         
Dividend paid to non-controlling interests
    
-
      
(376
)
    
(789
)
Payment of lease liabilities
    
(1,369
)
    
(1,237
)
    
(2,648
)
Exercise of share options
    
-
      
20,298
      
20,298
  
Payment of long-term loans
    
(1,054
)
    
(1,055
)
    
(2,070
)
Payment of liability to underwriter
    
-
      
(1,124
)
    
(1,124
)
Other
    
-
      
12
      
-
  
                         
Net cash provided by (used in) financing activities
    
(2,423
)
    
16,518
      
13,667
  
                         
Effect of exchange rate changes on cash and cash equivalents
    
(336
)
    
(675
)
    
(615
)
                         
Increase in cash and cash equivalents
    
4,197
      
5,952
      
2,210
  
Cash and cash equivalents at the beginning of the period
    
6,693
      
4,483
      
4,483
  
                         
Cash and cash equivalents at the end of the period
    
10,890
      
10,435
      
6,693
  
                         
Non-cash transactions:
                        
                         
Right-of-use asset recognized with corresponding lease liability
    
1,147
      
1,065
      
(1,265
)
                         
Liability derecognized and recorded in equity upon exercise of share options
    
-
      
5,333
      
5,333
  
 
The accompanying notes are an integral part of the interim condensed consolidated financial statements.

 

F - 9
SHL TELEMEDICINE LTD.

 

NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars in thousands (except per share data)

 

NOTE 1:-
GENERAL
 
  a.
These consolidated financial statements have been prepared in a condensed format as of June 30, 2024 and for the six months then ended. These condensed consolidated financial statements should be read in conjunction with the annual consolidated financial statements and accompanying notes of SHL Telemedicine Ltd. ("the Company") as of December 31, 2023 and for the year then ended ("the annual financial statements").
 
  b.
The effects of the Swords of Iron War:
 
In continuation of the description in Note 1 to the annual consolidated financial statements regarding the effects of the Swords of Iron War ("the war"), the Company believes that the effects of the war on the Company's business activities in the reporting period are not material.
 
  c.
Following are data regarding the Israeli CPI and the exchange rates of the Euro, U.S. dollar and the Swiss Franc in relation to the new Israeli Shekel (NIS):
 
   
Israeli
    
Exchange rate
  
   
CPI
    
 
€ 1
    
 
U.S. $ 1
    
CHF 1
  
For the period ended
  
Points
    
N I S
  
                             
June 30, 2024
    
253.8
      
4.02
      
3.76
      
4.18
  
June 30, 2023
    
246.7
      
4.02
      
3.7
      
4.11
  
December 31, 2023
    
248.6
      
4.01
      
3.63
      
4.31
  
                                 
Change during the period
  
%
    
%
    
%
    
%
  
                                 
June 2024 (6 months)
    
2.1
      
0.2
      
3.6
      
(3.1
)
June 2023 (6 months)
    
2.2
      
7.2
      
5.1
      
7.6
  
December 31, 2023
    
3
      
6.9
      
3.1
      
12.8
  
 
  *)
The index on an average basis of 1993 = 100.

 

NOTE 2:-      SIGNIFICANT ACCOUNTING POLICIES

 

  a.
Basis of preparation of the interim condensed consolidated financial statements:
 
The interim condensed consolidated financial statements for the six months ended June 30, 2024 have been prepared in accordance with generally accepted accounting principles for the preparation of financial statements for interim periods, as prescribed in IAS 34, "Interim Financial Reporting.
 
The significant accounting policies and methods of computation adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the annual financial statements except as described in b. below.
 
F - 10

SHL TELEMEDICINE LTD.

 

NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands (except per share data)

 
NOTE 2:-      SIGNIFICANT ACCOUNTING POLICIES (Cont.)
 
  b.
Initial adoption of amendments to International Financial Reporting Standards:
 
Amendment to IAS 1, "Presentation of Financial Statements":
 
In January 2020, the IASB issued an amendment to IAS 1, "Presentation of Financial Statements" regarding the criteria for determining the classification of liabilities as current or non-current ("the Original Amendment"). In October 2022, the IASB issued a subsequent amendment ("the Subsequent Amendment").
 
According to the Subsequent Amendment:
 
  •
Only financial covenants with which an entity must comply on or before the reporting date will affect a liability's classification as current or non-current.
 
  •
In respect of a liability for which compliance with financial covenants is to be evaluated within twelve months from the reporting date, disclosure is required to enable users of the financial statements to assess the risks related to that liability. The Subsequent Amendment requires disclosure of the carrying amount of the liability, information about the financial covenants, and the facts and circumstances at the end of the reporting period that could result in the conclusion that the entity may have difficulty in complying with the financial covenants.
 
According to the Original Amendment, the conversion option of a liability affects the classification of the entire liability as current or non-current unless the conversion component is an equity instrument.
 
The Original Amendment and Subsequent Amendment are applied retrospectively for annual periods beginning on January 1, 2024.
 
The Amendments did not have a material impact on the Company's interim consolidated financial statements.
 
  c.
Disclosure of new Standards in the period prior to adoption:
 
IFRS 18, "Presentation and Disclosure in Financial Statements":
 
In April 2024, the International Accounting Standards Board ("the IASB") issued IFRS 18, "Presentation and Disclosure in Financial Statements" ("IFRS 18") which replaces IAS 1, "Presentation of Financial Statements".
 
IFRS 18 is aimed at improving comparability and transparency of communication in financial statements.
 
IFRS 18 retains certain existing requirements of IAS 1 and introduces new requirements on presentation within the statement of profit or loss, including specified totals and subtotals. It also requires disclosure of management-defined performance measures and includes new requirements for aggregation and disaggregation of financial information.
 
IFRS 18 does not modify the recognition and measurement provisions of items in the financial statements. However, since items within the statement of profit or loss must be classified into one of five categories (operating, investing, financing, taxes on income and discontinued operations), it may change the entity's operating profit. Moreover, the publication of IFRS 18 resulted in consequential narrow scope amendments to other accounting standards, including IAS 7, "Statement of Cash Flows", and IAS 34, "Interim Financial Reporting".
 
