<?xml version='1.0' encoding='ASCII'?>
<html xmlns="http://www.w3.org/1999/xhtml" xmlns:xs="http://www.w3.org/2001/XMLSchema-instance" xmlns:xlink="http://www.w3.org/1999/xlink" xmlns:xbrli="http://www.xbrl.org/2003/instance" xmlns:xbrldi="http://xbrl.org/2006/xbrldi" xmlns:xbrldt="http://xbrl.org/2005/xbrldt" xmlns:iso4217="http://www.xbrl.org/2003/iso4217" xmlns:ix="http://www.xbrl.org/2013/inlineXBRL" xmlns:ixt="http://www.xbrl.org/inlineXBRL/transformation/2015-02-26" xmlns:ixt-sec="http://www.sec.gov/inlineXBRL/transformation/2015-08-31" xmlns:link="http://www.xbrl.org/2003/linkbase" xmlns:dei="http://xbrl.sec.gov/dei/2023" xmlns:ref="http://www.xbrl.org/2006/ref" xmlns:us-gaap="http://fasb.org/us-gaap/2023" xmlns:us-roles="http://fasb.org/us-roles/2023" xmlns:dtr-types="http://www.xbrl.org/dtr/type/2022-03-31" xmlns:country="http://xbrl.sec.gov/country/2023" xmlns:srt="http://fasb.org/srt/2023" xmlns:ZOOZ="http://zoozpower.com/20231231">
<head>
     <title></title>
<meta http-equiv="Content-Type" content="text/html"/>
</head>
<!-- Field: Set; Name: xdx; ID: xdx_02C_US%2DGAAP%2D2023 -->
<!-- Field: Set; Name: xdx; ID: xdx_039_ZOOZ_zoozpower.com_20231231 -->
<!-- Field: Set; Name: xdx; ID: xdx_04A_20230101_20231231 -->
<!-- Field: Set; Name: xdx; ID: xdx_059_edei%2D%2DAmendmentFlag_false -->
<!-- Field: Set; Name: xdx; ID: xdx_05A_edei%2D%2DDocumentFiscalPeriodFocus_FY -->
<!-- Field: Set; Name: xdx; ID: xdx_056_edei%2D%2DEntityCentralIndexKey_0001992818 -->
<!-- Field: Set; Name: xdx; ID: xdx_07A_XDX_form20%2Df.xdx -->
<!-- Field: Set; Name: xdx; ID: xdx_06B_USD_1_iso4217%2D%2DUSD -->
<!-- Field: Set; Name: xdx; ID: xdx_062_Shares_2_xbrli%2D%2Dshares -->
<!-- Field: Set; Name: xdx; ID: xdx_06D_USDPShares_3_iso4217%2D%2DUSD_xbrli%2D%2Dshares -->
<!-- Field: Set; Name: xdx; ID: xdx_069_Pure_4_xbrli%2D%2Dpure -->
<!-- Field: Set; Name: xdx; ID: xdx_064_Integer_5_Integer -->
<!-- Field: Set; Name: xdx; ID: xdx_06D_ILS_0_iso4217%2D%2DILS -->
<!-- Field: Set; Name: xdx; ID: xdx_06F_ILSPShares_0_iso4217%2D%2DILS_xbrli%2D%2Dshares -->
<!-- Field: Set; Name: xdx; ID: xdx_077_SO_form20%2Df.xdxs -->
<body style="font: 10pt Times New Roman, Times, Serif">
<div style="display: none">
<ix:header>
 <ix:hidden>
  <ix:nonNumeric contextRef="From2023-01-01to2023-12-31" id="Fact000003" name="dei:AmendmentFlag">false</ix:nonNumeric>
  <ix:nonNumeric contextRef="From2023-01-01to2023-12-31" id="Fact000004" name="dei:DocumentFiscalPeriodFocus">FY</ix:nonNumeric>
  <ix:nonNumeric contextRef="From2023-01-01to2023-12-31" id="Fact000005" name="dei:EntityCentralIndexKey">0001992818</ix:nonNumeric>
  <ix:nonFraction name="us-gaap:CommitmentsAndContingencies" contextRef="AsOf2023-12-31" id="xdx2ixbrl0136" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax" contextRef="From2022-01-012022-12-31" id="xdx2ixbrl0178" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax" contextRef="From2021-01-012021-12-31" id="xdx2ixbrl0179" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:CostOfRevenue" contextRef="From2021-01-012021-12-31" id="xdx2ixbrl0183" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:GrossProfit" contextRef="From2021-01-012021-12-31" id="xdx2ixbrl0187" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:IncomeTaxExpenseBenefit" contextRef="From2023-01-01to2023-12-31" id="xdx2ixbrl0213" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:IncomeTaxExpenseBenefit" contextRef="From2022-01-012022-12-31" id="xdx2ixbrl0214" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:IncomeTaxExpenseBenefit" contextRef="From2021-01-012021-12-31" id="xdx2ixbrl0215" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" contextRef="AsOf2022-12-31_us-gaap_PreferredStockMember_us-gaap_RedeemableConvertiblePreferredStockMember" id="xdx2ixbrl0266" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue" contextRef="From2023-01-012023-12-31_us-gaap_CommonStockMember" id="xdx2ixbrl0276" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue" contextRef="From2023-01-012023-12-31_us-gaap_AccumulatedOtherComprehensiveIncomeMember" id="xdx2ixbrl0278" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue" contextRef="From2023-01-012023-12-31_us-gaap_RetainedEarningsMember" id="xdx2ixbrl0279" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:NetIncomeLoss" contextRef="From2023-01-012023-12-31_us-gaap_PreferredStockMember_us-gaap_RedeemableConvertiblePreferredStockMember" id="xdx2ixbrl0282" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:NetIncomeLoss" contextRef="From2023-01-012023-12-31_us-gaap_CommonStockMember" id="xdx2ixbrl0283" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:NetIncomeLoss" contextRef="From2023-01-012023-12-31_us-gaap_AdditionalPaidInCapitalMember" id="xdx2ixbrl0284" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:NetIncomeLoss" contextRef="From2023-01-012023-12-31_us-gaap_AccumulatedOtherComprehensiveIncomeMember" id="xdx2ixbrl0285" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent" contextRef="From2023-01-012023-12-31_us-gaap_CommonStockMember" id="xdx2ixbrl0290" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent" contextRef="From2023-01-012023-12-31_us-gaap_AdditionalPaidInCapitalMember" id="xdx2ixbrl0291" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent" contextRef="From2023-01-012023-12-31_us-gaap_RetainedEarningsMember" id="xdx2ixbrl0293" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" contextRef="AsOf2023-12-31_us-gaap_PreferredStockMember_us-gaap_RedeemableConvertiblePreferredStockMember" id="xdx2ixbrl0296" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" contextRef="AsOf2021-12-31_us-gaap_PreferredStockMember_us-gaap_RedeemableConvertiblePreferredStockMember" id="xdx2ixbrl0306" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:StockIssuedDuringPeriodValueNewIssues" contextRef="From2022-01-012022-12-31_us-gaap_PreferredStockMember_us-gaap_RedeemableConvertiblePreferredStockMember" id="xdx2ixbrl0324" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:StockIssuedDuringPeriodValueNewIssues" contextRef="From2022-01-012022-12-31_us-gaap_AccumulatedOtherComprehensiveIncomeMember" id="xdx2ixbrl0327" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:StockIssuedDuringPeriodValueNewIssues" contextRef="From2022-01-012022-12-31_us-gaap_RetainedEarningsMember" id="xdx2ixbrl0328" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue" contextRef="From2022-01-012022-12-31_us-gaap_CommonStockMember" id="xdx2ixbrl0336" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue" contextRef="From2022-01-012022-12-31_us-gaap_AccumulatedOtherComprehensiveIncomeMember" id="xdx2ixbrl0338" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue" contextRef="From2022-01-012022-12-31_us-gaap_RetainedEarningsMember" id="xdx2ixbrl0339" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:NetIncomeLoss" contextRef="From2022-01-012022-12-31_us-gaap_CommonStockMember" id="xdx2ixbrl0343" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:NetIncomeLoss" contextRef="From2022-01-012022-12-31_us-gaap_AdditionalPaidInCapitalMember" id="xdx2ixbrl0344" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:NetIncomeLoss" contextRef="From2022-01-012022-12-31_us-gaap_AccumulatedOtherComprehensiveIncomeMember" id="xdx2ixbrl0345" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent" contextRef="From2022-01-012022-12-31_us-gaap_CommonStockMember" id="xdx2ixbrl0350" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent" contextRef="From2022-01-012022-12-31_us-gaap_AdditionalPaidInCapitalMember" id="xdx2ixbrl0351" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent" contextRef="From2022-01-012022-12-31_us-gaap_RetainedEarningsMember" id="xdx2ixbrl0353" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" contextRef="AsOf2022-12-31_us-gaap_PreferredStockMember_us-gaap_RedeemableConvertiblePreferredStockMember" id="xdx2ixbrl0356" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" contextRef="AsOf2020-12-31_us-gaap_CommonStockMember" id="xdx2ixbrl0376" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" contextRef="AsOf2020-12-31_us-gaap_AdditionalPaidInCapitalMember" id="xdx2ixbrl0377" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" contextRef="AsOf2020-12-31_us-gaap_AccumulatedOtherComprehensiveIncomeMember" id="xdx2ixbrl0378" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" contextRef="AsOf2020-12-31_us-gaap_CommonStockMember" id="xdx2ixbrl0387" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" contextRef="AsOf2020-12-31_us-gaap_AdditionalPaidInCapitalMember" id="xdx2ixbrl0388" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" contextRef="AsOf2020-12-31_us-gaap_AccumulatedOtherComprehensiveIncomeMember" id="xdx2ixbrl0389" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:StockIssuedDuringPeriodValueConversionOfConvertibleSecurities" contextRef="From2021-01-012021-12-31_us-gaap_CommonStockMember" id="xdx2ixbrl0398" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:StockIssuedDuringPeriodValueConversionOfConvertibleSecurities" contextRef="From2021-01-012021-12-31_us-gaap_AccumulatedOtherComprehensiveIncomeMember" id="xdx2ixbrl0400" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:StockIssuedDuringPeriodValueConversionOfConvertibleSecurities" contextRef="From2021-01-012021-12-31_us-gaap_RetainedEarningsMember" id="xdx2ixbrl0401" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:StockIssuedDuringPeriodValueNewIssues" contextRef="From2021-01-012021-12-31_us-gaap_PreferredStockMember_us-gaap_RedeemableConvertiblePreferredStockMember" id="xdx2ixbrl0408" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:StockIssuedDuringPeriodValueNewIssues" contextRef="From2021-01-012021-12-31_us-gaap_AccumulatedOtherComprehensiveIncomeMember" id="xdx2ixbrl0411" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:StockIssuedDuringPeriodValueNewIssues" contextRef="From2021-01-012021-12-31_us-gaap_RetainedEarningsMember" id="xdx2ixbrl0412" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue" contextRef="From2021-01-012021-12-31_us-gaap_PreferredStockMember_us-gaap_RedeemableConvertiblePreferredStockMember" id="xdx2ixbrl0419" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue" contextRef="From2021-01-012021-12-31_us-gaap_CommonStockMember" id="xdx2ixbrl0420" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue" contextRef="From2021-01-012021-12-31_us-gaap_AccumulatedOtherComprehensiveIncomeMember" id="xdx2ixbrl0422" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue" contextRef="From2021-01-012021-12-31_us-gaap_RetainedEarningsMember" id="xdx2ixbrl0423" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:NetIncomeLoss" contextRef="From2021-01-012021-12-31_us-gaap_PreferredStockMember_us-gaap_RedeemableConvertiblePreferredStockMember" id="xdx2ixbrl0426" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:NetIncomeLoss" contextRef="From2021-01-012021-12-31_us-gaap_CommonStockMember" id="xdx2ixbrl0427" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:NetIncomeLoss" contextRef="From2021-01-012021-12-31_us-gaap_AdditionalPaidInCapitalMember" id="xdx2ixbrl0428" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:NetIncomeLoss" contextRef="From2021-01-012021-12-31_us-gaap_AccumulatedOtherComprehensiveIncomeMember" id="xdx2ixbrl0429" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent" contextRef="From2021-01-012021-12-31_us-gaap_PreferredStockMember_us-gaap_RedeemableConvertiblePreferredStockMember" id="xdx2ixbrl0433" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent" contextRef="From2021-01-012021-12-31_us-gaap_CommonStockMember" id="xdx2ixbrl0434" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent" contextRef="From2021-01-012021-12-31_us-gaap_AdditionalPaidInCapitalMember" id="xdx2ixbrl0435" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent" contextRef="From2021-01-012021-12-31_us-gaap_RetainedEarningsMember" id="xdx2ixbrl0437" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" contextRef="AsOf2021-12-31_us-gaap_PreferredStockMember_us-gaap_RedeemableConvertiblePreferredStockMember" id="xdx2ixbrl0440" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:SharesOutstanding" contextRef="AsOf2021-12-31_us-gaap_PreferredStockMember_us-gaap_RedeemableConvertiblePreferredStockMember" id="xdx2ixbrl0447" unitRef="Shares" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" contextRef="AsOf2021-12-31_us-gaap_PreferredStockMember_us-gaap_RedeemableConvertiblePreferredStockMember" id="xdx2ixbrl0451" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:SharesOutstanding" contextRef="AsOf2021-12-31_us-gaap_PreferredStockMember_us-gaap_RedeemableConvertiblePreferredStockMember" id="xdx2ixbrl0458" unitRef="Shares" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:GainLossOnDispositionOfAssets" contextRef="From2023-01-01to2023-12-31" id="xdx2ixbrl0488" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:GainLossOnDispositionOfAssets" contextRef="From2021-01-012021-12-31" id="xdx2ixbrl0490" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:IncreaseDecreaseInAccountsReceivable" contextRef="From2023-01-01to2023-12-31" id="xdx2ixbrl0500" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:IncreaseDecreaseInAccountsReceivable" contextRef="From2022-01-012022-12-31" id="xdx2ixbrl0501" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:ProceedsFromSaleOfPropertyPlantAndEquipment" contextRef="From2022-01-012022-12-31" id="xdx2ixbrl0537" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:ProceedsFromSaleOfPropertyPlantAndEquipment" contextRef="From2021-01-012021-12-31" id="xdx2ixbrl0538" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="ZOOZ:ProceedsFromLongTermRestrictedDeposits" contextRef="From2022-01-012022-12-31" id="xdx2ixbrl0541" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="ZOOZ:ProceedsFromLongTermRestrictedDeposits" contextRef="From2021-01-012021-12-31" id="xdx2ixbrl0542" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="ZOOZ:ProceedsFromIssuanceOfSharesAndWarrants" contextRef="From2023-01-01to2023-12-31" id="xdx2ixbrl0552" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:NetCashProvidedByUsedInFinancingActivities" contextRef="From2023-01-01to2023-12-31" id="xdx2ixbrl0556" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="ZOOZ:PurchaseOfEquipment" contextRef="From2023-01-01to2023-12-31" id="xdx2ixbrl0584" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="ZOOZ:PurchaseOfEquipment" contextRef="From2022-01-012022-12-31" id="xdx2ixbrl0585" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="ZOOZ:ReclassificationOfInventoryToPropertyAndEquipment" contextRef="From2022-01-012022-12-31" id="xdx2ixbrl0589" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="ZOOZ:ReclassificationOfInventoryToPropertyAndEquipment" contextRef="From2021-01-012021-12-31" id="xdx2ixbrl0590" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:ConversionOfStockAmountConverted1" contextRef="From2023-01-01to2023-12-31" id="xdx2ixbrl0592" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:ConversionOfStockAmountConverted1" contextRef="From2022-01-012022-12-31" id="xdx2ixbrl0593" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:RestrictedCash" contextRef="AsOf2023-12-31" id="xdx2ixbrl0717" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:PropertyPlantAndEquipmentGross" contextRef="AsOf2022-12-31_us-gaap_EnergyEquipmentMember" id="xdx2ixbrl0782" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:ShortTermLeaseCost" contextRef="From2021-01-012021-12-31" id="xdx2ixbrl0831" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue" contextRef="AsOf2022-12-31_custom_EquityClassifiedAwardsMember" id="xdx2ixbrl1133" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue" contextRef="AsOf2023-12-31_custom_EquityClassifiedAwardsMember" id="xdx2ixbrl1151" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1" contextRef="AsOf2023-12-31_custom_EquityClassifiedAwardsMember" id="xdx2ixbrl1159" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfExercisableOptions" contextRef="AsOf2023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceOneMember" id="xdx2ixbrl1171" unitRef="Shares" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageExercisePrice1" contextRef="AsOf2023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceOneMember" id="xdx2ixbrl1173" unitRef="USDPShares" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfExercisableOptions" contextRef="AsOf2023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceTwoMember" id="xdx2ixbrl1181" unitRef="Shares" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageExercisePrice1" contextRef="AsOf2023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceTwoMember" id="xdx2ixbrl1183" unitRef="USDPShares" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfExercisableOptions" contextRef="AsOf2023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceFourMember" id="xdx2ixbrl1203" unitRef="Shares" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageExercisePrice1" contextRef="AsOf2023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceFourMember" id="xdx2ixbrl1205" unitRef="USDPShares" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfExercisableOptions" contextRef="AsOf2023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceSevenMember" id="xdx2ixbrl1237" unitRef="Shares" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageExercisePrice1" contextRef="AsOf2023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceSevenMember" id="xdx2ixbrl1239" unitRef="USDPShares" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfExercisableOptions" contextRef="AsOf2023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceEightMember" id="xdx2ixbrl1247" unitRef="Shares" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageExercisePrice1" contextRef="AsOf2023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceEightMember" id="xdx2ixbrl1249" unitRef="USDPShares" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfExercisableOptions" contextRef="AsOf2023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceNineMember" id="xdx2ixbrl1257" unitRef="Shares" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageExercisePrice1" contextRef="AsOf2023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceNineMember" id="xdx2ixbrl1259" unitRef="USDPShares" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingPeriodIncreaseDecrease" contextRef="From2021-01-012021-12-31_custom_LiabilityClassifiedAwardsMember" id="xdx2ixbrl1297" unitRef="Shares" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingPeriodIncreaseDecrease" contextRef="From2022-01-012022-12-31_custom_LiabilityClassifiedAwardsMember" id="xdx2ixbrl1307" unitRef="Shares" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingPeriodIncreaseDecrease" contextRef="From2023-01-012023-12-31_custom_LiabilityClassifiedAwardsMember" id="xdx2ixbrl1317" unitRef="Shares" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue" contextRef="AsOf2022-12-31_custom_LiabilityClassifiedAwardsMember" id="xdx2ixbrl1391" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue" contextRef="AsOf2023-12-31_custom_LiabilityClassifiedAwardsMember" id="xdx2ixbrl1403" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1" contextRef="AsOf2023-12-31_custom_LiabilityClassifiedAwardsMember" id="xdx2ixbrl1411" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:DeferredTaxAssetsInventory" contextRef="AsOf2022-12-31" id="xdx2ixbrl1569" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:DeferredTaxAssetsInProcessResearchAndDevelopment" contextRef="AsOf2022-12-31" id="xdx2ixbrl1572" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:DeferredTaxAssetsLiabilitiesNet" contextRef="AsOf2023-12-31" id="xdx2ixbrl1589" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:DeferredTaxAssetsLiabilitiesNet" contextRef="AsOf2022-12-31" id="xdx2ixbrl1590" unitRef="USD" xs:nil="true"/>
  <ix:nonFraction name="us-gaap:InterestIncomeDomesticDeposits" contextRef="From2021-01-012021-12-31" id="xdx2ixbrl1677" unitRef="USD" xs:nil="true"/>
  </ix:hidden>
 <ix:references>
  <link:schemaRef xlink:href="zooz-20231231.xsd" xlink:type="simple"/>
  </ix:references>
 <ix:resources>
    <xbrli:context id="From2023-01-01to2023-12-31">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2023-01-01</xbrli:startDate>
        <xbrli:endDate>2023-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2023-01-012023-12-31_dei_BusinessContactMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="dei:EntityAddressesAddressTypeAxis">dei:BusinessContactMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2023-01-01</xbrli:startDate>
        <xbrli:endDate>2023-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2023-01-012023-12-31_custom_OrdinarySharesNominalValueNis00286PerShareMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:StatementClassOfStockAxis">ZOOZ:OrdinarySharesNominalValueNis00286PerShareMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2023-01-01</xbrli:startDate>
        <xbrli:endDate>2023-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2023-01-012023-12-31_custom_WarrantsToPurchaseOrdinarySharesMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:StatementClassOfStockAxis">ZOOZ:WarrantsToPurchaseOrdinarySharesMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2023-01-01</xbrli:startDate>
        <xbrli:endDate>2023-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2023-12-31">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2023-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2022-12-31">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2022-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2022-01-012022-12-31">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2022-01-01</xbrli:startDate>
        <xbrli:endDate>2022-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2021-01-012021-12-31">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2021-01-01</xbrli:startDate>
        <xbrli:endDate>2021-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2022-12-31_us-gaap_PreferredStockMember_us-gaap_RedeemableConvertiblePreferredStockMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:PreferredStockMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:StatementClassOfStockAxis">us-gaap:RedeemableConvertiblePreferredStockMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2022-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2022-12-31_us-gaap_CommonStockMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:CommonStockMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2022-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2022-12-31_us-gaap_AdditionalPaidInCapitalMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AdditionalPaidInCapitalMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2022-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2022-12-31_us-gaap_AccumulatedOtherComprehensiveIncomeMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AccumulatedOtherComprehensiveIncomeMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2022-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2022-12-31_us-gaap_RetainedEarningsMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:RetainedEarningsMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2022-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2021-12-31_us-gaap_PreferredStockMember_us-gaap_RedeemableConvertiblePreferredStockMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:PreferredStockMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:StatementClassOfStockAxis">us-gaap:RedeemableConvertiblePreferredStockMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2021-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2021-12-31_us-gaap_CommonStockMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:CommonStockMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2021-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2021-12-31_us-gaap_AdditionalPaidInCapitalMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AdditionalPaidInCapitalMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2021-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2021-12-31_us-gaap_AccumulatedOtherComprehensiveIncomeMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AccumulatedOtherComprehensiveIncomeMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2021-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2021-12-31_us-gaap_RetainedEarningsMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:RetainedEarningsMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2021-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2021-12-31">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2021-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2020-12-31_us-gaap_PreferredStockMember_us-gaap_RedeemableConvertiblePreferredStockMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:PreferredStockMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:StatementClassOfStockAxis">us-gaap:RedeemableConvertiblePreferredStockMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2020-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2020-12-31_us-gaap_CommonStockMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:CommonStockMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2020-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2020-12-31_us-gaap_AdditionalPaidInCapitalMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AdditionalPaidInCapitalMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2020-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2020-12-31_us-gaap_AccumulatedOtherComprehensiveIncomeMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AccumulatedOtherComprehensiveIncomeMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2020-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2020-12-31_us-gaap_RetainedEarningsMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:RetainedEarningsMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2020-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2020-12-31">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2020-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2023-01-012023-12-31_us-gaap_PreferredStockMember_us-gaap_RedeemableConvertiblePreferredStockMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:PreferredStockMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:StatementClassOfStockAxis">us-gaap:RedeemableConvertiblePreferredStockMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2023-01-01</xbrli:startDate>
        <xbrli:endDate>2023-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2023-01-012023-12-31_us-gaap_CommonStockMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:CommonStockMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2023-01-01</xbrli:startDate>
        <xbrli:endDate>2023-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2023-01-012023-12-31_us-gaap_AdditionalPaidInCapitalMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AdditionalPaidInCapitalMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2023-01-01</xbrli:startDate>
        <xbrli:endDate>2023-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2023-01-012023-12-31_us-gaap_AccumulatedOtherComprehensiveIncomeMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AccumulatedOtherComprehensiveIncomeMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2023-01-01</xbrli:startDate>
        <xbrli:endDate>2023-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2023-01-012023-12-31_us-gaap_RetainedEarningsMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:RetainedEarningsMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2023-01-01</xbrli:startDate>
        <xbrli:endDate>2023-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2022-01-012022-12-31_us-gaap_PreferredStockMember_us-gaap_RedeemableConvertiblePreferredStockMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:PreferredStockMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:StatementClassOfStockAxis">us-gaap:RedeemableConvertiblePreferredStockMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2022-01-01</xbrli:startDate>
        <xbrli:endDate>2022-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2022-01-012022-12-31_us-gaap_CommonStockMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:CommonStockMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2022-01-01</xbrli:startDate>
        <xbrli:endDate>2022-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2022-01-012022-12-31_us-gaap_AdditionalPaidInCapitalMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AdditionalPaidInCapitalMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2022-01-01</xbrli:startDate>
        <xbrli:endDate>2022-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2022-01-012022-12-31_us-gaap_AccumulatedOtherComprehensiveIncomeMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AccumulatedOtherComprehensiveIncomeMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2022-01-01</xbrli:startDate>
        <xbrli:endDate>2022-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2022-01-012022-12-31_us-gaap_RetainedEarningsMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:RetainedEarningsMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2022-01-01</xbrli:startDate>
        <xbrli:endDate>2022-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2021-01-012021-12-31_us-gaap_PreferredStockMember_us-gaap_RedeemableConvertiblePreferredStockMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:PreferredStockMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:StatementClassOfStockAxis">us-gaap:RedeemableConvertiblePreferredStockMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2021-01-01</xbrli:startDate>
        <xbrli:endDate>2021-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2021-01-012021-12-31_us-gaap_CommonStockMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:CommonStockMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2021-01-01</xbrli:startDate>
        <xbrli:endDate>2021-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2021-01-012021-12-31_us-gaap_AdditionalPaidInCapitalMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AdditionalPaidInCapitalMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2021-01-01</xbrli:startDate>
        <xbrli:endDate>2021-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2021-01-012021-12-31_us-gaap_AccumulatedOtherComprehensiveIncomeMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AccumulatedOtherComprehensiveIncomeMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2021-01-01</xbrli:startDate>
        <xbrli:endDate>2021-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2021-01-012021-12-31_us-gaap_RetainedEarningsMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:RetainedEarningsMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2021-01-01</xbrli:startDate>
        <xbrli:endDate>2021-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2023-12-31_us-gaap_PreferredStockMember_us-gaap_RedeemableConvertiblePreferredStockMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:PreferredStockMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:StatementClassOfStockAxis">us-gaap:RedeemableConvertiblePreferredStockMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2023-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2023-12-31_us-gaap_CommonStockMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:CommonStockMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2023-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2023-12-31_us-gaap_AdditionalPaidInCapitalMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AdditionalPaidInCapitalMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2023-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2023-12-31_us-gaap_AccumulatedOtherComprehensiveIncomeMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AccumulatedOtherComprehensiveIncomeMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2023-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2023-12-31_us-gaap_RetainedEarningsMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:RetainedEarningsMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2023-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2021-01-012021-12-31_us-gaap_IPOMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:SubsidiarySaleOfStockAxis">us-gaap:IPOMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2021-01-01</xbrli:startDate>
        <xbrli:endDate>2021-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2023-07-30_custom_KeyarchAcquisitionCorporationMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="srt:ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis">ZOOZ:KeyarchAcquisitionCorporationMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2023-07-30</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2023-01-012023-12-31_custom_BusinessCombinationAgreementMember_custom_KeyarchAcquisitionCorporationMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:TypeOfArrangementAxis">ZOOZ:BusinessCombinationAgreementMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:BusinessAcquisitionAxis">ZOOZ:KeyarchAcquisitionCorporationMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2023-01-01</xbrli:startDate>
        <xbrli:endDate>2023-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2024-02-082024-02-09_us-gaap_SubsequentEventMember_custom_SubscriptionAgreementsMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:SubsequentEventTypeAxis">us-gaap:SubsequentEventMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:TypeOfArrangementAxis">ZOOZ:SubscriptionAgreementsMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2024-02-08</xbrli:startDate>
        <xbrli:endDate>2024-02-09</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2024-02-09_us-gaap_SubsequentEventMember_custom_SubscriptionAgreementsMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:SubsequentEventTypeAxis">us-gaap:SubsequentEventMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:TypeOfArrangementAxis">ZOOZ:SubscriptionAgreementsMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2024-02-09</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2024-03-202024-03-21_us-gaap_SubsequentEventMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:SubsequentEventTypeAxis">us-gaap:SubsequentEventMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2024-03-20</xbrli:startDate>
        <xbrli:endDate>2024-03-21</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2024-04-032024-04-04_custom_BusinessCombinationAgreementMember_us-gaap_SubsequentEventMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:TypeOfArrangementAxis">ZOOZ:BusinessCombinationAgreementMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:SubsequentEventTypeAxis">us-gaap:SubsequentEventMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2024-04-03</xbrli:startDate>
        <xbrli:endDate>2024-04-04</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2024-04-30_custom_BusinessCombinationAgreementsMember_us-gaap_SubsequentEventMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:TypeOfArrangementAxis">ZOOZ:BusinessCombinationAgreementsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:SubsequentEventTypeAxis">us-gaap:SubsequentEventMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2024-04-30</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2023-01-012023-12-31_us-gaap_EmployeeStockOptionMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis">us-gaap:EmployeeStockOptionMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2023-01-01</xbrli:startDate>
        <xbrli:endDate>2023-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2023-01-012023-12-31_us-gaap_WarrantMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis">us-gaap:WarrantMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2023-01-01</xbrli:startDate>
        <xbrli:endDate>2023-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2022-01-012022-12-31_us-gaap_EmployeeStockOptionMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis">us-gaap:EmployeeStockOptionMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2022-01-01</xbrli:startDate>
        <xbrli:endDate>2022-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2022-01-012022-12-31_us-gaap_WarrantMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis">us-gaap:WarrantMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2022-01-01</xbrli:startDate>
        <xbrli:endDate>2022-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2023-12-31_us-gaap_ComputerEquipmentMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:ComputerEquipmentMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2023-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2023-12-31_us-gaap_OfficeEquipmentMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:OfficeEquipmentMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2023-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2023-12-31_us-gaap_MachineryAndEquipmentMember_srt_MinimumMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:MachineryAndEquipmentMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MinimumMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2023-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2023-12-31_us-gaap_MachineryAndEquipmentMember_srt_MaximumMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:MachineryAndEquipmentMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MaximumMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2023-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2023-12-31_us-gaap_EnergyEquipmentMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:EnergyEquipmentMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2023-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2023-12-31_us-gaap_LeaseholdImprovementsMember_srt_MinimumMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:LeaseholdImprovementsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MinimumMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2023-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2023-12-31_us-gaap_LeaseholdImprovementsMember_srt_MaximumMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:LeaseholdImprovementsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MaximumMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2023-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2023-01-012023-12-31_us-gaap_PublicUtilitiesInventoryRawMaterialsMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:PublicUtilitiesInventoryAxis">us-gaap:PublicUtilitiesInventoryRawMaterialsMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2023-01-01</xbrli:startDate>
        <xbrli:endDate>2023-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2022-12-31_us-gaap_ComputerEquipmentMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:ComputerEquipmentMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2022-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2022-12-31_us-gaap_OfficeEquipmentMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:OfficeEquipmentMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2022-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2023-12-31_us-gaap_MachineryAndEquipmentMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:MachineryAndEquipmentMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2023-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2022-12-31_us-gaap_MachineryAndEquipmentMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:MachineryAndEquipmentMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2022-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2023-12-31_us-gaap_LeaseholdImprovementsMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:LeaseholdImprovementsMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2023-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2022-12-31_us-gaap_LeaseholdImprovementsMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:LeaseholdImprovementsMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2022-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2022-12-31_us-gaap_EnergyEquipmentMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:EnergyEquipmentMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2022-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2023-12-31_custom_LeaseAgreementMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:TypeOfArrangementAxis">ZOOZ:LeaseAgreementMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2023-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2023-01-012023-12-31_srt_MinimumMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MinimumMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2023-01-01</xbrli:startDate>
        <xbrli:endDate>2023-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2023-01-012023-12-31_srt_MaximumMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MaximumMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2023-01-01</xbrli:startDate>
        <xbrli:endDate>2023-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2023-01-012023-12-31_custom_BIRDFoundationMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="dei:LegalEntityAxis">ZOOZ:BIRDFoundationMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2023-01-01</xbrli:startDate>
        <xbrli:endDate>2023-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2022-01-012022-12-31_custom_BIRDFoundationMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="dei:LegalEntityAxis">ZOOZ:BIRDFoundationMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2022-01-01</xbrli:startDate>
        <xbrli:endDate>2022-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2021-01-012021-12-31_custom_BIRDFoundationMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="dei:LegalEntityAxis">ZOOZ:BIRDFoundationMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2021-01-01</xbrli:startDate>
        <xbrli:endDate>2021-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2023-12-31_srt_MinimumMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MinimumMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2023-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2023-12-31_srt_MaximumMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MaximumMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2023-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2024-03-312024-03-31">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2024-03-31</xbrli:startDate>
        <xbrli:endDate>2024-03-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2024-03-31">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2024-03-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2021-02-28">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2021-02-28</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2024-03-31_srt_MinimumMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MinimumMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2024-03-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2024-03-31_srt_MaximumMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MaximumMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2024-03-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2021-02-18_us-gaap_IPOMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:SubsidiarySaleOfStockAxis">us-gaap:IPOMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2021-02-18</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2021-02-182021-02-18_us-gaap_IPOMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:SubsidiarySaleOfStockAxis">us-gaap:IPOMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2021-02-18</xbrli:startDate>
        <xbrli:endDate>2021-02-18</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2021-01-012021-03-31">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2021-01-01</xbrli:startDate>
        <xbrli:endDate>2021-03-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2021-01-012021-03-31_custom_OptionOneMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:StatementClassOfStockAxis">ZOOZ:OptionOneMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2021-01-01</xbrli:startDate>
        <xbrli:endDate>2021-03-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2021-01-012021-03-31_custom_OptionTwoMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:StatementClassOfStockAxis">ZOOZ:OptionTwoMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2021-01-01</xbrli:startDate>
        <xbrli:endDate>2021-03-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2022-01-012022-03-31">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2022-01-01</xbrli:startDate>
        <xbrli:endDate>2022-03-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2022-03-31_us-gaap_PrivatePlacementMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:SubsidiarySaleOfStockAxis">us-gaap:PrivatePlacementMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2022-03-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2022-03-31">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2022-03-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2022-03-31_custom_SeriesThreeMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:StatementClassOfStockAxis">ZOOZ:SeriesThreeMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2022-03-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2023-01-012023-12-31_custom_TwoThousandFifteenIncentiveCompensationPlanMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:PlanNameAxis">ZOOZ:TwoThousandFifteenIncentiveCompensationPlanMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2023-01-01</xbrli:startDate>
