EX-99.3 4 ea025476901ex99-3_jeffs.htm UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS OF FORT PRODUCTS LIMITED FOR THE SIX MONTHS ENDED JUNE 30, 2025

Exhibit 99.3

 

 

 

 

 

 

 

 

 

FORT PRODUCTS LIMITED

 

 

 

CONDENSED INTERIM FINANCIAL STATEMENTS

AS OF JUNE 30, 2025

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FORT PRODUCTS LIMITED

 

CONDENSED INTERIM FINANCIAL STATEMENTS

 

AS OF JUNE 30, 2025

(unaudited)

 

 

 

 

 

 

TABLE OF CONTENTS

 

  Page
Condensed Interim Statements of Financial Position 1
Condensed Interim Statements of Profit and Loss 2
Condensed Interim Statements of Changes in Shareholder’s Equity 3
Condensed Interim Statements of Cash Flows 4
Notes to the Condensed Interim Financial Statements 5-8

 

i

 

 

FORT PRODUCTS LIMITED

CONDENSED INTERIM STATEMENTS OF FINANCIAL POSITION

(unaudited)

 

      June 30,   December 31, 
      2025   2024 
      U.S. dollars in thousands 
Assets           
CURRENT ASSETS:           
Cash and cash equivalents      490    546 
Trade receivables      123    116 
Other receivables      482    51 
Inventory  3   3,254    3,119 
       4,349    3,832 
NON-CURRENT ASSETS:             
Right of use assets      217    250 
Property and equipment, net      127    135 
       344    385 
TOTAL ASSETS      4,693    4,217 
              
Liabilities and equity             
CURRENT LIABILITIES:             
              
Trade payables      758    505 
Lease liability      54    48 
Other payables      213    253 
Related parties payable  6   2,136    1,775 
       3,161    2,581 
NON-CURRENT LIABILITIES:             
Lease liability      190    199 
Deferred taxes      34    33 
       224    232 
TOTAL LIABILITIES      3,385    2,813 
              
SHAREHOLDER’S EQUITY:             
              
Ordinary shares and additional paid in capital       (*)-     (*)- 
Retained earnings      1,308    1,404 
TOTAL EQUITY      1,308    1,404 
TOTAL LIABILITIES AND EQUITY      4,693    4,217 

 

(*)Amount less than $ 1 thousand

 

These interim financial statements were approved for issue by the Board of Directors on August 28, 2025 and signed on its behalf by:

 

Aditya Chathli   Ronen Zalayet
Director   Director

 

The accompanying notes are an integral part of the condensed interim financial statements.

 

1

 

 

FORT PRODUCTS LIMITED

CONDENSED INTERIM STATEMENTS OF PROFIT OR LOSS

(unaudited)

 

   Six months ended
June 30,
   Three months ended
June 30,
 
   2025   2024   2025   2024 
   U.S. dollars in thousands 
Revenues   4,923    4,459    2,624    2,546 
Cost of sales   4,368    3,714    2,507    2,091 
                     
Gross profit   555    745    117    455 
                     
Operating expenses:                    
                     
Sales and marketing   371    283    214    181 
General and administrative   245    97    120    40 
Other expenses   -    77    (45)   55 
                     
Operating profit (loss)   (61)   288    (172)   179 
                     
Financial income   -    6    -    5 
Financial expenses   34    24    22    11 
Financial expenses (income), net   34    18    22    6 
                     
Profit (loss) before taxes   (95)   270    (194)   173 
                     
Tax expenses   1    89    (26)   66 
                     
Net profit (loss) and total comprehensive income (loss)   (96)   181    (168)   107 
                     
Profit (loss) per ordinary share (basic and diluted)   (0.96)   1.81    (1.68)   1.07 
                     
Weighted average number of ordinary shares outstanding   100    100    100    100 

 

The accompanying notes are an integral part of the condensed interim financial statements.

 

2

 

 

FORT PRODUCTS LIMITED

CONDENSED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDER’S EQUITY

(unaudited)

 

    Ordinary
Shares and
additional
paid in
capital
    Retained
earnings
    Total  
    U.S. dollars in thousands  
                   
Balance as of December 31, 2024      (* )     1,404       1,404  
                         
Net profit (loss) and total comprehensive income (loss)     -       (96 )     (96 )
                         
Balance as of June 30, 2025     (* )     1,308       1,308  
                         
Balance as of December 31, 2023      (* )     1,044       1,044  
                         
Net profit (loss) and total comprehensive income (loss)     -       181       181  
                         
Balance as of June 30, 2024     (* )     1,225       1,225  

 

(*)Amount less than $ 1 thousand

 

The accompanying notes are an integral part of the condensed interim financial statements.

