EX-99.1 2 ex99-1.htm

 

Exhibit 99.1

 

Intercure Ltd.

 

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

As of September 30, 2022

(Unaudited)

 

   
 

 

Intercure Ltd.

 

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

As of September 30, 2022

 

(Unaudited)

 

INDEX

 

  Page
   
Condensed Consolidated Interim Statements of Financial Position 3-4
   
Condensed Consolidated Interim Statements of Profit or Loss and Other Comprehensive Income 5
   
Condensed Consolidated Interim Statements of Changes in Equity 6
   
Condensed Consolidated Interim Statements of Cash Flows 7-8
   
Notes to Condensed Consolidated Interim Financial Statements 9-18

 

2
Intercure Ltd.
Condensed Consolidated Interim Statements of Financial Position

 

      September 30   December 31 
      2022   2021 
   Note  NIS in thousands 
Current assets             
Cash and cash equivalents      215,255    196,217 
Restricted cash      24,271    21,083 
Trade receivables      40,227    17,407 
Other receivables      74,689    33,244 
Inventory  5   126,156    62,313 
Biological assets  6   9,139    5,566 
Financial assets measured at fair value through profit or loss  7   200    330 
              
       489,937    336,160 
              
Non-current assets             
Property, plant and equipment and right-of-use asset      94,703    86,509 
Goodwill      285,209    *268,291
Deferred tax assets      2,407    3,020 
Financial assets measured at fair value through profit or loss      2,565    2,565 
       384,884    360,385 
              
Total assets      874,821    696,545 

 

* Immaterial adjustment of comparative data, see Note 2 (2)

 

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

 

3
Intercure Ltd.
Condensed Consolidated Interim Statements of Financial Position

 

   September 30   December 31 
   2022   2021 
         
Current liabilities          
Short term loan and current maturities   134,998    70,559 
Trade payables   97,796    64,474 
Other payables   37,673    41,050 
Contingent consideration   23,648    15,780 
Short term loan from non-controlling interest   1,232    1,722 
           
    295,347    193,585 
           
Non-current liabilities          
Borrowings   45,591    11,877 
Liabilities in respect of employee benefits   1,005    224 
Loan from related party   -    76 
Lease liability   19,415    21,371 
    66,011    33,548 
           
Total liabilities   361,358    227,133 
           
Equity          
Share capital, premium and other reserves   629,290    623,567 
Capital reserve for transactions with controlling shareholder   2,388    2,388 
Receipts on account of shares   8,541    8,541 
Accumulated losses   (150,200)   (186,468)
           
Equity attributable to owners of the Company   490,019    448,028 
           
Non-controlling interests   23,444    *21,384
           
Total equity   513,463    469,412 
           
Total equity and liabilities   874,821    696,545 

 

* Immaterial adjustment of comparative data, see Note 2 (2)

 

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

 

4
Intercure Ltd.
Condensed Consolidated Interim Statements of Profit or Loss and Other Comprehensive Income

 

  

Nine months ended

September 30,

  

Three months ended

September 30,

  

Year ended

December 31

 
   2022   2021   2022   2021   2021 
   NIS in thousands 
                     
Revenue   283,078    139,976    100,572    61,695    219,677 
Cost of revenue before fair value adjustments   161,605    80,600    56,498    37,013    123,688 
                          
Gross income before impact of changes in fair value   121,473    59,376    44,074    24,682    95,989 
                          
Unrealized changes to fair value adjustments of biological assets   4,567    3,761    (3,314)   1,316    6,574 
Loss (profit) from fair value changes realized in the current year   (3,183)   6,372    (5,453)   3,942    11,432 
                          
Gross Profit   129,223    56,765    46,213    22,056    91,131 
                          
Research and development expenses   458    1,015    120    298    1,235 
General and administrative expenses   27,206    15,598    10,248    7,825    27,206 
Selling and marketing expenses   40,886    14,668    16,774    6,245    23,214 
Other expenses (income), net   227    1,401    (897)   1,692    2,971 
Changes in the fair value of financial assets through loss or (profit), net.   177    (333)   54    (8)   1,868 
Share based payments   6,172    5,281    3,731    1,463    6,452 
                          