        <xbrli:endDate>2023-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2021-11-012021-11-30_us-gaap_ShareBasedPaymentArrangementNonemployeeMember_srt_OfficerMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:GranteeStatusAxis">us-gaap:ShareBasedPaymentArrangementNonemployeeMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="srt:TitleOfIndividualAxis">srt:OfficerMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2021-11-01</xbrli:startDate>
        <xbrli:endDate>2021-11-30</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2021-11-012021-11-30_custom_EmployeesOrOfficersMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="srt:TitleOfIndividualAxis">ZOOZ:EmployeesOrOfficersMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2021-11-01</xbrli:startDate>
        <xbrli:endDate>2021-11-30</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2021-11-012021-11-30_srt_OfficerMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="srt:TitleOfIndividualAxis">srt:OfficerMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2021-11-01</xbrli:startDate>
        <xbrli:endDate>2021-11-30</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2022-07-012022-07-31_us-gaap_ShareBasedPaymentArrangementEmployeeMember_custom_EmployeesOrOfficersMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:GranteeStatusAxis">us-gaap:ShareBasedPaymentArrangementEmployeeMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="srt:TitleOfIndividualAxis">ZOOZ:EmployeesOrOfficersMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2022-07-01</xbrli:startDate>
        <xbrli:endDate>2022-07-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2022-07-012022-07-31_us-gaap_ShareBasedPaymentArrangementEmployeeMember_srt_OfficerMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:GranteeStatusAxis">us-gaap:ShareBasedPaymentArrangementEmployeeMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="srt:TitleOfIndividualAxis">srt:OfficerMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2022-07-01</xbrli:startDate>
        <xbrli:endDate>2022-07-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2022-08-012022-08-31_us-gaap_ShareBasedPaymentArrangementEmployeeMember_srt_OfficerMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:GranteeStatusAxis">us-gaap:ShareBasedPaymentArrangementEmployeeMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="srt:TitleOfIndividualAxis">srt:OfficerMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2022-08-01</xbrli:startDate>
        <xbrli:endDate>2022-08-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2022-10-012022-10-31_us-gaap_ShareBasedPaymentArrangementEmployeeMember_srt_OfficerMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:GranteeStatusAxis">us-gaap:ShareBasedPaymentArrangementEmployeeMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="srt:TitleOfIndividualAxis">srt:OfficerMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2022-10-01</xbrli:startDate>
        <xbrli:endDate>2022-10-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2022-12-012022-12-31_us-gaap_ShareBasedPaymentArrangementEmployeeMember_custom_EmployeesOrOfficersMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:GranteeStatusAxis">us-gaap:ShareBasedPaymentArrangementEmployeeMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="srt:TitleOfIndividualAxis">ZOOZ:EmployeesOrOfficersMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2022-12-01</xbrli:startDate>
        <xbrli:endDate>2022-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2023-02-012023-02-28_us-gaap_ShareBasedPaymentArrangementEmployeeMember_custom_EmployeesMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:GranteeStatusAxis">us-gaap:ShareBasedPaymentArrangementEmployeeMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="srt:TitleOfIndividualAxis">ZOOZ:EmployeesMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2023-02-01</xbrli:startDate>
        <xbrli:endDate>2023-02-28</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2023-03-012023-03-31_us-gaap_ShareBasedPaymentArrangementEmployeeMember_custom_EmployeesMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:GranteeStatusAxis">us-gaap:ShareBasedPaymentArrangementEmployeeMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="srt:TitleOfIndividualAxis">ZOOZ:EmployeesMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2023-03-01</xbrli:startDate>
        <xbrli:endDate>2023-03-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2023-04-012023-04-30_us-gaap_ShareBasedPaymentArrangementEmployeeMember_srt_OfficerMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:GranteeStatusAxis">us-gaap:ShareBasedPaymentArrangementEmployeeMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="srt:TitleOfIndividualAxis">srt:OfficerMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2023-04-01</xbrli:startDate>
        <xbrli:endDate>2023-04-30</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2023-04-012023-04-30_us-gaap_ShareBasedPaymentArrangementEmployeeMember_srt_OfficerMember_us-gaap_ShareBasedCompensationAwardTrancheOneMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:GranteeStatusAxis">us-gaap:ShareBasedPaymentArrangementEmployeeMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="srt:TitleOfIndividualAxis">srt:OfficerMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:VestingAxis">us-gaap:ShareBasedCompensationAwardTrancheOneMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2023-04-01</xbrli:startDate>
        <xbrli:endDate>2023-04-30</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2023-04-012023-04-30_us-gaap_ShareBasedPaymentArrangementEmployeeMember_srt_OfficerMember_us-gaap_ShareBasedCompensationAwardTrancheTwoMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:GranteeStatusAxis">us-gaap:ShareBasedPaymentArrangementEmployeeMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="srt:TitleOfIndividualAxis">srt:OfficerMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:VestingAxis">us-gaap:ShareBasedCompensationAwardTrancheTwoMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2023-04-01</xbrli:startDate>
        <xbrli:endDate>2023-04-30</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2023-04-012023-04-30_us-gaap_ShareBasedPaymentArrangementEmployeeMember_srt_OfficerMember_us-gaap_ShareBasedCompensationAwardTrancheThreeMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:GranteeStatusAxis">us-gaap:ShareBasedPaymentArrangementEmployeeMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="srt:TitleOfIndividualAxis">srt:OfficerMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:VestingAxis">us-gaap:ShareBasedCompensationAwardTrancheThreeMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2023-04-01</xbrli:startDate>
        <xbrli:endDate>2023-04-30</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2023-04-012023-04-30_us-gaap_ShareBasedPaymentArrangementEmployeeMember_custom_TwoDirectorsMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:GranteeStatusAxis">us-gaap:ShareBasedPaymentArrangementEmployeeMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="srt:TitleOfIndividualAxis">ZOOZ:TwoDirectorsMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2023-04-01</xbrli:startDate>
        <xbrli:endDate>2023-04-30</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2023-04-012023-04-30_us-gaap_ShareBasedPaymentArrangementEmployeeMember_custom_TwoDirectorsMember_us-gaap_ShareBasedCompensationAwardTrancheOneMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:GranteeStatusAxis">us-gaap:ShareBasedPaymentArrangementEmployeeMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="srt:TitleOfIndividualAxis">ZOOZ:TwoDirectorsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:VestingAxis">us-gaap:ShareBasedCompensationAwardTrancheOneMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2023-04-01</xbrli:startDate>
        <xbrli:endDate>2023-04-30</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2023-04-012023-04-30_us-gaap_ShareBasedPaymentArrangementEmployeeMember_custom_TwoDirectorsMember_us-gaap_ShareBasedCompensationAwardTrancheTwoMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:GranteeStatusAxis">us-gaap:ShareBasedPaymentArrangementEmployeeMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="srt:TitleOfIndividualAxis">ZOOZ:TwoDirectorsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:VestingAxis">us-gaap:ShareBasedCompensationAwardTrancheTwoMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2023-04-01</xbrli:startDate>
        <xbrli:endDate>2023-04-30</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2023-04-012023-04-30_us-gaap_ShareBasedPaymentArrangementEmployeeMember_custom_TwoDirectorsMember_us-gaap_ShareBasedCompensationAwardTrancheThreeMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:GranteeStatusAxis">us-gaap:ShareBasedPaymentArrangementEmployeeMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="srt:TitleOfIndividualAxis">ZOOZ:TwoDirectorsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:VestingAxis">us-gaap:ShareBasedCompensationAwardTrancheThreeMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2023-04-01</xbrli:startDate>
        <xbrli:endDate>2023-04-30</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2023-08-012023-08-31_us-gaap_ShareBasedPaymentArrangementEmployeeMember_custom_EmployeesMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:GranteeStatusAxis">us-gaap:ShareBasedPaymentArrangementEmployeeMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="srt:TitleOfIndividualAxis">ZOOZ:EmployeesMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2023-08-01</xbrli:startDate>
        <xbrli:endDate>2023-08-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2023-01-012023-12-31_custom_EquityClassifiedAwardsMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:EquityClassifiedAwardsMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2023-01-01</xbrli:startDate>
        <xbrli:endDate>2023-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2023-12-31_custom_EquityClassifiedAwardsMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:EquityClassifiedAwardsMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2023-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2023-12-31_custom_LiabilityClassifiedAwardsMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:LiabilityClassifiedAwardsMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2023-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2023-01-012023-12-31_custom_LiabilityClassifiedAwardsMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:LiabilityClassifiedAwardsMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2023-01-01</xbrli:startDate>
        <xbrli:endDate>2023-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2022-01-012022-12-31_custom_EquityClassifiedAwardsMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:EquityClassifiedAwardsMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2022-01-01</xbrli:startDate>
        <xbrli:endDate>2022-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2021-01-012021-12-31_custom_EquityClassifiedAwardsMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:EquityClassifiedAwardsMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2021-01-01</xbrli:startDate>
        <xbrli:endDate>2021-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2023-01-012023-12-31_custom_EquityClassifiedAwardsMember_srt_MinimumMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:EquityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MinimumMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2023-01-01</xbrli:startDate>
        <xbrli:endDate>2023-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2023-01-012023-12-31_custom_EquityClassifiedAwardsMember_srt_MaximumMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:EquityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MaximumMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2023-01-01</xbrli:startDate>
        <xbrli:endDate>2023-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2022-01-012022-12-31_custom_EquityClassifiedAwardsMember_srt_MinimumMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:EquityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MinimumMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2022-01-01</xbrli:startDate>
        <xbrli:endDate>2022-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2022-01-012022-12-31_custom_EquityClassifiedAwardsMember_srt_MaximumMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:EquityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MaximumMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2022-01-01</xbrli:startDate>
        <xbrli:endDate>2022-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2021-01-012021-12-31_custom_EquityClassifiedAwardsMember_srt_MaximumMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:EquityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MaximumMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2021-01-01</xbrli:startDate>
        <xbrli:endDate>2021-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2023-12-31_custom_EquityClassifiedAwardsMember_srt_MinimumMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:EquityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MinimumMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2023-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2023-12-31_custom_EquityClassifiedAwardsMember_srt_MaximumMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:EquityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MaximumMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2023-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2022-12-31_custom_EquityClassifiedAwardsMember_srt_MinimumMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:EquityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MinimumMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2022-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2022-12-31_custom_EquityClassifiedAwardsMember_srt_MaximumMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:EquityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MaximumMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2022-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2021-12-31_custom_EquityClassifiedAwardsMember_srt_MinimumMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:EquityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MinimumMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2021-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2021-12-31_custom_EquityClassifiedAwardsMember_srt_MaximumMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:EquityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MaximumMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2021-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2022-01-012022-12-31_custom_LiabilityClassifiedAwardsMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:LiabilityClassifiedAwardsMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2022-01-01</xbrli:startDate>
        <xbrli:endDate>2022-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2021-01-012021-12-31_custom_LiabilityClassifiedAwardsMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:LiabilityClassifiedAwardsMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2021-01-01</xbrli:startDate>
        <xbrli:endDate>2021-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2023-01-012023-12-31_custom_LiabilityClassifiedAwardsMember_srt_MinimumMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:LiabilityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MinimumMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2023-01-01</xbrli:startDate>
        <xbrli:endDate>2023-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2023-01-012023-12-31_custom_LiabilityClassifiedAwardsMember_srt_MaximumMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:LiabilityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MaximumMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2023-01-01</xbrli:startDate>
        <xbrli:endDate>2023-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2022-01-012022-12-31_custom_LiabilityClassifiedAwardsMember_srt_MinimumMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:LiabilityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MinimumMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2022-01-01</xbrli:startDate>
        <xbrli:endDate>2022-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2022-01-012022-12-31_custom_LiabilityClassifiedAwardsMember_srt_MaximumMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:LiabilityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MaximumMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2022-01-01</xbrli:startDate>
        <xbrli:endDate>2022-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2021-01-012021-12-31_custom_LiabilityClassifiedAwardsMember_srt_MinimumMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:LiabilityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MinimumMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2021-01-01</xbrli:startDate>
        <xbrli:endDate>2021-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2021-01-012021-12-31_custom_LiabilityClassifiedAwardsMember_srt_MaximumMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:LiabilityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MaximumMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2021-01-01</xbrli:startDate>
        <xbrli:endDate>2021-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2023-12-31_custom_LiabilityClassifiedAwardsMember_srt_MinimumMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:LiabilityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MinimumMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2023-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2023-12-31_custom_LiabilityClassifiedAwardsMember_srt_MaximumMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:LiabilityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MaximumMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2023-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2022-12-31_custom_LiabilityClassifiedAwardsMember_srt_MinimumMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:LiabilityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MinimumMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2022-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2022-12-31_custom_LiabilityClassifiedAwardsMember_srt_MaximumMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:LiabilityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MaximumMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2022-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2021-12-31_custom_LiabilityClassifiedAwardsMember_srt_MinimumMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:LiabilityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MinimumMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2021-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2021-12-31_custom_LiabilityClassifiedAwardsMember_srt_MaximumMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:LiabilityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MaximumMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2021-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2022-12-31_custom_EquityClassifiedAwardsMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:EquityClassifiedAwardsMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2022-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2022-12-31_custom_LiabilityClassifiedAwardsMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:LiabilityClassifiedAwardsMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2022-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceOneMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:EquityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">ZOOZ:ExercisePriceOneMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2023-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2023-01-012023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceOneMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:EquityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">ZOOZ:ExercisePriceOneMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2023-01-01</xbrli:startDate>
        <xbrli:endDate>2023-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceTwoMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:EquityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">ZOOZ:ExercisePriceTwoMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2023-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2023-01-012023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceTwoMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:EquityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">ZOOZ:ExercisePriceTwoMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2023-01-01</xbrli:startDate>
        <xbrli:endDate>2023-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceThreeMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:EquityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">ZOOZ:ExercisePriceThreeMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2023-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2023-01-012023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceThreeMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:EquityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">ZOOZ:ExercisePriceThreeMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2023-01-01</xbrli:startDate>
        <xbrli:endDate>2023-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceFourMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:EquityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">ZOOZ:ExercisePriceFourMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2023-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2023-01-012023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceFourMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:EquityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">ZOOZ:ExercisePriceFourMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2023-01-01</xbrli:startDate>
        <xbrli:endDate>2023-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceFiveMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:EquityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">ZOOZ:ExercisePriceFiveMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2023-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2023-01-012023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceFiveMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:EquityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">ZOOZ:ExercisePriceFiveMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2023-01-01</xbrli:startDate>
        <xbrli:endDate>2023-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceSixMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:EquityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">ZOOZ:ExercisePriceSixMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2023-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2023-01-012023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceSixMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:EquityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">ZOOZ:ExercisePriceSixMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2023-01-01</xbrli:startDate>
        <xbrli:endDate>2023-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceSevenMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:EquityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">ZOOZ:ExercisePriceSevenMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2023-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2023-01-012023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceSevenMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:EquityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">ZOOZ:ExercisePriceSevenMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2023-01-01</xbrli:startDate>
        <xbrli:endDate>2023-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceEightMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:EquityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">ZOOZ:ExercisePriceEightMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2023-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2023-01-012023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceEightMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:EquityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">ZOOZ:ExercisePriceEightMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2023-01-01</xbrli:startDate>
        <xbrli:endDate>2023-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceNineMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:EquityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">ZOOZ:ExercisePriceNineMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2023-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2023-01-012023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceNineMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:EquityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">ZOOZ:ExercisePriceNineMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2023-01-01</xbrli:startDate>
        <xbrli:endDate>2023-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceTenMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:EquityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">ZOOZ:ExercisePriceTenMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2023-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2023-01-012023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceTenMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:EquityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">ZOOZ:ExercisePriceTenMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2023-01-01</xbrli:startDate>
        <xbrli:endDate>2023-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2023-12-31_custom_LiabilityClassifiedAwardsMember_custom_ExercisePriceOneMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:LiabilityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">ZOOZ:ExercisePriceOneMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2023-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2023-01-012023-12-31_custom_LiabilityClassifiedAwardsMember_custom_ExercisePriceOneMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:LiabilityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">ZOOZ:ExercisePriceOneMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2023-01-01</xbrli:startDate>
        <xbrli:endDate>2023-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2023-12-31_custom_LiabilityClassifiedAwardsMember_custom_ExercisePriceTwoMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:LiabilityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">ZOOZ:ExercisePriceTwoMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2023-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2023-01-012023-12-31_custom_LiabilityClassifiedAwardsMember_custom_ExercisePriceTwoMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:LiabilityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">ZOOZ:ExercisePriceTwoMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2023-01-01</xbrli:startDate>
        <xbrli:endDate>2023-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2023-12-31_custom_LiabilityClassifiedAwardsMember_custom_ExercisePriceThreeMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:LiabilityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">ZOOZ:ExercisePriceThreeMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2023-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2023-01-012023-12-31_custom_LiabilityClassifiedAwardsMember_custom_ExercisePriceThreeMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:LiabilityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">ZOOZ:ExercisePriceThreeMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2023-01-01</xbrli:startDate>
        <xbrli:endDate>2023-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2023-12-31_custom_LiabilityClassifiedAwardsMember_custom_ExercisePriceFourMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:LiabilityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">ZOOZ:ExercisePriceFourMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2023-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2023-01-012023-12-31_custom_LiabilityClassifiedAwardsMember_custom_ExercisePriceFourMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:LiabilityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">ZOOZ:ExercisePriceFourMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2023-01-01</xbrli:startDate>
        <xbrli:endDate>2023-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2020-12-31_custom_LiabilityClassifiedAwardsMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:LiabilityClassifiedAwardsMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2020-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="AsOf2021-12-31_custom_LiabilityClassifiedAwardsMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:LiabilityClassifiedAwardsMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:instant>2021-12-31</xbrli:instant>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2022-01-012022-12-31_custom_EquityClassifiedAwardsMember_us-gaap_ResearchAndDevelopmentExpenseMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:EquityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:IncomeStatementLocationAxis">us-gaap:ResearchAndDevelopmentExpenseMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2022-01-01</xbrli:startDate>
        <xbrli:endDate>2022-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2022-01-012022-12-31_custom_LiabilityClassifiedAwardsMember_us-gaap_ResearchAndDevelopmentExpenseMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:LiabilityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:IncomeStatementLocationAxis">us-gaap:ResearchAndDevelopmentExpenseMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2022-01-01</xbrli:startDate>
        <xbrli:endDate>2022-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2022-01-012022-12-31_us-gaap_ResearchAndDevelopmentExpenseMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:IncomeStatementLocationAxis">us-gaap:ResearchAndDevelopmentExpenseMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2022-01-01</xbrli:startDate>
        <xbrli:endDate>2022-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2021-01-012021-12-31_custom_EquityClassifiedAwardsMember_us-gaap_ResearchAndDevelopmentExpenseMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:EquityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:IncomeStatementLocationAxis">us-gaap:ResearchAndDevelopmentExpenseMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2021-01-01</xbrli:startDate>
        <xbrli:endDate>2021-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2021-01-012021-12-31_custom_LiabilityClassifiedAwardsMember_us-gaap_ResearchAndDevelopmentExpenseMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:LiabilityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:IncomeStatementLocationAxis">us-gaap:ResearchAndDevelopmentExpenseMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2021-01-01</xbrli:startDate>
        <xbrli:endDate>2021-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2021-01-012021-12-31_us-gaap_ResearchAndDevelopmentExpenseMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:IncomeStatementLocationAxis">us-gaap:ResearchAndDevelopmentExpenseMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2021-01-01</xbrli:startDate>
        <xbrli:endDate>2021-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2022-01-012022-12-31_custom_EquityClassifiedAwardsMember_us-gaap_SellingAndMarketingExpenseMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:EquityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:IncomeStatementLocationAxis">us-gaap:SellingAndMarketingExpenseMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2022-01-01</xbrli:startDate>
        <xbrli:endDate>2022-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2022-01-012022-12-31_custom_LiabilityClassifiedAwardsMember_us-gaap_SellingAndMarketingExpenseMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:LiabilityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:IncomeStatementLocationAxis">us-gaap:SellingAndMarketingExpenseMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2022-01-01</xbrli:startDate>
        <xbrli:endDate>2022-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2022-01-012022-12-31_us-gaap_SellingAndMarketingExpenseMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:IncomeStatementLocationAxis">us-gaap:SellingAndMarketingExpenseMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2022-01-01</xbrli:startDate>
        <xbrli:endDate>2022-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2021-01-012021-12-31_custom_EquityClassifiedAwardsMember_us-gaap_SellingAndMarketingExpenseMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:EquityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:IncomeStatementLocationAxis">us-gaap:SellingAndMarketingExpenseMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2021-01-01</xbrli:startDate>
        <xbrli:endDate>2021-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2021-01-012021-12-31_custom_LiabilityClassifiedAwardsMember_us-gaap_SellingAndMarketingExpenseMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:LiabilityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:IncomeStatementLocationAxis">us-gaap:SellingAndMarketingExpenseMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2021-01-01</xbrli:startDate>
        <xbrli:endDate>2021-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2021-01-012021-12-31_us-gaap_SellingAndMarketingExpenseMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:IncomeStatementLocationAxis">us-gaap:SellingAndMarketingExpenseMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2021-01-01</xbrli:startDate>
        <xbrli:endDate>2021-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2022-01-012022-12-31_custom_EquityClassifiedAwardsMember_us-gaap_GeneralAndAdministrativeExpenseMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:EquityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:IncomeStatementLocationAxis">us-gaap:GeneralAndAdministrativeExpenseMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2022-01-01</xbrli:startDate>
        <xbrli:endDate>2022-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2022-01-012022-12-31_custom_LiabilityClassifiedAwardsMember_us-gaap_GeneralAndAdministrativeExpenseMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:LiabilityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:IncomeStatementLocationAxis">us-gaap:GeneralAndAdministrativeExpenseMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2022-01-01</xbrli:startDate>
        <xbrli:endDate>2022-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2022-01-012022-12-31_us-gaap_GeneralAndAdministrativeExpenseMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:IncomeStatementLocationAxis">us-gaap:GeneralAndAdministrativeExpenseMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2022-01-01</xbrli:startDate>
        <xbrli:endDate>2022-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2021-01-012021-12-31_custom_EquityClassifiedAwardsMember_us-gaap_GeneralAndAdministrativeExpenseMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:EquityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:IncomeStatementLocationAxis">us-gaap:GeneralAndAdministrativeExpenseMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2021-01-01</xbrli:startDate>
        <xbrli:endDate>2021-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2021-01-012021-12-31_custom_LiabilityClassifiedAwardsMember_us-gaap_GeneralAndAdministrativeExpenseMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:LiabilityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:IncomeStatementLocationAxis">us-gaap:GeneralAndAdministrativeExpenseMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2021-01-01</xbrli:startDate>
        <xbrli:endDate>2021-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2021-01-012021-12-31_us-gaap_GeneralAndAdministrativeExpenseMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:IncomeStatementLocationAxis">us-gaap:GeneralAndAdministrativeExpenseMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2021-01-01</xbrli:startDate>
        <xbrli:endDate>2021-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2023-01-012023-12-31_custom_EquityClassifiedAwardsMember_us-gaap_ResearchAndDevelopmentExpenseMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:EquityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:IncomeStatementLocationAxis">us-gaap:ResearchAndDevelopmentExpenseMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2023-01-01</xbrli:startDate>
        <xbrli:endDate>2023-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2023-01-012023-12-31_custom_LiabilityClassifiedAwardsMember_us-gaap_ResearchAndDevelopmentExpenseMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:LiabilityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:IncomeStatementLocationAxis">us-gaap:ResearchAndDevelopmentExpenseMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2023-01-01</xbrli:startDate>
        <xbrli:endDate>2023-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2023-01-012023-12-31_us-gaap_ResearchAndDevelopmentExpenseMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:IncomeStatementLocationAxis">us-gaap:ResearchAndDevelopmentExpenseMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2023-01-01</xbrli:startDate>
        <xbrli:endDate>2023-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2023-01-012023-12-31_custom_EquityClassifiedAwardsMember_us-gaap_SellingAndMarketingExpenseMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:EquityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:IncomeStatementLocationAxis">us-gaap:SellingAndMarketingExpenseMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2023-01-01</xbrli:startDate>
        <xbrli:endDate>2023-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2023-01-012023-12-31_custom_LiabilityClassifiedAwardsMember_us-gaap_SellingAndMarketingExpenseMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:LiabilityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:IncomeStatementLocationAxis">us-gaap:SellingAndMarketingExpenseMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2023-01-01</xbrli:startDate>
        <xbrli:endDate>2023-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2023-01-012023-12-31_us-gaap_SellingAndMarketingExpenseMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:IncomeStatementLocationAxis">us-gaap:SellingAndMarketingExpenseMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2023-01-01</xbrli:startDate>
        <xbrli:endDate>2023-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2023-01-012023-12-31_custom_EquityClassifiedAwardsMember_us-gaap_GeneralAndAdministrativeExpenseMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:EquityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:IncomeStatementLocationAxis">us-gaap:GeneralAndAdministrativeExpenseMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2023-01-01</xbrli:startDate>
        <xbrli:endDate>2023-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2023-01-012023-12-31_custom_LiabilityClassifiedAwardsMember_us-gaap_GeneralAndAdministrativeExpenseMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:AwardTypeAxis">ZOOZ:LiabilityClassifiedAwardsMember</xbrldi:explicitMember>
          <xbrldi:explicitMember dimension="us-gaap:IncomeStatementLocationAxis">us-gaap:GeneralAndAdministrativeExpenseMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2023-01-01</xbrli:startDate>
        <xbrli:endDate>2023-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2023-01-012023-12-31_us-gaap_GeneralAndAdministrativeExpenseMember">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="us-gaap:IncomeStatementLocationAxis">us-gaap:GeneralAndAdministrativeExpenseMember</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2023-01-01</xbrli:startDate>
        <xbrli:endDate>2023-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:context id="From2023-01-012023-12-31_country_IL">
      <xbrli:entity>
        <xbrli:identifier scheme="http://www.sec.gov/CIK">0001992818</xbrli:identifier>
        <xbrli:segment>
          <xbrldi:explicitMember dimension="srt:StatementGeographicalAxis">country:IL</xbrldi:explicitMember>
        </xbrli:segment>
      </xbrli:entity>
      <xbrli:period>
        <xbrli:startDate>2023-01-01</xbrli:startDate>
        <xbrli:endDate>2023-12-31</xbrli:endDate>
      </xbrli:period>
    </xbrli:context>
    <xbrli:unit id="USD">
      <xbrli:measure>iso4217:USD</xbrli:measure>
    </xbrli:unit>
    <xbrli:unit id="Shares">
      <xbrli:measure>xbrli:shares</xbrli:measure>
    </xbrli:unit>
    <xbrli:unit id="USDPShares">
      <xbrli:divide>
        <xbrli:unitNumerator>
          <xbrli:measure>iso4217:USD</xbrli:measure>
        </xbrli:unitNumerator>
        <xbrli:unitDenominator>
          <xbrli:measure>xbrli:shares</xbrli:measure>
        </xbrli:unitDenominator>
      </xbrli:divide>
    </xbrli:unit>
    <xbrli:unit id="Pure">
      <xbrli:measure>xbrli:pure</xbrli:measure>
    </xbrli:unit>
    <xbrli:unit id="Integer">
      <xbrli:measure>ZOOZ:Integer</xbrli:measure>
    </xbrli:unit>
    <xbrli:unit id="ILS">
      <xbrli:measure>iso4217:ILS</xbrli:measure>
    </xbrli:unit>
    <xbrli:unit id="ILSPShares">
      <xbrli:divide>
        <xbrli:unitNumerator>
          <xbrli:measure>iso4217:ILS</xbrli:measure>
        </xbrli:unitNumerator>
        <xbrli:unitDenominator>
          <xbrli:measure>xbrli:shares</xbrli:measure>
        </xbrli:unitDenominator>
      </xbrli:divide>
    </xbrli:unit>
  <ix:relationship fromRefs="Fact000142" toRefs="Footnote000175"/>
  <ix:relationship fromRefs="Fact000143" toRefs="Footnote000175"/>
  <ix:relationship fromRefs="Fact000161" toRefs="Footnote000175"/>
  <ix:relationship fromRefs="Fact000162" toRefs="Footnote000175"/>
  <ix:relationship fromRefs="Fact000164" toRefs="Footnote000175"/>
  <ix:relationship fromRefs="Fact000165" toRefs="Footnote000175"/>
  <ix:relationship fromRefs="Fact000167" toRefs="Footnote000175"/>
  <ix:relationship fromRefs="Fact000168" toRefs="Footnote000175"/>
  <ix:relationship fromRefs="Fact000170" toRefs="Footnote000175"/>
  <ix:relationship fromRefs="Fact000171" toRefs="Footnote000175"/>
  <ix:relationship fromRefs="Fact000173" toRefs="Footnote000175"/>
  <ix:relationship fromRefs="Fact000174" toRefs="Footnote000175"/>
  <ix:relationship fromRefs="Fact000221" toRefs="Footnote000244"/>
  <ix:relationship fromRefs="Fact000223" toRefs="Footnote000244"/>
  <ix:relationship fromRefs="Fact000225" toRefs="Footnote000244"/>
  <ix:relationship fromRefs="Fact000227" toRefs="Footnote000244"/>
  <ix:relationship fromRefs="Fact000229" toRefs="Footnote000244"/>
  <ix:relationship fromRefs="Fact000231" toRefs="Footnote000244"/>
  <ix:relationship fromRefs="Fact000233" toRefs="Footnote000244"/>
  <ix:relationship fromRefs="Fact000235" toRefs="Footnote000244"/>
  <ix:relationship fromRefs="Fact000237" toRefs="Footnote000244"/>
  <ix:relationship fromRefs="Fact000239" toRefs="Footnote000244"/>
  <ix:relationship fromRefs="Fact000241" toRefs="Footnote000244"/>
  <ix:relationship fromRefs="Fact000243" toRefs="Footnote000244"/>
  <ix:relationship fromRefs="Fact000273" toRefs="Footnote000304"/>
  <ix:relationship fromRefs="Fact000303" toRefs="Footnote000304"/>
  <ix:relationship fromRefs="Fact000313" toRefs="Footnote000373"/>
  <ix:relationship fromRefs="Fact000322" toRefs="Footnote000373"/>
  <ix:relationship fromRefs="Fact000333" toRefs="Footnote000373"/>
  <ix:relationship fromRefs="Fact000363" toRefs="Footnote000373"/>
  <ix:relationship fromRefs="Fact000372" toRefs="Footnote000373"/>
  <ix:relationship fromRefs="xdx2ixbrl0398" toRefs="Footnote000461"/>
  <ix:relationship fromRefs="Fact000382" toRefs="Footnote000462"/>
  <ix:relationship fromRefs="Fact000393" toRefs="Footnote000462"/>
  <ix:relationship fromRefs="Fact000404" toRefs="Footnote000462"/>
  <ix:relationship fromRefs="xdx2ixbrl0447" toRefs="Footnote000462"/>
  <ix:relationship fromRefs="Fact000449" toRefs="Footnote000462"/>
  <ix:relationship fromRefs="xdx2ixbrl0458" toRefs="Footnote000462"/>
  <ix:relationship fromRefs="Fact000460" toRefs="Footnote000462"/>
  <ix:relationship fromRefs="xdx2ixbrl0717" toRefs="Footnote000722"/>
  <ix:relationship fromRefs="Fact000718" toRefs="Footnote000722"/>
  </ix:resources>
 </ix:header>
</div>