IFRS 18 is effective for annual reporting periods beginning on or after January 1, 2027, and is to be applied retrospectively. Early adoption is permitted but will need to be disclosed.
 
The Company is evaluating the effects of IFRS 18, including the effects of the consequential amendments to other accounting standards, on its consolidated financial statements
 
F - 11

SHL TELEMEDICINE LTD.

 

NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands (except per share data)

 
NOTE 3:-      REVENUES
 
   
Six months ended
June 30,
    
Year ended
December 31,
  
   
2024
    
2023
    
2023
  
   
Unaudited
    
Audited
  
                   
Revenues from services performed during the period
    
27,375
      
28,195
      
55,678
  
Revenues from sale of devices
    
494
      
810
      
1,397
  
                         
     
27,869
      
29,005
      
57,075
  
 
NOTE 4:-
MATERIAL EVENTS DURING THE REPORTING PERIOD
 
  a.
In March, 2024 the Company announced that Erez Nachtomy, the Company's CEO, will be stepping down as CEO in mid-June 2024. In June, 2024 the Company announced that Mr. Nachtomy has agreed to remain as the CEO until the end of August 2024. See also Note 6a regarding the appointment of a new CEO.
 
  b.
During the period, the Company's Board of Directors approved the grant of 20,000 options to a consultant, under the 2021 Executive and Key Employee Israeli Share Incentive Plan. The options shall vest over a period of 3 years (25% after 1 year, and 9.375% each quarter thereafter). The fair value of options granted is CHF 1.403 ($ 1.571). The fair value was estimated based on the binomial model using the following data and assumptions: share price - CHF 4.89; exercise price – CHF 8.50; expected volatility – 53.06%; risk free interest rate – 0.65%; expected dividend – 0%; and expected average life of options 4.6 years.
 
  c.
According to the terms of the Put and Call Options granted in the acquisition of the Mediton Group in 2021, the Put Option may be exercised for a period of one year commencing from September 2024. The fair value of the Put and Call options based on economic assumptions as to exercise date is insignificant as of June 30, 2024. See also Note 6e regarding the notice of exercising of the PUT option by non-controlling interests.
 
F - 12

SHL TELEMEDICINE LTD.

 

NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands (except per share data)

 
NOTE 5:-      SEGMENT INFORMATION
 
As presented in the annual financial statements, the Group operates in three geographic segments: Israel, Europe (principally Germany) and Rest of the world ("Row").
 
Management monitors the operating results of its geographical units separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on segment profit. SG&A Group expenses and some research and development expenses are mostly allocated to the separate geographic units. Some corporate expenses, some research and development expenses, finance costs and finance income and income taxes are managed on a group basis and are not allocated to the geographic segments.
 
Revenues are allocated based on the location of the end customer. The Group presents disaggregated revenue information based on types of customers: Individual customers and communities, Institutions and payers (income from service agreements with institutions, insurance companies and HMOs), and others.
 
  a.
Segment revenues:
 
   
Individuals and communities
    
Institutions and payers
    
Others
    
Total
  
Six months ended June 30, 2024 (unaudited):
                        
                         
Europe
    
-
      
6,557
      
-
      
6,557
  
Israel
    
10,195
      
10,745
      
-
      
20,940
  
Row
    
-
      
-
      
372
      
372
  
                                 
Total revenues
    
10,195
      
17,302
      
372
      
27,869
  
                                 
                                 
                                 
Six months ended June 30, 2023 (unaudited):
                                
                                 
Europe
    
-
      
6,831
      
-
      
6,831
  
Israel
    
10,909
      
10,716
      
-
      
21,625
  
Row
    
-
      
-
      
549
      
549
  
                                 
Total revenues
    
10,909
      
17,547
      
549
      
29,005
  
 
F - 13

SHL TELEMEDICINE LTD.

 

NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands (except per share data)

 
NOTE 5:-      SEGMENT INFORMATION (Cont.)
 
   
Individuals and communities
    
Institutions and payers
    
Others
    
Total
  
                         
Year ended December 31, 2023 (audited):
                        
                         
Europe
    
-
      
14,067
      
-
      
14,067
  
Israel
    
20,913
      
21,179
      
-
      
42,092
  
Row
    
-
      
-
      
916
      
916
  
                                 
Total revenues
    
20,913
      
35,246
      
916
      
57,075
  
 
  b.
Segment profit (loss):
 
   
Six months ended
June 30,
    
Year ended
December 31,
  
   
2024
    
2023
    
2023
  
   
Unaudited
    
Audited
  
                   
Europe
    
(1,699
)
    
(2,672
)
    
(5,347
)
Israel
    
3,912
      
3,976
      
8,424
  
Row
    
(2,195
)
    
(1,488
)
    
(3,622
)
                         
     
18
      
(184
)
    
(545
)
Unallocated income and expenses:
                        
Corporate and R&D expenses
    
(3,525
)
    
(3,737
)
    
(6,263
)
Other expenses
    
(415
)
    
(529
)
    
(2,198
)
                         
Operating loss
    
(3,922
)
    
(4,450
)
    
(9,006
)
Financial income, net
    
497
      
3,036
      
3,042
  
                         
Loss before taxes on income
    
(3,425
)
    
(1,414
)
    
(5,964
)

 

F - 14

SHL TELEMEDICINE LTD.

 

NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands (except per share data)

 
NOTE 6:-
SUBSEQUENT EVENTS
 
  a.
In July, 2024 the Company announced that it has appointed Mr. David Arnon as CEO of the Company.
 
  b.
In August, 2024 the Company announced that Mr. Yariv Alroy, Chairman of the Company, has informed the Company that he will be stepping down as Chairman and is resigning from the Board of Directors effective immediately.
 
  c.
In September, 2024 the Company announced that it has appointed Dr. Itamar Ofer as the new Chairman of the Company.
 
  d.
In September, 2024, following the approval of the Company's Board of Directors, the Company's Special General Meeting of the shareholders approved the grant of 400,000 options to the Company's CEO, under the 2021 Executive and Key Employee Israeli Share Incentive Plan. The options shall vest over a period of 4 years in equal annual installments (100,000 options for each installment). The exercise price for options to purchase up to 200,000 Ordinary Shares is CHF 7.12 ($ 8) per share, and for the remaining options to purchase 200,000 Ordinary Shares is CHF 5.34 ($ 6) per share.
 
  e.
In September, 2024, the main non-controlling interest ("the Sellers") provided notice to the Company that they were exercising their right (the "Put Option Right") to require the Company to purchase all of the Sellers’ remaining holdings in Mediton Group according to the Share Purchase Agreement of Mediton in 2021.
 
