NOTE
6 – INVESTMENT AND LOAN TO SOLTERRA
| 1. | On
June 30, 2024, the Company entered into a 24 month Loan Agreement with Solterra Renewable Energy Ltd. (“Solterra”) and
other lenders, under which the Company committed €375
thousands (approximately $406)
out of a total €500
thousands principal amount. The loan bears annual interest of 7%,
payable beginning June 30, 2025. Solterra shall have the option to convert the loan into shares of Solterra Energy Ltd.
(“SE”), at the lowest price per share under which SE raises capital during the period from the Loan Agreement date
through conversion. If the loan is not converted or repaid in full within nine months from the closing date of the merger involving
SE, the interest rate increases to 12%
per annum. On October 28, 2025 the Company entered into an amendment to the Loan Agreement, pursuant to which the accrued interest
through June 30, 2025 was added to the loan principal and bears interest from that date. |
The
Company elected to account for the Loan Agreement under the fair value option in accordance with ASC 825. As of December 31, 2025, the
Company estimated the fair value of the Loan Agreement at $396, based on a third-party valuation applying a 26.9% market discount rate
for similar loans.
The
Company’s chairman of the board of directors also serves as a director of SE.
| 2. | During
2024, the Company acquired 267,000 shares of SE for a total consideration of NIS801 thousands
(approximately $219). |
The
Company measured the investment at fair value accordance with ASC 321. The fair value of the investment as of December 31, 2025 and
2024 was $239 and $307,
respectively, based on quoted prices in active markets.
NEXENTIS
TECHNOLOGIES INC.
NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS
(USD
in thousands, except share and per share data)
|