<p style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font: normal 10pt Times New Roman, Times, Serif"></span></p>

<!-- Field: Rule-Page --><div style="margin-top: 0pt; margin-bottom: 0pt; width: 100%"><div style="border-top: Black 4pt solid; font-size: 1pt; border-bottom: Black 1.5pt solid">&#160;</div></div><!-- Field: /Rule-Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font: normal 10pt Times New Roman, Times, Serif">&#160;</span></p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 18pt">UNITED
STATES</span></p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 18pt">SECURITIES
AND EXCHANGE COMMISSION</span></p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 12pt">WASHINGTON,
DC 20549</span></p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 18pt">FORM
<span id="xdx_90C_edei--DocumentType_c20230101__20231231_z4RAdl2QYLVd"><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" id="Fact000015" name="dei:DocumentType">20-F</ix:nonNumeric></span></span></p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(Mark
One)</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_90A_edei--DocumentRegistrationStatement_c20230101__20231231_zRSHC1Axbnzc"><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" format="ixt:booleanfalse" id="Fact000016" name="dei:DocumentRegistrationStatement">&#9744;</ix:nonNumeric></span> REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>OR</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_90A_edei--DocumentAnnualReport_c20230101__20231231_zRgaARNwaikj"><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" format="ixt:booleantrue" id="Fact000017" name="dei:DocumentAnnualReport">&#9746;</ix:nonNumeric></span>
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>For
the fiscal year ended <span id="xdx_90A_edei--DocumentPeriodEndDate_c20230101__20231231_zczjLofJUaUh"><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" format="ixt:datemonthdayyearen" id="Fact000018" name="dei:DocumentPeriodEndDate"><span id="xdx_90F_edei--CurrentFiscalYearEndDate_c20230101__20231231_zj2vZWy7yBg7"><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" format="ixt:datemonthdayen" id="Fact000019" name="dei:CurrentFiscalYearEndDate">December 31</ix:nonNumeric></span>, <span id="xdx_903_edei--DocumentFiscalYearFocus_c20230101__20231231_zZxYjRXtS5Y1"><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" id="Fact000020" name="dei:DocumentFiscalYearFocus">2023</ix:nonNumeric></span></ix:nonNumeric></span></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>OR</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_902_edei--DocumentTransitionReport_c20230101__20231231_zpZhNGTQDLwg"><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" format="ixt:booleanfalse" id="Fact000021" name="dei:DocumentTransitionReport">&#9744;</ix:nonNumeric></span> TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>For
the transition period from ________ to ________</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>OR</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_903_edei--DocumentShellCompanyReport_c20230101__20231231_zyLYqje96IMj"><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" format="ixt:booleanfalse" id="Fact000022" name="dei:DocumentShellCompanyReport">&#9744;</ix:nonNumeric></span> SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Date
of event requiring this shell company report ___________</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Commission
file number <span id="xdx_907_edei--EntityFileNumber_c20230101__20231231_zYek305ekEX2"><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" id="Fact000023" name="dei:EntityFileNumber">001-42005</ix:nonNumeric></span></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 18pt"><b><span id="xdx_906_edei--EntityRegistrantName_c20230101__20231231_zBzuy6B7lnwd"><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" id="Fact000024" name="dei:EntityRegistrantName">ZOOZ
Power Ltd.</ix:nonNumeric></span></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(Exact
name of Registrant as specified in its charter)</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_90A_edei--EntityIncorporationStateCountryCode_c20230101__20231231_zxHkJKgrikzc"><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" format="ixt-sec:edgarprovcountryen" id="Fact000025" name="dei:EntityIncorporationStateCountryCode">Israel</ix:nonNumeric></span></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(Jurisdiction
of incorporation or organization)</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_905_edei--EntityAddressAddressLine1_c20230101__20231231_zIXbuyGtJece"><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" id="Fact000026" name="dei:EntityAddressAddressLine1">4B
Hamelacha St.</ix:nonNumeric></span> <span id="xdx_902_edei--EntityAddressCityOrTown_c20230101__20231231_zEmIJsZEkHr6"><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" id="Fact000027" name="dei:EntityAddressCityOrTown">Lod</ix:nonNumeric></span> <span id="xdx_906_edei--EntityAddressPostalZipCode_c20230101__20231231_zyVLCNc877j"><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" id="Fact000028" name="dei:EntityAddressPostalZipCode">7152008</ix:nonNumeric></span> <span id="xdx_907_edei--EntityAddressCountry_c20230101__20231231_z3uUpy4SBwYg"><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" format="ixt-sec:countrynameen" id="Fact000029" name="dei:EntityAddressCountry">Israel</ix:nonNumeric></span></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(Address
of principal executive offices)</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_900_edei--ContactPersonnelName_c20230101__20231231__dei--EntityAddressesAddressTypeAxis__dei--BusinessContactMember_zJEVu6lQZFRd"><ix:nonNumeric contextRef="From2023-01-012023-12-31_dei_BusinessContactMember" id="Fact000030" name="dei:ContactPersonnelName">Boaz
Weizer</ix:nonNumeric></span>, Telephone: <span id="xdx_903_edei--CityAreaCode_c20230101__20231231__dei--EntityAddressesAddressTypeAxis__dei--BusinessContactMember_zeBo0eYHJHYf"><ix:nonNumeric contextRef="From2023-01-012023-12-31_dei_BusinessContactMember" id="Fact000031" name="dei:CityAreaCode">(972)</ix:nonNumeric></span> <span id="xdx_905_edei--LocalPhoneNumber_c20230101__20231231__dei--EntityAddressesAddressTypeAxis__dei--BusinessContactMember_z6DDhj7F6Ief"><ix:nonNumeric contextRef="From2023-01-012023-12-31_dei_BusinessContactMember" id="Fact000032" name="dei:LocalPhoneNumber">(8) 6805566</ix:nonNumeric></span>, Facsimile: <span id="xdx_90D_edei--ContactPersonnelFaxNumber_c20230101__20231231__dei--EntityAddressesAddressTypeAxis__dei--BusinessContactMember_zv1CqXj99Stf"><ix:nonNumeric contextRef="From2023-01-012023-12-31_dei_BusinessContactMember" id="Fact000033" name="dei:ContactPersonnelFaxNumber">(972) (8) 6425032</ix:nonNumeric></span>, E-mail: <span id="xdx_901_edei--ContactPersonnelEmailAddress_c20230101__20231231__dei--EntityAddressesAddressTypeAxis__dei--BusinessContactMember_zIjiBAatCxpe"><ix:nonNumeric contextRef="From2023-01-012023-12-31_dei_BusinessContactMember" id="Fact000034" name="dei:ContactPersonnelEmailAddress">boaz.weizer@zoozpower.com</ix:nonNumeric></span></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="xdx_905_edei--EntityAddressAddressLine1_c20230101__20231231__dei--EntityAddressesAddressTypeAxis__dei--BusinessContactMember_zBkxiMMFF8U3"><ix:nonNumeric contextRef="From2023-01-012023-12-31_dei_BusinessContactMember" id="Fact000035" name="dei:EntityAddressAddressLine1">4B
Hamelacha St.</ix:nonNumeric></span> <span id="xdx_902_edei--EntityAddressCityOrTown_c20230101__20231231__dei--EntityAddressesAddressTypeAxis__dei--BusinessContactMember_zOH9FRdf2wk"><ix:nonNumeric contextRef="From2023-01-012023-12-31_dei_BusinessContactMember" id="Fact000036" name="dei:EntityAddressCityOrTown">Lod</ix:nonNumeric></span> <span id="xdx_90C_edei--EntityAddressPostalZipCode_c20230101__20231231__dei--EntityAddressesAddressTypeAxis__dei--BusinessContactMember_zhUPDLJmUQc1"><ix:nonNumeric contextRef="From2023-01-012023-12-31_dei_BusinessContactMember" id="Fact000037" name="dei:EntityAddressPostalZipCode">7152008</ix:nonNumeric></span> <span id="xdx_908_edei--EntityAddressCountry_c20230101__20231231__dei--EntityAddressesAddressTypeAxis__dei--BusinessContactMember_zwzH49hwJQi"><ix:nonNumeric contextRef="From2023-01-012023-12-31_dei_BusinessContactMember" format="ixt-sec:countrynameen" id="Fact000038" name="dei:EntityAddressCountry">Israel</ix:nonNumeric></span></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font: normal 10pt Times New Roman, Times, Serif">(Name,
Telephone, E-Mail and/or Facsimile number and Address of Company Contact Person)</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Securities
registered or to be registered pursuant to Section 12(b) of the Act:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; width: 40%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Title
    of each class</span></td>
    <td style="padding-bottom: 1.5pt; width: 2%">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; width: 18%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Trading
    Symbol(s)</span></td>
    <td style="padding-bottom: 1.5pt; width: 2%">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; width: 38%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Name
    of each exchange on which registered</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_903_edei--Security12bTitle_c20230101__20231231__us-gaap--StatementClassOfStockAxis__custom--OrdinarySharesNominalValueNis00286PerShareMember_z5m2PMvsjyY5"><ix:nonNumeric contextRef="From2023-01-012023-12-31_custom_OrdinarySharesNominalValueNis00286PerShareMember" id="Fact000039" name="dei:Security12bTitle">Ordinary
    Shares, nominal value NIS 0.00286 per share</ix:nonNumeric></span></span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_90D_edei--TradingSymbol_c20230101__20231231__us-gaap--StatementClassOfStockAxis__custom--OrdinarySharesNominalValueNis00286PerShareMember_zaPwM4x6GQre"><ix:nonNumeric contextRef="From2023-01-012023-12-31_custom_OrdinarySharesNominalValueNis00286PerShareMember" id="Fact000040" name="dei:TradingSymbol">ZOOZ</ix:nonNumeric></span></span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_906_edei--SecurityExchangeName_c20230101__20231231__us-gaap--StatementClassOfStockAxis__custom--OrdinarySharesNominalValueNis00286PerShareMember_zoXu3HrWU0g2"><ix:nonNumeric contextRef="From2023-01-012023-12-31_custom_OrdinarySharesNominalValueNis00286PerShareMember" format="ixt-sec:exchnameen" id="Fact000041" name="dei:SecurityExchangeName">Nasdaq</ix:nonNumeric></span>
    Capital Market</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_906_edei--Security12bTitle_c20230101__20231231__us-gaap--StatementClassOfStockAxis__custom--WarrantsToPurchaseOrdinarySharesMember_zWTM7cID0mfj"><ix:nonNumeric contextRef="From2023-01-012023-12-31_custom_WarrantsToPurchaseOrdinarySharesMember" id="Fact000042" name="dei:Security12bTitle">Warrants
    to purchase ordinary shares</ix:nonNumeric></span></span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_906_edei--TradingSymbol_c20230101__20231231__us-gaap--StatementClassOfStockAxis__custom--WarrantsToPurchaseOrdinarySharesMember_zD957QYR6092"><ix:nonNumeric contextRef="From2023-01-012023-12-31_custom_WarrantsToPurchaseOrdinarySharesMember" id="Fact000043" name="dei:TradingSymbol">ZOOZW</ix:nonNumeric></span></span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_908_edei--SecurityExchangeName_c20230101__20231231__us-gaap--StatementClassOfStockAxis__custom--WarrantsToPurchaseOrdinarySharesMember_z4Fu6APbNWhd"><ix:nonNumeric contextRef="From2023-01-012023-12-31_custom_WarrantsToPurchaseOrdinarySharesMember" format="ixt-sec:exchnameen" id="Fact000044" name="dei:SecurityExchangeName">Nasdaq</ix:nonNumeric></span>
    Capital Market</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Securities
registered or to be registered pursuant to Section 12(g) of the Act: None</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Securities
for which there is a reporting obligation pursuant to Section 15(d) of the Act: None</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Indicate
the number of outstanding shares of each of the issuer&#8217;s classes of capital or common stock as of the close of the period covered
by the annual report:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_905_edei--EntityCommonStockSharesOutstanding_iI_pid_c20231231_zt2x2GMguyM7"><ix:nonFraction name="dei:EntityCommonStockSharesOutstanding" contextRef="AsOf2023-12-31" id="Fact000045" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">5,912,223</ix:nonFraction></span>
ordinary shares, par value NIS 0.00286 per share as of December 31, 2023.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Indicate
by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9744; Yes </span> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9746;</span> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_907_edei--EntityWellKnownSeasonedIssuer_c20230101__20231231_zsScXE1iN6Nl"><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" id="Fact000046" name="dei:EntityWellKnownSeasonedIssuer">No</ix:nonNumeric></span></span></p>




<p style="font: 10pt Times New Roman, Times, Serif; text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section
13 or 15(d) of the Securities Exchange Act of 1934.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9744; Yes </span> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9746; </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_903_edei--EntityVoluntaryFilers_c20230101__20231231_zH16y72DWVBc"><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" id="Fact000047" name="dei:EntityVoluntaryFilers">No</ix:nonNumeric></span></span></p>




<p style="font: 10pt Times New Roman, Times, Serif; text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Indicate
by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9746; </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_90B_edei--EntityCurrentReportingStatus_c20230101__20231231_zJwkeOKOFPN5"><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" id="Fact000048" name="dei:EntityCurrentReportingStatus">Yes</ix:nonNumeric></span> </span> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9744; No</span></p>




<p style="font: 10pt Times New Roman, Times, Serif; text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Indicate
by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule
405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required
to submit such files).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9746; </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_909_edei--EntityInteractiveDataCurrent_c20230101__20231231_z5mOEAP2MLT4"><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" id="Fact000049" name="dei:EntityInteractiveDataCurrent">Yes</ix:nonNumeric></span> </span> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9744; No</span></p>




<p style="font: 10pt Times New Roman, Times, Serif; text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Indicate
by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growth
company. See definition of &#8220;large accelerated filer,&#8221; &#8220;accelerated filer,&#8221; and &#8220;emerging growth company&#8221;
in Rule 12b-2 of the Exchange Act.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" border="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt">
<tr style="vertical-align: top">
  <td style="text-align: justify; padding-left: 0pt; text-indent: 0pt; width: 24%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9744; Large Accelerated Filer </span></td>
  <td style="text-align: justify; padding-left: 0pt; text-indent: 0pt; width: 20%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9744; Accelerated Filer </span></td>
  <td style="text-align: justify; padding-left: 0pt; text-indent: 0pt; width: 56%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9746; </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_90E_edei--EntityFilerCategory_c20230101__20231231_z9YtjjA9NQn8"><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" format="ixt-sec:entityfilercategoryen" id="Fact000050" name="dei:EntityFilerCategory">Non-Accelerated
Filer</ix:nonNumeric></span></span></td></tr>
<tr style="vertical-align: top">
  <td style="text-align: justify; padding-left: 0pt; text-indent: 0pt">&#160;</td>
  <td style="text-align: justify; padding-left: 0pt; text-indent: 0pt">&#160;</td>
  <td style="text-align: justify; padding-left: 0pt; text-indent: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_90A_edei--EntityEmergingGrowthCompany_c20230101__20231231_zw4c5Umktmgf"><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" format="ixt:booleantrue" id="Fact000051" name="dei:EntityEmergingGrowthCompany">&#9746;</ix:nonNumeric></span>
</span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Emerging growth company</span></td></tr>
</table>


<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt; text-indent: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; text-indent: 0pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant
has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant
to Section 13(a) of the Exchange Act. <span id="xdx_904_edei--EntityExTransitionPeriod_c20230101__20231231_zbkULHnngzLh"><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" format="ixt:booleanfalse" id="Fact000052" name="dei:EntityExTransitionPeriod">&#9744;</ix:nonNumeric></span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Indicate
by check mark whether the registrant has filed a report on and attestation to its management&#8217;s assessment of the effectiveness
of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered
public accounting firm that prepared or issued its audit report. <span id="xdx_908_edei--IcfrAuditorAttestationFlag_c20230101__20231231_zLMVwW93oIz9"><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" format="ixt:booleanfalse" id="Fact000053" name="dei:IcfrAuditorAttestationFlag">&#9744;</ix:nonNumeric></span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant
included in the filing reflect the correction of an error to previously issued financial statements. <span id="xdx_901_edei--DocumentFinStmtErrorCorrectionFlag_c20230101__20231231_zjaLkQ9zyLuc"><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" format="ixt:booleanfalse" id="Fact000054" name="dei:DocumentFinStmtErrorCorrectionFlag">&#9744;</ix:nonNumeric></span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Indicate
by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation
received by any of the registrant&#8217;s executive officers during the relevant recovery period pursuant to &#167;240.10D-1(b). &#9744;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Indicate
by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_905_edei--DocumentAccountingStandard_c20230101__20231231_zQIu2ooObuVa"><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" id="Fact000055" name="dei:DocumentAccountingStandard">U.S. GAAP</ix:nonNumeric></span> <span style="background-color: white">&#9746;</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">International
Financial Reporting Standards as issued by the International Accounting Standards Board &#9744;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Other
&#9744;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt; text-indent: 25.9pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
&#8220;Other&#8221; has been checked in response to the previous question, indicate by check mark which financial statement item the
registrant has elected to follow<b>. </b>Item 17 [_] Item 18 [_]</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt; text-indent: 25.9pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange
Act). &#9744; Yes <span style="background-color: white">&#9746;</span> <span id="xdx_905_edei--EntityShellCompany_c20230101__20231231_z2XfRVzBcIfj"><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" format="ixt:booleanfalse" id="Fact000056" name="dei:EntityShellCompany">No</ix:nonNumeric></span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 5.4pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 5.4pt"></p>

<!-- Field: Rule-Page --><div style="margin-top: 0pt; margin-bottom: 0pt; width: 100%"><div style="border-top: Black 1.5pt solid; font-size: 1pt; border-bottom: Black 4pt solid">&#160;</div></div><!-- Field: /Rule-Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 5.4pt">&#160;</p>


<!-- Field: Page; Sequence: 1 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="width: 100%">&#160;</td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">TABLE
OF CONTENTS</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt; padding-bottom: 1.5pt; width: 12%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; width: 80%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; width: 8%; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">PAGE</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt">&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif">&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center">&#160;</td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: rgb(204,238,255)">
    <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><a href="#a_001">PART I</a></b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: White">
    <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 0pt">&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif">&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center">&#160;</td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: rgb(204,238,255)">
    <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Item
    1.</b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><a href="#a_002">Identity of Directors, Senior Management and Advisers.</a></b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>4</b></span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: White">
    <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Item
    2.</b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif"><a href="#a_003"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Offer Statistics and Expected Timetable.</b></span></a></td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>4</b></span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: rgb(204,238,255)">
    <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Item
    3.</b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif"><a href="#a_004"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Key Information.</b></span></a></td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>4</b></span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: White">
    <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Item
    4.</b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif"><a href="#a_005"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Information on the Company.</b></span></a></td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>39</b></span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: rgb(204,238,255)">
    <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Item
    4A. </b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><a href="#ch_001">Unresolved Staff Comments</a></b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>71</b></span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: White">
    <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Item
    5.</b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><a href="#ch_002">Operating and Financial Review and Prospects.</a></b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>71</b></span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: rgb(204,238,255)">
    <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Item
    6.</b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><a href="#ch_003">Directors, Senior Management and Employees</a></b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>86</b></span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: White">
    <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Item
    7.</b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><a href="#ch_004">Major Shareholders and Related Party Transactions.</a></b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>105</b></span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: rgb(204,238,255)">
    <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Item
    8.</b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><a href="#ch_005">Financial Information.</a></b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>106</b></span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: White">
    <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Item
    9. </b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><a href="#ch_006">The Offer and Listing.</a></b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>107</b></span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: rgb(204,238,255)">
    <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Item
    10.</b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><a href="#ch_007">Additional Information.</a></b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>107</b></span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: White">
    <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Item
    11.</b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><a href="#ch_008">Quantitative and Qualitative Disclosures about Market Risk</a></b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>121</b></span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: rgb(204,238,255)">
    <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Item
    12.</b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><a href="#ch_009">Description of Securities Other than Equity Securities.</a></b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>122</b></span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: White">
    <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt">&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif">&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center">&#160;</td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: rgb(204,238,255)">
    <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><a href="#ch_010">PART II</a></b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>122</b></span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: White">
    <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 0pt">&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif">&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center">&#160;</td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: rgb(204,238,255)">
    <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Item
    13. </b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><a href="#ch_011">Defaults, Dividend Arrearages and Delinquencies.</a></b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>122</b></span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: White">
    <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Item
    14.</b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><a href="#ch_012">Material Modifications to the Rights of Security Holders and Use of Proceeds.</a></b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>122</b></span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: rgb(204,238,255)">
    <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Item
    15.</b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><a href="#ch_013">Controls and Procedures.</a></b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>123</b></span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: White">
    <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Item
    16A. </b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><a href="#ch_015">Audit Committee Financial Expert.</a></b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>124</b></span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: rgb(204,238,255)">
    <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Item
    16B.</b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><a href="#ch_016">Code of Ethics.</a></b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>124</b></span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: White">
    <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Item
    16C.</b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif"><b><a href="#ch_017">Principal Accountant Fees and Services</a></b></td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><b>124</b></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: rgb(204,238,255)">
    <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Item
    16D. </b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><a href="#ch_018">Exemption From the Listing Standards for Audit Committees</a></b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>125</b></span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: White">
    <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Item
    16E. </b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><a href="#ch_019">Purchases of Equity Securities By the Issuer and Affiliated Purchasers</a></b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>125</b></span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: rgb(204,238,255)">
    <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Item
    16F. </b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><a href="#ch_020">Change in Registrant&#8217;s Certifying Accountant</a></b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>125</b></span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: White">
    <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Item
    16G. </b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><a href="#ch_021">Corporate Governance</a></b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>125</b></span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: rgb(204,238,255)">
    <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Item
    16H. </b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><a href="#ch_022">Mine Safety Disclosure</a></b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>125</b></span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: White">
    <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Item
    16I. </b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><a href="#ch_023">Disclosure Regarding Foreign Jurisdictions that Prevent Inspections</a></b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>125</b></span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: rgb(204,238,255)">
    <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Item
    16J. </b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><a href="#ch_024">Insider Trading Policies</a></b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>125</b></span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: White">
    <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Item
    16K. </b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><a href="#ch_025">Cybersecurity</a></b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>125</b></span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: rgb(204,238,255)">
    <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt">&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif">&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center">&#160;</td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: White">
    <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><a href="#ch_026">PART III</a></b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>126</b></span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: rgb(204,238,255)">
    <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 0pt">&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif">&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center">&#160;</td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: White">
    <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Item
    17.</b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><a href="#ch_027">Financial Statements.</a></b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>126</b></span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: rgb(204,238,255)">
    <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Item
    18.</b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><a href="#ch_028">Financial Statements.</a></b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>126</b></span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: White">
    <td style="font: 10pt Times New Roman, Times, Serif; padding-left: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Item
    19.</b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><a href="#ch_029">Exhibits.</a></b></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>127</b></span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 10.1pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>


<!-- Field: Page; Sequence: 2; Options: NewSection; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->2<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline">INTRODUCTION</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="text-decoration: none; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Definitions</span></p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline">In
this Annual Report, unless the context otherwise requires:</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="text-decoration: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">references
                                            to &#8220;<b>ZOOZ Power</b>,&#8221; &#8220;<b>ZOOZ</b>&#8221;, the &#8220;<b>Company</b>,&#8221;
                                            &#8220;<b>us</b>,&#8221; &#8220;<b>we</b>&#8221;, &#8220;<b>our</b>&#8221; and the &#8220;<b>Registrant</b>&#8221;
                                            refer to ZOOZ Power Ltd., an Israeli company, and its subsidiary (unless otherwise indicated);</span></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif">&#160;</td><td style="font: 10pt Times New Roman, Times, Serif">&#160;</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">&#160;</td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">references
                                            to &#8220;<b>ordinary shares</b>,&#8221; &#8220;<b>our shares</b>&#8221; and similar expressions
                                            refer to the Registrant&#8217;s ordinary shares, NIS 0.00286 nominal (par) value per share;</span></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif">&#160;</td><td style="font: 10pt Times New Roman, Times, Serif">&#160;</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">&#160;</td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">references
                                            to &#8220;<b>public warrants</b>&#8221; refer to the warrants to acquire our shares, listed
                                            on the Nasdaq under the symbol &#8220;ZOOZW&#8221;;</span></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif">&#160;</td><td style="font: 10pt Times New Roman, Times, Serif">&#160;</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">&#160;</td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">references
                                            to &#8220;<b>dollars</b>,&#8221; &#8220;<b>U.S. Dollars</b>&#8221;, &#8220;<b>USD</b>&#8221;
                                            and &#8220;<b>$</b>&#8221; are to United States Dollars;</span></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif">&#160;</td><td style="font: 10pt Times New Roman, Times, Serif">&#160;</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">&#160;</td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">references
                                            to &#8220;<b>shekels</b>&#8221; and &#8220;<b>NIS</b>&#8221; are to New Israeli Shekels,
                                            the Israeli currency;</span></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif">&#160;</td><td style="font: 10pt Times New Roman, Times, Serif">&#160;</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">&#160;</td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">references
                                            to the &#8220;<b>Companies Law</b>&#8221; are to the Israeli Companies Law, 5759-1999;</span></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif">&#160;</td><td style="font: 10pt Times New Roman, Times, Serif">&#160;</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">&#160;</td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">references
                                            to the &#8220;<b>Securities Law</b>&#8221; are to the Israeli Securities Law, 5728-1968;</span></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif">&#160;</td><td style="font: 10pt Times New Roman, Times, Serif">&#160;</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">&#160;</td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">references
                                            to the &#8220;<b>SEC</b>&#8221; are to the United States Securities and Exchange Commission;
                                            and</span></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif">&#160;</td><td style="font: 10pt Times New Roman, Times, Serif">&#160;</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">&#160;</td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">references
                                            to the &#8220;<b>Nasdaq Rules</b>&#8221; are to rules of the Nasdaq Capital Market.</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>BASIS
OF PRESENTATION</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United
States (&#8220;<b>U.S. GAAP</b>&#8221;). We present our consolidated financial statements in U.S. dollars.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
fiscal year ends on December 31 of each year.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Certain
monetary amounts, percentages and other figures included elsewhere in this Annual Report have been subject to rounding adjustments. Accordingly,
figures shown as totals in certain tables or charts may not be the arithmetic aggregation of the figures that precede them, and figures
expressed as percentages in the text may not total 100% or, as applicable, when aggregated may not be the arithmetic aggregation of the
percentages that precede them.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Share
and share-based information is presented in this Annual Report after taking into account the Recapitalization, which was performed as
part of the Business Combination. For additional details regarding the Business Combination and the Recapitalization, please see &#8220;<i>Item
4.B. &#8211; Business Overview &#8211; Additional Agreements</i>.&#8221;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>CERTAIN
INFORMATION</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Industry
and Market Data</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
this Annual Report, we present industry data, information and statistics regarding the markets in which we compete as well as publicly
available information, industry and general publications and research and studies conducted by third parties. This information is supplemented
where necessary with our own internal estimates, taking into account publicly available information about other industry participants
and our management&#8217;s judgment where information is not publicly available. This information appears in &#8220;<i>Management&#8217;s
Discussion and Analysis of Financial Condition and Results of Operation,</i>&#8221; &#8220;<i>Business</i>&#8221; and other sections
of this Annual Report.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Industry
publications, research, studies and forecasts generally state that the information they contain has been obtained from sources believed
to be reliable, but that the accuracy and completeness of such information is not guaranteed. Forecasts and other forward-looking information
obtained from these sources are subject to the same qualifications and uncertainties as the other forward-looking statements in this
Annual Report. These forecasts and forward-looking information are subject to uncertainty and risk due to a variety of factors, including
those described under &#8220;<i>Risk Factors.</i>&#8221; These and other factors could cause results to differ materially from those
expressed in any forecasts or estimates.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>


<!-- Field: Page; Sequence: 3; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->3<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>CAUTIONARY
STATEMENT REGARDING</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FORWARD-LOOKING
STATEMENTS</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">This
Annual Report on Form 20-F, or the Annual Report, includes &#8220;forward-looking statements&#8221; within the meaning of the Securities
Act of 1933 (the &#8220;<b>Securities Act</b>&#8221;), as amended, the Securities Exchange Act of 1934 (the &#8220;<b>Exchange Act</b>&#8221;),
as amended, or the Exchange Act, and the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking
statements are based on our current beliefs, expectations and assumptions. Forward-looking statements can be identified by the use of
terminology such as &#8220;will,&#8221; &#8220;may,&#8221; &#8220;assume,&#8221; &#8220;expect,&#8221; &#8220;anticipate,&#8221; &#8220;could,&#8221;
&#8220;project,&#8221; &#8220;estimate,&#8221; &#8220;possible,&#8221; &#8220;potential,&#8221; &#8220;believe,&#8221; &#8220;suggest,&#8221;
and &#8220;intend,&#8221; and similar expressions that are intended to identify forward-looking statements, although not all forward-looking
statements contain these identifying words. These forward-looking statements involve known and unknown risks and uncertainties that may
cause our actual results, performance or achievements to be materially different from any future results, performance or achievements
expressed or implied by such forward-looking statements. Factors that could cause our actual results to differ materially from those
projected in the forward-looking statements include, without limitation, the risk factors set forth under &#8220;Item 3. Key Information
- D. Risk Factors,&#8221; the information about us set forth under &#8220;Item 4. Information on the Company&#8221; and information related
to our financial condition under &#8220;Item 5. Operating and Financial Review and Prospects.&#8221; Any forward-looking statements represent
our views only as of the date hereof and should not be relied upon as representing its views as of any subsequent date. We do not assume
any obligation to update any forward-looking statements unless required by law.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="a_001"></span>PART
I.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="a_002"></span>ITEM 1.</b></span> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS</b></span></p>



<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Not
applicable.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="a_003"></span>ITEM 2.</b></span> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>OFFER STATISTICS AND EXPECTED TIMETABLE</b></span></p>



<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Not
applicable.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="a_004"></span>ITEM 3.</b></span> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>KEY INFORMATION</b></span></p>



<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>A.
[RESERVED]</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>B.
CAPITALIZATION AND INDEBTEDNESS</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Not
applicable.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>C.
REASONS FOR THE OFFER AND USE OF PROCEEDS</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Not
applicable.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>D.
RISK FACTORS</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>An
investment in our ordinary shares and/or public warrants involves a high degree of risk and many factors could affect our results, financial
condition, cash flows and results of operations. You should carefully consider the following risk factors, as well as the other information
in this Annual Report. If we do not, or cannot, successfully address the risks to which we are subject, we could experience a material
adverse effect on our business, results of operations and financial condition, which could include the need to limit or even discontinue
our business operations, and accordingly our share price may decline, <span style="background-color: white">and you could lose all or
part of your investment</span>. We can give no assurance that we will successfully address any of these risks. The principal risks we
face are described below. These risks and uncertainties are not the only ones that we face.</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Summary
Risk Factors</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Our
business is subject to a number of risks of which you should be aware of before making an investment decision. These risks are discussed
more fully under the caption &#8220;Item 3. Key Information - D. Risk Factors&#8221; section of this Annual Report. These risks include,
but are not limited to, the following:</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
                                            limited operating history and evolving business model make it difficult for you to evaluate
                                            our business and future prospects.</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
                                            have identified material weaknesses in our internal control over financial reporting and
                                            if we are unable to remediate these material weaknesses, or identify additional material
                                            weaknesses in the future or otherwise fail to maintain an effective system of internal control
                                            over financial reporting, this may impair our ability to produce timely and accurate financial
                                            statements or comply with applicable laws and regulations.</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p>


<!-- Field: Page; Sequence: 4; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->4<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
                                            management has determined that substantial doubt exists about the continued existence of
                                            ZOOZ as a &#8220;going concern&#8221;. The report of ZOOZ&#8217;s independent registered
                                            public accounting firm includes a going concern qualification.</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Changes
                                            to fuel economy standards or changes to governments&#8217; regulations and policies in relation
                                            to environment or the success of alternative fuels may negatively impact the electric cars
                                            (&#8220;<b>EVs</b>&#8221; or &#8220;<b>electric vehicles</b>&#8221;) market and thus the
                                            demand for our products.</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Delays
                                            in deployment of public ultra-fast charging infrastructure may limit the need and urgency
                                            for our products.</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Market
                                            education regarding the concept and value of power boosters is still in process and may not
                                            materialize as anticipated by us, or at all.</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
                                            market penetration is partially related to government and other public incentive plans supporting
                                            charging infrastructure, changes or reductions on those, which are in turn subject to political,
                                            economic, and environmental factors which are beyond our control.</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
                                            have gained limited experience in a small number of territories, which include Israel, Germany,
                                            the U.K. and the U.S. If we fail to expand our geographic footprint and to build scalable and
                                            robust processes, our prospects for growth and profitability could be harmed, and we may
                                            never successfully do so or achieve or sustain profitability.</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
                                            face risks related to the growth rate and the global expansion of our business, including
                                            worldwide or regional economic conditions, exchange rate fluctuations, adverse changes in
                                            EV and/or power booster market conditions and the competitiveness of the market.</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
                                            may experience difficulties in managing our growth and expanding our operations, as we need
                                            to continue to improve our operational, financial and management controls, compliance programs
                                            and reporting systems, including our compliance programs, privacy, cybersecurity and anti-corruption
                                            and financial controls, and we may not be successful in doing so.</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
                                            currently face competition from a number of companies, mainly specialized platform providers
                                            for residential or commercial and industrial applications, and expect to face significant
                                            competition in the future as the market for the EV high power charging infrastructure further
                                            develops.</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
                                            rely on a limited number of suppliers and manufacturers for our products, some of which provide
                                            us with custom-designed components and sub-systems. A loss of any of these key suppliers
                                            and manufacturers could negatively affect our business.</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Increases
                                            in costs, disruption of supply, or shortage of materials, have harmed and could harm our
                                            business again in the future.</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
                                            business is subject to risks associated with permitting, construction, cost overruns and
                                            delays, and other contingencies that may arise in the course of completing installations,
                                            and such risks may increase in the future.</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Expanding
                                            our operations internationally is likely to expose us to additional tax, compliance, market
                                            and other risks.</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
                                            EV and energy storage market currently benefits from the availability of rebates, tax credits
                                            and other financial incentives from governments, utilities and others to offset the purchase
                                            or operating cost of EVs, EV charging stations and flywheel-based storage systems. The reduction,
                                            modification, or elimination of such benefits, or any delay in payment could cause reduced
                                            demand for our products or delay their purchase or production, which would adversely affect
                                            our financial results.</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
                                            are dependent on several key employees; the loss of their services and our failure to hire
                                            additional qualified key personnel could harm our business.</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Failures,
                                            or perceived failures, to comply with privacy, data protection, and information security
                                            requirements in the variety of jurisdictions in which we operate may adversely impact our
                                            business, and such legal requirements are evolving, uncertain and may require improvements
                                            in, or changes to, our policies and operations.</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
                                            may not be able to adequately protect or enforce our intellectual property rights or prevent
                                            unauthorized parties from copying or reverse engineering our technology or products. Our
                                            efforts to protect and enforce our intellectual property rights and prevent third parties
                                            from violating our rights may be costly.</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p>