F - 15
v3.24.3
Document and Entity Information
 6 Months Ended
Jun. 30, 2024
Document Information  
Document Type 6-K
Document Period End Date Jun. 30, 2024
Entity Registrant Name SHL TELEMEDICINE LTD
Entity Central Index Key 0001166834
Current Fiscal Year End Date --12-31
Document Fiscal Year Focus 2024
Document Fiscal Period Focus Q2
Amendment Flag false
v3.24.3
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Jun. 30, 2023
CURRENT ASSETS:      
Cash and cash equivalents $ 10,890 $ 6,693 $ 10,435
Short-term investments 9,435 19,557 19,004
Trade receivables 7,805 8,557 8,788
Inventory 2,902 3,459 3,995
Other accounts receivable 2,080 1,792 2,176
Total current assets 33,112 40,058 44,398
NON-CURRENT ASSETS:      
Inventory 1,915 1,913 1,572
Prepaid expenses 2,941 3,220 3,234
Call option to non-controlling interests, net 0 147 0
Long-term deposits 317 328 334
Right-of-use assets 6,909 7,214 10,695
Deferred taxes 1,601 2,055 2,213
Total non-current assets other than long-lived assets 13,683 14,877 18,048
PROPERTY AND EQUIPMENT, NET 4,997 4,892 4,814
GOODWILL 31,814 32,965 32,320
INTANGIBLE ASSETS, NET 19,238 20,257 20,244
Total assets 102,844 113,049 119,824
CURRENT LIABILITIES:      
Credit from banks and others 2,112 2,160 2,101
Current maturities of lease liabilities 2,137 2,435 2,398
Deferred revenues 382 304 218
Income taxes payable 98 119 144
Trade payables 3,501 3,884 3,668
Other payables 7,007 8,536 7,353
Total current liabilities 15,237 17,438 15,882
NON-CURRENT LIABILITIES:      
Loans from banks 9,030 10,460 11,320
Deferred taxes 2,086 2,313 2,417
Lease liabilities 4,632 4,804 8,847
Employee benefit liabilities 1,591 1,573 1,488
Put option to non-controlling interests, net 0 0 241
Total non-current liabilities 17,339 19,150 24,313
Total liabilities 32,576 36,588 40,195
Attributable to equity holders of the Company:      
Issued capital 48 48 48
Additional paid-in capital 156,637 156,334 155,874
Treasury shares (2) (2) (2)
Foreign currency translation reserve (7,803) (5,294) (6,693)
Capital reserve for options 1,514 1,514 1,514
Capital reserve for remeasurement gains on defined benefit plans 1,058 1,058 1,000
Accumulated deficit (84,131) (80,130) (75,291)
Total 67,321 73,528 76,450
Non-controlling interests 2,947 2,933 3,179
Total equity 70,268 76,461 79,629
Total liabilities and equity $ 102,844 $ 113,049 $ 119,824
v3.24.3
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
 6 Months Ended 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Dec. 31, 2023
Profit or loss [abstract]      
Revenues $ 27,869 $ 29,005 $ 57,075
Cost of revenues 14,774 16,228 31,814
Gross profit 13,095 12,777 25,261
Research and development costs 2,597 2,389 5,260
Selling and marketing expenses 5,578 5,620 10,581
General and administrative expenses 8,427 8,689 16,228
Other expenses 415 529 2,198
Operating loss (3,922) (4,450) (9,006)
Financial income 1,316 4,462 4,833
Financial expenses (819) (1,426) (1,791)
Loss before taxes on income (3,425) (1,414) (5,964)
Taxes on income 465 706 891
Net loss (3,890) (2,120) (6,855)
Other comprehensive income:      
Re-measurement gain on defined benefit plans 0 0 52
Other comprehensive loss to be reclassified to profit or loss in subsequent periods:      
Foreign currency translation reserve (2,614) (3,571) (2,119)
Total other comprehensive loss (2,614) (3,571) (2,067)
Total comprehensive loss (6,504) (5,691) (8,922)
Net income (loss) attributable to:      
Equity holders of the Company (4,001) (2,217) (7,056)
Non-controlling interests 111 97 201
Net profit (loss) (3,890) (2,120) (6,855)
Total comprehensive income (loss) attributable to:      
Equity holders of the Company (6,510) (5,619) (9,001)
Non-controlling interests 6 (72) 79
Total comprehensive loss $ (6,504) $ (5,691) $ (8,922)
Earnings per share attributable to equity holders of the Company:      
Basic loss $ (0.24) $ (0.14) $ (0.43)
Diluted loss $ (0.24) $ (0.25) $ (0.54)
v3.24.3
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($)
$ in Thousands
Total
Issued capital
Additional paid-in capital
Treasury shares
Foreign currency translation reserve
Capital reserve for options
Capital reserve for remeasurement gains on defined benefit plans
Accumulated deficit
Non- controlling interests
Total
Balance as of beginning at Dec. 31, 2022 $ 55,687 $ 43 $ 130,009 $ (2) $ (3,291) $ 1,002 $ 1,000 $ (73,074) $ 3,602 $ 59,289
Exercise of share options 25,631 5 25,114 0 0 512 0 0 0 25,631
Share-based payments 691 0 691 0 0 0 0 0 85 776
Equity component of transaction with non-controlling interest 60 0 60 0 0 0 0 0 (60) 0
Net profit (loss) (2,217) 0 0 0 0 0   (2,217) 97 (2,120)
Total other comprehensive loss (3,402) 0 0 0 (3,402) 0 0 0 (169) (3,571)
Dividend paid to non-controlling interests 0 0 0 0 0 0 0 0 (376) (376)
Balance as of ending at Jun. 30, 2023 76,450 48 155,874 (2) (6,693) 1,514 1,000 (75,291) 3,179 79,629
Balance as of beginning at Dec. 31, 2022 55,687 43 130,009 (2) (3,291) 1,002 1,000 (73,074) 3,602 59,289
Exercise of share options 25,631 5 25,114 0 0 512 0 0 0 25,631
Exercise of Employee options 0 [1] [1] 0 0 0 0 0 0 0
Share-based payments 1,116 0 1,116 0 0 0 0 0 136 1,252
Equity component of transaction with non-controlling interest 95 0 95 0 0 0 0 0 (95) 0
Net profit (loss) (7,056) 0 0 0 0 0   (7,056) 201 (6,855)
Total other comprehensive loss (1,945) 0 0 0 (2,003) 0 58 0 (122) (2,067)
Dividend paid to non-controlling interests 0 0 0 0 0 0 0 0 (789) (789)
Balance as of ending at Dec. 31, 2023 73,528 48 156,334 (2) (5,294) 1,514 1,058 (80,130) 2,933 76,461
Share-based payments 284 0 284 0 0 0 0 0 27 311
Equity component of transaction with non-controlling interest 19 0 19 0 0 0 0 0 (19) 0
Net profit (loss) (4,001) 0 0 0 0 0   (4,001) 111 (3,890)
Total other comprehensive loss (2,509) 0 0 0 (2,509) 0 0 0 (105) (2,614)
Balance as of ending at Jun. 30, 2024 $ 67,321 $ 48 $ 156,637 $ (2) $ (7,803) $ 1,514 $ 1,058 $ (84,131) $ 2,947 $ 70,268
[1] Represents less than $1
v3.24.3
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 6 Months Ended 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Dec. 31, 2023
Cash flows from operating activities:      
Net loss $ (3,890) $ (2,120) $ (6,855)
Income and expenses not involving operating cash flows:      
Depreciation and amortization 3,715 3,512 7,692
Capital loss from disposals of property and equipment 51 16 278
Capital gain from amendment of lease liabilities 0 0 (399)
Change in employee benefit liabilities, net 74 69 180
Financial expenses (income), net 14 (2,432) (2,446)
Valuation gains of short-term investments (557) (723) (848)
Cost of share-based payments 311 776 1,252
Tax expenses 465 706 891
Income and expenses not involving operating cash flows 4,073 1,924 6,600
Changes in operating assets and liabilities:      
Decrease (increase) in trade receivables, net 458 (1,413) (975)
Decrease (increase) in inventory 359 (411) (156)
Decrease (increase) in prepaid expenses 169 (35) 44
Decrease (increase) in other accounts receivable (356) (368) 62
Increase (decrease) in trade payables (251) 98 235
Increase (decrease) in deferred revenues 90 (30) 51
Increase (decrease) in other accounts payable (916) (460) 965
Changes in operating assets and liabilities (447) (2,619) 226
Cash paid and received:      
Interest received 900 566 621
Interest paid (575) (709) (1,296)
Income tax received 0 9 8
Income taxes paid (407) (344) (800)
Cash paid and received (82) (478) (1,467)
Net cash used in operating activities (346) (3,293) (1,496)
Cash flows from investing activities:      
Purchase of property and equipment (867) (578) (1,289)
Investment in intangible assets (1,629) (2,196) (4,203)
Investment in short-term deposits 0 (9,783) (9,840)
Proceeds from short-term deposits 10,032 5,900 5,855
Purchase of short-term investments (1,578) (963) (2,291)
Proceeds from sale of short-term investments 1,344 1,022 2,422
Net cash provided by (used in) investing activities 7,302 (6,598) (9,346)
Cash flows from financing activities:      
Dividend paid to non-controlling interests 0 (376) (789)
Payment of lease liabilities (1,369) (1,237) (2,648)
Exercise of share options 0 20,298 20,298
Payment of long-term loans (1,054) (1,055) (2,070)
Payment of liability to underwriter 0 (1,124) (1,124)
Other 0 12 0
Net cash provided by (used in) financing activities (2,423) 16,518 13,667
Effect of exchange rate changes on cash and cash equivalents (336) (675) (615)
Increase in cash and cash equivalents 4,197 5,952 2,210
Cash and cash equivalents at the beginning of the period 6,693 4,483 4,483
Cash and cash equivalents at the end of the period 10,890 10,435 6,693
Non-cash transactions:      
Right-of-use asset recognized with corresponding lease liability 1,147 1,065 (1,265)
Liability derecognized and recorded in equity upon exercise of share options $ 0 $ 5,333 $ 5,333
v3.24.3
GENERAL
 6 Months Ended
Jun. 30, 2024
Disclosure Of General Information About Financial Statements Abstract  
GENERAL
NOTE 1:-
GENERAL
 