 

3

 

 

FORT PRODUCTS LIMITED

CONDENSED INTERIM STATEMENTS OF CASH FLOWS

(unaudited)

 

    Six months ended
June 30,
 
    2025     2024  
    U.S. dollars in thousands  
CASH FLOWS FROM (USED IN (OPERATING ACTIVITIES:            
Net profit (loss)     (96 )     181  
Adjustments required to reflect net cash from (used in) operating activities (see appendix A):     57       (218 )
Net cash from (used in) operating activities     (39 )     (37 )
                 
CASH FLOWS USED IN INVESTING ACTIVITIES:                
Purchase of property and equipment     (6 )     -  
Net cash used in investing activities     (6 )     -  
                 
CASH FLOWS USED IN FINANCING ACTIVITIES:                
Lease payments     (33 )     (19 )
Net cash used in financing activities     (33 )     (19 )
                 
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS     (78 )     (56 )
                 
EXCHANGE DIFFERENCES ON CASH AND CASH EQUIVALENTS     22       -  
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD     546       210  
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD     490       154  
                 
APPENDIX A:                
Adjustments required to reflect net cash from (used in) operating activities:                
Revenues and expenses that do not involve cash flows:                
Exchange differences on cash and cash equivalents     (22 )     -  
Changes in deferred taxes, net     1       -  
Depreciation and amortization     48       9  
Lease financing expenses     29       1  
      56       10  
Changes in working capital:                
Decrease (increase) in trade receivables     (7 )     (105 )
Decrease (increase) in other receivables     (431 )     283  
Increase in related parties payable     361       1,565  
Increase in inventory     (135 )     (2,103 )
(Increase) decrease in accounts payable and other payables     213       132  
      1       (228 )
      57       (218 )
                 
Supplemental disclosure of cash flow information:                
Interest paid     4       3  

 

The accompanying notes are an integral part of the condensed interim financial statements.

 

4

 

 

FORT PRODUCTS LIMITED

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

(unaudited)

 

NOTE 1 - GENERAL

 

Fort Products Limited (The “Company” or “Fort Products”), a private company incorporated under the laws of England and Wales, was established on November 25, 2005. The Company is engaged in the sale of pest control products primarily through Amazon.uk under fully owned trademarks: Roshield, Entopest, Rempro and Birdgo.

 

On March 9, 2023, the Company was acquired by Jeffs’ Brands Ltd. (“Jeffs’ Brands”), a public company traded on the NASDAQ Stock Exchange from the Company’s former owners.

 

On February 16, 2025, Jeffs’ Brands signed a Share Purchase Agreement (“SPA”) for the merge of the Company with Impact Acquisitions Corp., a capital pool company listed on the TSX Venture Exchange (“Impact”). Under the SPA, Impact acquired 100% of the Company’s shares and Jeffs’ Brands received between 75.02% and 83.29% ownership of Impact share capital, contingent upon meeting predetermined milestones.

 

On July 7, 2025, Jeffs’ Brands closed the SPA, (the “Fort Purchase Agreement”) and Impact changed its name to Fort Technology Inc (“Fort Technology”). Pursuant to the SPA, Jeffs’ Brands sold to Fort Technology all of the issued and outstanding shares of the Company, in consideration for 100 million common shares of Fort Technology and up to an additional 66 million common shares of Fort Technology, contingent upon the achievement of certain pre-determined milestones, each at a deemed price per share of CAD 0.171246, representing a post-closing equity interest in Impact of 75.02% (or up to 83.29% in the event of the full achievement of the milestones). The Fort Merger is based on a total value of Fort Technology of approximately CAD 4.8 million (approximately $3.3 million), considering its cash position of at least CAD 700 thousand (approximately $486 thousand), after transaction costs, and a total valuation ascribed to Fort Products of approximately CAD 17.1 million (approximately $11.9 million).

 

On July 10, 2025, Fort Technology’s shares resumed trading on the TSX Venture.

 

NOTE 2 - MATERIAL ACCOUNTING POLICY INFORMATION

 

Unaudited Condensed Interim Financial Information

 

The Company’s unaudited condensed interim financial statements have been prepared in accordance with IAS 34, “Interim Financial Reporting”. The material accounting policies adopted in the preparation of the condensed interim financial statements are consistent with those followed in the preparation of the 2024 annual financial statements. Accordingly, these condensed Interim financial statements should be read in conjunction with the 2024 annual financial statements.

 

The condensed interim financial statements have been prepared on the same basis as the audited financial statements. In the opinion of the Company’s management, the accompanying condensed interim financial statements contain all adjustments that are necessary to present fairly the Company’s financial position and results of operations for the interim periods presented. The results for the six-month period ended June 30, 2025, are not necessarily indicative of the results for the year ending December 31, 2025, or for any future period.