Operating Profit   54,097    19,135    16,183    4,541    28,185 
                          
                          
Financing expenses   10,496    2,956    4,397    2,464    9,581 
Financing income   8,966    -    161    -    130 
                          
Profit before tax on income   52,567    16,179    11,947    2,077    18,734 
                          
Tax on income   (14,084)   (5,846)   (3,639)   (1,537)   (11,441)
Total comprehensive Profit   38,483    10,333    8,308    540    7,293 
                          
Attribution of net profit for the quarterly:                         
To the Company’s shareholders   36,268    7,761    7,256    (1,644)   4,690 
To non-controlling interests   2,215    2,572    1,052    2,184    2,603 
Total   38,483    10,333    8,308    540    7,293 
                          
Profit per share                         
Basic Profit   0.80    0.18    0.16    (0.04)   0.12 
Diluted Profit   0.80    0.16    0.16    (0.03)   0.11 

 

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

 

5
Intercure Ltd.
Consolidated Interim Statements of Changes in Equity

 

  

Share capital, premium

and other reserves

   Capital reserve for transactions with controlling shareholder   Receipts on account of shares   Accumulated losses   Equity attributable to owners of the Company   Non-controlling interests   Total equity 
   NIS in thousands 
                             
As of January 1, 2022   623,567    2,388    8,541    (186,468)   448,028    21,384    469,412 
                                    
Profit for the period   -    -    -    36,268    36,268    2,215    38,483 
Acquisitions of subsidiaries   -    -    -    -    -    (155)   (155)
Settlement in cash of an obligation to issue shares   (449)   -    -    -    (449)   -    (449)
Share-based payment   6,172    -    -    -    6,172    -    6,172 
                                    
As of September 30, 2022   629,290    2,388    8,541    (150,200)   490,019    23,444    513,463 
                                    
As of January 1, 2021   452,259    2,388    11,017    (191,158)   274,506    17,603    292,109 
                                    
Profit for the period   -    -    -    7,761    7,761    2,572    10,333 
Exercise of share options   8,359         (1,963)   -    6,396    -    6,396 
Share-based payment   5,282    -    -    -    5,282    -    5,282 
Issuance of shares, net   135,997    -    -    -    135,997    -    135,997 
                                    
As of September 30, 2021   601,897    2,388    9,054    (183,397)   429,942    20,175    450,117 

 

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

 

6
Intercure Ltd.
Condensed Consolidated Interim Statements of Cash Flows

 

   Nine months ended
September 30,
 
   2022   2021 
   NIS in thousands 
Cash flows from operating activities          
           
Profit for the period   38,483    10,333 
Taxes on income paid   (6,397)   (1,853)
Adjustments required to present cash flows from operating activities (A)   (23,978)   13,720 
           
Net cash provided by (used in) operating activities   8,108    22,200 
           
Cash flows from investing activities          
           
Purchase of property, plant and equipment   (15,059)   (6,555)
Grant of loan   (44,732)   (4,972)
Acquisition of Subsidiary and activities, net of cash acquired   797    (28,288)
Settlement in cash of an obligation to issue shares   (449)   - 
Investment in assets measured at fair value through profit or loss   -    (281)
Decrease in deposit   -    11 
Increase in deposit   (1,651)   (11)
Payment for contingent consideration   (6,168)   - 
Payment for deferred consideration for the acquisitions of subsidiaries   (12,716)   - 
Net cash used in investing activities   (79,978)   (40,096)
           
Cash flows from financing activities          
           
Exercise of share options   -    6,396 
Lease payments   (957)   (582)
Receipt of loans from banks   175,138    63,200 
Repayment of loans from banks   (77,955)   (100)
Receipt of loan to related party and controlling shareholder   158    - 
Repayment of loan from related party and controlling shareholder   (711)   (4,534)
Proceeds from issuance of shares as part of private issuance, net of issuance costs   -    128,221 
Interest paid   *(12,357)   *(2,894)
Net cash provided by financing activities   83,316    189,707 
           
Increase in cash and cash equivalents   11,446    171,811 
Exchange differences in respect of balances of cash and cash equivalents   8,204    (720)
Balance of cash and cash equivalents at beginning of year   195,272    37,888 
           
Balance of cash and cash equivalents at end of year   214,922    208,979 

 

* Reclassified due to change in accounting policy, see Note 2(3).