  a.
These consolidated financial statements have been prepared in a condensed format as of June 30, 2024 and for the six months then ended. These condensed consolidated financial statements should be read in conjunction with the annual consolidated financial statements and accompanying notes of SHL Telemedicine Ltd. ("the Company") as of December 31, 2023 and for the year then ended ("the annual financial statements").
 
  b.
The effects of the Swords of Iron War:
 
In continuation of the description in Note 1 to the annual consolidated financial statements regarding the effects of the Swords of Iron War ("the war"), the Company believes that the effects of the war on the Company's business activities in the reporting period are not material.
 
  c.
Following are data regarding the Israeli CPI and the exchange rates of the Euro, U.S. dollar and the Swiss Franc in relation to the new Israeli Shekel (NIS):
 
   
Israeli
    
Exchange rate
  
   
CPI
    
 
€ 1
    
 
U.S. $ 1
    
CHF 1
  
For the period ended
  
Points
    
N I S
  
                             
June 30, 2024
    
253.8
      
4.02
      
3.76
      
4.18
  
June 30, 2023
    
246.7
      
4.02
      
3.7
      
4.11
  
December 31, 2023
    
248.6
      
4.01
      
3.63
      
4.31
  
                                 
Change during the period
  
%
    
%
    
%
    
%
  
                                 
June 2024 (6 months)
    