 

NOTE 3 - INVENTORY

 

   June 30,   December 31, 
   2025   2024 
   U.S. dollars in thousands 
         
Goods in transit   351    389 
Finished goods   2,903    2,730 
    3,254    3,119 

 

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FORT PRODUCTS LIMITED

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

(unaudited)

 

NOTE 4 - FINANCIAL INSTRUMENTS

 

A.Assets and liabilities measured at amortized cost were presented on the Company’s statement of financial position as of June 30, 2025 and December 31, 2024 as follows:

 

   June 30,   December 31, 
   2025   2024 
Amortized Cost  U.S. dollars in thousands 
         
Assets:        
Cash and cash equivalents   490    546 
Trade receivables   123    116 
    613    662 
           
Liabilities:          
Trade payable   758    505 
Other payable   190    253 
Lease liability   244    247 
Related parties   2,136    1,775 
    3,328    2,780 

 

B.Liquidity risk management

 

Ultimate responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk management framework for management of the Company’s short, medium and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

 

The following tables detail the Company’s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The table includes both interest and principal cash flows.

 

   0-1 year   2-5 year 
   U.S. dollars in thousands 
As of June 30, 2025        
         
Trade payables   758    - 
Lease liability   54    190 
Other payables   190    - 
Related parties   2,136    - 
    3,138    190 

 

   0-1 year   2-5 year 
   U.S. dollars in thousands 
As of December 31, 2024        
         
Trade payables   505    - 
Lease liability   48    199 
Other payables   253    - 
Related parties   1,775    - 
    2,581    199 

 

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FORT PRODUCTS LIMITED

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

(unaudited)

 

NOTE 4 - FINANCIAL INSTRUMENTS (continued):

 

C.Foreign currency risk management

 

The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. The carrying amounts of the Company foreign currency denominated monetary assets and liabilities at the reporting date are as follows:

 

   June 30,
2025
   December 31,
2024
 
Assets        
         
Euro   13    14 
GBP   1,058    530 

 

   June 30,
2025
   December 31,
2024
 
Liability        
           
GBP   868    489 

 

Foreign currency sensitivity analysis

 

The Company is mainly exposed to the currency Euro and the currency of GBP.

 

The following table details the Company sensitivity to a 10 per cent increase and decrease in currency units against the relevant foreign currencies. 10 per cent is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management’s assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the year-end for a 10 per cent change in foreign currency rates.

 

   Euro   GBP 
   June 30,
2025
   December 31,
2024
   June 30,
2025
   December 31,
2024
 
   U.S. dollars in thousands 
Profit or loss   1.34    1.4    18.93    45.3 
Equity   (1.34)   (1.4)   (18.93)   (45.3)

 

NOTE 5 - SEGMENTS

 

As of June 30, 2025, and 2024, the Company had one operating segment, sale of pest control products. Revenues are attributed to geographic areas based on location of the end customers as follows:

 

   Six months ended
June 30,
   Three months ended
June 30,
 
   2025   2024   2025   2024 
   U.S. dollars in thousands 
United Kingdom   4,412    4,449    2,341    2,565 
Europe   511    10    283    (19)
                     
Total revenues   4,923    4,459    2,624    2,546 

 

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FORT PRODUCTS LIMITED

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

(unaudited)

 

NOTE 6 - RELATED PARTIES

 

Transactions and balances with related parties

 

   Six months ended
June 30,
   Three months ended
June 30,
 
   2025   2024   2025   2024 
   U.S. dollars in thousands 
General and administrative expenses:                
Directors’ fees (a1)   12    12    6    6 
                     
Other expenses:                    
Management fees (a2)   -    77    (45)   55 

 

Balances with related parties

 

   June 30,   December 31, 
   2025   2024 
   U.S. dollars in thousands 
Accounts payable(a1)   -    198 
Related parties payable (a2)   2,136    1,775 

 

(a1)The monthly fee of £1,600 (approximately $2,000) commenced on October 1, 2023.

 

(a2)On March 30, 2023, the Company entered into a service agreement with Jeffs’ Brands. (the “Jeffs’ Brands Service Agreement”), pursuant to which Jeffs’ Brands will provide different services to the Company. The Jeffs’ Brands Service Agreement is for a period of 12 months starting March 2023 and renewed for additional successive 12 months period. On June 10, 2025, the Jeffs’ Brands Service Agreement was amended to extend the term of the agreement to March 9, 2026, and will automatically renew for additional successive 12-month periods unless terminated by mutual agreement or 60 days’ notice. Fees are determined by a transfer pricing study, which is calculated based on a percentage of operating profit, complaint with applicable laws.

 

NOTE 7 - SUBSEQUENT EVENTS

 

a.Refer to Note 1 for the Fort Purchase Agreement.

 

b.Refer to Note 6 (a2) for the extension to the Jeffs’ Brands Service Agreement.

 

c.On August 19, 2025 Fort Technology transferred $600 thousands to the Company.

 

 

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