Note 7: Notes Payable and Loan

12 Months Ended

Dec. 31, 2016

Notes

Note 7: Notes Payable and Loan

NOTE 7: NOTES PAYABLE AND LOAN

1) Up until December 31, 2014, Novomic received notes payable in the aggregated amount of $228,855 with no stated maturity date and bearing no interest. During 2015, notes payable in the amount of $176,890 were converted into Novomic's Ordinary Shares. At December 31, 2016 and December 31, 2015, the notes payable balance is $80,026 and $78,740, respectively. The note is payable upon demand of the lender.

2) In December 2015, Novomic entered into a Convertible Bridge Loan Agreement (the "Loan Agreement") with Techcare (the "Lender"). According to the Loan Agreement the Lender agreed to provide Novomic with a convertible bridge loan in the aggregate principal amount of $100,000. The loan principal amount shall bear interest at a rate of six percent (6%) per annum. The outstanding balance owed under the Loan Agreement shall include the loan principal amount together with any accrued interest. All amounts under the Loan Agreement shall immediately become due and payable in cash upon the occurrence of the earlier of the following: (i) a default event (as described in the Loan Agreement): (ii) the Company and the Lender fail, for any reason, to execute a definitive merger agreement until February 28, 2016 (the "End of first period"). The convertible loan is subject to an optional conversion mechanism according to which within 12 months following the End of first period Novomic and the Lender fail, for any reason, to execute a definitive merger agreement, the Lender, at its sole and absolute discretion, shall be entitled to convert the loan amount to such number of shares at a price per share representing a pre-money valuation of $3 million.

F-40

Unless earlier repaid, the Loan Amount shall be automatically converted to Novomic's shares upon the closing of a definitive merger agreement. On August 9, 2016, Techcare and Novomic completed their merger, pursuant to which the Loan was extinguished.

As of December 31, 2016, the carrying amount of the notes payable and loan approximates its fair value based on the short-term nature of the note.