2.1
      
0.2
      
3.6
      
(3.1
)
June 2023 (6 months)
    
2.2
      
7.2
      
5.1
      
7.6
  
December 31, 2023
    
3
      
6.9
      
3.1
      
12.8
  
 
  *)
The index on an average basis of 1993 = 100.
v3.24.3
SIGNIFICANT ACCOUNTING POLICIES
 6 Months Ended
Jun. 30, 2024
Disclosure Of Summary Of Significant Accounting Policies Abstract  
SIGNIFICANT ACCOUNTING POLICIES
NOTE 2:-      SIGNIFICANT ACCOUNTING POLICIES

 

  a.
Basis of preparation of the interim condensed consolidated financial statements:
 
The interim condensed consolidated financial statements for the six months ended June 30, 2024 have been prepared in accordance with generally accepted accounting principles for the preparation of financial statements for interim periods, as prescribed in IAS 34, "Interim Financial Reporting.
 
The significant accounting policies and methods of computation adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the annual financial statements except as described in b. below.
 
  b.
Initial adoption of amendments to International Financial Reporting Standards:
 
Amendment to IAS 1, "Presentation of Financial Statements":
 
In January 2020, the IASB issued an amendment to IAS 1, "Presentation of Financial Statements" regarding the criteria for determining the classification of liabilities as current or non-current ("the Original Amendment"). In October 2022, the IASB issued a subsequent amendment ("the Subsequent Amendment").
 
According to the Subsequent Amendment:
 
  •
Only financial covenants with which an entity must comply on or before the reporting date will affect a liability's classification as current or non-current.
 
  •
In respect of a liability for which compliance with financial covenants is to be evaluated within twelve months from the reporting date, disclosure is required to enable users of the financial statements to assess the risks related to that liability. The Subsequent Amendment requires disclosure of the carrying amount of the liability, information about the financial covenants, and the facts and circumstances at the end of the reporting period that could result in the conclusion that the entity may have difficulty in complying with the financial covenants.
 
According to the Original Amendment, the conversion option of a liability affects the classification of the entire liability as current or non-current unless the conversion component is an equity instrument.
 
The Original Amendment and Subsequent Amendment are applied retrospectively for annual periods beginning on January 1, 2024.
 
The Amendments did not have a material impact on the Company's interim consolidated financial statements.
 
  c.
Disclosure of new Standards in the period prior to adoption:
 
IFRS 18, "Presentation and Disclosure in Financial Statements":
 
In April 2024, the International Accounting Standards Board ("the IASB") issued IFRS 18, "Presentation and Disclosure in Financial Statements" ("IFRS 18") which replaces IAS 1, "Presentation of Financial Statements".
 
IFRS 18 is aimed at improving comparability and transparency of communication in financial statements.
 
IFRS 18 retains certain existing requirements of IAS 1 and introduces new requirements on presentation within the statement of profit or loss, including specified totals and subtotals. It also requires disclosure of management-defined performance measures and includes new requirements for aggregation and disaggregation of financial information.
 
IFRS 18 does not modify the recognition and measurement provisions of items in the financial statements. However, since items within the statement of profit or loss must be classified into one of five categories (operating, investing, financing, taxes on income and discontinued operations), it may change the entity's operating profit. Moreover, the publication of IFRS 18 resulted in consequential narrow scope amendments to other accounting standards, including IAS 7, "Statement of Cash Flows", and IAS 34, "Interim Financial Reporting".
 
IFRS 18 is effective for annual reporting periods beginning on or after January 1, 2027, and is to be applied retrospectively. Early adoption is permitted but will need to be disclosed.
 
The Company is evaluating the effects of IFRS 18, including the effects of the consequential amendments to other accounting standards, on its consolidated financial statements
v3.24.3
REVENUES
 6 Months Ended
Jun. 30, 2024
Revenue [Abstract]  
REVENUES
NOTE 3:-      REVENUES
 
   
Six months ended
June 30,
    
Year ended
December 31,
  
   
2024
    
2023
    
2023
  
   
Unaudited
    
Audited
  
                   
Revenues from services performed during the period
    
27,375
      
28,195
      
55,678
  
Revenues from sale of devices
    
494
      
810
      
1,397
  
                         
     
27,869
      
29,005
      
57,075
  
v3.24.3
MATERIAL EVENTS DURING THE REPORTING PERIOD
 6 Months Ended
Jun. 30, 2024
MATERIAL EVENTS DURING THE REPORTING PERIOD  
MATERIAL EVENTS DURING THE REPORTING PERIOD
NOTE 4:-
MATERIAL EVENTS DURING THE REPORTING PERIOD
 
  a.
In March, 2024 the Company announced that Erez Nachtomy, the Company's CEO, will be stepping down as CEO in mid-June 2024. In June, 2024 the Company announced that Mr. Nachtomy has agreed to remain as the CEO until the end of August 2024. See also Note 6a regarding the appointment of a new CEO.
 
  b.
During the period, the Company's Board of Directors approved the grant of 20,000 options to a consultant, under the 2021 Executive and Key Employee Israeli Share Incentive Plan. The options shall vest over a period of 3 years (25% after 1 year, and 9.375% each quarter thereafter). The fair value of options granted is CHF 1.403 ($ 1.571). The fair value was estimated based on the binomial model using the following data and assumptions: share price - CHF 4.89; exercise price – CHF 8.50; expected volatility – 53.06%; risk free interest rate – 0.65%; expected dividend – 0%; and expected average life of options 4.6 years.
 
  c.
According to the terms of the Put and Call Options granted in the acquisition of the Mediton Group in 2021, the Put Option may be exercised for a period of one year commencing from September 2024. The fair value of the Put and Call options based on economic assumptions as to exercise date is insignificant as of June 30, 2024. See also Note 6e regarding the notice of exercising of the PUT option by non-controlling interests.
v3.24.3
SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 2024
SEGMENT INFORMATION  
SEGMENT INFORMATION
NOTE 5:-      SEGMENT INFORMATION
 
As presented in the annual financial statements, the Group operates in three geographic segments: Israel, Europe (principally Germany) and Rest of the world ("Row").
 
