On July 26, 2020, the Company consummated the acquisition of 100% of the shares of Jet CU, a company that was incorporated in Israel in May 2014 and was inactive on the purchase date since its operational assets were sold few years before. The main balance sheet items as of the purchase date were cash and a liability to the Israel Innovation Authority (“IIA”) of approximately $0.8 million and approximately $1.0 million, respectively. The Company issued 2,000,000 ordinary shares and warrants to purchase 8,000,000 ordinary shares, at an exercise price of $0.26 per share, as consideration for the purchase. The warrants were exercisable until the date which is the earlier of (i) 24 months following the purchase date and (ii) a merger or acquisition transaction or an initial public offering.

The purchase price (as mentioned above) aggregated to $411,781 as follows:

$224,200 attributed to the 2,000,000 ordinary shares issued, based on the stock price as of July 26, 2020, and $187,581 to the 8,000,000 warrants (the Company used the following assumptions: 0% dividend yield, 80.0% expected volatility, 0.14% risk free rate and 2 expected life in years) issued, and such warrants were classified as liability at the issuance date. The fair value of the warrants as of December 31, 2020 aggregated to $691,473.

The allocation of the purchase price to assets acquired and liabilities assumed is as follows:

In September 2021, the Company issued an additional 5,428,572 ordinary shares to the Jet CU former shareholders as an additional consideration upon their agreement to forfeit the 8,000,000 warrants that were granted to them on the purchase date.