<!-- Field: Page; Sequence: 5; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->5<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
                                            addition to patented technology, we rely on our unpatented proprietary technology, trade
                                            secrets, processes and know-how, which we may not be able to protect.</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Technology
                                            failures or cyberattacks on our technology systems or our ineffective response to technology
                                            failures or cyberattacks could disrupt our operations and negatively impact our reputation,
                                            business, financial condition, or results of operations.</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Interruption,
                                            interference with or failure of our information technology and communications systems could
                                            hurt our ability to effectively offer our products, which could damage our reputation and
                                            harm our operating results.</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
                                            may be exposed to liability if we fail to comply with the provisions of the U.S. Foreign
                                            Corrupt Practices Act and other U.S. and foreign anti-corruption, anti-money laundering,
                                            privacy, export control, sanctions, and other trade laws and regulations.</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Geo-political
                                            conditions in the Middle East and in Israel, including the current conflicts in Gaza and
                                            in the Northern part of Israel that started in the fourth quarter of 2023, may adversely
                                            affect our operations.</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
                                            U.S. securities or industry analysts do not publish or cease publishing research or reports
                                            about ZOOZ, its business, or its market, or if they change their recommendations regarding
                                            the ZOOZ ordinary shares adversely, then the price and trading volume of the ZOOZ ordinary
                                            shares on the Nasdaq could decline.</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
                                            U.S. market price for the ZOOZ ordinary shares may be depressed by the terms of any financing
                                            which is likely to result in significant dilution or by our failure to obtain necessary financing.</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
                                            future exercise of registration rights and sale by our shareholders of their ZOOZ ordinary
                                            shares, including shares by shareholders subject to lock-ups upon expiration of their lock-ups,
                                            may adversely affect the market price of ZOOZ ordinary shares on the Nasdaq.</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Risks
Related to ZOOZ&#8217;s Business and Industry</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>ZOOZ
is an early-stage company with a history of losses. ZOOZ&#8217;s ability to continue as a going concern will depend on its ability to
generate sufficient revenue and/or depend on ZOOZ&#8217;s ability to raise capital that will allow it to continue operating until it
generates sufficient revenue.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
incurred a net loss of $7.8 million and $11.7 million for the year ended December 31, 2022, and for the year ended December 31, 2023,
respectively.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
had an accumulated deficit of approximately $35.4 million and $47.2 million as of December 31, 2022 and December 31, 2023, respectively.
ZOOZ believes it will continue to incur operating and comprehensive losses for the near-term. ZOOZ does not expect that it will improve
its cash flow generation and operating result significantly through 2024 and 2025 as ZOOZ is in the early stage of market penetration
and product introduction. ZOOZ&#8217;s ability to continue as a going concern will depend on its ability to generate sufficient revenue
and/or its ability to raise capital.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ&#8217;s
potential profitability of the revenue stream from its product ZOOZTER&#8482;-100 is particularly dependent upon customer&#8217;s awareness
of product value, its proven readiness reliability and business justification, ZOOZ&#8217;s ability to build substantial backlog of orders
which will allow cost reduction over increased volume of production, and ZOOZ&#8217;s ability to reduce product manufacturing costs on
a timely basis, which may not occur.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>The
report of ZOOZ&#8217;s independent registered public accounting firm contains an explanatory paragraph that expresses substantial doubt
about ZOOZ&#8217;s ability to continue as a going concern.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
management has determined, and the report of ZOOZ&#8217;s independent registered public accounting firm with respect to ZOOZ&#8217;s
audited consolidated financial statements as of December 31, 2023 indicates, that there is substantial doubt about ZOOZ&#8217;s
ability to continue as a going concern. The report states that, ZOOZ has accumulated net losses in the amount of approximately $47.2
million as well as a negative cash flow from operating activities in the amount of approximately $12.2 million, for a period of 12
months that ended on that date. These factors raise substantial doubt about the continued existence of ZOOZ as a &#8220;going
concern.&#8221; Based on the plans of ZOOZ&#8217;s management, ZOOZ&#8217;s cash balance as of December 31, 2023, and as of the date
of approval of the audited consolidated financial statements, may be insufficient to continue ZOOZ&#8217;s operations for more than
12 months following the date of approval of the audited consolidated financial statements. In order to continue ZOOZ&#8217;s
operations, ZOOZ is looking to secure financing from various sources, such as additional investment funding. According to the report
of ZOOZ&#8217;s independent registered public accounting firm with respect to ZOOZ&#8217;s audited consolidated financial statements
for the year ended December 31, 2023, the dependency on these planned objectives raises substantial doubt of ZOOZ&#8217;s ability to
continue as a going concern and that ZOOZ may be unable to realize its assets and discharge its liabilities in the normal course of
business. These audited consolidated financial statements did not include any adjustments regarding the values of the assets and
liabilities and their classification that might be needed if ZOOZ could not continue to operate as a &#8220;going
concern.&#8221;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 6; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->6<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>&#160;</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>ZOOZ
has identified material weaknesses in its internal control over financial reporting. If ZOOZ is unable to remediate these material weaknesses,
or if ZOOZ identifies additional material weaknesses in the future or otherwise fails to maintain an effective system of internal control
over financial reporting, this may impair ZOOZ&#8217;s ability to produce timely and accurate financial statements or comply with applicable
laws and regulations.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
connection with the preparation and audit of ZOOZ&#8217;s audited consolidated financial statements for the years ended December 31,
2023 and 2022, material weaknesses were identified in ZOOZ&#8217;s internal control over financial reporting. A material weakness is
a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility
that a material misstatement of ZOOZ&#8217;s audited consolidated annual financial statements will not be prevented or detected on a
timely basis.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
material weaknesses referenced above are described below:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Segregation
                                            of duties has not been sufficiently established across the key business and financial processes.
                                            Given the size, nature of the organization, and the current structure of the finance function,
                                            a lack of segregation of duties applied to the key business and financial processes across
                                            the organization has been identified. A consequence of the lack of segregation of duties
                                            is the heightened risk of fraud or material misstatement when no appropriate mitigating controls
                                            are in place.</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Lack
                                            of personnel with appropriate knowledge and experience relating to U.S. GAAP and SEC reporting
                                            requirements to enable the entity to design and maintain an effective financial reporting
                                            process. A lack of knowledge and experience in these areas may lead to ZOOZ being in breach
                                            of SEC financial reporting and other related requirements, especially given that the current
                                            finance function has not been designed to include sufficient accounting and financial reporting
                                            personnel with (i) the requisite knowledge and experience in the application of SEC financial
                                            reporting rules and regulations; and (ii) the appropriate expertise in the relevant U.S.
                                            accounting standards.</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Remediation
activities and Plans</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
                                            has begun implementation of a plan to remediate these material weaknesses, including implementation
                                            of an ERP system, for, among other things, improving its appropriately designed, implemented
                                            and documented controls in inventory process, in respect of separation of operation costs
                                            from research and development costs.</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">These
remediation measures are ongoing and may include hiring additional accounting and financial reporting personnel and implementing additional
policies, procedures and controls.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
order to maintain and improve the effectiveness of ZOOZ&#8217;s internal control over financial reporting, ZOOZ has expended, and anticipate
that it will continue to expend, significant resources, including accounting-related costs and significant management oversight.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
cannot assure you the measures it is taking to remediate the material weaknesses will be sufficient or that they will prevent future
material weaknesses. Additional material weaknesses or failure to maintain effective internal control over financial reporting could
cause the combined company to fail to meet its reporting obligations as a public company listed for trading on the Nasdaq.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ&#8217;s
management is not required to report on the effectiveness of its internal control over financial reporting until after ZOOZ is no longer
a &#8220;newly public company&#8221; listed for trading on the Nasdaq (i.e. in connection with the filing of its second annual report
following consummation of the business combination between Keyarch and ZOOZ Power Cayman, a Cayman Islands exempted company and a direct,
wholly owned subsidiary of ZOOZ (the &#8220;<b>Merger Sub</b>&#8221;) (the &#8220;<b>Business Combination</b>&#8221;)). At such time,
to the extent that the above-described material weaknesses continue to exist or new material weaknesses are identified, ZOOZ&#8217;s
management may be unable to conclude that its internal control over financial reporting is operating effectively. In addition, ZOOZ&#8217;s
independent registered public accounting firm is not required to attest to the effectiveness of its internal control over financial reporting
until after ZOOZ is no longer an &#8220;emerging growth company&#8221; as defined in the Jumpstart Our Business Startups Act of 2012
(the &#8220;<b>JOBS Act</b>&#8221;). At such time, ZOOZ&#8217;s independent registered public accounting firm may issue a report that
is adverse in the event its internal controls over financial reporting do not operate effectively. If ZOOZ is not able to complete its
initial assessment of its internal controls and otherwise implement the requirements of Section 404 of the Sarbanes-Oxley Act of 2002
(the &#8220;<b>Sarbanes-Oxley Act</b>&#8221;) in a timely manner or with adequate compliance, its independent registered public accounting
firm may not be able to attest to the effectiveness of its internal controls over financial reporting. Any failure to implement and maintain
effective internal control over financial reporting also could adversely affect the results of periodic management evaluations and annual
independent registered public accounting firm attestation reports regarding the effectiveness of our internal control over financial
reporting that ZOOZ will eventually be required to include in its periodic reports that are filed with the SEC. If ZOOZ is unable to
remediate its existing material weaknesses or identifies additional material weaknesses and is unable to comply with the requirements
of Section 404 in a timely manner or assert that its internal control over financial reporting is effective, or if the ZOOZ&#8217;s independent
registered public accounting firm is unable to express an opinion as to the effectiveness of ZOOZ&#8217;s internal control over financial
reporting once it is no longer an emerging growth company, investors may lose confidence in the accuracy and completeness of the audited
consolidated financial reports and the market price of the ZOOZ ordinary shares could be negatively affected, and it could become subject
to investigations by Nasdaq, the SEC or other regulatory authorities, which could require additional financial and management resources.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 7; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->7<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition, any failure to maintain effective disclosure controls and procedures and internal control over financial reporting could adversely
affect ZOOZ&#8217;s business and operating results and could cause a decline in the price of the ZOOZ ordinary shares. These material
weaknesses will not be considered remediated until the mitigating controls have operated for the required period of time and until the
operating effectiveness of the controls has been validated, through testing, by ZOOZ&#8217;s management.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Failure
to expand ZOOZ&#8217;s geographic footprint and to build scalable and robust processes could harm ZOOZ&#8217;s prospects for growth and
profitability, and it may never successfully do so or achieve or sustain profitability.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ&#8217;s
ability to achieve significant revenue growth and profitability in the future will depend, in large part, on ZOOZ&#8217;s success in
expanding its product portfolio and business both within its existing markets and to additional markets and geographies and building
scalable and robust processes to manage its business and operations. As of the date of this Annual Report, ZOOZ has gained limited experience
in a small number of territories, which include Israel, Germany, the U.K., and the U.S. and ZOOZ has several deployments in Israel, Germany,
the U.K. and the U.S., and expects to complete several additional deployments in these territories in the coming months. If prospective customers
and business partners in such existing and new markets and geographies do not perceive ZOOZ&#8217;s product offerings to be of value
to them, or the ZOOZ products are not favorably received by them in such markets, ZOOZ may not be able to attract and retain such customer
or business partners and will not be successful in expanding its business and operations in its existing markets and to new markets and
geographies.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ&#8217;s
supply chain is in early stage of development, and ZOOZ is in the process of outsourcing the manufacturing of the product &#8211; failure
in this process will not allow ZOOZ to scale-up its manufacturing capacity, which in turn could have an adverse effect on ZOOZ&#8217;s
ability to meet market demand.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition, if ZOOZ is not able to build scalable and robust processes and resources to manage its existing business operations and prospective
growth and expansion, ZOOZ may fail to satisfy and retain its existing customers and business partners and may not be able to attract
new customers and business partners in additional markets and, as a result, ZOOZ&#8217;s ability to maintain and/or grow the business
and achieve or sustain profitability will be adversely affected.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>ZOOZ
may enter into agreements to operate projects at a financial loss in order to penetrate certain markets.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
order to penetrate certain markets or demonstrate our technological capabilities, and as part of its business strategy, ZOOZ may enter
into agreements to operate projects at a financial loss to it. Such agreements may materially affect its business, financial condition,
and results of operations.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>ZOOZ
currently faces competition from a number of companies and expects to face significant competition in the future as the market for the
EV high power charger develops</i>.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
EV charging market is relatively new and competition is still developing. There are numerous factors that may affect the competition
in the market of power boosters for EV charging, which include product costs, footprint and electrical energy capacity. In the market
of power boosters for EV charging, ZOOZ primarily competes with providers of battery-based power boosters and energy storage systems
and ZOOZ expects competition by other equipment providers who will offer flywheel-based power boosters, once such products reaching maturity
and available to the market.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Competition
may include various technologies for energy storage, such as hydrogen-based energy storage, supercapacitors-based energy storage etc.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Further
for EV charging and commercial battery storage system market, ZOOZ&#8217;s current or potential competitors may be acquired by third
parties with greater available resources. As a result, competitors may be able to respond more quickly and effectively than ZOOZ to new
or changing opportunities, technologies, standards or customer requirements and may have the ability to initiate or withstand substantial
price competition. In addition, competitors may in the future establish cooperative relationships with vendors of complementary products,
technologies or services to increase the availability of their solutions in the marketplace. This competition may also materialize in
the form of costly intellectual property disputes or litigation.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 8; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->8<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">New
competitors or alliances may emerge in the future that have greater market share, more widely adopted proprietary technologies, greater
marketing expertise and greater financial resources, which could put ZOOZ at a competitive disadvantage. Future competitors could also
be better positioned to serve certain segments of ZOOZ&#8217;s current or future target markets, which could create price pressure. In
light of these factors, even if ZOOZ&#8217;s offerings are more effective and higher quality than those of its competitors, current or
potential customers may accept ZOOZ&#8217;s competitors&#8217; solutions instead of ZOOZ&#8217;s solutions. If ZOOZ fails to adapt to
changing market conditions or continue to compete successfully with current charging platform providers or new competitors, ZOOZ&#8217;s
growth will be limited which would adversely affect its business and results of operations.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>The
market for EV high power charging may not develop to be as significant as anticipated.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">There
are other means for charging EVs, which could affect the level of demand for ultra-fast charging capabilities. For example, wireless
charging capabilities as part of the road infrastructure and widespread availability of slow chargers, at home or in public sites, may
limit the needs for ultra-fast charging. If the future market trend will be to adopt these solutions widely, this may have an adverse
effect on ZOOZ&#8217;s business.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>ZOOZ
faces risks related to natural disaster and health pandemics, including the coronavirus (&#8220;COVID-19&#8221;) pandemic, which could
have a material adverse effect on its business and results of operations.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Health
pandemics such as COVID-19 can impact changes in consumer and business behavior. Pandemic fears and market downturns, and restrictions
on business and individual activities, may create significant volatility in the global economy. The spread of COVID-19 has created a
disruption in the manufacturing, delivery and overall supply chain of vehicle and photovoltaic manufacturers and suppliers around the
world. Any sustained downturn in the demand for EVs or photovoltaic or battery storage system would harm ZOOZ&#8217;s business.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>ZOOZ
relies on a limited number of suppliers and manufacturers for its products. Some of ZOOZ&#8217;s suppliers and manufacturers provide
ZOOZ with custom-designed components and sub-systems. A loss of any of these key suppliers and manufacturers could negatively affect
ZOOZ&#8217;s business.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
relies on a limited number of suppliers to manufacture its products, including in some cases, only a single supplier for some products
and components. Some of ZOOZ&#8217;s suppliers and manufacturers provide it with custom-designed components and sub-systems. While any
of such key suppliers and manufacturers could be replaced, this reliance on a limited number of manufacturers increases its risks, since
any change in its key suppliers or manufacturers will lead ZOOZ to incur material additional costs and substantial delays. If ZOOZ experiences
a significant increase in demand for its products, or if ZOOZ needs to replace an existing supplier, it may not be possible to supplement
or replace them on acceptable terms or expected time, which may undermine ZOOZ&#8217;s ability to deliver products to customers in a
timely manner. For example, it may take a significant amount of time to identify a manufacturer that has the capability and resources
to provide ZOOZ with certain custom-designed components or sub-systems. Identifying suitable suppliers and manufacturers could be an
extensive process that requires ZOOZ to become satisfied with their product performance, and their quality control, technical capabilities,
responsiveness and service, financial stability, regulatory compliance, and labor and other ethical practices. In addition, the process
of replacing suppliers of certain components and subsystems may require ZOOZ to invest additional resources and time in additional testing,
validation and certification processes. Accordingly, a loss of any of ZOOZ&#8217;s key suppliers or manufacturers could have an adverse
effect on its business, financial condition and operating results.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Increases
in costs, disruption of supply, or shortage of materials, have harmed and could harm ZOOZ&#8217;s business again in the future.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>&#160;</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
has experienced and may in the future experience increases in the cost or a sustained interruption in the supply or shortage of materials
necessary for the production of its products. Any such increase in cost, supply interruption, or materials shortage in the future could
again adversely impact ZOOZ&#8217;s business, prospects, financial condition, and operating results. ZOOZ&#8217;s suppliers use various
materials. The prices and supply of these materials may fluctuate, depending on market conditions and global demand for these materials.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
is still in the process of product cost reduction. In case ZOOZ will not be successful to reach its cost reduction targets during the
next couple of years, this may prejudice ZOOZ&#8217;s profitability and market penetration.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Substantial
increases in the prices for ZOOZ&#8217;s materials could reduce its margins if ZOOZ cannot recoup the increased costs through increased
sale prices on its products. Furthermore, fluctuations in fuel costs, or other economic conditions, may cause ZOOZ to experience significant
increases in freight charges and material costs. Moreover, any attempts to increase prices in response to increased material costs could
increase the difficulty of selling at attractive prices to customers and lead to losing opportunities and cancellations of customer orders.
If ZOOZ is unable to effectively manage its supply chain and respond to disruptions to its supply chain in a cost-efficient manner, ZOOZ
may fail to achieve the financial results it expects or that financial analysts and investors expect, and ZOOZ&#8217;s business, prospects,
financial condition, and operating results may be adversely affected.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 9; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->9<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition, ZOOZ supply chain, and especially materials and components which are sourced in the east (China, India and others) is subject
to delays and increased cost due to the geo-political situation and the conflict with the Houthis regime in Yemen, preventing sea transportation
of good to Israel through the red sea.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>ZOOZ&#8217;s
business is subject to risks associated with construction, cost overruns and delays, and other contingencies that may arise in the course
of completing installations, and such risks may increase in the future.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
installation of ZOOZ&#8217;s products at a particular site is generally subject to oversight and regulation in accordance with state
and local laws and ordinances relating to safety, environmental protection and related matters, and typically requires various local
and other governmental approvals and permits that may vary by jurisdiction. Meaningful delays or cost overruns may impact ZOOZ&#8217;s
recognition of revenue in certain cases and/or impact customer relationships, either of which could impact ZOOZ&#8217;s business and
profitability.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Furthermore,
ZOOZ may install its products at customer sites as part of offering a turnkey solution. Working with contractors may require ZOOZ to
obtain licenses or require it or its customers to comply with additional rules, working conditions and other union requirements, which
can add costs and complexity to an installation project. In addition, if these contractors are unable to provide timely, thorough and
quality installation-related services, customers could fall behind their construction schedules leading to liability to ZOOZ or cause
customers to become dissatisfied with the solutions it offers.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>ZOOZ
has a limited operating history.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
began operations in 2013 and operates in the EV charging infrastructure market, which is rapidly evolving. As a result, there is limited
information about the market which puts at risk plans and/or projections of ZOOZ to achieve its goals. In addition, ZOOZ also does not
yet have enough information to validate the value of its solution to customers, and its ability to support them along the lifetime of
the charging infrastructure. If the assumptions ZOOZ uses to plan and operate its business are incorrect or change, ZOOZ&#8217;s results
of operations could differ materially from its expectations and its business, financial condition and results of operations could be
materially adversely affected.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>The
EV charging infrastructure market is at an early stage, which requires additional development and market acceptance.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
EV charging infrastructure market is at an early stage, which causes lack of evidence / history that market trends will progress as expected.
As a result, the market is still in learning phase, which results in a few numbers of players and customers to adequately comprehend
the problem that ZOOZ is intending to solve (and ZOOZ cannot guarantee that it will be comprehended as ZOOZ anticipates in the future).
In addition, in light of the early stage at which ZOOZ&#8217;s market is positioned, ZOOZ believes that the market players (potential
customers and partners) are not yet able to evaluate the technological solutions available (ZOOZ&#8217;s and those of its competitors)
and make a knowledgeable decision.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>If
ZOOZ is unable to attract, retain, and motivate key employees and hire qualified management, technical, engineering and sales personnel,
ZOOZ&#8217;s ability to compete and successfully grow its business would be harmed and could diminish anticipated benefits.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ&#8217;s
success depends, in part, on its continuing ability to identify, hire, attract, motivate, train, develop and retain highly qualified
personnel critical to the business and operations of ZOOZ. The inability to do so effectively would adversely affect ZOOZ&#8217;s business.
The success of ZOOZ will depend in part on the attraction, retention and motivation of executive personnel. Executives and key employees
may experience uncertainty about their future roles with ZOOZ. In addition, competitors may recruit its management and / or key personnel.
If ZOOZ is unable to attract, retain and motivate executive and key personnel that are critical to successful operations, it could face
disruptions in operations and strategic relationships, loss of key information, loss expertise or know-how and unanticipated recruitment
and onboarding costs and may harm ZOOZ&#8217;s ability to reach its business, technological and operational goals.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>ZOOZ
is expanding operations internationally, which will expose us to additional risks of tax, compliance, market and other risks.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Currently,
ZOOZ&#8217;s primary operations are in Israel, Germany, the U.K. and the U.S. In addition, ZOOZ is continuing to invest to increase its
presence in its target markets. Managing this expansion requires additional resources and controls, and could subject ZOOZ to risks associated
with international operations, including:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">difficulties
                                            in staffing and managing foreign operations in an environment of diverse culture, laws, and
                                            customers, and the increased travel, infrastructure, legal and compliance costs associated
                                            with international operations;</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Products&#8217;
                                            deliveries and installation challenges, including those associated with local licensing and
                                            permitting requirements;</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 10; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->10<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">compliance
                                            with multiple, potentially conflicting and changing governmental laws, regulations, certifications,
                                            and permitting processes including environmental, banking, employment and tax laws and regulations;</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">compliance
                                            with U.S. and foreign anti-bribery laws including the Foreign Corrupt Practices Act (&#8220;<b>FCPA</b>&#8221;);</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">conforming
                                            products to various international regulatory and safety requirements;</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">difficulty
                                            in establishing, staffing and managing foreign operations;</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">difficulties
                                            in collecting payments in foreign currencies and associated foreign currency exposure;</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">restrictions
                                            on repatriation of earnings;</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">local
                                            or regional economic and political conditions.</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition, any continued expansion is likely to involve the incurrence of significant upfront capital expenditures. Furthermore, such
efforts to expand to new territories, which require significant resource allocation, may cause defocus of the penetration efforts into
territories where ZOOZ is already active and jeopardize the success of ZOOZ in those territories. As a result of these risks, ZOOZ&#8217;s
current expansion efforts and any potential future international expansion efforts may not be successful.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: justify; text-indent: 28.9pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>ZOOZ
may be adversely affected by inflationary or market fluctuations, including impact of tariffs, in the cost of products consumed in providing
its services.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
prices ZOOZ pays for the principal items it consumes in performing its services are dependent primarily on current market prices.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Storage
solutions and charging systems for EVs are impacted by commodity pricing factors, including the impact of tariffs, which in many cases
are unpredictable and outside of ZOOZ&#8217;s control. ZOOZ will seek to pass on to customers such increased costs but sometimes it will
not be able to do so.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>The
EV charging market and energy storage market currently benefit from the availability of rebates, tax credits and other financial incentives
from governments, utilities and others to offset the purchase or operating cost of EVs, EV charging stations and energy storage systems.
The reduction, modification, or elimination of such benefits, or any delay in payment could cause reduced demand for ZOOZ&#8217;s products
or delay their purchase or production, which would adversely affect its financial results.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">State
and local governments provide rebates, tax credits, and other financial incentives to end users, purchasers and in some cases to manufacturers
of EVs, charging stations, and/or energy storage systems. The EV and energy storage markets rely on governmental rebates, tax credits
and other financial incentives to significantly reduce the effective price to customers and/or create incentives to manufacturers. Incentives
may, however, expire on a certain date, run out when funding is exhausted, or be reduced or terminated as a matter of regulatory or legislative
policy. In addition, there may be delays in the payment of rebates, or in the recognition of tax credits, which could affect the timing
of purchases by customers and also result in a delay or reduction in the production cycle. In addition, some of those incentives are
conditioned with manufacturing of related equipment (such as energy storage systems) locally and as long as ZOOZ is not manufacturing
locally its products, it may not be eligible to such financial incentives. All of these events could result in an adverse effect on ZOOZ&#8217;s
financial results.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Changes
to fuel economy standards or changes to governments&#8217; regulations and policies in relation to environment or the success of alternative
fuels may negatively impact the EV market and thus the demand for ZOOZ&#8217;s products and services.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
regulatory initiatives have required an increase in the mileage capabilities of cars, consumption of renewable transportation fuels,
such as ethanol and biodiesel, and consumer acceptance of EVs and other alternative vehicles has been increasing. If fuel efficiency
of non-electric vehicles continues to rise, whether as the result of regulations or otherwise, and affordability of vehicles using renewable
transportation fuels improves, or other factors (such as batteries prices) will increase the cost and /or reduce the attractiveness of
EVs, the demand for EVs could diminish. In addition, the EV fueling model is different than gas or other fuel models, requiring behavior
change and education of influencers, consumers and others such as regulatory bodies. Developments in alternative technologies, such as
advanced diesel, ethanol, fuel cells or compressed natural gas, or improvements in the fuel economy of the internal combustion engine,
may materially and adversely affect demand for EVs and EV charging stations. Regulatory bodies may also adopt rules that substantially
favor certain alternatives to petroleum-based propulsion over others, which may not necessarily be EVs. This may impose additional obstacles
to the purchase of EVs or the development of a more ubiquitous EV market.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 11; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->11<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
any of the above cause or contribute to consumers or businesses to no longer purchase EVs or purchase them at a lower rate or limit their
availability and presence in the market, it would materially and adversely affect ZOOZ&#8217;s business, operating results, financial
condition and prospects.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ&#8217;s
future growth and success is partly correlated with and thus dependent upon the continuing rapid adoption of EVs for passenger and fleet
applications, and the need for widespread ultra-fast charging infrastructure to support the accelerated transition to electrical vehicles.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
is highly dependent on businesses and consumers adopting EVs in the upcoming years. With rapid changes in technology, competitive pricing,
and competitive factors, the market for electric vehicles is still rapidly evolving. Consumer demands and behaviors are changing, as
are levels of concern about environmental issues and government initiatives and incentives related to climate change and the environment
as a whole. The demand for EVs has grown in recent years, but there is no guarantee that this will continue in the future. ZOOZ&#8217;s
business, prospects, financial condition and operating results would be adversely affected if EV demand decreases or the market for EVs
develops more slowly than expected. Numerous factors could influence the EV market, including (but not limited to):</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">EV
                                            features, quality, safety, performance, and cost perceptions;</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">perceptions
                                            about the limited driving range of EVs on a single charge;</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Competition
                                            from alternative fuel vehicles, plug-in hybrid electric vehicles, and fuel-efficient internal
                                            combustion engines;</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">volatility
                                            in the cost of oil and gasoline;</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">concerns
                                            regarding the stability of the electrical grid;</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
                                            deterioration of an EV battery&#8217;s capacity over time;</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">availability
                                            of service for EVs;</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">EV
                                            charging convenience and costs as perceived by consumers;</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">increases
                                            in fuel efficiency;</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Government
                                            regulations and economic incentives, including changes in, or expiration of, favorable tax
                                            incentives for EVs, EV charging stations, and decarbonization in general;</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">relieving
                                            government mandates or quotas related to electric vehicle sales;</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">concerns
                                            about the future viability of EV manufacturers.</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition, the automotive industry can be cyclical, which may affect the acceptance of EVs. It is uncertain how macroeconomic factors
will affect demand for EVs, especially since they can be more expensive than traditional gasoline-powered vehicles, while the automotive
industry has been experiencing a recent decline in sales. Furthermore, since fleet operators often make large purchases of EVs, this
cyclicality and volatility in the automotive industry may be more pronounced with commercial purchasers, and any significant decline
in demand from these customers may reduce demand for EV charging and ZOOZ&#8217;s products and services in particular.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
demand for electric vehicles may also be affected by factors directly affecting automobile prices or operating costs, including sales
and financing incentives, raw material prices, part prices, fuel prices, and government regulations, such as tariffs, import regulations,
and taxes. Volatility in demand could result in lower vehicle unit sales, resulting in lower demand for EV charging solutions and adversely
affecting ZOOZ&#8217;s business, financial condition, and operating results.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Delays
in deployment of fast charging infrastructure may limit the need and urgency for ZOOZ&#8217;s product.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ&#8217;s
success is closely tied to the widespread adoption of EVs and the development of a robust fast charging infrastructure. The timely deployment
of fast charging infrastructure is crucial to meet the increasing demand for EVs and to encourage consumers to transition to electric
transportation. However, various factors, including but not limited to regulatory hurdles, permitting delays, budget constraints, and
other unforeseen obstacles, could potentially cause significant delays in the construction and expansion of public ultra-fast charging
infrastructure. These delays could be influenced by governmental policies, local community resistance, or technical challenges that arise
during the planning and implementation phases. In addition, these delays can be related to the learning phase for ZOOZ&#8217;s customers,
to better understand the challenges to adopt electrical vehicles, to deploy fast charging infrastructure, to evaluate various technological
solutions, etc. All these factors may delay potential customers and partners in their evaluation of ZOOZ&#8217;s solutions and may delay
or cancel their decision to choose ZOOZ&#8217;s products.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 12; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->12<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
the deployment of fast charging infrastructure lags the anticipated growth of the EV market, it may hinder consumer confidence and convenience
in owning an EV. As a result, potential EV buyers might be deterred from purchasing electric vehicles, leading to reduced demand for
ZOOZ&#8217;s products. Delays in fast charging infrastructure deployment could further lead to extended sales cycles for our products.