 

7
Intercure Ltd.
Condensed Consolidated Interim Statements of Cash Flows

 

  

Nine months ended

September 30,

 
   2022   2021 
   NIS in thousands 
A) Adjustments required to present cash flows from operating activities          
           
Adjustments to items in the consolidated statement of comprehensive income:          
           
Depreciation   7,348    4,185 
Share-based payment   6,172    5,282 
Changes in the fair value of financial assets through profit or loss, net   177    (333)
Finance expenses (income), net   1,530    2,956 
Change in liabilities in respect of employee benefits, net   398    - 
Contingent consideration   1,255    - 
Tax expense   14,084    5,846 
    30,964    17,936 
Changes in assets and liabilities items:          
           
           
Decrease (increase) in trade receivables   (21,878)   459 
Decrease (increase) in other receivables   4,412    (6,606)
Increase in inventory   (61,812)   (6,620)
Increase in biological assets   (3,573)   (904)
Increase (decrease) in trade payables   29,661    (7,730)
Increase (decrease) in other payables   (1,752)   17,185 
           
    (54,942)   (4,216)
           
    (23,978)   13,720 

 

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

 

8
Intercure Ltd.
Notes to Condensed Consolidated Interim Financial Statements

 

Note 1 - General

 

  A. The Company’s activity

 

Intercure Ltd. (hereinafter: the “Company”) is a public company which is listed on the Tel Aviv Stock Exchange, Toronto Stock Exchange and Nasdaq, domiciled in Israel. Its offices are located in Herzliya. The Company is engaged in the medical cannabis sector mainly through its holdings of the entire issued and paid-up capital of Canndoc Ltd. (hereinafter: “Canndoc”), the entire issued and paid-up capital of Pharmazone Ltd. (hereinafter: “Pharmazone”) and through its 50.1% stake in the issued and paid-in capital of Cannolam Ltd. (hereinafter: “Cannolam”). The Company also has additional holdings in the biomed sector.

 

During 2022, the Company engaged in 4 agreements for the acquisition of pharmacies. See note 3A.

 

Investments in the biomed sector:

 

The Company invested in three companies in the biomed sector: Regenera Pharma Ltd. (hereinafter: “Regenera”), F.O.R.E Biotherapeutics Ltd. (formerly known as NovellusDX Ltd., hereinafter: “Fore”) and Cavnox Ltd. (hereinafter: “Cavnox”). For additional details regarding investments in the biomed sector, see Note 7.

 

  B. Definitions:

 

In these consolidated financial statements:

 

  Company - Intercure Ltd.
  Group - The Company and its subsidiaries.
  Related Parties - As defined in IAS 24.
  USD - U.S. dollars.
  NIS - New Israeli shekel.
  Subsidiaries - Companies which are controlled by the Company (as defined in IFRS 10), directly or indirectly, and whose financial statements are fully consolidated with the Company’s reports.

 

9
Intercure Ltd.
Notes to Condensed Consolidated Interim Financial Statements

 

Note 2 - Significant Accounting Policies

 

  1. Basis of Preparation of the financial statements

 

The Group’s condensed consolidated financial statements (hereinafter: the “Interim Financial Statements”) have been prepared in accordance with International Accounting Standard 34, “Interim Financial Reporting” (hereinafter: “IAS 34”).

 

These financial statements have been prepared in a condensed format as of September 30, 2022, and for the nine months then ended (“condensed consolidated interim financial statements”). These financial statements should be read in conjunction with the Company’s annual financial statements as of December 31, 2021 and accompanying notes (“annual consolidated financial statements”).

 

These condensed consolidated interim financial statements were authorized for issue by the Group’s Board of Directors on November 14 ,2022.