Management monitors the operating results of its geographical units separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on segment profit. SG&A Group expenses and some research and development expenses are mostly allocated to the separate geographic units. Some corporate expenses, some research and development expenses, finance costs and finance income and income taxes are managed on a group basis and are not allocated to the geographic segments.
 
Revenues are allocated based on the location of the end customer. The Group presents disaggregated revenue information based on types of customers: Individual customers and communities, Institutions and payers (income from service agreements with institutions, insurance companies and HMOs), and others.
 
  a.
Segment revenues:
 
   
Individuals and communities
    
Institutions and payers
    
Others
    
Total
  
Six months ended June 30, 2024 (unaudited):
                        
                         
Europe
    
-
      
6,557
      
-
      
6,557
  
Israel
    
10,195
      
10,745
      
-
      
20,940
  
Row
    
-
      
-
      
372
      
372
  
                                 
Total revenues
    
10,195
      
17,302
      
372
      
27,869
  
                                 
                                 
                                 
Six months ended June 30, 2023 (unaudited):
                                
                                 
Europe
    
-
      
6,831
      
-
      
6,831
  
Israel
    
10,909
      
10,716
      
-
      
21,625
  
Row
    
-
      
-
      
549
      
549
  
                                 
Total revenues
    
10,909
      
17,547
      
549
      
29,005
  
 
   
Individuals and communities
    
Institutions and payers
    
Others
    
Total
  
                         
Year ended December 31, 2023 (audited):
                        
                         
Europe
    
-
      
14,067
      
-
      
14,067
  
Israel
    
20,913
      
21,179
      
-
      
42,092
  
Row
    
-
      
-
      
916
      
916
  
                                 
Total revenues
    
20,913
      
35,246
      
916
      
57,075
  
 
  b.
Segment profit (loss):
 
   
Six months ended
June 30,
    
Year ended
December 31,
  
   
2024
    
2023
    
2023
  
   
Unaudited
    
Audited
  
                   
Europe
    
(1,699
)
    
(2,672
)
    
(5,347
)
Israel
    
3,912
      
3,976
      
8,424
  
Row
    
(2,195
)
    
(1,488
)
    
(3,622
)
                         
     
18
      
(184
)
    
(545
)
Unallocated income and expenses:
                        
Corporate and R&D expenses
    
(3,525
)
    
(3,737
)
    
(6,263
)
Other expenses
    
(415
)
    
(529
)
    
(2,198
)
                         
Operating loss
    
(3,922
)
    
(4,450
)
    
(9,006
)
Financial income, net
    
497
      
3,036
      
3,042
  
                         
Loss before taxes on income
    
(3,425
)
    
(1,414
)
    
(5,964
)
v3.24.3
SUBSEQUENT EVENTS
 6 Months Ended
Jun. 30, 2024
Disclosure of non-adjusting events after reporting period [abstract]  
SUBSEQUENT EVENTS
NOTE 6:-
SUBSEQUENT EVENTS
 
  a.
In July, 2024 the Company announced that it has appointed Mr. David Arnon as CEO of the Company.
 
  b.
In August, 2024 the Company announced that Mr. Yariv Alroy, Chairman of the Company, has informed the Company that he will be stepping down as Chairman and is resigning from the Board of Directors effective immediately.
 
  c.
In September, 2024 the Company announced that it has appointed Dr. Itamar Ofer as the new Chairman of the Company.
 
  d.
In September, 2024, following the approval of the Company's Board of Directors, the Company's Special General Meeting of the shareholders approved the grant of 400,000 options to the Company's CEO, under the 2021 Executive and Key Employee Israeli Share Incentive Plan. The options shall vest over a period of 4 years in equal annual installments (100,000 options for each installment). The exercise price for options to purchase up to 200,000 Ordinary Shares is CHF 7.12 ($ 8) per share, and for the remaining options to purchase 200,000 Ordinary Shares is CHF 5.34 ($ 6) per share.
 
  e.
In September, 2024, the main non-controlling interest ("the Sellers") provided notice to the Company that they were exercising their right (the "Put Option Right") to require the Company to purchase all of the Sellers’ remaining holdings in Mediton Group according to the Share Purchase Agreement of Mediton in 2021.
v3.24.3
SIGNIFICANT ACCOUNTING POLICIES (Policies)
 6 Months Ended
Jun. 30, 2024
Disclosure Of Summary Of Significant Accounting Policies Abstract  
Basis of preparation of the interim condensed consolidated financial statements
  a.
Basis of preparation of the interim condensed consolidated financial statements:
 
The interim condensed consolidated financial statements for the six months ended June 30, 2024 have been prepared in accordance with generally accepted accounting principles for the preparation of financial statements for interim periods, as prescribed in IAS 34, "Interim Financial Reporting.
 
The significant accounting policies and methods of computation adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the annual financial statements except as described in b. below.
Initial adoption of amendments to International Financial Reporting Standards
  b.
Initial adoption of amendments to International Financial Reporting Standards:
 
Amendment to IAS 1, "Presentation of Financial Statements":
 
In January 2020, the IASB issued an amendment to IAS 1, "Presentation of Financial Statements" regarding the criteria for determining the classification of liabilities as current or non-current ("the Original Amendment"). In October 2022, the IASB issued a subsequent amendment ("the Subsequent Amendment").
 
According to the Subsequent Amendment:
 
  •
Only financial covenants with which an entity must comply on or before the reporting date will affect a liability's classification as current or non-current.
 
  •
In respect of a liability for which compliance with financial covenants is to be evaluated within twelve months from the reporting date, disclosure is required to enable users of the financial statements to assess the risks related to that liability. The Subsequent Amendment requires disclosure of the carrying amount of the liability, information about the financial covenants, and the facts and circumstances at the end of the reporting period that could result in the conclusion that the entity may have difficulty in complying with the financial covenants.
 