This might impact ZOOZ&#8217;s revenue growth estimates, making it challenging to achieve financial targets and meet shareholders&#8217;
and investors&#8217; expectations. Delays in the fast-charging infrastructure could provide a window of opportunity for competitors to
enter the market with innovative solutions or alternative technologies. Increased competition might erode ZOOZ&#8217;s market share and
reduce ZOOZ&#8217;s competitive advantage.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Regulation
and costs related to grid upgrades and demand charge tariffs may limit the number of sites that need ZOOZ&#8217;s product or reduce the
value of ZOOZ&#8217;s product offering to the customer.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Changes
in electricity tariffs may make the charging of EVs, and in particular fast charging, less economical for the EV owners, thus limiting
EVs adoption.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
the adoption of EVs is likely to continue to rise, the anticipated increased demand for charging infrastructure is likely to put additional
strain on existing electrical grids. To accommodate the anticipated growing number of EVs, utilities and governments may impose stringent
regulations that require grid upgrades. In addition, they may impose demand charge tariffs on charging station operators. Fast charging
stations require significant electrical power. As a result, governments may mandate utilities / DSO to accelerate upgrades to the electrical
grid infrastructure to support these high-power charging stations. In addition, such costly upgrades may be financed by taxpayers and
cause objections to building such ultra-fast charging infrastructure. Delays or challenges in obtaining the necessary permits or completing
grid upgrades could disrupt ZOOZ&#8217;s products&#8217; deployment. This could lead to revenue loss and market share reduction.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Many
utilities apply demand charges to commercial customers based on their peak electricity usage during specific time periods. For EV charging
station operators, these demand charges can substantially increase operational expenses, especially during peak charging periods when
numerous EVs are simultaneously charging. Such tariffs could discourage potential customers from adopting ZOOZ&#8217;s products, reducing
its product value proposition. On the other hand, while power boosters can decrease demand charges costs, some utilities are proposing
&#8220;demand charge holidays&#8221; trying to help the adoption of EVs and ease the build of the charging infrastructure. Such demand
charge holidays can lower the value ZOOZ&#8217;s customers see in its products. Regulations and tariffs related to grid upgrades and
demand charges vary by region and are subject to government policy changes. ZOOZ operates in multiple jurisdictions, and changes in regulations
or tariffs could impact the viability of specific markets, leading to non-uniform customer demand across different locations.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Market
education regarding the concept and value of Power Boosters is still in process.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
success of ZOOZ&#8217;s products depends on widespread market awareness and education regarding the concept and value they bring to EV
charging and in particular the challenges and value related to fast charging infrastructure. The concept of power boosters and their
benefits may still be relatively new to potential customers, industry stakeholders, and the general public. As a result, there might
be limited understanding and awareness of the value proposition its solutions offer. This could hinder adoption rates and slow down its
product&#8217;s market penetration. Failure to adequately convey the benefits of ZOOZ&#8217;s product could lead to misperceptions or
skepticism about the technology. This could impact its company&#8217;s ability to attract customers and generate demand.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>ZOOZ&#8217;s
market penetration is partially related to government and other public incentive plans supporting charging infrastructure, changes or
reductions on those.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ&#8217;s
growth and market penetration are influenced, in part, by government and other public incentive plans that support the development and
expansion of EV charging infrastructure. These incentives may include subsidies, grants, tax credits, or regulatory mandates that encourage
the deployment of charging stations. They may also promote the adoption of electric vehicles.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Government
and public incentive plans are subject to political, economic, and environmental factors. Changes in governmental priorities, budget
allocations, or shifts in regulatory policies could lead to alterations or reductions in support for charging infrastructure projects.
Such policy changes may impact infrastructure development and demand for ZOOZ&#8217;s charging solutions. Incentive plans and their impact
on market demand may vary significantly across regions and jurisdictions. ZOOZ operates in multiple markets, each with its unique set
of incentives and regulations. Fluctuations in these regional policies could create uneven demand for its products.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Further,
the availability of government incentives might attract other EV infrastructure providers and competitors seeking to capitalize on these
programs. Increased competition for limited incentives could potentially compress profit margins or make it more challenging to secure
favorable projects. Government incentive plans have defined timeframes, expiration dates, or diminishing subsidy levels. The temporary
nature of these incentives introduces uncertainty into ZOOZ&#8217;s long-term business expectations and growth strategies. In addition,
some of those incentives are conditioned with manufacturing of related equipment (such as energy storage systems) locally and as long
as ZOOZ is not manufacturing locally its products, it may not be eligible to such financial incentives.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 13; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->13<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>&#160;</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>ZOOZ
is subject to changing laws and regulations regarding regulatory matters, corporate governance and public disclosure that have increased,
and are likely to continue to increase, both its costs and the risk of non-compliance.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
is subject to rules and regulations by various governing bodies, including, for example, the SEC, which are charged with the protection
of investors and the oversight of companies whose securities are publicly traded, and to new and evolving regulatory measures under applicable
law, including the laws of Israel and the various countries, territories and cities in which it operates. ZOOZ&#8217;s efforts to comply
with new and changing laws and regulations in the jurisdictions in which it operates have resulted in and are likely to continue to result
in, increased general and administrative expenses and a diversion of management time and attention from company&#8217;s technology development,
operations&#8217; effectiveness, business-growth and revenue-generating activities to compliance activities.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Moreover,
because these laws, regulations and standards are subject to varying interpretations and changes due to the emerging nature of the markets
in which ZOOZ operates, their application in practice may evolve over time as new guidance becomes available. This evolution may result
in continuing uncertainty regarding compliance matters and additional costs necessitated by ongoing revisions to ZOOZ&#8217;s disclosure
and governance practices. If ZOOZ fails to address and comply with these regulations and any subsequent changes, they may be subject
to penalty and the business may be harmed.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>ZOOZ
may become involved in legal and regulatory proceedings and commercial or contractual disputes, which could have an adverse effect on
its profitability and financial position.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
may be, from time to time, involved in litigation, regulatory proceedings and commercial or contractual disputes that may be significant.
These matters may include, without limitation, disputes with ZOOZ&#8217;s potential suppliers and strategic partners and its potential
customers base, intellectual property claims, shareholder litigation, government investigations, class action lawsuits, personal injury
claims, environmental issues, customs and VAT disputes and employment and tax issues. In addition, ZOOZ could face in the future a variety
of labor and employment claims against it, which could include but is not limited to general discrimination, wage and hour, privacy,
ERISA or disability claims. In such matters, government agencies or private parties may seek to recover from ZOOZ very large, indeterminate
amounts in penalties or monetary damages (including, in some cases, treble or punitive damages) or seek to limit ZOOZ&#8217;s operations
in some way. Furthermore, due to the complex nature of some of ZOOZ&#8217;s contracts, in particular regarding projects for creation
of systems and software solutions, there is legal exposure from customers bringing legal action against ZOOZ. These types of lawsuits
could require significant management time and attention or could involve substantial legal liability, adverse regulatory outcomes, and/or
substantial expenses to defend. Often these cases raise complex factual and legal issues and create risks and uncertainties. ZOOZ is
acting and shall act to reduce these risk factors, including by obtaining general liability and professional liability insurance, and
by strict management of its projects. However, no assurances can be given that any proceedings and claims will not have a material adverse
impact on ZOOZ&#8217;s operating results and financial position or that its established reserves or its available insurance will mitigate
this impact.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>ZOOZ&#8217;s
management team has limited experience managing a U.S. listed public company.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ&#8217;s
management team has limited experience in managing a U.S. publicly traded company, interacting with U.S. public company investors and
complying with the increasingly complex laws pertaining to U.S. listed public companies. ZOOZ&#8217;s management team may not efficiently
manage their responsibilities following ZOOZ&#8217;s transition to being a U.S. listed public company subject to significant regulatory
oversight and reporting obligations under the federal securities laws and the continuous scrutiny of securities analysts and investors.
These new obligations and constituents require significant attention from ZOOZ&#8217;s senior management and could divert their attention
away from the day-to-day management of ZOOZ&#8217;s business, which could adversely affect ZOOZ&#8217;s business, financial condition
and operating results.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>ZOOZ
is dependent on the services of its key executive and employees.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>&#160;</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
is dependent upon retaining employment and support of key executives and employees, for achieving expected business results and advancing
its technology. The leave or unavailability of any of these key members of its management team and key employees for any significant
period of time, or the inability of these individuals to manage or delegate their responsibilities successfully as ZOOZ&#8217;s business
grows, could adversely affect its business, financial condition and results of operations.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 14; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->14<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>&#160;</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>ZOOZ
may not be able to obtain financing for its growth or to fund its future capital expenditures, which could negatively impact ZOOZ&#8217;s
results of operations and financial condition.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
order to fund future growth of its operations, increased working capital levels or capital expenditures, ZOOZ will be required to use
cash from operations, incur borrowings or raise capital through the sale of debt or additional equity securities. ZOOZ&#8217;s ability
to obtain additional bank financing or to access the capital markets for any future offerings may be limited by ZOOZ&#8217;s financial
condition at the time of any such financing or offering, as well as by adverse market conditions resulting from, among other things,
general economic conditions and contingencies and uncertainties that are beyond ZOOZ&#8217;s control or influence. Any failure to obtain
the funds for its growing needs or capital expenditures could impact ZOOZ&#8217;s results of operations, financial condition and ZOOZ&#8217;s
ability to pay dividends.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>ZOOZ
may need additional capital in the future to support its operations and, if such additional financing is not available to it, on reasonable
terms or at all, ZOOZ&#8217;s liquidity and results of operations will be materially and adversely impacted.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Unanticipated
developments in the short term, such as the entry into agreements which require large expenditures or the acquisition of businesses with
negative cash flows, may necessitate additional financing. ZOOZ may seek to raise additional capital through public or private debt or
equity financings in order to:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">fund
                                            the additional operations and capital expenditures;</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">take
                                            advantage of favorable business opportunities, including geographic expansion or acquisitions
                                            of complementary businesses or technologies;</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">develop
                                            and upgrade ZOOZ&#8217;s technology infrastructure beyond current plans;</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">develop
                                            new product and service offerings;</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">take
                                            advantage of favorable conditions in capital markets; or</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">respond
                                            to competitive pressures.</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
capital markets, and in particular the public equity market for equipment vendors and for companies related to EV-charging market, have
historically been volatile. It is difficult to predict when, if at all, it will be possible for such companies to raise capital through
these markets. ZOOZ cannot assure you that the additional financing will be available on terms favorable to it, or at all. If ZOOZ issues
additional equity or convertible debt securities, its existing shareholders may experience substantial dilution.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>ZOOZ
expects to incur research and development costs and devote significant resources to developing new products, which could significantly
reduce ZOOZ&#8217;s profitability and may never result in revenue to ZOOZ.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ&#8217;s
future growth depends on penetrating new markets, adapting existing products to new applications and customer requirements, and introducing
new products that achieve market acceptance. ZOOZ anticipates that it will incur significant research and development costs in the future
as part of its efforts to design, develop, manufacture and introduce new products and enhance existing products. ZOOZ&#8217;s research
and development expenses were $4.2 million and $4.9 million during the fiscal years ended December 31, 2022, and 2023, respectively,
and are likely to grow in the future. Further, ZOOZ&#8217;s research and development efforts may not produce successful results, and
ZOOZ&#8217;s new products may not achieve market acceptance, may not create additional revenue or may not become profitable.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>If
ZOOZ becomes subject to material amount of tax in the jurisdictions in which it operates, its net income and cash flow would decrease.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ&#8217;s
business is affected by taxes imposed on the purchase and sale of the components of ZOOZ&#8217;s systems and the sale of its products
in various jurisdictions in which it operates from time to time. These taxes include sales, excise, goods and services taxes, value-added
taxes, and other taxes. ZOOZ does not currently pay a material amount of tax in any jurisdiction in which ZOOZ operates. As a result
of changes in tax laws or the application by tax authorities of these laws or its failure to comply with tax laws or otherwise, ZOOZ
may become liable for an increased amount of tax in any jurisdiction. An increased liability for taxes would decrease ZOOZ&#8217;s net
income and cash flow.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Risks
Related to Intellectual Property, Information Technology, Data Privacy and Cybersecurity</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>ZOOZ&#8217;s
business may be adversely affected if ZOOZ is unable to protect its technology and intellectual property from unauthorized use by third
parties.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ&#8217;s
success depends, in part, on its ability to protect its core technology and intellectual property. To accomplish this, ZOOZ relies on,
and plans to continue relying on, a combination of patents, trade secrets (including know-how), employee and third-party nondisclosure
agreements, copyright, trademarks, intellectual property licenses and other contractual rights to retain ownership of, and protect, its
technology. Failure to adequately protect ZOOZ&#8217;s technology and intellectual property could result in competitors offering similar
products, potentially resulting in the loss of some of ZOOZ&#8217;s competitive advantage and a decrease in revenue which would adversely
affect ZOOZ&#8217;s business, prospects, financial condition and operating results.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 15; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->15<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Although
ZOOZ&#8217;s patent applications were approved in certain jurisdictions, third parties may challenge their validity, enforceability,
or scope, which may result in such patents being narrowed, found unenforceable, or invalidated. Furthermore, even if they are unchallenged,
ZOOZ&#8217;s patents may not adequately protect its intellectual property or products and provide exclusivity for ZOOZ&#8217;s new products
or prevent others from designing around ZOOZ&#8217;s claims. Furthermore, there is no guarantee that third parties will not infringe
or misappropriate ZOOZ&#8217;s patents or similar proprietary rights. In addition, there can be no assurance that ZOOZ will not have
to pursue litigation against other parties to assert its rights.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Intellectual
property rights of third parties could adversely affect ZOOZ&#8217;s ability to commercialize its products, and ZOOZ might be required
to litigate or obtain licenses from third parties in order to develop or market its product candidates. Such litigation or licenses could
be costly or not available on commercially reasonable terms and may prevent or delay ZOOZ&#8217;s development and commercialization efforts.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>&#160;</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">It
is inherently difficult to conclusively assess ZOOZ&#8217;s freedom to operate without infringing on third-party rights. ZOOZ&#8217;s
competitive position may be adversely affected if existing patents or patents resulting from patent applications issued to third parties
or other third-party intellectual property rights are held to cover ZOOZ&#8217;s products or elements thereof, or ZOOZ&#8217;s manufacturing
or uses relevant to its development plans. In such cases, ZOOZ may not be able to develop or commercialize products or services or its
product candidates (and any relevant services) unless it successfully pursues litigation to nullify or invalidate the third-party intellectual
property right concerned or enter into a license agreement with the intellectual property right holder, if available on commercially
reasonable terms.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">There
may also be pending patent applications that if they result in issued patents, could be alleged to be infringed by ZOOZ&#8217;s products.
If such an infringement claim should be brought and be successful, ZOOZ may be required to pay substantial damages, be forced to abandon
its new products, or seek a license from any patent holders.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
the event of a successful claim of infringement against ZOOZ, ZOOZ may have to pay substantial damages, including treble damages and
attorneys&#8217; fees for willful infringement, pay royalties, redesign its infringing products or services, or obtain one or more licenses
from third parties, which may be impossible or require substantial time and monetary expenditure. Thus, ZOOZ cannot guarantee that it
will be able to successfully settle or otherwise resolve such infringement claims. If ZOOZ is unable to successfully settle future claims
on terms acceptable to it, ZOOZ may be required to engage in or continue costly, unpredictable, and time-consuming litigation and may
be prevented from or experience substantial delays in pursuing the development of and/or marketing its new products or services. If ZOOZ
fails in any such dispute, in addition to being forced to pay damages, it may be temporarily or permanently prohibited from commercializing
new products or services that are held to be infringing. ZOOZ might, if possible, also be forced to redesign new products so that it
no longer infringes third-party intellectual property rights. Any of these events, even if ZOOZ were ultimately to prevail, could require
ZOOZ to divert substantial financial and management resources that it would otherwise be able to devote to its business.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>In
addition to patented technology, ZOOZ relies on unpatented proprietary technology, trade secrets, designs, experiences, work flows, data,
processes, software and know-how.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
relies on proprietary information (such as trade secrets, designs, experiences, work flows, data, know-how and confidential information)
to protect intellectual property that may not be patentable or subject to copyright, trademark, trade dress or service mark protection,
or that ZOOZ believes is best protected by means that do not require public disclosure. ZOOZ generally seeks to protect this proprietary
information by entering into confidentiality agreements, or consulting, services or employment agreements that contain non-disclosure
provisions with its employees, consultants, customers, contractors and third parties. However, ZOOZ may fail to enter into the necessary
agreements, and even if entered into, such agreements may be breached or may otherwise fail to prevent disclosure, third-party infringement
or misappropriation of ZOOZ&#8217;s proprietary information, may be limited as to their term and may not provide adequate remedies in
the event of unauthorized disclosure or use of proprietary information. ZOOZ has limited control over the protection of trade secrets
used by its current or future manufacturing counterparties and suppliers and could lose future trade secret protection if any unauthorized
disclosure of such information occurs. In addition, ZOOZ&#8217;s proprietary information may otherwise become known or be independently
developed by its competitors or other third parties. To the extent that ZOOZ&#8217;s employees, consultants, customers, contractors,
advisors and other third parties use intellectual property owned by others in their work for it, disputes may arise as to the rights
in related or resulting know-how and inventions. Costly and time-consuming litigation could be necessary to enforce and determine the
scope of ZOOZ&#8217;s proprietary rights, and failure to obtain or maintain protection for ZOOZ&#8217;s proprietary information could
adversely affect its competitive business position. Furthermore, laws regarding trade secret rights in certain markets where ZOOZ operates
may afford little or no protection to its trade secrets.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 16; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->16<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>&#160;</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>ZOOZ&#8217;s
technology has had, and in the future could have, undetected defects, design or manufacturing errors or bugs in hardware or software,
which could negatively affect the functionality and reliability of ZOOZ&#8217;s product, including the product&#8217;s safety, which
could ultimately have an adverse effect on the market adoption of ZOOZ&#8217;s product, damage ZOOZ&#8217;s reputation with current or
prospective customers, and/or expose ZOOZ to product liability and other claims that could materially and adversely affect ZOOZ&#8217;s
business.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ&#8217;s
technology has had, and in the future could have, undetected defects, design or manufacturing errors, long-term fatigue effects, and/or
errors or bugs in hardware or software, which could negatively affect ZOOZ&#8217;s device functionality, reliability and safety, in a
manner that, in extreme situations, could potentially lead to bodily or property damage. Such extreme failures may include mechanical
failure of a high-velocity rotating heavy-mass (contained within the product&#8217;s integrated flywheels), as well as electrification,
due to insulation failure of the product being a high-voltage, high-power electrical device and other failures due to the complexity
of such highly integrated device. Such failures could have an adverse effect on the market adoption of ZOOZ&#8217;s product, harm the
reliability thereof, damage ZOOZ&#8217;s reputation with current or prospective customers, and/or expose ZOOZ to product liability and
other claims that could materially and adversely affect ZOOZ&#8217;s business.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Any
insurance that ZOOZ carries may not be sufficient or it may not apply to all situations. Similarly, to the extent that such malfunctions
are related to components obtained from third-party vendors, such vendors may not assume responsibility for such malfunctions.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Any
insurance coverage or indemnification obligations of suppliers may not adequately cover all such claims or cover only a portion of such
claims. A successful product liability, warranty, or other similar claim could have an adverse effect on ZOOZ&#8217;s business, operating
results and financial condition. In addition, even claims that ultimately are unsuccessful could result in expenditure of funds in litigation,
divert management&#8217;s time and other resources and cause reputational harm.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
expects to grant some of its customers a warranty for the kinetic storage system and in particular a long-term warranty for the flywheels.
ZOOZ is examining the robustness of the design, the quality of the raw materials and the manufacturing processes of the flywheels, and
their effect on reliability and safety of the flywheels throughout the expected life of the product. ZOOZ&#8217;s product readiness reliability
is still to be proven; the product may be subject to risks relating to the relatively early stage of the product&#8217;s use in the market.
If ZOOZ will have to bear the costs of repairing or replacing some of the storage systems at considerable costs exceeding ZOOZ&#8217;s
existing insurance amounts, ZOOZ may incur substantial expenses.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>ZOOZ&#8217;s
use of open-source software under license terms that interfere with its proprietary rights could disrupt its business.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ&#8217;s
technology solution includes some software, known as open-source software, which has source code or material that is available to the
public, or open source. Although ZOOZ monitors its use of open-source software, the terms of many open-source licenses to which it is
subject have not been interpreted by U.S. or foreign courts, and there is a risk that such licenses could be construed in a manner that
imposes unanticipated conditions or restrictions on ZOOZ&#8217;s ability to provide its products to its clients. While ZOOZ monitors
its use of open-source software and tries to ensure that none is used in a manner that would require it to disclose its source code or
that would otherwise breach the terms of an open-source agreement, such use could inadvertently occur. In the future, ZOOZ could be required
to seek licenses from third parties in order to continue offering its products, which licenses may not be available on terms that are
acceptable to ZOOZ, or at all. Alternatively, ZOOZ may need to re-engineer its products or discontinue use of portions of the functionality
provided by its products. In addition, the terms of open-source software licenses may require ZOOZ to provide software that it develops
using such software to others on unfavorable license terms. ZOOZ may be required to release its proprietary source code, pay damages
for breach of contract, discontinue sales in the event re-engineering cannot be accomplished on a timely basis or take other remedial
action that may divert resources away from its development efforts. ZOOZ&#8217;s inability to use third party software could result in
disruptions to its business, or delays in the development of future offerings or enhancements of existing offerings, which could impair
ZOOZ&#8217;s business.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>If
ZOOZ fails to maintain adequate security and supporting infrastructure as ZOOZ scales the deployment of its products, ZOOZ may experience
outages and disruptions of its services which could harm ZOOZ&#8217;s brand and reputation and negatively impact ZOOZ&#8217;s revenue
and results of operations.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
ZOOZ is operating to grow its business, ZOOZ expects to continue investing in technology services, hardware and software, including data
centers, network services, storage and database technologies. Creating the appropriate support for ZOOZ&#8217;s solution, including ZOOZ&#8217;s
computational infrastructure, is expensive and complex, and ZOOZ&#8217;s execution could result in inefficiencies or operational failures
and increased vulnerability to cyber-attacks, which, in turn, could diminish the quality of ZOOZ&#8217;s services and performance for
advertisers. The steps that ZOOZ may take to increase the reliability, integrity and security of its systems as they scale may be expensive
and may not prevent system failures or unintended vulnerabilities resulting from the increasing number of persons with access to its
systems, complex interactions within ZOOZ&#8217;s solution and the increasing number of connections with third party partners and vendors&#8217;
technology. Operational errors or failures or successful cyber-attacks could damage ZOOZ&#8217;s reputation and result in loss of current
and new advertisers and other business partners, which could harm ZOOZ&#8217;s business.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 17; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->17<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>&#160;</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>ZOOZ&#8217;s
business practices with respect to data could give rise to liabilities or reputational harm as a result of governmental regulation, legal
requirements or industry standards relating to consumer privacy and data protection.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
the course of providing ZOOZ&#8217;s services, ZOOZ transmits and stores information related to ZOOZ&#8217;s clients and their use of
its products, although ZOOZ does not generally store individual personal identifying information. Federal, State and international laws
and regulations can govern the collection, use, retention, sharing and security of data that ZOOZ collects across its systems. ZOOZ strives
to comply with all applicable laws, regulations, policies and legal obligations relating to privacy and data protection. However, it
is possible that these requirements may be interpreted and applied in a manner that is inconsistent from one jurisdiction to another
and may conflict with other rules or ZOOZ&#8217;s practices. Any failure, or perceived failure, by ZOOZ to comply with U.S. federal,
state, or international laws, including laws and regulations regulating privacy, data security, or consumer protection, could result
in proceedings or actions against ZOOZ by governmental entities or others. ZOOZ may also be contractually liable to indemnify and hold
harmless ZOOZ&#8217;s clients from the costs or consequences of inadvertent or unauthorized disclosure of data that ZOOZ stores or handles
as part of providing ZOOZ&#8217;s services.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
ZOOZ is working to expand its operations globally, compliance with regulations that differ from country to country may also impose substantial
burdens on ZOOZ&#8217;s business. In particular, the European Union has traditionally taken a broader view as to what is considered personal
information and has imposed greater obligations under data privacy regulations. In addition, individual EU member countries have had
discretion with respect to their interpretation and implementation of the regulations, which has resulted in variation of privacy standards
from country to country. Complying with any new regulatory requirements could force ZOOZ to incur substantial costs or require ZOOZ to
change ZOOZ&#8217;s business practices in a manner that could compromise its ability to effectively pursue ZOOZ&#8217;s growth strategy.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>ZOOZ
is subject to complex and evolving laws, regulations, rules, standards and contractual obligations regarding data privacy and cybersecurity,
which can increase the cost of doing business, compliance risks and potential liability.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
the ordinary course of ZOOZ&#8217;s business, ZOOZ collects, uses, transfers, stores, maintains and otherwise processes certain sensitive
and other personal information regarding ZOOZ&#8217;s employees, and contact information of ZOOZ&#8217;s customers and service providers,
that is subject to complex and evolving laws, regulations, rules, standards and contractual obligations regarding data privacy and cybersecurity.
Ensuring that ZOOZ&#8217;s collection, use, transfer, storage, maintenance and other processing of personal information complies with
applicable laws, regulations, rules, standards and contractual obligations regarding data privacy and cybersecurity in relevant jurisdictions
can increase operating costs, impact the development of new systems, and reduce operational efficiency. Global legislation, enforcement,
and policy activity in this area is rapidly expanding and creating a complex regulatory compliance environment. Any actual or perceived
mishandling or misuse of the personal information by ZOOZ or by a third party with which ZOOZ is affiliated, including payrolls providers
and other service providers that have access to sensitive and other personal information, could result in litigation, regulatory fines,
penalties or other sanctions, damage to ZOOZ&#8217;s reputation, disruption of ZOOZ&#8217;s business activities, and significantly increased
business and cybersecurity costs or costs related to defending legal claims.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
the United States, numerous federal, state, and local laws and regulations, including federal health information privacy laws, state
data breach notification laws, and federal and state consumer protection laws, that govern the collection, use, disclosure and protection
of personal data may apply to our operations. For example, the Controlling the Assault of Non-Solicited Pornography and Marketing Act
of 2003 (&#8220;<b>CAN-SPAM</b>&#8221;) imposes specific requirements on ZOOZ&#8217;s correspondence with subscribers for email communication.
Additionally, laws in all 50 states require businesses to provide notice to parties whose personally identifiable information has been
disclosed as a result of a data breach. The laws are not consistent, and compliance in the event of a widespread data breach is costly.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Furthermore,
California enacted the California Consumer Privacy Act (the &#8220;<b>CCPA</b>&#8221;), which provides for civil penalties for violations,
as well as a private right of action for data breaches. The CCPA, as amended requires businesses to provide specific disclosures in privacy
notices and honor requests of California residents (including consumers, business representatives, and employees) to exercise certain
privacy rights. The CCPA provides for fines of up to $7,500 per intentional violation and allows private litigants affected by certain
data breaches to recover significant statutory damages. Although the CCPA exempts some data processed in the context of clinical trials,
the CCPA increases compliance costs and potential liability with respect to other personal data that ZOOZ may maintain about California
residents. Other states, such as Virginia and Colorado, have also passed comprehensive privacy laws, and similar laws are being considered
in several other states, as well as at the federal and local levels. These developments further complicate compliance efforts, and increase
legal risk and compliance costs for ZOOZ.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 18; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->18<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Additionally,
an increasing number of foreign data protection laws may also apply to personal data obtained from individuals outside of the United
States. For example, the European Union&#8217;s General Data Protection Regulation (the &#8220;<b>GDPR</b>&#8221;) introduced new data
protection requirements in the EU, as well as potential fines for noncompliant companies of up to the greater of &#8364;20 million or
4% of annual global revenue, temporary or definitive bans on data processing, and other corrective actions. Additionally, private litigation
related to processing of personal data can be brought under the GDPR by classes of data subjects or consumer protection organizations
authorized at law to represent their interests.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition, ZOOZ is also subject to the Israeli Privacy Protection Law 5741-1981 and the regulations promulgated thereunder (the &#8220;<b>PPL</b>&#8221;),
including the Israeli Privacy Protection Regulations (Data Security) 2017, imposing obligations with respect to the manner personal data
is processed, maintained, transferred, disclosed, accessed and secured, as well as the guidelines of the Israeli Privacy Protection Authority.
In this respect, the PPL may require ZOOZ to adjust certain data protection and data security practices, information security measures,
certain organizational procedures, applicable positions and other technical and organizational security measures. Failure to comply with
the PPL and with guidelines issued by the Israeli Privacy Protection Authority, may expose ZOOZ to administrative fines, civil claims
(including class actions) and in certain cases criminal liability.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Furthermore,
Europe and other jurisdictions have enacted data localization laws and cross-border personal data transfer laws, which could make it
more difficult to transfer information across jurisdictions (such as transferring or receiving personal data that originates in the European
Economic Area). In particular, the European Economic Area (EEA) and the United Kingdom (U.K.) have significantly restricted the transfer
of personal data to the United States and other countries whose privacy laws it generally believes are inadequate. Although there are
currently various mechanisms that may be used to transfer personal data from the EEA and U.K. to the United States in compliance with law,
such as the EEA standard contractual clauses, the U.K.&#8217;s International Data Transfer Agreement / Addendum, and the EU-U.S. Data Privacy
Framework and the U.K. extension thereto (which allows for transfers to relevant U.S.-based organizations who self-certify compliance and
participate in the Framework), existing mechanisms that may facilitate cross-border personal data transfers may change, be challenged
or be invalidated, and there is no assurance that ZOOZ can satisfy or rely on these measures to lawfully transfer personal data to the
United States. If ZOOZ cannot implement a valid compliance mechanism for cross-border data transfers, it could experience material adverse
effects.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Further,
while ZOOZ strives to publish and prominently display privacy policies that are accurate, comprehensive, and compliant with applicable
laws, regulations, rules and industry standards, ZOOZ cannot ensure that its privacy policies and other statements regarding ZOOZ&#8217;s
practices will be sufficient to protect ZOOZ from claims, proceedings, liability or adverse publicity relating to data privacy or cybersecurity.
Although ZOOZ endeavors to comply with its privacy policies, ZOOZ may at times fail to do so or be alleged to have failed to do so. The
publication of ZOOZ&#8217;s privacy policies and other documentation that provide promises and assurances about privacy and cybersecurity
can subject ZOOZ to potential federal or state action if they are found to be deceptive, unfair, or misrepresentative of ZOOZ&#8217;s
actual practices.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Any
failure or perceived or inadvertent failure by ZOOZ to comply with ZOOZ&#8217;s privacy policies, or existing or new laws, regulations,
rules, standards or contractual obligations, or any compromise of security that results in unauthorized access to, or unauthorized loss,
destruction, use, modification, acquisition, disclosure, release or transfer of personal information, may result in substantial costs,
time and other resources, orders to stop or modify the alleged non-compliant activity, proceedings or actions against ZOOZ by governmental
entities or others, legal liability, audits, regulatory inquiries, governmental investigations, enforcement actions, claims, fines, judgments,
awards, penalties, sanctions and costly litigation (including class actions). Any of the foregoing could harm ZOOZ&#8217;s reputation,
distract ZOOZ&#8217;s management and technical personnel, increase ZOOZ&#8217;s costs of doing business, adversely affect the demand
for ZOOZ&#8217;s systems, and ultimately result in the imposition of liability, any of which could have a material adverse effect on
ZOOZ&#8217;s business, financial condition and results of operations.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Commercial
security risks, including security breaches, identity theft, service disrupting attacks and viruses, could harm ZOOZ&#8217;s reputation
and the conduct of ZOOZ&#8217;s business, which could have a material adverse effect on ZOOZ&#8217;s financial results.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">A
fundamental requirement for online-connected commerce and communications is the secure storage and transmission of confidential information
over public networks. Although ZOOZ has developed and uses systems and processes that are designed to protect customer information and
prevent fraudulent credit card transactions and other security breaches, ZOOZ&#8217;s security measures may not prevent security breaches
or identity theft that could harm ZOOZ&#8217;s reputation and business. ZOOZ relies on encryption and authentication technology to provide
the security and authentication to effect secure transmission of confidential information, including customer credit card numbers. Advances
in computer capabilities, new discoveries in the field of cryptography or other developments may result in a compromise or breach of
the technology used by ZOOZ to protect transaction data. In addition, any party who can illicitly obtain a user&#8217;s password could
access the user&#8217;s transaction data. An increasing number of websites have reported breaches of their security. Any compromise of
ZOOZ&#8217;s security could damage ZOOZ&#8217;s reputation and expose ZOOZ to a risk of litigation and possible liability. The coverage
limits of ZOOZ insurance policies may not be adequate to reimburse ZOOZ for losses caused by security breaches.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 19; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->19<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Additionally,
ZOOZ&#8217;s servers are vulnerable to computer viruses, physical or electronic break-ins, and similar disruptions, and ZOOZ may experience
&#8220;denial-of-service&#8221; type attacks on ZOOZ&#8217;s system that may make all or portions of its websites unavailable for periods
of time. ZOOZ may need to expend significant resources to protect against security breaches or to address problems caused by breaches.
Disruptions in ZOOZ&#8217;s services and damage caused by viruses and other attacks could cause a loss of user confidence in ZOOZ systems