 

2.Immaterial adjustment of comparative data

 

Subsequent to release of the Company’s annual consolidated financial statements and prior to the release date of these interim condensed consolidated financial, an error was discovered in the accounting treatment of Non-controlling interests.

 

The Company examined the materiality of the error that was discovered in its financial statements with respect to the relevant reporting periods, and after examining the quantitative and qualitative parameters it reached the conclusion that the aforesaid error has no effect on how the users of the consolidated financial statements make economic decisions and/or analyze the aforesaid financial statements. Therefore, the error is not a material error that requires issuing revised consolidated financial statements of the Group.

 

Presented hereunder are the effects of the correction, which was included in the comparative data in these interim financial statements by marking the corrected items with “immaterial adjustment”.

 

  (1) Effect of the correction on the statement of financial position

 

   December 31, 2021 
           As presented in 
   As presented   Effect of   these financial 
   in the past   correction   statements 
   NIS thousands   NIS thousands   NIS thousands 
Goodwill   258,070    10,221    268,291 
Non-controlling interests   11,163    10,221    21,384 

 

10
Intercure Ltd.
Notes to Condensed Consolidated Interim Financial Statements

 

Note 2 - Significant Accounting Policies (Cont’d)

 

  3. Change in accounting policy, IAS 7

 

During the reporting period, the Company changed the classification of interest paid to be presented under financing activities instead of operating activities.

 

The Company considered this classification more appropriate and provides more relevant information about the Company’s transactions on the cash flow statements.

 

  (1) Effect of the classification on the statements of cash flows:

 

   Nine months ended September 30, 2021 
           As presented in 
   As presented   Effect of   these financial 
   in the past   correction   statements 
   NIS thousands   NIS thousands   NIS thousands 
Profit for the period   10,333         10,333 
Interest paid   (2,894)   2,894      
Taxes on income paid   (1,853)        (1,853)
Adjustments required to present cash flows from operating activities (A)   13,720         13,720 
                
Net cash provided by (used in) operating activities   19,306    2,894    22,200 
                
Net cash provided by financing activities   192,601    (2,894)   189,707 

 

Note 3 - Transactions and Events During the Reporting Period

 

A.Acquisitions:

 

On January 19, 2022, the Company engaged in an agreement to purchase 51% of “Orni” pharmacy located in Tel Aviv.

 

On February 5, 2022, the Company engaged in an agreement to purchase 100% of “Maayan Haim” pharmacy located in Ashdod.

 

On April 24, 2022, the Company engaged in an agreement to purchase 51% of “Amidar” pharmacy located in Naharia.

 

On May 15, 2022, the Company opened a pharmacy in Vienna, Austria, which is fully owned by Cannolam.

 

On July 27, 2022, the Company engaged in an agreement to purchase 51% of “Refua Center” pharmacy located in Bnei Brak.

 

11
Intercure Ltd.
Notes to Condensed Consolidated Interim Financial Statements

 

Note 3 - Transactions and Events During the Reporting Period (Cont’d)

 

A.Acquisitions: (Cont’d)

 

Measurement of fair values

 

Presented hereunder is information regarding the techniques the Gcn:

 

A.Contingent consideration in business combination

 

The Group has NIS 12,780 thousand of contingent considerations.

 

B.Presented below is the fair value, as of the acquisition’s date, of the transferred consideration:

 

   NIS in thousands 
Consideration paid in cash   1,000 
Deferred consideration in cash   3,322 
Contingent consideration   12,780 
Non-controlling interests   (155)
    16,947 

 

C.Net cash flow in the acquisition

 

   NIS in thousands 
Consideration paid in cash   1,000 
Less - acquired cash and cash equivalents   1,797 
    797 

 

D.Amounts recognized on the acquisition date in respect of assets and liabilities:

 

   NIS in thousands 
Cash and cash equivalents   1,797 
Trade and other receivables   2,115 
Inventory   2,032 
Property, plant and equipment and right-of-use asset   275 
Goodwill   150 
Current maturities   (75)
Trade and other payable   (4,463)
Loan from non-controlling interest   (92)
Liabilities in respect of employee benefits   (383)
Borrowings   (1,169)
Total identifiable net assets   187 

 

12
Intercure Ltd.
Notes to Condensed Consolidated Interim Financial Statements

 

Note 3 - Transactions and Events During the Reporting Period (Cont’d)

 

A.Acquisitions: (Cont’d)

 

E.Goodwill

 

The consideration which was paid in the business combination included amounts associated with the expected benefits from synergy (collaboration), growth in revenue, and future developments in the Subsidiaries operating market. These benefits are not recognized separately from goodwill, since the future economic benefits which are expected to arise from them are not reliably measurable. All of the above led to the recognition of goodwill in the amount of NIS 16,761 thousand.