According to the Original Amendment, the conversion option of a liability affects the classification of the entire liability as current or non-current unless the conversion component is an equity instrument.
 
The Original Amendment and Subsequent Amendment are applied retrospectively for annual periods beginning on January 1, 2024.
 
The Amendments did not have a material impact on the Company's interim consolidated financial statements.
Disclosure of new Standards in the period prior to adoption
  c.
Disclosure of new Standards in the period prior to adoption:
 
IFRS 18, "Presentation and Disclosure in Financial Statements":
 
In April 2024, the International Accounting Standards Board ("the IASB") issued IFRS 18, "Presentation and Disclosure in Financial Statements" ("IFRS 18") which replaces IAS 1, "Presentation of Financial Statements".
 
IFRS 18 is aimed at improving comparability and transparency of communication in financial statements.
 
IFRS 18 retains certain existing requirements of IAS 1 and introduces new requirements on presentation within the statement of profit or loss, including specified totals and subtotals. It also requires disclosure of management-defined performance measures and includes new requirements for aggregation and disaggregation of financial information.
 
IFRS 18 does not modify the recognition and measurement provisions of items in the financial statements. However, since items within the statement of profit or loss must be classified into one of five categories (operating, investing, financing, taxes on income and discontinued operations), it may change the entity's operating profit. Moreover, the publication of IFRS 18 resulted in consequential narrow scope amendments to other accounting standards, including IAS 7, "Statement of Cash Flows", and IAS 34, "Interim Financial Reporting".
 
IFRS 18 is effective for annual reporting periods beginning on or after January 1, 2027, and is to be applied retrospectively. Early adoption is permitted but will need to be disclosed.
 
The Company is evaluating the effects of IFRS 18, including the effects of the consequential amendments to other accounting standards, on its consolidated financial statements
v3.24.3
GENERAL (Tables)
 6 Months Ended
Jun. 30, 2024
Disclosure Of General Information About Financial Statements Abstract  
Schedule of data regarding foreign exchange rates and linkage basis
 
   
Israeli
    
Exchange rate
  
   
CPI
    
 
€ 1
    
 
U.S. $ 1
    
CHF 1
  
For the period ended
  
Points
    
N I S
  
                             
June 30, 2024
    
253.8
      
4.02
      
3.76
      
4.18
  
June 30, 2023
    
246.7
      
4.02
      
3.7
      
4.11
  
December 31, 2023
    
248.6
      
4.01
      
3.63
      
4.31
  
                                 
Change during the period
  
%
    
%
    
%
    
%
  
                                 
June 2024 (6 months)
    
2.1
      
0.2
      
3.6
      
(3.1
)
June 2023 (6 months)
    
2.2
      
7.2
      
5.1
      
7.6
  
December 31, 2023
    
3
      
6.9
      
3.1
      
12.8
  
 
  *)
The index on an average basis of 1993 = 100.
v3.24.3
REVENUES (Tables)
 6 Months Ended
Jun. 30, 2024
Disclosure of disaggregation of revenue from contracts with customers [abstract]  
Schedule of disaggregation of revenue from contracts with customers
   
Six months ended
June 30,
    
Year ended
December 31,
  
   
2024
    
2023
    
2023
  
   
Unaudited
    
Audited
  
                   
Revenues from services performed during the period
    
27,375
      
28,195
      
55,678
  
Revenues from sale of devices
    
494
      
810
      
1,397
  
                         
     
27,869
      
29,005
      
57,075
  
v3.24.3
SEGMENT INFORMATION (Tables)
 6 Months Ended
Jun. 30, 2024
SEGMENT INFORMATION  
Schedule of disaggregated revenue information
   
Individuals and communities
    
Institutions and payers
    
Others
    
Total
  
Six months ended June 30, 2024 (unaudited):
                        
                         
Europe
    
-
      
6,557
      
-
      
6,557
  
Israel
    
10,195
      
10,745
      
-
      
20,940
  
Row
    
-
      
-
      
372
      
372
  
                                 
Total revenues
    
10,195
      
17,302
      
372
      
27,869
  
                                 
                                 
                                 
Six months ended June 30, 2023 (unaudited):
                                
                                 
Europe
    
-
      
6,831
      
-
      
6,831
  
Israel
    
10,909
      
10,716
      
-
      
21,625
  
Row
    
-
      
-
      
549
      
549
  
                                 
Total revenues
    
10,909
      
17,547
      
549
      
29,005
  
   
Individuals and communities
    
Institutions and payers
    
Others
    
Total
  
                         
Year ended December 31, 2023 (audited):
                        
                         
Europe
    
-
      
14,067
      
-
      
14,067
  
Israel
    
20,913
      
21,179
      
-
      
42,092
  
Row
    
-
      
-
      
916
      
916
  
                                 
Total revenues
    
20,913
      
35,246
      
916
      
57,075
  
Schedule of revenue from geographic segments
   
Six months ended
June 30,
    
Year ended
December 31,
  
   
2024
    
2023
    
2023
  
   
Unaudited
    
Audited
  
                   
Europe
    
(1,699
)
    
(2,672
)
    
(5,347
)
Israel
    
3,912
      
3,976
      
8,424
  
Row
    
(2,195
)
    
(1,488
)
    
(3,622
)
                         
     
18
      
(184
)
    
(545
)
Unallocated income and expenses:
                        
Corporate and R&D expenses
    
(3,525
)
    
(3,737
)
    
(6,263
)
Other expenses
    
(415
)
    
(529
)
    
(2,198
)
                         
Operating loss
    
(3,922
)
    
(4,450
)
    
(9,006
)
Financial income, net
    
497
      
3,036
      
3,042
  
                         
Loss before taxes on income
    
(3,425
)
    
(1,414
)
    