and services, which could lead to reduced usage of ZOOZ&#8217;s products and services and materially adversely affect ZOOZ&#8217;s business
and financial results.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Defects,
errors or other performance problems in ZOOZ&#8217;s software or hardware, or the third-party software or hardware on which ZOOZ rely,
could harm ZOOZ&#8217;s reputation, result in significant costs to ZOOZ, impair ZOOZ&#8217;s ability to sell ZOOZ&#8217;s systems and
subject ZOOZ to substantial liability.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ&#8217;s
software and hardware, and those of third parties on which ZOOZ rely, is complex and may contain defects or errors when implemented or
when new functionality is released, as ZOOZ may modify, enhance, upgrade and implement new systems, procedures and controls to reflect
changes in ZOOZ&#8217;s business, technological advancements and changing industry trends. Despite ZOOZ&#8217;s testing, from time-to-time
ZOOZ has discovered, and may in the future discover, defects or errors in its software and hardware. Any performance problems or defects
in ZOOZ&#8217;s software or hardware, or those of third parties on which ZOOZ rely, could materially and adversely affect ZOOZ&#8217;s
business, financial condition and results of operations. Defects, errors or other similar performance problems or disruptions, whether
in connection with day-to-day operations or otherwise, could be costly for ZOOZ, damage ZOOZ&#8217;s customers&#8217; businesses, harm
ZOOZ&#8217;s reputation and result in reduced sales or a loss of, or delay in, the market acceptance of ZOOZ&#8217;s systems. In addition,
if ZOOZ has any such errors, defects or other performance problems, ZOOZ&#8217;s clients could seek to terminate their contracts, delay
or withhold payment or make claims against ZOOZ. Any of these actions could result in liability, lost business, increased insurance costs,
difficulty in collecting accounts receivable, costly litigation or adverse publicity, which could materially and adversely affect ZOOZ&#8217;s
business, financial condition and results of operations.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>ZOOZ
relies on its information systems to conduct its business, and failure to protect these systems against security breaches could adversely
affect ZOOZ&#8217;s business and results of operations. Additionally, if these systems fail or become unavailable for any significant
period, ZOOZ&#8217;s business could be harmed.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
relies on its computer systems and network infrastructure across its operations. The safety and security and efficient operation of ZOOZ&#8217;s
business, including processing, transmitting and storing electronic and financial information, are dependent on computer hardware and
software systems, which are increasingly vulnerable to security breaches and other disruptions. Any significant interruption or failure
of ZOOZ&#8217;s information systems or any significant breach of security could adversely affect ZOOZ&#8217;s business and results of
operations.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
relies on industry accepted security measures and technology to securely maintain confidential and proprietary information maintained
on ZOOZ&#8217;s information systems. However, these measures and technology may not adequately prevent security breaches. The technology
and other controls and processes designed to secure ZOOZ&#8217;s confidential and proprietary information, detect and remedy any unauthorized
access to that information were designed to obtain reasonable, but not absolute, assurance that such information is secure and that any
unauthorized access is identified and addressed appropriately. Such controls may in the future fail to prevent or detect, unauthorized
access to ZOOZ&#8217;s confidential and proprietary information. In addition, the foregoing events could result in violations of applicable
privacy and other laws. If confidential information is inappropriately accessed and used by a third party or an employee for illegal
purposes, ZOOZ may be responsible to the affected individuals for any losses they may have incurred as a result of misappropriation.
In such an instance, ZOOZ may also be subject to regulatory action, investigation or liable to a governmental authority for fines or
penalties associated with a lapse in the integrity and security of ZOOZ&#8217;s information systems.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ&#8217;s
operations and business administration could be targeted by individuals or groups seeking to sabotage or disrupt such systems and networks,
or to steal data, and these systems may be damaged, shutdown or cease to function properly (whether by planned upgrades, force majeure,
telecommunications failures, hardware or software break-ins or viruses, other cyber-security incidents or otherwise. The threats to ZOOZ&#8217;s
information systems are constantly evolving and have become increasingly complex and sophisticated. Furthermore, such threats change
frequently and are often not recognized or detected until after they have been launched, and therefore, ZOOZ may be unable to anticipate
these threats and may not become aware in a timely manner of such a security breach, which could exacerbate any damage ZOOZ experiences.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 20; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->20<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
may be required to expend significant capital and other resources to protect against and remedy any potential security breaches and their
consequences. A cyber-attack could result in significant expenses to investigate and repair security breaches or system damages and could
lead to litigation, fines, other remedial action, heightened regulatory scrutiny and diminished customer confidence. In addition, ZOOZ&#8217;s
remediation efforts may not be successful and ZOOZ may not have adequate insurance to cover these losses.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
unavailability of the information systems or the failure of these systems to perform as anticipated for any reason could disrupt ZOOZ&#8217;s
business and could have a material adverse effect on ZOOZ&#8217;s business, results of operations, cash flows and financial condition.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Risks
Related to Customers</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Failure
to effectively expand ZOOZ&#8217;s sales and marketing capabilities could harm ZOOZ&#8217;s ability to increase ZOOZ&#8217;s customer
base and achieve broader market acceptance of ZOOZ&#8217;s products.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ&#8217;s
ability to effectively expand ZOOZ&#8217;s sales and marketing operations and activities will likely have a significant impact on ZOOZ&#8217;s
ability to expand ZOOZ&#8217;s customer base, gain broader market acceptance, grow revenue, and achieve and sustain profitability. Sales
and marketing expenses represent a significant percentage of ZOOZ&#8217;s total revenue, and ZOOZ&#8217;s operating results will likely
suffer if sales and marketing expenditures do not contribute significantly to increasing revenue.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
is substantially dependent on ZOOZ&#8217;s direct sales force to obtain new customers. ZOOZ plans to continue to expand ZOOZ&#8217;s
direct sales force both domestically and internationally, but ZOOZ may not be able to recruit and hire a sufficient number of sales personnel,
which may adversely affect ZOOZ&#8217;s ability to expand ZOOZ&#8217;s sales capabilities. Especially in new sales territories, new hires
require extensive training and time before achieving full productivity. Recent hires and planned hires may not become as productive as
quickly as anticipated, and ZOOZ may be unable to hire or retain sufficient numbers of qualified individuals. It is also costly and time-consuming
to hire sales personnel in new countries, requiring additional set up and upfront costs that may be disproportionate to the initial revenue
expected. There is significant competition for direct sales personnel with the strong sales skills and technical knowledge which may
increase the risk of not being able to retain the sales personnel ZOOZ recruit and train.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ&#8217;s
ability to achieve significant revenue growth in the future will depend, in large part, on ZOOZ&#8217;s success in recruiting, training,
incentivizing and retaining a sufficient number of qualified direct sales personnel, and that they attain desired productivity levels
within a reasonable period of time. ZOOZ&#8217;s business will be harmed if continuing investment in ZOOZ&#8217;s sales and marketing
capabilities does not generate a significant increase in revenue.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Failure
to expand ZOOZ&#8217;s customer base would have a material adverse effect on ZOOZ&#8217;s results of operations and financial condition.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">While
ZOOZ expects to significantly diversify ZOOZ&#8217;s customer base in the near future, historically ZOOZ had a small customer base comprising
a significant portion of ZOOZ commercial open orders. If ZOOZ is unable to sufficiently diversify ZOOZ&#8217;s customer base, ZOOZ will
remain subject to significant risks associated with a highly concentrated customer base.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">This
concentration exposes ZOOZ&#8217;s business, financial condition and operating results to a number of risks, including the following:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
                                            a highly concentrated business environment, ZOOZ may not be able to find other sources of
                                            revenue if particular customers do not place an order, delay or cancel an order.</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
                                            a result of this concentrated customer base, single customers represent a greater portion
                                            of ZOOZ&#8217;s sales and, consequently, have greater commercial negotiation leverage. Occasionally,
                                            customers may request and receive pricing, payment, intellectual property-related or other
                                            commercial terms that negatively affect ZOOZ&#8217;s business due to their aggressive policies
                                            regarding engaging alternative, second-source suppliers for the products ZOOZ offers. Any
                                            of these changes could negatively impact ZOOZ&#8217;s prices, customer orders, revenues,
                                            and gross margins.</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
                                            highly concentrated business environment also increases ZOOZ&#8217;s exposure to risks related
                                            to ZOOZ&#8217;s customers&#8217; financial condition. If ZOOZ&#8217;s customers experience
                                            liquidity issues in the future, ZOOZ may be required to incur additional credit losses on
                                            receivables owed by them. In addition, customers with liquidity issues may be forced to reduce
                                            purchases of ZOOZ&#8217;s equipment, delay deliveries of ZOOZ&#8217;s products, discontinue
                                            operations or may be acquired by one of ZOOZ&#8217;s customers, and in either case such events
                                            would have the effect of further consolidating ZOOZ&#8217;s customer base.</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Any
of these factors could have a material adverse effect on ZOOZ&#8217;s business, financial condition and operating results.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 21; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->21<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>&#160;</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Customer
relationships with early-stage companies may present more risks than with established companies.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">A
significant portion of ZOOZ&#8217;s current and potential customer and partner base is comprised of early-stage companies. Customer relationships
with early-stage companies are particularly risky since these companies lack extensive operating experience. As a result, there is less
demonstration of market acceptance of their services, making it harder for us to anticipate needs and requirements than with established
customers. In addition, funding for such companies may be more difficult to obtain and these customer relationships may not continue
or materialize to the extent ZOOZ plans or previously experienced. Further, supply chain risks arising from COVID-19 policies or geopolitical
turmoil may have a more significant impact on early-stage customers than with established customers. This may result in additional credit
risk, including but not limited to the collection of trade accounts receivables and payment for their inventory.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Customer
relationships with a company without a local presence in the customer territory may present more risks than with companies with a local
presence.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
may seek to establish customer relationships and expand its business in regions where ZOOZ does not have a local physical presence or
operational footprint. Despite providing opportunities for growth, such expansion comes with inherent risks and challenges associated
with operating remotely in new markets.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Without
a local presence, providing prompt and effective customer service may be more challenging. Time zone differences, language barriers,
and delays in response times may lead to dissatisfaction among customers, potentially affecting ZOOZ&#8217;s reputation and future business
prospects. Each region has unique market characteristics, preferences, and regulations. In the absence of a physical presence in the
customer territory, ZOOZ may be unable to fully understand and cater to their specific needs. Operating in different jurisdictions often
requires adherence to local regulations and compliance standards. Lack of local presence might lead to inadvertent non-compliance, legal
issues, or challenges navigating complex regulatory environments.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition, companies with a local presence often have an advantage in building stronger relationships with customers, conducting face-to-face
meetings, and offering tailored solutions. This competitive disadvantage could impact ZOOZ&#8217;s ability to secure contracts and compete
effectively with local competitors.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Risks
Related to Laws and Regulations</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>ZOOZ&#8217;s
global business requires ZOOZ to comply with laws and regulations in countries across the world and exposes ZOOZ to international business
risks that could adversely affect ZOOZ&#8217;s business.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>&#160;</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
is subject to environmental, labor, health, safety and other laws and regulations in Israel, the United States and other jurisdictions
in which ZOOZ operates. ZOOZ is also required to obtain environmental permits and other authorizations or licenses from governmental
authorities for certain of ZOOZ&#8217;s operations and have to protect ZOOZ&#8217;s intellectual property worldwide. In the jurisdictions
where ZOOZ operates, ZOOZ needs to comply with differing standards and varying practices of regulatory, tax, judicial and administrative
bodies. ZOOZ&#8217;s field is developing and, accordingly, so is its regulatory scheme. It is likely that the regulatory schemes in which
ZOOZ operates will continue to change and develop, which may affect ZOOZ&#8217;s operations. ZOOZ may face significant costs related
to new regulations regarding flywheels energy storage shipping, installation and usage.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
business environment is also subject to many uncertainties, including the following international business risks:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">negative
                                            economic developments in economies around the world and the instability of governments, currently
                                            for example the sovereign debt situation in certain European countries;</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Social
                                            and political instability in a number of countries around the world, including the recent
                                            developments in the Middle East, and also including the threat of war, terrorist attacks
                                            in the United States or in Europe, the Middle East and Africa, epidemics or civil unrest;</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">pandemics
                                            or national and international environmental, nuclear or other disasters, which may adversely
                                            affect ZOOZ&#8217;s workforce, as well as its local suppliers and customers;</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">adverse
                                            changes in governmental policies, especially those affecting trade and investment;</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">foreign
                                            currency exchange, in particular with respect to the U.S. dollar, and transfer restrictions;
                                            and</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">threats
                                            that ZOOZ&#8217;s operations or property could be subject to nationalization and expropriation.</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">No
assurance can be given that ZOOZ has been or will be at all times in complete compliance with the laws and regulations to which ZOOZ
is subject or that ZOOZ has obtained or will obtain the permits and other authorizations or licenses that ZOOZ needs. If ZOOZ violates
or fails to comply with laws, regulations, permits and other authorizations or licenses, ZOOZ could be fined or otherwise sanctioned
by regulators. In addition, if any of the international business risks were to materialize or become worse, they could also have a material
adverse effect on ZOOZ&#8217;s business, financial condition and results of operations.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 22; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->22<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>&#160;</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>ZOOZ
may be subject to securities litigation, which is expensive and could divert management attention.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>&#160;</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
the past, companies that have experienced volatility in the market price of their shares have been subject to securities class action
litigation. ZOOZ may be the target of this type of litigation in the future. Litigation of this type could result in substantial costs
and diversion of management&#8217;s attention and resources, which could seriously hurt ZOOZ&#8217;s business. Any adverse determination
in litigation could also subject ZOOZ to significant liabilities.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Failure
to comply with the Foreign Corrupt Practices Act, other applicable anti-corruption and anti-bribery laws, and applicable trade control
laws could subject ZOOZ to penalties and other adverse consequences.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>&#160;</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
has international operations and a substantial portion of ZOOZ&#8217;s business, particular with respect to ZOOZ&#8217;s manufacturing
processes, is conducted outside of the United States. ZOOZ&#8217;s operations are subject to the U.S. Foreign Corrupt Practices Act (the
&#8220;<b>FCPA</b>&#8221;), as well as the anti-corruption and anti-bribery laws in Israel and in the countries where ZOOZ does business.
The FCPA prohibits covered parties from offering, promising, authorizing or giving anything of value, directly or indirectly, to a &#8220;foreign
government official&#8221; with the intent of improperly influencing the official&#8217;s act or decision, inducing the official to act
or refrain from acting in violation of lawful duty, or obtaining or retaining an improper business advantage. The FCPA also requires
publicly traded companies to maintain records that accurately and fairly represent their transactions, and to have an adequate system
of internal accounting controls. In addition, other applicable anti-corruption laws prohibit bribery of domestic government officials,
and some laws that may apply to ZOOZ&#8217;s operations prohibit commercial bribery, including giving or receiving improper payments
to or from non-government parties, as well as so-called &#8220;facilitation&#8221; payments. In addition, ZOOZ is subject to U.S. and
other applicable trade control regulations that restrict with whom ZOOZ may transact business, including the trade sanctions enforced
by the U.S. Treasury, Office of Foreign Assets Control.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Though
ZOOZ maintains policies, internal controls and other measures reasonably designed to promote compliance with applicable anticorruption
and anti-bribery laws and regulations, and certain safeguards designed to ensure compliance with U.S. trade control laws, its employees
or agents may nevertheless engage in improper conduct for which ZOOZ might be held responsible. Any violations of these anti-corruption
or trade controls laws, or even allegations of such violations, can lead to an investigation and/or enforcement action, which could disrupt
ZOOZ&#8217;s operations, involve significant management distraction, and lead to significant costs and expenses, including legal fees.
If ZOOZ, or ZOOZ&#8217;s employees or agents acting on ZOOZ&#8217;s behalf, are found to have engaged in practices that violate these
laws and regulations, ZOOZ could suffer fines and penalties, profit disgorgement, injunctions on future conduct, securities litigation,
bans on transacting government business, delisting from securities exchanges and other consequences that may have a material adverse
effect ZOOZ&#8217;s business, financial condition and results of operations. In addition, ZOOZ&#8217;s reputation, its net sales or its
share price could be adversely affected if ZOOZ becomes subject of any negative publicity related to actual or potential violations of
anti-corruption, anti-bribery or trade control laws and regulations.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Environmental
and safety laws and regulations may expose us to liability, and such liability and compliance with these laws and regulations may adversely
affect ZOOZ&#8217;s business.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>&#160;</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ&#8217;s
industry is subject to a variety of international, federal, state, local and non-U.S. laws and regulations governing pollution, environmental
protection and occupational health and safety, including those relating to the release, storage, use, discharge, handling, generation,
transportation, disposal, and labeling of, and human exposure to, hazardous and toxic materials, product composition, and the investigation
and cleanup of contaminated sites, including sites ZOOZ currently or formerly owned or operated, due to the release of hazardous materials,
regardless of whether ZOOZ caused such release. ZOOZ is also required to obtain environmental permits from governmental authorities for
certain of its operations. ZOOZ cannot assure you that it has been or will be at all times in complete compliance with such laws, regulations
and permits. Failure to comply with such laws and regulations could subject ZOOZ to civil or criminal costs, obligations, sanctions or
property damage or personal injury claims, or suspension of its facilities&#8217; operating permits. In addition, ZOOZ may be strictly
liable for joint and several costs associated with investigation and remediation of sites at which ZOOZ has arranged for the disposal
of hazardous wastes if such sites become contaminated, even if ZOOZ fully comply with applicable environmental laws and regulations.
Compliance with current or future environmental and occupational health and safety laws and regulations could restrict ZOOZ&#8217;s ability
to expand ZOOZ&#8217;s business or require us to modify processes or incur other substantial expenses which could harm ZOOZ&#8217;s business.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
the event of an incident involving hazardous materials, ZOOZ could be liable for damages and such liability could exceed the amount of
any liability insurance coverage and the resources of ZOOZ&#8217;s business. In addition, in the event of the discovery of contaminants
or the imposition of clean up obligations for which ZOOZ is responsible, ZOOZ may be required to take remedial or other measures which
could have a material adverse effect on ZOOZ&#8217;s business, financial condition and results of operations. In response to environmental
concerns, some customers and government agencies impose requirements for the elimination and/or labeling of hazardous substances, such
as lead, in electronic equipment, as well as requirements related to the take-back of products discarded by customers. Environmental
and occupational health and safety laws and regulations have tended to become more stringent over time, causing a need to redesign technologies,
imposing greater compliance costs and increasing risks and penalties associated with violations, which could seriously harm ZOOZ&#8217;s
business.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 23; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->23<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Scientific
examination of, political attention to and rules and regulations on issues surrounding the existence and extent of climate change may
result in an increase in the cost of production due to increase in the prices of energy and introduction of an energy or carbon tax.
A variety of regulatory developments have been introduced that focus on restricting or managing the emission of carbon dioxide, methane
and other greenhouse gas. Enterprises may need to purchase at higher costs new equipment or raw materials with lower carbon footprints.
These developments and further legislation that is likely to be enacted could affect ZOOZ&#8217;s operations negatively.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition, there is an increasing focus on corporate environmental, social and governance (&#8220;<b>ESG</b>&#8221;) responsibility in
the EV industry. A number of ZOOZ&#8217;s customers have adopted, or may adopt, procurement policies that include ESG provisions or requirements
that their suppliers should comply with, or they may seek to include such provisions or requirements in their procurement terms and conditions.
An increasing number of investors are also requiring companies to disclose corporate ESG policies, practices and metrics. Legal and regulatory
requirements, as well as investor expectations, on corporate ESG practices and disclosure, can be unpredictable, and may be difficult
and expensive for ZOOZ to comply with, given the complexity of its supply chain and manufacturing. If ZOOZ is unable to comply or are
unable to cause its suppliers or contract manufacturers to comply, with such policies or provisions or meet the requirements of its customers
and its investors, a customer may stop purchasing products from ZOOZ or an investor may sell their shares, and may take legal action
against ZOOZ, which could harm its reputation, revenue and results of operations.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Changes
to tax laws or regulations in Israel, the United States and other jurisdictions expose ZOOZ to tax uncertainties and could adversely
affect ZOOZ&#8217;s results of operations or financial condition.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>&#160;</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
a multinational business, operating in multiple jurisdiction such as Israel, the United States, and the EU, ZOOZ may be subject to taxation
in several jurisdictions around the world with increasingly complex tax laws, the application of which can be uncertain. Changes to tax
laws or regulations in the jurisdictions in which ZOOZ operates, or in the interpretation of such laws or regulations, could significantly
increase ZOOZ&#8217;s effective tax rate and reduce its cash flow from operating activities, and otherwise have a material adverse effect
on ZOOZ&#8217;s financial condition. Since a significant portion of its operations are located in Israel, changes in tax laws or regulations
in Israel could significantly affect ZOOZ&#8217;s operating results. Further changes in the tax laws of foreign jurisdictions could arise,
in particular, as a result of different initiatives undertaken by the Organization for Economic Co-operation and Development (the &#8220;<b>OECD</b>&#8221;).
Any changes in the OECD policy or recommendations, if adopted, could increase tax uncertainty and may adversely affect ZOOZ&#8217;s provision
for income taxes and increase its tax liabilities. In addition, other factors or events, including business combinations and investment
transactions, changes in the valuation of ZOOZ&#8217;s deferred tax assets and liabilities, adjustments to taxes upon finalization of
various tax returns or as a result of deficiencies asserted by taxing authorities, increases in expenses not deductible for tax purposes,
changes in available tax credits, changes in transfer pricing methodologies, other changes in the apportionment of its income and other
activities among tax jurisdictions, and changes in tax rates, could also increase ZOOZ&#8217;s effective tax rate.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
is subject to regular review and audit by Israeli and other foreign tax authorities. Although ZOOZ believe ZOOZ&#8217;s tax estimates
are reasonable, the authorities in these jurisdictions could review its tax returns and impose additional taxes, interest, linkage and
penalties, and the authorities could claim that various withholding requirements apply to ZOOZ or ZOOZ&#8217;s subsidiaries or assert
that benefits of tax treaties are not available to ZOOZ or ZOOZ&#8217;s subsidiaries, any of which could materially affect ZOOZ&#8217;s
income tax provision, net income, or cash flows in the period or periods for which such determination and settlement is made. ZOOZ may
also be liable for taxes in connection with businesses ZOOZ acquires. ZOOZ&#8217;s determinations are not binding on any taxing authorities,
and accordingly the final determination in an audit or other proceeding may be materially different than the treatment reflected in ZOOZ&#8217;s
tax provisions, accruals and returns. An assessment of additional taxes because of an audit could have a material adverse effect on ZOOZ&#8217;s
business, financial condition, results of operations and cash flows.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Transfer
pricing rules may adversely affect ZOOZ&#8217;s corporate income tax expense</i></b>.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
jurisdictions in which ZOOZ conducts business have detailed transfer pricing rules, which require contemporaneous documentation establishing
that all transactions with non-resident related parties be priced using arm&#8217;s length pricing principles. The tax authorities in
these jurisdictions could challenge ZOOZ&#8217;s related party transfer pricing policies and as a consequence the tax treatment of corresponding
expenses and income. International transfer pricing is an area of taxation that depends heavily on the underlying facts and circumstances
and generally involves a significant degree of judgment. If any of these tax authorities were to be successful in challenging ZOOZ&#8217;s
transfer pricing policies, ZOOZ may be liable for additional corporate income tax, and penalties and interest related thereto, which
may have a significant impact on ZOOZ&#8217;s results of operations and financial condition.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 24; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->24<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>&#160;</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Proposed
changes to the U.S. tax system, if enacted, could have a material adverse effect on our ongoing liability for U.S. corporate income tax.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Biden administration has proposed a number of changes to the U.S. tax system. The proposals include changes to the U.S. corporate income
tax system that would increase U.S. corporate tax rates, impose a corporate minimum book tax, and double the tax rate on and make other
tax changes to GILTI earned by foreign subsidiaries. Additionally, the proposals include change to the anti-inversion rules that prevent
U.S. companies from inverting, including by strengthening the rules to treat a foreign acquiring corporation as a U.S. company based
on a reduced 50% continuing ownership threshold.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Many
aspects of these proposals are unclear or undeveloped. We are unable to predict which, if any, U.S. tax reform proposals will be enacted
into law, and what effects any enacted legislation might have on ZOOZ&#8217;s liability for U.S. corporate income tax.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Changes
in government trade policies, including the imposition of tariffs and export restrictions, could limit ZOOZ&#8217;s ability to sell ZOOZ&#8217;s
products to certain customers or demand from certain customers, which may materially and adversely affect ZOOZ&#8217;s sales and results
of operations.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>&#160;</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
U.S. government has in the past made public statements indicating possible significant changes in U.S. trade policy and have taken certain
actions that may impact U.S. trade policy, including imposing new or increased tariffs on certain goods imported into the United States.
Since ZOOZ&#8217;s current products are manufactured outside the United States, such changes, if adopted, could have a disproportionate
impact on ZOOZ&#8217;s business and make ZOOZ&#8217;s products more expensive and less competitive in the U.S. market. Furthermore, changes
in U.S. trade policy could trigger retaliatory actions by affected countries, which could impose restrictions on ZOOZ&#8217;s ability
to do business in or with affected countries or prohibit, reduce or discourage purchases of ZOOZ&#8217;s products by foreign customers,
leading to increased costs of components contained in ZOOZ&#8217;s products, increased costs of manufacturing ZOOZ&#8217;s products,
and higher prices for ZOOZ&#8217;s products in foreign markets. Changes in, and responses to, U.S. trade policy could reduce the competitiveness
of ZOOZ&#8217;s products and cause ZOOZ&#8217;s sales to decline, which could materially and adversely impact ZOOZ&#8217;s business,
financial condition and results of operations. The U.S. or foreign governments may take administrative, legislative or regulatory action
that could materially interfere with ZOOZ&#8217;s ability to sell products in certain countries and/or to certain customers, particularly
in China. ZOOZ cannot predict what actions may ultimately be taken with respect to tariffs or trade relations between the United States
and China or other countries, what products may be subject to such actions, or what actions may be taken by the other countries in retaliation.
The institution of trade tariffs both globally and between the United States and China specifically carries the risk of negatively impacting
China&#8217;s overall economic condition, which could have negative repercussions for ZOOZ&#8217;s business.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>ZOOZ
will be subject to legal and regulatory consequences if ZOOZ does not comply with applicable export control laws and regulations.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>&#160;</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Products
developed and manufactured in Israel and other locations are subject to export controls of the applicable nation. Obtaining export licenses
can be difficult, costly and time-consuming and ZOOZ may not always be successful in obtaining necessary export licenses, and ZOOZ&#8217;s
failure to obtain required import or export approval for ZOOZ&#8217;s products or limitations on ZOOZ&#8217;s ability to export or sell
ZOOZ&#8217;s products imposed by these laws may harm ZOOZ&#8217;s international and domestic revenues. Noncompliance with these laws
could have negative consequences, including government investigations, penalties and reputational harm. The absence of comparable restrictions
on competitors in other countries may adversely affect ZOOZ&#8217;s competitive position. Failure to obtain export licenses for ZOOZ&#8217;s
products or having one or more of its customers be restricted from receiving exports from ZOOZ could significantly reduce ZOOZ&#8217;s
net sales and materially and adversely affect ZOOZ&#8217;s business, financial condition and results of operations.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Changing
foreign exchange rates may have an adverse effect on ZOOZ&#8217;s financial results.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>&#160;</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
has operations and assets in Israel and operations in Germany and the U.S. and expects to expand to additional jurisdictions as detailed
elsewhere in this Annual Report. ZOOZ prepares its financial statements in U.S. dollars, but a portion of ZOOZ&#8217;s expenditures are
denominated in Israeli new shekels and other currencies. ZOOZ therefore must translate its assets, liabilities, revenue and expenses
into U.S. dollars at applicable exchange rates. Consequently, fluctuations in the value of Israeli new shekels and other foreign currencies
relative to the U.S. dollar may negatively or positively affect the value of these items in ZOOZ&#8217;s financial statements. Additionally,
currency exchange rates have been especially volatile in the recent past, and these currency fluctuations may make it difficult for ZOOZ
to predict its results of operations. To the extent ZOOZ fails to manage ZOOZ&#8217;s foreign currency exposure adequately, ZOOZ may
suffer losses in the value of ZOOZ&#8217;s assets, and ZOOZ&#8217;s business, financial condition, results of operations and cash flows
may be negatively affected.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 25; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->25<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
does not use derivative financial instruments, such as foreign exchange forward contracts, to mitigate the risk of changes in foreign
exchange rates on ZOOZ&#8217;s balance sheet accounts and forecast cash flows. Moreover, derivative instruments are usually limited in
time and as a result, cannot mitigate currency risks for the longer term. The volatility in the foreign currency markets may make it
challenging to hedge ZOOZ&#8217;s foreign currency exposures effectively.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>The
Committee on Foreign Investment in the United States may delay, prevent, or impose conditions on future investment in ZOOZ.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Committee on Foreign Investment in the United States (&#8220;<b>CFIUS</b>&#8221;) has authority to review certain direct or indirect
foreign investments in U.S. businesses. CFIUS requires certain foreign investors to make mandatory filings in regards to foreign direct
and indirect investments in the United States known as &#8220;covered transactions.&#8221; Mandatory filing requirements apply to transactions
i) that result in the acquisition of a &#8220;substantial interest&#8221; of the &#8220;U.S. business&#8221; by a foreign person in which
the national or subnational governments of a single foreign state (other than an excepted foreign state) have a substantial interest
and the U.S. business collects or maintains &#8220;sensitive personal data&#8221; of at least one million U.S. citizens; performs certain
functions related to &#8220;critical infrastructure;&#8221; or produces, designs, tests, manufactures, fabricates, or develops one or
more &#8220;critical technologies;&#8221; or (ii) where the U.S. business produces, designs, tests, manufactures, fabricates, or develops
one or more critical technologies for which a U.S. export authorization would be required for the export, reexport, transfer (in-country),
or retransfer of such critical technology to the principal place of business (for entities) or the country of nationality (for individuals)
of a person obtaining certain thresholds of voting interest, control, or information rights regarding the U.S. business, all as defined
in the CFIUS regulations.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
regulation also allows such the parties to voluntarily file a declaration or a longer voluntary CFIUS notice, either of which subject
the investment to a national security review by the U.S. government, in cases where the parties seek to obtain a safe harbor from later
CFIUS intervention or where it is unclear if such a review is otherwise mandatory per the regulation. With respect to transactions that
CFIUS considers presenting unresolved national security concerns, CFIUS has the power to initiate investigations, suspend transactions,
impose mitigation measures, and/or recommend that the President block pending transactions or order divestitures of completed transactions
when national security concerns cannot be mitigated. Where a foreign investment is made without a CFIUS review and a filing was required,
or if CFIUS independently learns of a national security concern related to the transaction, the parties may be subject to penalties,
as described below.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Whether
CFIUS has jurisdiction to review an acquisition or investment transaction depends on, among other factors, the nature and structure of
the transaction, whether the target company is a U.S. business engaged in activities with critical technologies, critical infrastructure
projects or collection or management of sensitive personal data, the level of beneficial ownership and voting interests acquired by foreign
persons, and the nature of any information, control or governance rights received by foreign persons. For example, any investment that
results in &#8220;control&#8221; of any U.S. business by a foreign person is within CFIUS&#8217; jurisdiction. CFIUS&#8217; expanded
jurisdiction under the Foreign Investment Risk Review Modernization Act of 2018 and implementing regulations further includes &#8220;covered
investments&#8221; that do not result in control of a U.S. business by a foreign person but that afford foreign persons certain information
or governance rights in a &#8220;TID U.S. Business,&#8221; that is, a U.S. business that: (i) produces, designs, tests, manufactures,
fabricates, or develops &#8220;critical technologies&#8221;; (ii) owns or operates certain &#8220;critical infrastructure&#8221;; and/or
(iii) maintains or collects &#8220;sensitive personal data,&#8221; all as defined in the CFIUS regulations.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
ZOOZ is organized in the State of Israel with limited operations in the U.S., ZOOZ believes that it should not presently be considered
a U.S. business for CFIUS purposes, unless it were to subsequently engage in commercial business as an entity under U.S. federal and
state law which is a &#8220;Covered Transaction&#8221; or meets the definition of a TID U.S. Business. If a future particular proposed
investment by ZOOZ in a U.S. business falls within CFIUS&#8217; jurisdiction, ZOOZ may determine that it is required to make a mandatory
filing with CFIUS or that it will submit a filing to CFIUS on a voluntary basis or, if a filing is not mandatory, ZOOZ may determine
to proceed with such investment without submitting to CFIUS and risk CFIUS intervention, before or after closing such investment.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Risks
Related to Our Incorporation and Location in Israel</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Conditions
in Israel could adversely affect ZOOZ&#8217;s business</i></b>.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
is incorporated under the laws of the State of Israel, and many of ZOOZ&#8217;s employees, including certain management members, operate
from its offices that are located in Israel. In addition, a substantial number of ZOOZ&#8217;s officers and directors are residents of
Israel. Accordingly, political, economic, and geo-political conditions in Israel and the surrounding region may directly affect ZOOZ&#8217;s
business and operations. In recent years, Israel has been engaged in sporadic armed conflicts with certain armed groups in the Gaza Strip,
an Islamist terrorist group that controls the Gaza Strip, with Hezbollah, an Islamist terrorist group that controls large portions of
southern Lebanon, and with Iranian-backed military forces in Syria, as well as direct conflict with Iran.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 26; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->26<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition, Iran has threatened to attack Israel and has launched an air and missile strike on Israel in April, 2024, and may be developing
nuclear weapons. Some of these hostilities were accompanied by missiles being fired from the Gaza Strip against civilian targets in various