 

F.Non-controlling interests


 

The total sum of non-controlling interests in the Subsidiaries which was recognized on the acquisitions date is NIS )155) thousand. The non-controlling interests measured at the date of the business combination at their proportionate interest in the identifiable assets and liabilities of the acquiree.

B.During the reporting period, the Company borrowed loans in an aggregate amount of NIS 175 million for periods of 0.25 - 5 years at interest rates ranging from Prime +1.97% to Prime +2.05%.

 

During the reporting period the Company repaid loans in an aggregate amount of NIS 78 million.

 

C.On February 16, 2022, the Company engaged in an agreement with Cann Pharmaceutical Ltd. (“Better”), a Israeli medical cannabis multi-national operator known as “Better” to acquire 100% of Better’s shares, which includes “Better’s” unique strains, cultivation site, intellectual property, and commercial operations in Israel as well it’s international activities. Purchase price of USD 35 million: paid with Intercure shares at the valuation of USD 10 per share. The acquisition closing is subject to customary closing conditions as well as specific approvals of the Israel

 

Medical Cannabis Agency (IMCA), the Toronto Stock Exchange (TSX), as well as the approval of the court in Israel.

 

D.On March 1, 2022, the company signed a definitive agreement (hereinafter: “Agreement”) with Altman Health LP (“Altman Health”), the market leader of OTC and nutritional supplements in over 1,700 points of sale, including all major pharmacies across Israel. The newly formed company will focus on the new Israeli CBD product market, following the Israeli Minister of Health’s announcement On February 28, 2022, that CBD will be removed from the Dangerous Drugs Act.

 

E.On May 15, 2022, the Company’s board of directors authorized management to offer a total of up to 596,937 options to an officer (the Company’s CFO) and 7 Canndoc employees, which constitute 1.3% of the Company’s shares in accordance with the Company 2015 ESOP plan.

 

F.On September 15, 2022, the company held an annual Special General Meeting of Shareholders, that approved an extension of the exercise period for 1,030,325 options previously granted to the Company’s chairman of the board, for an additional 3 years until December 31, 2026.

 

13
Intercure Ltd.
Notes to Condensed Consolidated Interim Financial Statements

 

Note 4 - Cultivating Facilities

 

Canndoc has an advanced propagation and growing facility which is located in Kibbutz Beit HaEmek, in which it develops and grows a wide variety of unique strains of medical cannabis (hereinafter: the “Northern Facility”). As of the reporting date, the northern facility is spread over an area of approximately 5 dunams, whereby Canndoc has the right of first refusal regarding an option to expand the area of the northern facility to a total area of approximately 16 dunams. The northern facility includes a greenhouse for propagating, growing and florescence, as well as a processing facility and operational areas. During the reporting period, Canndoc performed extension, upgrade and adjustment works on the northern facility, for the purpose of ensuring the northern facility’s compliance with the high-quality standards required to export from Israel and adjusting the quality of the products to the level required in Israel and in the target countries. The performance of the upgrade works was concluded in the fourth quarter of 2019; On May 21, 2020, an addendum to the agreement was signed, which formalized, inter alia, the investment in the Company’s facility in Beit HaEmek. As of the publication date of the report, the suspensory conditions for the fulfillment of the agreement have not yet been met.

 

In Kibbutz Beit HaEmek, as of September 30, 2022 the Company had approximately NIS 11 million in Property, plant and equipment, net, in respect of facilities that are used by the activity. Held inventory and biological assets of approximately NIS 2 million, with immaterial amount of liabilities that are directly attributed to the activity. During the reporting period the activity generated revenue of approximately NIS 2 million and generated a net loss of approximately NIS 1 million (30% of these results is attributable to Kibbutz Beit HaEmek).