(5,964
)
v3.24.3
GENERAL (Details)
 6 Months Ended 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Dec. 31, 2023
ILS      
Currency [Line Items]      
Consumer Price Index Points 253.8 246.7 248.6
Exchange Rate, Percentage of Change 2.10% 2.20% 3.00%
EUR      
Currency [Line Items]      
Closing foreign exchange rate 4.02 4.02 4.01
Exchange Rate, Percentage of Change 0.20% 7.20% 6.90%
USD      
Currency [Line Items]      
Closing foreign exchange rate 3.76 3.7 3.63
Exchange Rate, Percentage of Change 3.60% 5.10% 3.10%
CHF      
Currency [Line Items]      
Closing foreign exchange rate 4.18 4.11 4.31
Exchange Rate, Percentage of Change 3.10% 7.60% 12.80%
v3.24.3
REVENUES (Details) - USD ($)
$ in Thousands
 6 Months Ended 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Dec. 31, 2023
Disclosure of disaggregation of revenue from contracts with customers [line items]      
Revenue from contracts with customers $ 27,869 $ 29,005 $ 57,075
Revenues For Services [Member]      
Disclosure of disaggregation of revenue from contracts with customers [line items]      
Revenue from contracts with customers 27,375 28,195 55,678
Revenues For Sale Of Devices [Member]      
Disclosure of disaggregation of revenue from contracts with customers [line items]      
Revenue from contracts with customers $ 494 $ 810 $ 1,397
v3.24.3
MATERIAL EVENTS DURING THE REPORTING PERIOD (Narrative) (Details) - 6 months ended Jun. 30, 2024 - Executive and Key Employee Israeli Share Incentive Plan 2021
Share
Years
SFr / shares
Share
Years
$ / shares
Disclosure Of Material Events During Reporting Period Explanatory [Line Items]    
Number of options granted | Share 20,000 20,000
Vesting period 3 years 3 years
Percentage of vesting after one year 25.00% 25.00%
Percentage of vesting in each quarter thereafter 9.375% 9.375%
Weighted average fair value of options granted | (per share) SFr 1.403 $ 1.571
Share price 4.89  
Exercise price SFr 8.5  
Expected volatility 53.06% 53.06%
Risk free interest rate 0.65% 0.65%
Expected dividend 0.00% 0.00%
Expected average life of options | Years 4.6 4.6
v3.24.3
SEGMENT INFORMATION - Disclosure of disaggregated revenue information (Details) - USD ($)
$ in Thousands
 6 Months Ended 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Dec. 31, 2023
SEGMENT INFORMATION      
Revenues $ 27,869 $ 29,005 $ 57,075
Individuals and communities      
SEGMENT INFORMATION      
Revenues 10,195 10,909 20,913
Institutions and payers      
SEGMENT INFORMATION      
Revenues 17,302 17,547 35,246
Others      
SEGMENT INFORMATION      
Revenues 372 549 916
Europe      
SEGMENT INFORMATION      
Revenues 6,557 6,831 14,067
Europe | Individuals and communities      
SEGMENT INFORMATION      
Revenues 0 0 0
Europe | Institutions and payers      
SEGMENT INFORMATION      
Revenues 6,557 6,831 14,067
Europe | Others      
SEGMENT INFORMATION      
Revenues 0 0 0
Israel      
SEGMENT INFORMATION      
Revenues 20,940 21,625 42,092
Israel | Individuals and communities      
SEGMENT INFORMATION      
Revenues 10,195 10,909 20,913
Israel | Institutions and payers      
SEGMENT INFORMATION      
Revenues 10,745 10,716 21,179
Israel | Others      
SEGMENT INFORMATION      
Revenues 0 0 0
ROW      
SEGMENT INFORMATION      
Revenues 372 549 916
ROW | Individuals and communities      
SEGMENT INFORMATION      
Revenues 0 0 0
ROW | Institutions and payers      
SEGMENT INFORMATION      
Revenues 0 0 0
ROW | Others      
SEGMENT INFORMATION      
Revenues $ 372 $ 549 $ 916
v3.24.3
SEGMENT INFORMATION - Disclosure of revenue from geographic segments (Details) - USD ($)
$ in Thousands
 6 Months Ended 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Dec. 31, 2023
SEGMENT INFORMATION      
Segment profit (loss) $ 27,869 $ 29,005 $ 57,075
Other expenses (415) (529) (2,198)
Operating loss (3,922) (4,450) (9,006)
Financial income, net 497 3,036 (3,042)
Profit (loss) before taxes on income (3,425) (1,414) (5,964)
Operating segments      
SEGMENT INFORMATION      
Segment profit (loss) 18 (184) (545)
Unallocated income and expenses      
SEGMENT INFORMATION      
Corporate, R&D and other expenses (3,525) (3,737) (6,263)
Other expenses (415) (529) (2,198)
Europe      
SEGMENT INFORMATION      
Segment profit (loss) 6,557 6,831 14,067
Europe | Operating segments      
SEGMENT INFORMATION      
Segment profit (loss) (1,699) (2,672) (5,347)
Israel      
SEGMENT INFORMATION      
Segment profit (loss) 20,940 21,625 42,092
Israel | Operating segments      
SEGMENT INFORMATION      
Segment profit (loss) 3,912 3,976 8,424
ROW      
SEGMENT INFORMATION      
Segment profit (loss) 372 549 916
ROW | Operating segments      
SEGMENT INFORMATION      
Segment profit (loss) $ (2,195) $ (1,488) $ (3,622)
v3.24.3
SUBSEQUENT EVENTS (Details) - 1 months ended Sep. 30, 2024 - Two Zero Two One Executive And Key Employee Israeli Share Incentive Plan - CEO
Share
SFr / shares
shares
Share
$ / shares
shares
Disclosure of non-adjusting events after reporting period [line items]    
Number of options granted | Share 400,000 400,000
Vesting period 4 years 4 years
Options to shares of each instalment 100,000 100,000
Exercise Price For Options Purchase One    
Disclosure of non-adjusting events after reporting period [line items]    
Number of Share Options to purchase Ordinary shares granted 200,000 200,000
Exercise price | (per share) SFr 7.12 $ 8
Exercise Price For Options Purchase Two    
Disclosure of non-adjusting events after reporting period [line items]    
Number of Share Options to purchase Ordinary shares granted 200,000 200,000
Exercise price | (per share) SFr 5.34 $ 6
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