parts of Israel, including areas in which ZOOZ&#8217;s employees are located, and negatively affected business conditions in Israel.
Any hostilities involving Israel, including the recent hostilities between Israel and certain armed groups in the Gaza Strip, Lebanon,
Syria, Yemen and others which has resulted in various attacks on Israel, such as large number of missiles being fired at Israel, including
major cities, such interruptions or curtailments of trade between Israel and its trading partners could adversely affect ZOOZ&#8217;s
operations and results of operations. To the extent that key employees and potential employees are call up for active duty, ZOOZ&#8217;s
ability to operate may be impaired.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
October 7, 2023, the &#8220;Swords of Iron&#8221; war started between Israel and the terrorist organizations in the Gaza Strip led by
certain armed groups in the Gaza Strip, following a surprise attack on Israel led by certain armed groups in the Gaza Strip that included
massacres, terrorism and crimes against humanity. This war is concentrated in the Gaza Strip which is along the southern region of the
State of Israel, whereas the Hezbollah terrorist organization located in Lebanon and Syria, as well as the Houthis regime in Yemen has
also engaged in hostilities. Israel has responded to the attacks against it with airstrikes and extensive mobilization of reserves. ZOOZ&#8217;s
factory is located in the city of Lod, which is more than 50 kilometers from the Gaza Strip. ZOOZ&#8217;s facilities have not sustained
any damage or injury and in accordance with the instructions of the National Emergency Management Authority of Israel, there is no limitation
or denial of access or activity limitation in ZOOZ&#8217;s facilities. None of ZOOZ&#8217;s employees were directly harmed as a result
of the war. As of the date of this Annual Report, ZOOZ&#8217;s operates continuously, although approximately 10% of ZOOZ&#8217;s employees
were in reserve duty and a significant number of ZOOZ&#8217;s employees may be recruited again to reserves duty at any time without ZOOZ&#8217;s
control. ZOOZ has adjusted, and will continue to adjust to the extent necessary, to the security situation in accordance with the directives
of the National Emergency Management Authority. As of the date of this Annual Report, there is no known material impact on ZOOZ&#8217;s
supply chain, although if the security situation continues, this may harm ZOOZ&#8217;s production capacity, as well as marketing activities
outside of Israel. As of the date of this Annual Report, given the uncertainties associated with the current Swords of Iron war in Israel,
as well as the duration and scope of this conflict, ZOOZ has made and may be making additional adjustments to its human resources as
well as adopting other expense reduction measures. These adjustments are aimed to enable ZOOZ to continue to focus on its immediate business
goals while continually assessing the ongoing impact of the conflict on its business goals in the medium and long term. At this stage,
ZOOZ is unable to accurately assess the scope of the war&#8217;s impact. In ZOOZ&#8217;s estimation, the continuation of the fighting
may have a negative effect on its activities, however at this stage it is unable to anticipate the extent of the impact.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ&#8217;s
commercial insurance does not cover losses that may occur as a result of events associated with war and terrorism. Although the Israeli
government currently covers the reinstatement value of direct damages that are caused by terrorist attacks or acts of war, ZOOZ cannot
assure you that the Israeli government coverage will be maintained or that it will sufficiently cover ZOOZ&#8217;s potential damages.
Any losses or damages incurred by ZOOZ could have a material adverse effect on its business. Any armed conflicts or political instability
in the region would likely negatively affect business conditions and could harm our results of operations.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Further,
in the past, the State of Israel and Israeli companies have been subject to economic boycotts. Several countries still restrict business
with the State of Israel and with Israeli companies. These restrictive laws and policies may have an adverse impact on ZOOZ&#8217;s results
of operations, financial condition or the expansion of its business. A campaign of boycotts, divestment, and sanctions has been undertaken
against Israel, which could also adversely affect ZOOZ&#8217;s business. Actual or perceived political instability in Israel or any negative
changes in the political environment, may individually or in the aggregate adversely affect the Israeli economy and, in turn, ZOOZ&#8217;s
business, financial condition, results of operations, and prospects.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition, many Israeli citizens are obligated to perform several weeks of annual military reserve duty each year until they reach the
age of 40 (or older, for reservists who are military officers or who have certain occupations) and, in the event of a military conflict,
may be called to active duty. In response to increases in terrorist activity, there have been periods of significant call-ups of military
reservists. It is possible that there will be military reserve duty call-ups in the future. ZOOZ&#8217;s operations could be disrupted
by such call-ups, which may include the call-up of members of its management. Such disruption could materially adversely affect its business,
prospects, financial condition, and results of operations.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Another
risk for political, social and economic instability in Israel is associated with the extensive changes pursued in 2023 by the current
Israeli government with respect to Israel&#8217;s judicial system. In response to such developments, individuals, organizations and financial
institutions, both within and outside of Israel, have voiced concerns that the proposed changes may negatively impact the business environment
in Israel including due to reluctance of foreign investors to invest or conduct business in Israel, as well as to increased currency
fluctuations, downgrades in credit rating, increased interest rates, increased volatility in securities markets, and other changes in
macroeconomic conditions. Such proposed changes may also adversely affect the labor market in Israel or lead to political instability
or civil unrest. To the extent that any of these negative developments do occur, or are not adequately handled by the Israeli government,
they may have an adverse effect on ZOOZ&#8217;s business, ZOOZ&#8217;s results of operations and ZOOZ&#8217;s ability to raise additional
funds, if deemed necessary by ZOOZ&#8217;s management and board of directors, and to attract or retain qualified and skilled &#8220;talents&#8221;
and personnel. ZOOZ can give no assurance that the political, economic and security situation in Israel will not have a material adverse
impact on ZOOZ&#8217;s business in the future.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 27; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->27<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>&#160;</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>ZOOZ
may become subject to claims for remuneration or royalties for assigned service invention rights by its employees, which could result
in litigation and adversely affect its business.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">A
significant portion of ZOOZ&#8217;s intellectual property has been developed by its employees in the course of their employment by ZOOZ.
Under the Israeli Patent Law, 5727-1967 (the &#8220;<b>Patent Law</b>&#8221;), inventions conceived by an employee in the course and
as a result of or arising from his or her employment with a company are regarded as &#8220;service inventions&#8221;, which belong to
the employer, absent a specific agreement between the employee and employer giving the employee service invention rights. The Patent
Law also provides that if there is no such agreement between an employer and an employee, the Israeli Compensation and Royalties Committee
(the &#8220;<b>Compensation and Royalties Committee</b>&#8221;), a body constituted under the Patent Law, will determine whether the
employee is entitled to remuneration for his or her inventions. Case law clarifies that the right to receive consideration for &#8220;service
inventions&#8221; can be waived by the employee and that in certain circumstances, such waiver does not necessarily have to be explicit.
The Compensation and Royalties Committee will examine, on a case-by-case basis, the general contractual framework between the parties,
using interpretation rules of the general Israeli contract laws. Further, the Compensation and Royalties Committee has not yet determined
one specific formula for calculating this remuneration, but rather uses the criteria specified in the Patent Law.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Although
ZOOZ generally enters into assignment-of-invention agreements with its employees pursuant to which such individuals assign to it all
rights to any inventions created in the scope of their employment or engagement with ZOOZ, ZOOZ may face claims demanding remuneration
in consideration for assigned inventions. As a consequence of such claims, ZOOZ could be required to pay additional remuneration or royalties
to its current and/or former employees, or be forced to litigate such claims, which could negatively affect its business.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Investors&#8217;
rights and responsibilities as ZOOZ&#8217;s shareholders are governed by Israeli law, which differs in some respects from the rights
and responsibilities of shareholders of non-Israeli companies.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>&#160;</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
is incorporated under Israeli law and the rights and responsibilities of ZOOZ&#8217;s shareholders are governed by ZOOZ&#8217;s amended
and restated articles of association (the &#8220;<b>Articles</b>&#8221;), as may be amended from time to time, and Israeli law. These
rights and responsibilities differ in some respects from the rights and responsibilities of shareholders of U.S. and other non-Israeli
corporations. In particular, a shareholder of an Israeli company has a duty to act in good faith and in a customary manner in exercising
its rights and performing its obligations towards the company and other shareholders and to refrain from abusing its power in the company,
including, among other things, in voting at the general meeting of shareholders on certain matters, such as an amendment to the company&#8217;s
articles of association, an increase of the company&#8217;s authorized share capital, a merger of the company and approval of related
party transactions that require shareholder approval. A shareholder also has a general duty to refrain from discriminating against other
shareholders. In addition, a controlling shareholder or a shareholder who knows that it possesses the power to determine the outcome
of a shareholders&#8217; vote or to appoint or prevent the appointment of an office holder in the company has a duty to act in fairness
towards the company. These provisions may be interpreted to impose additional obligations and liabilities on ZOOZ&#8217;s shareholders
that are not typically imposed on shareholders of U.S. corporations.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Provisions
of Israeli law and the Articles may delay, prevent or make undesirable an acquisition of all or a significant portion of
ZOOZ&#8217;s shares or assets.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>&#160;</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Provisions
of Israeli law and the Articles could have the effect of delaying or preventing a change in control and may make it more
difficult for a third-party to acquire us or ZOOZ&#8217;s shareholders to elect different individuals to ZOOZ&#8217;s board of directors,
even if doing so would be considered to be beneficial by some of ZOOZ&#8217;s shareholders, and may limit the price that investors may
be willing to pay in the future for ZOOZ&#8217;s ordinary shares. Among other things:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Israeli
                                            corporate law regulates mergers, requires tender offers for acquisitions of shares above
                                            specified thresholds, requires special approvals for transactions involving directors, officers,
                                            or significant shareholders, and regulates other matters that may be relevant to such types
                                            of transactions. For example, a merger may not be consummated unless at least 50 days have
                                            passed from the date on which a merger proposal is filed by each merging company with the
                                            Israel Registrar of Companies and at least 30 days have passed from the date on which the
                                            shareholders of both merging companies have approved the merger. In addition, a majority
                                            of each class of securities of the target company must approve a merger. Moreover, a tender
                                            offer for all of a company&#8217;s issued and outstanding shares can only be completed if
                                            the acquirer receives positive responses from the holders of at least 95% of the issued share
                                            capital. Completion of the tender offer also requires approval of a majority of the offerees
                                            that do not have a personal interest in the tender offer, unless, following consummation
                                            of the tender offer, the acquirer would hold at least 98% of the Company&#8217;s outstanding
                                            shares. Furthermore, the shareholders, including those who indicated their acceptance of
                                            the tender offer, may, at any time within six months following the completion of the tender
                                            offer, claim that the consideration for the acquisition of the shares does not reflect their
                                            fair market value, and petition an Israeli court to alter the consideration for the acquisition
                                            accordingly, unless the acquirer stipulated in its tender offer that a shareholder that accepts
                                            the offer may not seek such appraisal rights, and the acquirer or the company published all
                                            required information with respect to the tender offer prior to the tender offer&#8217;s response
                                            date;</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 28; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->28<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Israeli
                                            corporate law requires special approvals for certain transactions involving directors, officers
                                            or significant shareholders and regulates other matters that may be relevant to these types
                                            of transactions;</span></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif">&#160;</td><td style="font: 10pt Times New Roman, Times, Serif">&#160;</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">&#160;</td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Israeli
                                            corporate law does not provide for shareholder action by written consent for public companies,
                                            thereby requiring all shareholder actions to be taken at a general meeting of shareholders.</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
January 2021, ZOOZ received approval from the Israeli Ministry of Energy that in any case where there is a change in the control structure
of ZOOZ, in such a way that a new or additional &#8220;controlling shareholder&#8221; is created in the company (&#8220;control&#8221;
- as such term in defined in the Securities Law), the new controlling shareholder will be required to sign an appendix confirming
that he is aware of the terms of the investment agreement between the State of Israel and ZOOZ, the main of which is the obligation to
notify the Ministry of Energy of additional funding sources for ZOOZ, the Ministry of Energy&#8217;s investment in the project and its
conditions, intellectual property rights, including the transfer of ownership of the knowledge product of the project or registration
in the name of a third party other than ZOOZ shall be done with the prior written approval of the Ministry of Energy.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Further,
Israeli tax considerations may make potential transactions undesirable to us or some of ZOOZ&#8217;s shareholders whose country of residence
does not have a tax treaty with Israel granting tax relief to such shareholders from Israeli tax. For example, Israeli tax law does not
recognize tax-free share exchanges to the same extent as U.S. tax law. With respect to mergers, Israeli tax law allows for tax deferral
in certain circumstances but makes the deferral contingent on the fulfillment of numerous conditions, including, a holding period of
two years from the date of the transaction during which certain sales and dispositions of shares of the participating companies are restricted.
Moreover, with respect to certain share swap transactions, the tax deferral is limited in time, and when such time expires, the tax becomes
payable even if no disposition of the shares has occurred.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
a corporation incorporated under the laws of the State of Israel, ZOOZ is also subject to the Israeli Economic Competition Law, 1988
and the regulations promulgated thereunder (formerly known as the Israeli Antitrust Law, 1988), under which ZOOZ may be required in certain
circumstances to obtain the approval of the Israel Competition Authority (formerly known as the Israel Antitrust Authority) in order
to consummate a merger or a sale of all or substantially all of ZOOZ&#8217;s assets.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>The Articles provide that unless ZOOZ consents to an alternate forum, the federal district courts of the United States shall
be the exclusive forum of resolution of any claims arising under the Securities Act or Exchange Act which may impose additional litigation
costs on ZOOZ or ZOOZ&#8217;s shareholders and may discourage claims or limit the ability of shareholders to bring a claim in a forum
they find favorable.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Articles provide that the federal district courts of the United States shall be the exclusive forum for the resolution
of any claims arising under the Securities Act or the Exchange Act (the &#8220;<b>Federal Forum Provision</b>&#8221;). While the Federal
Forum Provision does not restrict the ability of ZOOZ&#8217;s shareholders to bring claims under the Securities Act or the Exchange Act,
nor does it affect the remedies available thereunder if such claims are successful, ZOOZ recognizes that it allows claims under the Securities
Act or Exchange Act in any federal court of competent jurisdiction in the United States, subject to determination by applicable courts
of competent jurisdiction. Further, Section 22 of the Securities Act creates concurrent jurisdiction for federal and state courts over
all claims brought to enforce any duty or liability created by the Securities Act or the rules and regulations thereunder. This exclusive
choice of forum provision (in federal district courts for claims under the Securities Act or Exchange Act and referenced state courts
in the U.S.) may lead to ZOOZ&#8217;s shareholders incurring increased costs if they were to bring a claim against ZOOZ, and may limit
ZOOZ&#8217;s shareholders&#8217; ability to bring a claim in a judicial forum they find favorable for disputes with ZOOZ or its directors,
officers, or other employees or agents, which may discourage claims against ZOOZ and its directors, officers and other employees and
agents. The enforceability of similar forum provisions (including exclusive federal forum provisions for actions, suits or proceedings
asserting a cause of action arising under the Securities Act) in other companies&#8217; organizational documents has been challenged
in legal proceedings and there is uncertainty as to whether courts would enforce the exclusive forum provisions in the Articles. If a court were to find the choice of forum provision contained in the Articles to be inapplicable or unenforceable
in an action, ZOOZ may incur additional costs associated with resolving such action in other jurisdictions, which could materially adversely
affect ZOOZ&#8217;s business, financial condition and results of operations.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 29; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->29<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>&#160;</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>ZOOZ
has received Israeli government grants for certain research and development activities. The terms of those grants require ZOOZ to satisfy
specified conditions as stipulated under the Innovation Law.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>&#160;</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
received Israeli government grants for certain of our research and development activities. When a company develops know-how, technology
or products using grants from the National Authority for Technological Innovation, or the Israel Innovation Authority (the &#8220;<b>IIA</b>&#8221;),
the terms of these grants and the Israeli Law for the Encouragement of Industrial Research and Development, 1984 and regulations promulgated
thereunder (the &#8220;<b>Innovation Law</b>&#8221;), inter alia, restrict such company&#8217;s ability to perform or outsource manufacturing
outside of Israel, grant licenses for R&amp;D purposes or otherwise transfer inside and outside of Israel the know-how resulting, directly
or indirectly, in whole or in part, in accordance with or as a result of, research and development activities made according to IIA programs,
as well as any rights associated with such know-how (including later developments, which derive from, are based on, or constitute improvements
or modifications of such know-how). The discretionary approval of an IIA committee would be required for any transfer or license for
R&amp;D purposes to third parties inside or outside of Israel of know-how and/or for the transfer outside of Israel of manufacturing
or manufacturing rights with respect to IIA-funded products. ZOOZ may not receive those approvals in the future.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
transfer or license for R&amp;D purposes of IIA-supported know-how outside of Israel may require payment to the IIA of amounts which
are calculated in accordance with certain formulas included in the IIA&#8217;s rules.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
has received research and development funding from the IIA. The total grants that ZOOZ received from the IIA until March 31, 2024, amount
to approximately $675 thousands (based on the US$/NIS representative exchange rate as reported by the Bank of Israel on March 28, 2024;
(the &#8220;<b>Exchange Rate</b>&#8221;)).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
IIA&#8217;s restrictions and requirements for payment may impair ZOOZ&#8217;s ability to sell, license or otherwise transfer our IIA
funded know-how assets outside of Israel or to outsource or transfer development or manufacturing activities with respect to any product
or technology which was developed using the IIA grants outside of Israel. Furthermore, ZOOZ remains subject to the restrictions and obligations
under the Innovation Law described above, and the net consideration available to our shareholders in certain transactions (such as a
merger or similar change of control transaction) involving the transfer outside of Israel of know-how developed with IIA funding, or
in transactions involving the licensing of IIA funded know-how for R&amp;D purposes to a non-Israeli entity, may be reduced by any amounts
that ZOOZ may be required to pay to the IIA. If ZOOZ fails to satisfy certain conditions of the Innovation Law, ZOOZ may be required
to refund the amounts of the grants previously received, together with interest and penalties, and may become subject to criminal charges
and financial sanctions. The restrictions under the Innovation Law continue to apply even after payment of the full amount of royalties
payable pursuant to the grants. In addition, the government of the State of Israel may from time-to-time audit sales of products which
it claims incorporate IIA funded know-how and this may lead to additional royalties being payable on additional product candidates, and
may subject such products to the IIA&#8217;s restrictions and obligations. It shall be noted that the government of the State of Israel
does not own intellectual property rights in technology developed using the IIA funding. For more information regarding such restrictions
please see &#8220;<i>ZOOZ&#8217;s Business &#8212; Government Regulations&#8212; Other Regulations</i>.&#8221;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>ZOOZ
has received a grant from the Israeli Ministry of Energy that requires it to meet several specified conditions and may restrict ZOOZ&#8217;s
ability to transfer the relevant know-how for a certain period.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>&#160;</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
has received a grant from the government of Israeli Ministry of Energy (the &#8220;<b>MOE</b>&#8221;), governed by a grant agreement
with the MOE (the &#8220;<b>Grant Agreement</b>&#8221;) under a certain research and development program approved by the MOE (the &#8220;<b>MOE
Approved Program</b>&#8221;) in an aggregate amount of $171 thousands (based on the Exchange Rate). Below is a description of the main
obligations and restrictions imposed on ZOOZ under the Grant Agreement, with respect to ZOOZ&#8217;s use of the know-how resulting from
the MOE Approved Program (&#8220;<b>MOE Funded Know How</b>&#8221;):</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Royalty
                                            Payment Obligation</b>. Under the Grant Agreement, ZOOZ is required to pay royalties to the
                                            State of Israel at rate of 5% from any income derived from the commercialization of the MOE
                                            Funded Know-How and the IP resulting from MOE Approved Program, directly or indirectly, including
                                            related services, up to the grant amount linked to the consumer price index plus the accountant
                                            general&#8217;s interest (whether such income is obtained by ZOOZ or by a corporation acting
                                            on its behalf, connected thereto or partnered therewith).</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>MOE
                                            Funded Know-How Exploitation. </b>Under the Grant Agreement, ZOOZ is required to take all
                                            reasonable measures to protect its rights in the MOE Funded Know-How and to act to an efficient
                                            exploitation thereof and will provide the MOE with details on the actions which it intends
                                            to take in this respect. The protection of the MOE Funded Know-How, its registration and
                                            grant of licenses with respect thereto shall be made in accordance with the Grant Agreement
                                            and in a manner which advances such know-how and enables its use for practical purposes,
                                            subject to the rights of the State of Israel and the MOE under the Grant Agreement<b>. </b>These
                                            obligations will survive for a period of five years following the completion of the project.</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 30; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->30<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>License
                                            for National Needs</b>. Under the Grant Agreement, the MOE is granted with a non-exclusive,
                                            non-transferable and irrevocable license (without bearing any consideration) to use the MOE
                                            Funded Know-How, directly or using a third party, for national purposes (certain Israeli
                                            ministers are authorized to determine whether a certain use is for national needs). ZOOZ
                                            is obligated to act for the fulfillment of the purposes and results of the MOE Approved Program
                                            and in case that, for any reason, ZOOZ shall fail to do so within reasonable time following
                                            the completion of the project, the MOE will be granted with a right to act for the fulfilment
                                            of such purposes and results, for national needs (as outlined above). For such purposes,
                                            ZOOZ will grant the State a license, under accepted commercial terms, to use all IP ZOOZ
                                            has accumulated outside the framework of the MOE Approved Program, which ZOOZ has used in
                                            the performance of such program. This obligation will survive for a period of five years
                                            following the completion of the project.</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>MOE&#8217;S
                                            Approval for Additional Funding/Investments</b>. Pursuant to the Grant Agreement, ZOOZ is
                                            required to inform the MOE of any additional funding/investment offered to it prior to the
                                            execution of the applicable investment/funding agreement, together with a certain notice
                                            issued by the relevant investor/funder under which it represents that it is aware of the
                                            MOE Agreement and the MOE&#8217;s rights under such agreement. The MOE will consider granting
                                            such approval if such approval would not, in the MOE&#8217;s opinion, adversely affect the
                                            rights of the State of Israel. The MOE will have sole discretion with respect to whether
                                            to approve the additional funding or to enter into negotiations with the potential investor,
                                            as the MOE finds suitable. The Company received an approval from the MOE in connection with
                                            its initial public offering on the Tel Aviv Stock Exchange (the &#8220;<b>TASE</b>&#8221;),
                                            according to this approval in the event of a change of control in the Company by virtue of
                                            which the Company has a new or additional &#8220;controlling shareholder&#8221; (as defined
                                            in the Securities Law) such controlling shareholder will be required to execute an
                                            undertaking towards the MOE under which they agree to adhere to the terms of the Grant Agreement.</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>MOE
                                            Funded Know-How Transfer Limitation</b>. Under the Grant Agreement, transferring the ownership
                                            of the IIA Funded Know and registering it under the name of a third party will require prior
                                            written approval of the MOE. The MOE may reject such request if in the MOE&#8217;s opinion
                                            there is a concern that such approval could adversely affect the rights of the State of Israel
                                            under the Grant Agreement, including the repayment of the grant amount and the exploitation
                                            of the MOE Approved Program&#8217;s accomplishments in favor of the Israeli market and the
                                            State of Israel. This obligation will survive for a period of five years following the completion
                                            of the project.</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>MOE
                                            Funded Know-How Licensing Conditions</b>. Under the Grant Agreement, ZOOZ are required to
                                            inform the MOE of any grant of license to a third party to use the MOE Funded Know-How, and
                                            several conditions should be incorporated under such a license, such as with respect to payment
                                            of the applicable royalties to the MOE and the MOE&#8217;s right to revoke such license in
                                            certain circumstances. ZOOZ are also obligated to will make best efforts to act for the benefit
                                            of the Israeli public interest in fulfilling the purposes and the results of the MOE Approved
                                            Program, considering the relevant market, when deciding on the scope of the license and level
                                            of exclusiveness. These obligations will survive for a period of five years following the
                                            completion of the project.</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>If
ZOOZ or any of its subsidiaries are characterized as a passive foreign investment company (&#8220;PFIC&#8221;) for U.S. federal income
tax purposes, U.S. investors may suffer adverse tax consequences.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">A
non-U.S. corporation generally will be treated as a PFIC for U.S. federal income tax purposes, in any taxable year if either (1) at least
75% of its gross income for such year is passive income or (2) at least 50% of the value of its assets (generally based on an average
of the quarterly values of the assets) during such year is attributable to assets that produce or are held for the production of passive
income (including cash). For purposes of the above calculations, a non-U.S. corporation that directly or indirectly owns at least 25%
by value of the shares of another corporation is treated as if it held its proportionate share of the assets of the other corporation
and received directly its proportionate share of the income of the other corporation. Passive income generally includes dividends, interest,
rents, royalties and capital gains. Based on the current and anticipated composition of the income, assets and operations of ZOOZ and
its subsidiaries, there is a substantial risk that ZOOZ may be treated as a PFIC for U.S. federal income tax purposes for 2024.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Nevertheless,
whether ZOOZ or any of its subsidiaries are a PFIC for any taxable year is a factual determination that depends on, among other things,
the composition of ZOOZ&#8217;s income and assets, and the value of its and its subsidiaries&#8217; shares and assets. Changes in the
composition of the income or assets of ZOOZ and its subsidiaries may cause ZOOZ to be or become a PFIC for the current or subsequent
taxable years. Whether ZOOZ is treated as a PFIC for U.S. federal income tax purposes is a factual determination that must be made annually
at the close of each taxable year and, thus, is subject to significant uncertainty.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 31; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->31<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
ZOOZ is a PFIC for any taxable year, a U.S. investor who owns ZOOZ ordinary shares may be subject to adverse tax consequences and may
incur certain information reporting obligations. For a further discussion, see &#8220;<i>Material U.S. Federal Income Tax Considerations&#8212;U.S.
Holders&#8212;Passive Foreign Investment Company Rules</i>.&#8221; U.S. investors who own ZOOZ ordinary shares and/or ZOOZ warrants are
strongly encouraged to consult their own advisors regarding the potential application of these rules to ZOOZ and the ownership of ZOOZ
ordinary shares and/or ZOOZ warrants.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>If
a U.S. investor is treated for U.S. federal income tax purposes as owning at least 10% of the ZOOZ ordinary shares, such U.S. investor
may be subject to adverse U.S. federal income tax consequences.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>&#160;</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
U.S. federal income tax purposes, if a U.S. investor is treated as owning (directly, indirectly or constructively) at least 10% of the
value or voting power of the ZOOZ ordinary shares, such U.S. investor may be treated as a &#8220;United States shareholder&#8221; with
respect to ZOOZ, or any of its non-U.S. subsidiaries, if ZOOZ or such subsidiary is a &#8220;controlled foreign corporation.&#8221; A
non-U.S. corporation is considered a controlled foreign corporation if more than 50% of (1) the total combined voting power of all classes
of stock of such corporation entitled to vote, or (2) the total value of the stock of such corporation is owned by, or is considered
as owned by applying certain constructive ownership rules by, United States shareholders on any day during the taxable year of such non-U.S.
corporation. If ZOOZ has one or more U.S. subsidiaries, certain of ZOOZ&#8217;s non-U.S. subsidiaries could be treated as a controlled
foreign corporation regardless of whether ZOOZ is treated as a controlled foreign corporation (although there are recently promulgated
final and currently proposed Treasury regulations that may limit the application of these rules in certain circumstances).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Certain
United States shareholders of a controlled foreign corporation may be required to report annually and include in their U.S. federal taxable
income their pro rata share of the controlled foreign corporation&#8217;s &#8220;Subpart F income&#8221; and, in computing their &#8220;global
intangible low-taxed income,&#8221; &#8220;tested income&#8221; and a pro rata share of the amount of certain U.S. property (including
certain stock in U.S. corporations and certain tangible assets located in the United States) held by the controlled foreign corporation
regardless of whether such controlled foreign corporation makes any distributions. The amount includable by a United States shareholder
under these rules is based on a number of factors, including potentially, but not limited to, the controlled foreign corporation&#8217;s
current earnings and profits (if any), tax basis in the controlled foreign corporation&#8217;s assets, and foreign taxes paid by the
controlled foreign corporation on its underlying income. Failure to comply with these reporting obligations (or related tax payment obligations)
may subject such United States shareholder to significant monetary penalties and may extend the statute of limitations with respect to
such United States shareholder&#8217;s U.S. federal income tax return for the year for which reporting (or payment of tax) was due. ZOOZ
cannot provide any assurances that it will assist U.S. investors in determining whether ZOOZ or any of its non-U.S. subsidiaries are
treated as a controlled foreign corporation for U.S. federal income tax purposes or whether any U.S. investor is treated as a United
States shareholder with respect to any of such controlled foreign corporations or furnish to any holder information that may be necessary
to comply with reporting and tax paying obligations if ZOOZ, or any of its non-U.S. subsidiaries, is treated as a controlled foreign
corporation for U.S. federal income tax purposes. U.S. investors who hold 10% or more of the combined voting power or value of ZOOZ ordinary
shares are strongly encouraged to consult their own advisors regarding the U.S. tax consequences of owning or disposing of ZOOZ ordinary
shares.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>It
may be difficult to enforce a U.S. judgment against ZOOZ, its officers and directors in Israel or the United States, or to assert U.S.
securities laws claims in Israel or serve process on ZOOZ&#8217;s officers and directors.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>&#160;</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Most
of ZOOZ&#8217;s directors or officers are not residents of the United States and most of their and ZOOZ&#8217;s assets are located outside
the United States. Service of process upon ZOOZ or its non-U.S. resident directors and officers and enforcement of judgments obtained
in the United States against ZOOZ or its non-U.S. directors and executive officers may be difficult to obtain within the United States,
although the Articles to be effective upon the closing of the Business Combination provide that unless ZOOZ consents to
an alternate forum, the federal district courts of the United States shall be the exclusive forum of resolution of any claims arising
under the Securities Act or the Exchange Act. Israeli courts may refuse to hear a claim based on a violation of U.S. securities laws
against ZOOZ or its non-U.S. officers and directors because Israel may not be the most appropriate forum to bring such a claim. In addition,
even if an Israeli court agrees to hear a claim, it may determine that Israeli law and not U.S. law is applicable to the claim. If U.S.
law is found to be applicable, the content of applicable U.S. law must be proved as a fact, which can be a time-consuming and costly
process. Certain matters of procedure will also be governed by Israeli law. There is little binding case law in Israel addressing the
matters described above. Israeli courts might not enforce judgments rendered outside Israel, which may make it difficult to collect on
judgments rendered against ZOOZ or its non-U.S. officers and directors.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Moreover,
among other reasons, including but not limited to, fraud or absence of due process, or the existence of a judgment which is at variance
with another judgment that was given in the same matter if a suit in the same matter between the same parties was pending before a court
or tribunal in Israel, an Israeli court will not enforce a non-Israeli judgment if it was given in a state whose laws do not provide
for the enforcement of judgments of Israeli courts (subject to exceptional cases) or if its enforcement is likely to prejudice the sovereignty
or security of the State of Israel. For more information, see &#8220;<i>It may be difficult to enforce a U.S. judgment against ZOOZ,
its officers and directors in Israel or the United States, or to assert U.S. securities laws claims in Israel or serve process on ZOOZ&#8217;s
officers and directors</i>.&#8221;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 32; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->32<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Risks
Related to Ownership of the ZOOZ Ordinary Shares and Warrants</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>ZOOZ&#8217;s
failure to meet the continued listing requirements of the Nasdaq could result in a delisting of its securities from the Nasdaq.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
ZOOZ fails to satisfy the continued listing requirements of the Nasdaq such as the corporate governance requirements or the minimum closing
bid price requirement, the Nasdaq may take steps to delist its securities. Such a delisting would likely have a negative effect on the
price of the securities and would impair your ability to sell or purchase the securities when you wish to do so. In the event of a delisting,
ZOOZ can provide no assurance that any action taken by it to restore compliance with listing requirements would allow its securities
to become listed again, stabilize the market price or improve the liquidity of its securities, prevent its securities from dropping below
the Nasdaq minimum bid price requirement or prevent future non-compliance with the Nasdaq&#8217;s listing requirements. Additionally,
if ZOOZ&#8217;s securities are not listed on, or become delisted from, the Nasdaq for any reason, and are quoted on the OTC Bulletin
Board, an inter-dealer automated quotation system for equity securities that is not a national securities exchange, the liquidity and
price of ZOOZ&#8217;s securities may be more limited than if it were quoted or listed on the Nasdaq or another national securities exchange.
You may be unable to sell your securities unless a market can be established or sustained.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
will qualify as an emerging growth company within the meaning of the Securities Act, and if ZOOZ takes advantage of certain exemptions
from disclosure requirements available to emerging growth companies, this could make ZOOZ&#8217;s securities less attractive to investors
and may make it more difficult to compare ZOOZ&#8217;s performance with other public companies.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
is eligible to be treated as an emerging growth company, as defined in Section 2(a) of the Securities Act, as modified by the JOBS Act.
Under the JOBS Act, emerging growth companies can delay adopting new or revised financial accounting standards until such time as those