 

In Kibbutz Nir-Oz, as of September 30, 2022 the Company had approximately NIS 54 million in Property, plant and equipment, net, in respect of facilities that are used by the activity. Held inventory and biological assets of approximately NIS 43 million, with immaterial amount of liabilities that are directly attributed to the activity.

 

During the reporting period the activity generated revenue of approximately NIS 9 million and generated a net income of approximately NIS 1 million (26% of these results is attributable to Kibbutz Nir-Oz).

 

Note 5 - Inventory:

 

Inventory is comprised of finished goods of dry packaged or rolled medical cannabis and cannabis oil, as well as the outputs of processing procedures, which include, inter alia, agricultural produce which has been transferred from biological assets, where the procedure of processing into finished goods has not yet been completed.

 

   September 30,   December 31, 
   2022   2021 
   NIS in thousands 
Finished goods   81,502    39,256 
Goods in process and dried inflorescence   44,654    23,057 
Total inventory   126,156    62,313 

 

14
Intercure Ltd.
Notes to Condensed Consolidated Interim Financial Statements

 

 

Note 6 - Biological Assets:

 

The Company measured biological assets (level 3), which are mostly comprised of medical cannabis plants and agricultural produce, at fair value less selling costs up to the point of harvest. This value serves as the cost basis of inventory after the harvest.

 

The Company’s biological assets are primarily comprised of medical cannabis seedlings and medical cannabis. Presented below are the changes in biological assets during the reporting period:

 

   September 30,   December 31, 
   2022   2021 
   NIS in thousands 
Balance as of January 1   5,566    3,153 
Costs of growing medical cannabis plants   46,998    24,556 
Change in fair value less selling costs   11,196    6,574 
Transfer to inventory   (54,621)   (28,717)
Balance as of the end of the period   9,139    5,566 

 

Disclosure regarding assumptions which were used to estimate the net fair value of biological assets

 

A.below are the main assumptions used:

 

   September 30   December 31 
   2022   2021 
Net growing area (in thousands of square meters)   10.5    10.5 
Estimate net yield as of the reporting date (tons) (1)   2.4    1.6 
Estimated net selling price (NIS per gram) (2)   17.4    17.4 
Estimated growing cycle length (in weeks) (4)   13    13 
Estimated growing cycle completion rate (in percent) (5)   32%   29%
Proportion of plants which do not reach the harvesting stage   8%   8%

 

  (1) According to the number of seedlings as of the end of the reporting period
  (2) According to the price range of the Company’s existing products as of the end of the reporting period
  (3) The Company’s estimate regarding the future ratio of sales
  (4) In accordance with the Company’s experience, and according to the strains which exist as of the reporting date
  (5) By planting date vs. growing cycle length

 

B.Below is a sensitivity analysis on the fair value of the biological assets (in NIS thousands) in respect of a 10% increase in each of the following variables:

 

   September 30   December 31 
   2022   2021 
   NIS in thousands 
Change of average selling price   1,105    673 
Change of proportion of oil products   60    50 
Change of proportion of plants which do not reach harvest   (73)   (445)

 

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Intercure Ltd.
Notes to Condensed Consolidated Interim Financial Statements

 

Note 7 - Investments in Financial Assets Measured at Fair Value Through Profit or Loss:

 

  A. As of September 30, 2022 and as of December 31, 2021, the Company holds 3,840,617 shares of XTL Biopharmaceuticals Ltd. (hereinafter: “XTL”), which constitute 0.70% of XTL’s issued and paid-up capital.

 

XTL is a public traded company listed in the Tel-Aviv stock exchange.

 

On January 19, 2022, the Company engaged in an agreement to purchase 51% of “Orni” pharmacy. As of this date, Orni held an investment in financial assets measured at fair value through profit or loss, in amount of NIS 47 thousand in various tradable stocks.

 

The fair value of these two financial assets as of the end of the reporting period was estimated based on the quoted share price (level 1).

 

The fair value and changes in securities which were classified “Financial assets measured at fair value through profit or loss” during the reporting periods was as follows:

 

   September 30   December 31 
   2022   2021 
   NIS in thousands 
Balance for the beginning of the period   330    376 
Acquisition of subsidiary   47    - 
Changes in fair value carried to the statement of income   (177)   (46)
Balance for the end of the period   200    330 

 

B.The Company’s investments in biomed companies are revalued at fair value through profit and loss. The fair value is determined according to valuations, which are mostly performed using the OPM method.

 

   September 30   December 31 
   2022   2021 
   NIS in thousands 
Fair value of the investment in Regenera   -    - 
Fair value of the investment in Fore   1,600    1,600 
Fair value of the investment in Cavnox   965    965 
    2,565    2,565 

 

Note 8 - Other receivables:

 

The balance includes an amount of approximately NIS 34 million loaned to third parties in connection with potential acquisitions which have not yet been materialized.

 

16
Intercure Ltd.
Notes to Condensed Consolidated Interim Financial Statements

 

Note 9 - Operating segment data:

 

Reconciliation of operating segment data include cancellation of assets of the cannabis segment, addition of the investment in accordance with the equity method, and addition of assets and liabilities which were not attributed to segments.

 

   NIS in thousands 
   Cannabis segment   Biomed segment   Reconciliations   Total 
                 

Nine months ended

September 30, 2022

                    
External revenue   283,078    -    -    283,078 
Segment profit (loss)   65,999    (173)   -    65,826 
                     
General and administrative expenses not attributable to segments                  (11,502)
Other expenses, net                  (227)
Operating profit                  54,097 
                     
Segment assets   745,221    2,766    126,834    875,821 
Segment liabilities   394,575    -    (33,217)   361,358 
                     

Nine months ended

September 30, 2021

                    
External revenue   139,976    -    -    139,976 
Segment profit (loss)   29,010    333    -    29,343 
                     
General and administrative expenses not attributable to segments                  (8,807)
Other expenses, net                  (1,401)
Operating Profit                  19,135 
                     
Segment assets   513,202    4,132    138,269    655,602 
Segment liabilities   231,838    -    (26,352)   205,486 
                     

Three months ended

September 30, 2022

                    
External revenue   100,572    -    -    100,572 
Segment profit (loss)   21,606    (50)   -    21,556 
                     
General and administrative expenses not attributable to segments                  (6,270)
Other expenses, net                  897 
Operating profit                  16,183 
                     
Segment assets   67,970    (49)   14,836    81,757 
Segment liabilities   40,344    -    30,040    70,384 

 

17
Intercure Ltd.
Notes to Condensed Consolidated Interim Financial Statements

 

Note 9 - Operating segment data: (Cont’d)

 

   NIS in thousands 
   Cannabis segment   Biomed segment   Reconciliations   Total 
                 

Three months ended

September 30, 2021

                    
External revenue   61,695    -    -    61,695 
Segment profit (loss)   9,731    8    -    9,739 
                     
General and administrative expenses not attributable to segments                  (3,506)
Other expenses, net                  (1,692)
Operating Profit                  4,541 
                     
Segment assets   513,202    4,132    138,269    655,603 
Segment liabilities   231,838    -    (26,353)   205,485 
                     
Year ended December 31, 2021                    
External revenue   219,677    -    -    219,677 
Segment profit (loss)   44,646    (1,868)   -    42,778 
                     
General and administrative expenses not attributable to segments                  (11,620)
Other expenses, net                  (2,971)
Operating Profit                  28,187 
                     
Segment assets   551,435    2,895    131,994    686,324 
Segment liabilities   132,562    -    94,571    227,133 

 

Note 10 - Subsequent events:

 

  A. In October 2022, the Company purchase 51% of “Amirim Pharm” pharmacy located in Hadera for an immaterial consideration.
     
  B. In October 2022, Fore has initiated an investment round. If the Company chooses not to participate it will be diluted from 0.44% to 0.10% on a fully diluted basis.

 

- - - - - - - - - - - -

 

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