standards apply to private companies. ZOOZ intends to take advantage of this extended transition period under the JOBS Act for adopting
new or revised financial accounting standards.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
as long as ZOOZ continues to be an emerging growth company, it may also take advantage of certain exemptions from various reporting requirements
that are applicable to other public companies that are not emerging growth companies, including not being required to comply with the
auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act. As a result, its shareholders may not have access to certain
information that they may deem important. ZOOZ could be an emerging growth company for up to five years, although circumstances could
cause it to lose that status earlier, including if its total annual gross revenue exceeds $1.235 billion, if it issues more than $1.0
billion in non-convertible debt securities during any three-year period, or if before that time it is a &#8220;large accelerated filer&#8221;
under U.S. securities laws.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
cannot predict if investors will find ZOOZ ordinary shares less attractive because it may rely on these exemptions. If some investors
find ZOOZ ordinary shares less attractive as a result, there may be a less active trading market for ZOOZ ordinary shares and ZOOZ&#8217;s
share price may be more volatile. Further, there is no guarantee that the exemptions available to ZOOZ under the JOBS Act will result
in significant savings. To the extent that ZOOZ chooses not to use exemptions from various reporting requirements under the JOBS Act,
it will incur additional compliance costs, which may impact ZOOZ&#8217;s financial condition.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>The
ZOOZ ordinary shares may not continue to be listed on the TASE in the future, which could limit investors&#8217; ability to make transactions
in that market in such securities and subject ZOOZ to additional trading restrictions.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>&#160;</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">While
ZOOZ ordinary shares are currently listed on the TASE, there is no guarantee as to how long such listing will be maintained. ZOOZ plans
to continuously examine the advisability of maintaining its listing on the TASE. ZOOZ may in the future voluntarily delist its securities
from the TASE, provided it furnishes advance notices thereof as required under applicable laws and regulations, and in coordination,
to the extent required, with the Israel Securities Authority (the &#8220;<b>ISA</b>&#8221;). If ZOOZ ordinary shares are delisted, some
holders of ZOOZ ordinary shares that are traded on the TASE may be required or will choose to sell their shares, which could result in
a decrease in the trading price of ZOOZ ordinary shares, and such delisting may further limit investors&#8217; ability to make transactions
in the Israeli market in such securities.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>The
ZOOZ ordinary shares are traded on more than one market and this may result in price variations.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition to <span style="background-color: white">being traded on The Nasdaq Capital Market, the ZOOZ</span> ordinary shares are traded
on the TASE. Trading in the ZOOZ ordinary shares on these markets takes place in different currencies (U.S. Dollars on Nasdaq and NIS
on TASE) and at different times (resulting from different time zones, trading days and public holidays in the United States and Israel).
The trading prices of the ZOOZ ordinary shares on these two markets may materially differ due to these and other factors. Any decrease
in the price of the ZOOZ ordinary shares on one market could cause a decrease in the trading price of the ZOOZ ordinary shares on the
other market.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 33; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->33<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>&#160;</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>The
future exercise of registration rights may adversely affect the market price of ZOOZ ordinary shares.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
ordinary shares are subject to several registration rights agreements and undertakings. Pursuant to the amendment to the registration
rights agreement, dated as of January 24, 2022, by and among Keyarch Acquisition Corporation (&#8220;<b>Keyarch</b>&#8221; or the &#8220;<b>SPAC</b>&#8221;)
and the &#8220;Investor&#8221; parties thereto (the &#8220;<b>Registration Rights Agreement</b>&#8221;, and as amended, the &#8220;<b>Registration
Rights Agreement Amendment</b>&#8221;), Keyarch Global Sponsor Limited (the &#8220;<b>Sponsor</b>&#8221;) or EarlyBirdCapital, Inc. (&#8220;<b>EBC</b>&#8221;)
are entitled to make a demand that ZOOZ register the resale of the Founder Shares (The &#8220;Founder Shares&#8221; mean the 2,875,000
Keyarch Class B ordinary shares, par value $0.0001 per share, held by the Sponsor and Keyarch Initial Shareholders (i.e., the shareholders
of Keyarch in addition to the Sponsor who subscribed for the Founders Shares in connection with the Keyarch initial public offering (the
&#8220;<b>Keyarch IPO</b>&#8221;)), which were acquired for an aggregate purchase price of $25,000 prior to the Keyarch IPO). Additionally,
the Sponsor and EBC have certain registration rights under certain <span style="background-color: white">promissory notes issued by the
Sponsor and ZOOZ</span> at closing of the Business Combination in connection with the <span style="background-color: white">Business
Combination Marketing Agreement Amendment (together with the exhibits attached thereto), dated April 4, 2024</span>. The presence of
these additional ZOOZ ordinary shares trading in the public market may have an adverse effect on the market price of ZOOZ&#8217;s securities.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>The
share price and trading volume of the ZOOZ ordinary shares have been volatile on the TASE, may be volatile on the Nasdaq and may be volatile
in the future on either market and that could limit investors&#8217; ability to sell ZOOZ ordinary shares and/or public warrants at a
profit and could limit ZOOZ&#8217;s ability to successfully raise funds.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>&#160;</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
stock markets, including the TASE and Nasdaq, have from time-to-time experienced significant price and volume fluctuations. Even if an
active, liquid and orderly trading market develops and is sustained for the ZOOZ ordinary shares and ZOOZ public warrants, the market
price of the ZOOZ ordinary shares and ZOOZ public warrants may be volatile and could decline significantly. In addition, the trading
volume in the ZOOZ ordinary shares and ZOOZ public warrants may fluctuate and cause significant price variations to occur. Substantial
sales of ZOOZ ordinary shares on the Nasdaq and TASE may cause the market price of ZOOZ ordinary shares to decline. Sales by ZOOZ&#8217;s
shareholders of substantial amounts of ZOOZ ordinary shares, or the perception that these sales may occur in the future, could cause
a reduction in the market price of ZOOZ ordinary shares. If the market price of the ZOOZ ordinary shares and ZOOZ public warrants declines
significantly, you may be unable to resell your shares or public warrants at or above the market price of the ZOOZ ordinary shares and
ZOOZ public warrants. ZOOZ cannot assure you that the market price of the ZOOZ ordinary shares and ZOOZ public warrants will not fluctuate
widely or decline significantly in the future in response to a number of factors, including, among others, the following:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
                                            realization of any of the risk factors presented in this Annual Report;</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">actual
                                            or anticipated differences in ZOOZ&#8217;s estimates, or in the estimates of analysts, for
                                            ZOOZ&#8217;s revenues, earnings, results of operations, level of indebtedness, liquidity
                                            or financial condition;</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">additions
                                            and departures of key personnel;</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">failure
                                            to comply with the continuing listing requirements of the Nasdaq;</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">failure
                                            to comply with the continuing listing requirements of the TASE;</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">failure
                                            to comply with the Sarbanes-Oxley Act or other laws or regulations;</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">future
                                            issuances, sales, resales or repurchases or anticipated issuances, sales, resales or repurchases,
                                            of ZOOZ&#8217;s securities including due to the expiration of contractual lock-up agreements;</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">publication
                                            of research reports about ZOOZ;</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
                                            performance and market valuations of other similar companies;</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">failure
                                            of securities analysts to initiate or maintain coverage of ZOOZ, changes in financial estimates
                                            by any securities analysts who follow ZOOZ or ZOOZ&#8217;s failure to meet these estimates
                                            or the expectations of investors;</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">new
                                            laws, regulations, subsidies, or credits or new interpretations of existing laws applicable
                                            to ZOOZ;</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">commencement
                                            of, or involvement in, litigation involving ZOOZ;</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">broad
                                            disruptions in the financial markets, including sudden disruptions in the credit markets;</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 34; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->34<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">speculation
                                            in the press or investment community;</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">actual,
                                            potential or perceived control, accounting or reporting problems; and</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">other
                                            events or factors, including those resulting from infectious diseases, health epidemics and
                                            pandemics, natural disasters, war, acts of terrorism or responses to these events.</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
the past, securities class-action litigation has often been instituted against companies following periods of volatility in the market
price of their shares. This type of litigation could result in substantial costs and divert ZOOZ&#8217;s management&#8217;s attention
and resources, which could have a material adverse effect on us.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>If
securities or industry analysts do not publish or cease publishing research or reports about ZOOZ, its business, or its market, or if
they change their recommendations regarding the ZOOZ ordinary shares adversely, then the price and trading volume of the ZOOZ ordinary
shares could decline.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>&#160;</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
trading market for the ZOOZ ordinary shares may be influenced by the research and reports that industry or financial analysts publish
about its business. ZOOZ does not control these analysts, or the content and opinions included in their reports. As a new public company
on Nasdaq, ZOOZ may be slow to attract research coverage and the analysts who publish information about the ZOOZ ordinary shares will
have relatively little experience with ZOOZ, which could affect their ability to accurately forecast ZOOZ&#8217;s results and make it
more likely that ZOOZ fails to meet their estimates. In the event ZOOZ obtains industry or financial analyst coverage, if any of the
analysts who cover ZOOZ issues an inaccurate or unfavorable opinion regarding it, ZOOZ&#8217;s share price would likely decline. In addition,
the share prices of many companies in the technology industry have declined significantly after those companies have failed to meet,
or significantly exceed, the financial guidance publicly announced by the companies or the expectations of analysts. If ZOOZ&#8217;s
financial results fail to meet, or significantly exceed, its announced guidance or the expectations of analysts or public investors,
analysts could downgrade the ZOOZ ordinary shares or publish unfavorable research about it. If one or more of these analysts cease coverage
of ZOOZ or fail to publish reports on it regularly, ZOOZ&#8217;s visibility in the financial markets could decrease, which in turn could
cause its share price or trading volume to decline.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>ZOOZ
has never paid cash dividends on ZOOZ&#8217;s share capital, and ZOOZ does not anticipate paying any cash dividends in the foreseeable
future.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>&#160;</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
the years ended December 31, 2022 and 2023, ZOOZ has incurred net losses of $19.6 million in the aggregate, which has resulted in ZOOZ&#8217;s
inability to distribute dividends. ZOOZ has never declared or paid cash dividends, and ZOOZ does not anticipate paying cash dividends
in the foreseeable future. Therefore, you should not rely on an investment in the ordinary shares as a source for any future dividend
income. ZOOZ&#8217;s board of directors has complete discretion as to whether to distribute dividends. Even if ZOOZ&#8217;s board of
directors decides to declare and pay dividends, the timing, amount, and form of future dividends, if any, will depend on ZOOZ&#8217;s
future results of operations and cash flow, ZOOZ&#8217;s capital requirements and surplus, the amount of distributions, if any, received
by ZOOZ from ZOOZ&#8217;s subsidiaries, ZOOZ&#8217;s financial condition, contractual restrictions, and other factors deemed relevant
by ZOOZ&#8217;s board of directors. In addition, the Companies Law imposes restrictions on ZOOZ&#8217;s ability to declare and pay dividends.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>ZOOZ
is a foreign private issuer and, as a result, is not subject to U.S. proxy rules but is subject to Exchange Act reporting obligations
that, to some extent, are more lenient and less frequent than those of a U.S. issuer.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>&#160;</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Because
ZOOZ qualifies as a foreign private issuer under the Exchange Act and although ZOOZ follows Israeli laws and regulations with regard
to such matters, ZOOZ is exempted from certain provisions of the Exchange Act that are applicable to U.S. public companies, including:
(i) the sections of the Exchange Act regulating the solicitation of proxies, consents or authorizations in respect of a security registered
under the Exchange Act (ii) the sections of the Exchange Act requiring insiders to file public reports of their stock ownership and trading
activities and liability for insiders who profit from trades made in a short period of time and (iii) the rules under the Exchange Act
requiring the filing with the SEC of quarterly reports on Form 10-Q containing unaudited financial and other specified information, or
current reports on Form 8-K, upon the occurrence of specified significant events. In addition, foreign private issuers will be required
to file their annual report on Form 20-F by 120 days after the end of each fiscal year, while U.S. domestic issuers that are accelerated
filers are required to file their annual report on Form 10-K within 75 days after the end of each fiscal year. Foreign private issuers
are also exempt from the Regulation Fair Disclosure, aimed at preventing issuers from making selective disclosures of material information.
As a result of the above, even though ZOOZ is contractually obligated and intends to make interim reports available to ZOOZ&#8217;s shareholders,
copies of which ZOOZ is required to furnish to the SEC on a Form 6-K, and even though ZOOZ is required to file reports on Form 6-K disclosing
whatever information ZOOZ has made or is required to make public pursuant to Israeli law or distribute to ZOOZ&#8217;s shareholders and
that is material to ZOOZ, you may not have the same protections afforded to shareholders of companies that are United Sates domestic
issuers.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 35; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->35<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>&#160;</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>ZOOZ
may lose its foreign private issuer status in the future, which could result in significant additional costs and expenses.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
discussed above, ZOOZ is a foreign private issuer, and therefore, ZOOZ is not required to comply with all of the periodic disclosure
and current reporting requirements of the Exchange Act. The determination of foreign private issuer status is made annually on the last
business day of an issuer&#8217;s most recently completed second fiscal quarter, and, accordingly, the next determination will be made
with respect to us on June 30, 2024. In the future, ZOOZ would lose its foreign private issuer status if (1) more than 50% of our outstanding
voting securities are owned by U.S. residents and (2) a majority of our directors or executive officers are U.S. citizens or residents,
or ZOOZ fails to meet additional requirements necessary to avoid loss of foreign private issuer status. If ZOOZ loses its foreign private
issuer status, ZOOZ will be required to file with the SEC periodic reports and registration statements on U.S. domestic issuer forms,
which are more detailed and extensive than the forms available to a foreign private issuer. ZOOZ will also have to mandatorily comply
with U.S. federal proxy requirements, and ZOOZ&#8217;s officers, directors and principal shareholders will become subject to the short-swing
profit disclosure and recovery provisions of Section 16 of the Exchange Act. In addition, ZOOZ will lose its ability to rely upon exemptions
from certain corporate governance requirements under the listing rules of the Nasdaq. As a U.S. listed public company that is not a foreign
private issuer, ZOOZ will incur significant additional legal, accounting and other expenses that ZOOZ will not incur as a foreign private
issuer.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>As
ZOOZ is a &#8220;foreign private issuer&#8221; and follows certain home country corporate governance practices, ZOOZ&#8217;s shareholders
may not have the same protections afforded to shareholders of companies that are subject to all Nasdaq corporate governance requirements.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>&#160;</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
a foreign private issuer, ZOOZ has the option to follow certain home country corporate governance practices rather than those of the
Nasdaq, provided that ZOOZ discloses the requirements ZOOZ is not following and describe the home country practices ZOOZ is following.
In addition, ZOOZ is permitted to follow certain home country corporate governance practices and law instead of those rules and practices
otherwise required by Nasdaq for domestic issuers. Following ZOOZ&#8217;s home country corporate governance practices, as opposed to
the requirements that would otherwise apply to a U.S. company listed on Nasdaq, may provide less protection to investors than is afforded
under the Nasdaq Rules applicable to domestic issuers.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
otherwise intends to comply with the rules generally applicable to U.S. domestic companies listed on the Nasdaq. ZOOZ may, however, in
the future decide to rely upon the &#8220;foreign private issuer exemption&#8221; for purposes of opting out of some or all of the other
corporate governance rules. ZOOZ may in the future elect to follow home country practices with regard to other matters. As a result,
ZOOZ&#8217;s shareholders may not have the same protections afforded to shareholders of companies that are subject to all NASDAQ corporate
governance requirements.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>ZOOZ&#8217;s
business and share price may suffer as a result of its lack of U.S. public company operating experience.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>&#160;</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Prior
to the completion of the Business Combination, ZOOZ was a public company listed for trading on the TASE only. ZOOZ&#8217;s lack of U.S.
public company operating experience may make it difficult to forecast and evaluate its future prospects. If ZOOZ is unable to execute
its business strategy, either as a result of its inability to manage effectively its business in a U.S. public company environment or
for any other reason, ZOOZ&#8217;s business, prospects, financial condition and operating results may be harmed.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>The
exercise of ZOOZ warrants and options for ZOOZ ordinary shares could increase the number of ZOOZ shares eligible for future resale in
the public market and result in additional dilution to ZOOZ&#8217;s shareholders.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
of the closing of the Business Combination, ZOOZ had warrants and options to purchase an aggregate of 9,983,420 ZOOZ ordinary shares
(after applying certain adjustments to the number of shares underlying outstanding warrants and options following the issuance of the
Earnout Rights, in accordance with the respective terms of the warrants and options), without taking into account the &#8220;<b>Earnout
Shares</b>&#8221; (i.e., up to 4 million ZOOZ ordinary shares that ZOOZ&#8217;s shareholders as of immediately prior to the closing of
the Business Combination (the &#8220;<b>Closing</b>&#8221;) are entitled to as additional contingent consideration) and the &#8220;<b>Sponsor
Earnout Shares</b>&#8221; (i.e., 1,120,000 Keyarch Class A ordinary shares, which were converted in the Business Combination into 1,120,000
ZOOZ ordinary shares), which include ZOOZ public warrants, ZOOZ private warrants, ZOOZ warrants (Series 3) (the &#8220;<b>Series 3 Warrants</b>&#8221;)
and outstanding options to purchase ZOOZ ordinary shares under our 2015 Incentive Compensation Plan (the &#8220;<b>2015 Plan</b>&#8221;).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
the extent the ZOOZ warrants and/or options are exercised, additional ZOOZ ordinary shares will be issued, which will result in dilution
to the holders of ZOOZ ordinary shares and increase the number of shares eligible for resale in the public market. Sales of substantial
numbers of shares issued upon the exercise of warrants or options in the public market or the potential that such warrants or options
may be exercised could also adversely affect the market price of ZOOZ ordinary shares.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 36; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->36<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>&#160;</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>ZOOZ
may issue additional ZOOZ ordinary shares or other equity securities without seeking approval of the ZOOZ shareholders, which would dilute
your ownership interests and may depress the market price of the ZOOZ ordinary shares.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>&#160;</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
of the Closing of the Business Combination, ZOOZ had warrants outstanding to purchase up to an aggregate of 8,939,018 ZOOZ ordinary shares
(after applying certain adjustments to the number of shares underlying outstanding warrants and options following the issuance of the
Earnout Rights, in accordance with the respective terms of the warrants and options), which include ZOOZ public warrants, ZOOZ private
warrants ZOOZ warrants (Series 3) and warrants issued to a service provider. Further, ZOOZ may choose to seek third party financing to
provide additional working capital for the ZOOZ business, in which event ZOOZ may issue additional equity securities. ZOOZ may also issue
additional ZOOZ ordinary shares or other equity securities of equal or senior rank in the future for any reason or in connection with,
among other things, future acquisitions, the redemption of outstanding warrants or repayment of outstanding indebtedness, without shareholder
approval, in a number of circumstances.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
issuance of additional ZOOZ ordinary shares or other equity securities of equal or senior rank would have the following effects:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ&#8217;s
                                            existing shareholders&#8217; proportionate ownership interest in ZOOZ will decrease;</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
                                            amount of cash available per share, including for payment of dividends in the future, may
                                            decrease;</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
                                            relative voting strength of each previously outstanding ZOOZ ordinary share may be diminished;
                                            and</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
                                            market price of the ZOOZ ordinary shares may decline.</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.75in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>There
is no guarantee that the ZOOZ public warrants, private warrants and series 3 warrants will ever be in the money, and they may expire
worthless.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>&#160;</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
exercise price for the ZOOZ public warrants and private warrants is $11.50 per whole ordinary share, with each such ZOOZ warrant exercisable
for one ZOOZ ordinary share. The ZOOZ public warrants and private warrants will become exercisable thirty days after the completion of
the Business Combination. The ZOOZ public warrants and private warrants will expire at 5:00 p.m., New York City time, five years after
the completion of the Business Combination or earlier upon redemption or liquidation. There is no guarantee that the ZOOZ public warrants
and private warrants, as well as the Series 3 Warrants will ever be in the money prior to their expiration, and as such, the warrants
may expire worthless.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>The
terms of the ZOOZ public warrants and private warrants may be amended.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Amending
the Public Warrant Agreement, dated as of January 24, 2022, by and between SPAC and Continental Stock Transfer &amp; Trust Company (the
&#8220;<b>Warrant Agent</b>&#8221; and the &#8220;<b>Public Warrant Agreement</b>&#8221;) would require the affirmative vote of the holders
of at least 65% of the then-outstanding ZOOZ public warrants and amending the Private Warrant Agreement, dated as of January 24, 2022,
by and between SPAC and the Warrant Agent (the &#8220;<b>Private Warrant Agreement</b>&#8221;) would require the affirmative vote of
the holders of at least 65% of the then-outstanding ZOOZ private warrants (ZOOZ private warrants mean one whole warrant entitling the
holder thereof to purchase one ZOOZ ordinary share at a purchase price of $11.50 per share, which warrant will be issued by ZOOZ in the
merger as part of the Business Combination in exchange for each outstanding Keyarch private warrant pursuant to the Assignment, Assumption
and Amendment to Warrant Agreement by and among ZOOZ, Keyarch, and the Warrant Agent (the &#8220;<b>Assignment, Assumption and Amendment
to Warrant Agreement</b>&#8221;). Notwithstanding the foregoing, ZOOZ may lower the exercise price or extend the duration of the exercise
period of the warrants in certain circumstances without the consent of the warrant holders.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>ZOOZ
may redeem the ZOOZ public warrants and ZOOZ private warrants if the reported last sale price of the ZOOZ ordinary shares equals or exceeds
$18.00 per share (as adjusted for share subdivisions, share dividends, rights issuances, reorganizations, recapitalizations and the like)
for any 20 trading days within a 30-trading day period commencing once the warrants become exercisable.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Once
the ZOOZ public warrants and private warrants become exercisable, ZOOZ may redeem not less than all of them at a price of $0.01 per warrant
upon not less than 30 days&#8217; prior written notice of redemption (such period, the &#8220;<b>30-day Redemption Period</b>&#8221;)
to each warrant holder if, and only if, the reported last sale price of the ZOOZ ordinary shares equals or exceeds $18.00 per share (as
adjusted for share subdivisions, share dividends, rights issuances, reorganizations, recapitalizations and the like) for any 20 trading
days within a 30-trading day period commencing once the warrants become exercisable and ending three business days before ZOOZ sends
the notice of redemption to the warrant holders. The trading price for the ZOOZ ordinary shares has never equaled or exceeded $18.00
per share.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 37; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->37<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
and when the ZOOZ public warrants and private warrants become redeemable, ZOOZ may exercise ZOOZ&#8217;s redemption right if there is
a current registration statement in effect with respect to the ZOOZ ordinary shares underlying such warrants. Redemption of the outstanding
ZOOZ public warrants and/or private warrants could force the holders thereof to: (i) exercise their warrants and pay the related exercise
price at a time when it may be disadvantageous for them to do so; (ii) sell their warrants at the then-current market price when they
might otherwise wish to hold their warrants; or (iii) accept the nominal redemption price, which, at the time the outstanding warrants
are called for redemption, is likely to be substantially less than the market value of their warrants. In these circumstances, and a
holder of such warrants chooses option (i) to exercise the ZOOZ public warrants and/or private warrants, the value received upon exercise
of such warrants (1) may be less than the value warrant holders would have received if they had exercised their ZOOZ public warrants
at a later time where the underlying share price is higher and (2) may not compensate the holders for the value of such ZOOZ warrants.
If holders of such warrants choose to sell under option (ii) there is no guarantee the sale price will be high enough to compensate warrant
holders for the value of such ZOOZ warrants.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
will not redeem the ZOOZ public warrants and/or private warrants as described above unless a registration statement under the Securities
Act covering the issuance of the ZOOZ ordinary shares issuable upon exercise of the warrants is then effective and a current prospectus
relating to those ZOOZ ordinary shares is available throughout the 30-day Redemption Period, except if the warrants may be exercised
on a cashless basis and such cashless exercise is exempt from registration under the Securities Act.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
ZOOZ calls the ZOOZ public warrants and/or private warrants for redemption as described above, its management will have the option to
require all holders that wish to exercise the warrants to do so on a &#8220;cashless basis.&#8221; In determining whether to require
all holders to exercise their warrants on a &#8220;cashless basis,&#8221; ZOOZ&#8217;s management will consider, among other factors,
ZOOZ&#8217;s cash position, the number of warrants that are outstanding and the dilutive effect on ZOOZ&#8217;s shareholders of issuing
the maximum number of ZOOZ ordinary shares issuable upon the exercise of the ZOOZ warrants. In such event, each holder would pay the
exercise price by surrendering the warrants for that number of ZOOZ ordinary shares equal to the quotient obtained by dividing (i) the
product of the number of ZOOZ ordinary shares underlying the warrants, multiplied by the difference between the exercise price of the
warrants and the &#8220;fair market value&#8221; (defined below) by (ii) the fair market value. The &#8220;fair market value&#8221; for
this purpose shall mean the average reported last sale price of the ZOOZ ordinary shares for the five trading days ending on the third
trading day prior to the date on which ZOOZ sends the notice of redemption to the holders of the ZOOZ C public warrants and/or private
warrants.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>As
ZOOZ has no obligation to net cash settle the ZOOZ public warrants and private warrants, such warrants may expire worthless.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>&#160;</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
no event will ZOOZ have any obligation to net cash settle the ZOOZ public warrants and/or private warrants. Furthermore, there are no
contractual penalties for failure to deliver securities to the holders of ZOOZ public warrants and private warrants upon exercise of
the warrants. Accordingly, such warrants may expire worthless.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>ZOOZ,
as the entity listed for trading on the Nasdaq upon completion of the Business Combination, may be a target of securities class action
and derivative lawsuits which could result in substantial costs.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>&#160;</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Securities
class action lawsuits and derivative lawsuits are often brought against companies that have entered into and/or consummated business
combination agreements or similar agreements. Even if the lawsuits are without merit, defending against these claims can result in substantial
costs and divert management time and resources. An adverse judgment could result in monetary damages, which could have a negative impact
on ZOOZ&#8217;s liquidity and financial condition. Currently, ZOOZ is not aware of any securities class action lawsuits or derivative
lawsuits being filed in connection with the Business Combination.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Shareholder
activism can negatively affect our business.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>&#160;</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
recent years, shareholder activists have become involved in numerous public companies. Shareholder activists could propose to involve
themselves in the governance, strategic direction and operations of a company. Shareholder activism, including potential proxy contests,
if will occur, could divert ZOOZ&#8217;s management&#8217;s and board of directors&#8217; attention and resources from its business,
could give rise to perceived uncertainties as to its future direction and could result in the loss of potential business opportunities
and make it more difficult to attract and retain qualified personnel for positions in both management and on the board level and to raise
funds. If nominees advanced by activist shareholders are elected or appointed to ZOOZ&#8217;s board of directors with a specific agenda,
it may adversely affect its ability to effectively and timely implement its strategic plans or to realize long-term value from its assets.
Also, ZOOZ may be required to incur significant expenses including legal fees related to activist shareholder matters. Further, ZOOZ&#8217;s
share price could be subject to significant fluctuations or otherwise be adversely affected by the events, risks and uncertainties of
any shareholder activism. While ZOOZ has not experienced shareholder activism to date, there can be no certainty that it will not be
subject to shareholder activism in the future.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 38; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->38<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>General
Risks</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Unfavorable
global or domestic political or economic conditions could adversely affect ZOOZ&#8217;s business, financial condition or results of operations.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
global economy continues to experience significant volatility, and the economic environment may continue to be, or become, less favorable
than that of past years. Higher costs for goods and services, inflation, deflation, the imposition of tariffs or other measures that
create barriers to or increase the costs associated with international trade, overall economic slowdown or recession and other economic
factors in Israel, the U.S. or in any other markets in which ZOOZ operates could adversely affect ZOOZ&#8217;s operations and operating
results. Among other matters, the continued risk of a debt default by one or more European countries, related financial restructuring
efforts in Europe, and/or evolving deficit and spending reduction programs instituted by the U.S. and other governments could negatively
impact the global economy and/or EV industry.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition, recent political and civil actions in Israel which commenced in the beginning of 2023, resulting from, among other things,
proposed changes to certain Israeli constitutional legislation, may have an adverse effect on the Israeli social, economic and political
landscape and in turn, on ZOOZ. However, it is difficult to predict at this time what the effect of such actions will be, if any. Furthermore,
although to date ZOOZ has not been directly impacted by the current military conflict between Russia and Ukraine, this conflict, or any
expansion thereof, could disrupt or otherwise adversely impact ZOOZ&#8217;s operations and those of third parties upon which ZOOZ relies.
Related sanctions, export controls or other actions have been or may in the future be initiated by nations including the United States,
the European Union or Russia (e.g., potential cyberattacks, disruption of energy flows, etc.), which could adversely affect ZOOZ&#8217;s
business and/or supply chain and third parties with whom ZOOZ conducts business. Any of the foregoing could harm ZOOZ&#8217;s business
and it cannot anticipate all of the ways in which the current economic climate and financial market conditions could adversely impact
ZOOZ&#8217;s business.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Environmental,
social and governance matters may impact ZOOZ&#8217;s business and reputation.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>&#160;</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition to the importance of their financial performance, companies are being increasingly judged by their performance on a variety
of environmental, social and governance, or ESG, matters, which are considered to contribute to the long-term sustainability of companies&#8217;
performance.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">A
variety of organizations measure the performance of companies on such ESG topics, and the results of these assessments are widely publicized.
In addition, investment in funds that specialize in companies that perform well in such assessments are increasingly popular, and major
institutional investors have publicly emphasized the importance of such ESG measures to their investment decisions. Topics taken into
account in such assessments include, among others, the company&#8217;s efforts and impacts on climate change and human rights, ethics
and compliance with the law, and the role of the company&#8217;s board of directors in supervising various sustainability issues.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
light of investors&#8217; increased focus on ESG matters, there can be no certainty that ZOOZ will manage such issues successfully, or
that it will successfully meet society&#8217;s expectations as to its proper role. ZOOZ&#8217;s actual or perceived failure to meet investors,
partners or employees&#8217; expectations on ESG matters could adversely affect ZOOZ&#8217;s brand and reputation, its employees&#8217;
engagement and reputation, and the willingness of its partners to do business with it.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Climate
change, or legal or regulatory measures to address climate change, may negatively affect ZOOZ.</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>&#160;</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Climate
change resulting from increased concentrations of carbon dioxide and other greenhouse gases in the atmosphere could present risks to
ZOOZ&#8217;s operations. Changes in climate patterns leading to extreme heat waves or unusual cold weather at some of ZOOZ&#8217;s locations
can lead to increased energy usage and costs, or otherwise adversely impact ZOOZ&#8217;s facilities and operations and disrupt its supply
chains. Concern over climate change can also result in new or additional legal or regulatory requirements designed to reduce greenhouse
gas emissions or mitigate the effects of climate change on the environment. Any such new or additional legal or regulatory requirements
may increase the costs associated with, or disrupt, sourcing, manufacturing and distribution of ZOOZ&#8217;s products, which may adversely
affect ZOOZ&#8217;s business and financial results. In addition, any failure to adequately address stakeholder expectations with respect
to ESG matters may result in the loss of business, adverse reputational impacts, diluted market valuations and challenges in attracting
and retaining customers and talented employees. In addition, ZOOZ&#8217;s adoption of certain standards or mandated compliance to certain
requirements could necessitate additional investments that could impact ZOOZ&#8217;s cash position and expected cash runway.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="a_005"></span>ITEM
4. INFORMATION ON THE COMPANY</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>A.
HISTORY AND DEVELOPMENT OF THE COMPANY</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>History</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
legal and commercial name is ZOOZ Power Ltd. We were incorporated in the State of Israel on February 5, 2013, as an Israeli corporation
and operate under the Companies Law. Our principal offices are located at 4B Hamelacha St., Lod 7152008, Israel and our telephone number
is +972 8-6805566. Our website is <i>https://www.zoozpower.com</i>. Information contained on, or that can be accessed through, our website
or any other website is expressly not incorporated by reference into and is not a part of this Annual Report. The SEC maintains an internet
site, http://www.sec.gov that contains reports, proxy and information statements, and other information regarding issuers that file electronically
with the SEC. Neither such internet addresses are a part of this Annual Report.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 39; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->39<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
agent for service of process in the United States is Puglisi &amp; Associates.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Principal
Capital Expenditures</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
the years ended December 31, 2023, 2022 and 2021, our capital expenditures were $1.4 million, $0.5 million and $0.3 million, respectively.
As of December 31, 2023, we had no significant commitments for capital expenditures.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>B.
BUSINESS OVERVIEW</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>ZOOZ&#8217;s
Mission</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
is committed to accelerating the electrical vehicles revolution and supporting the mass adoption of electric vehicles (EVs) around the
world, by enabling and empowering a widespread deployment of ultra-fast charging infrastructure.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ&#8217;s
power-boosting products and solutions are built with longevity and the environment in mind, helping ZOOZ&#8217;s customers to overcome,
sustainably and economically, the limitations of the existing electricity grid. By that, ZOOZ aims to help its customers and partners
in building, faster and everywhere, a robust, long-lasting, and cost-effective EV ultra-fast charging infrastructure.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
(previously called Chakratec) was founded in 2013 as an incubator private company<sup>1</sup> under the Capital Nature Ltd. incubator
(&#8220;<b>Capital Nature</b>&#8221;), under the framework of the directives of the CEO of the IIA and focused on developing a new concept
of flywheel.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
develops, produces, markets and sells energy storage systems based on storing kinetic energy in flywheels for ultra-fast charging of
EVs. ZOOZ has developed proprietary flywheel technology for storing kinetic energy and as of the date of this Annual Report, has introduced
two generations of Kinetic Storage Systems &#8211; the KPB50, which was ZOOZ&#8217;s first-generation product and was introduced in 2018
as proof-of-concept and for market introduction, and the ZOOZTER&#8482;-100, ZOOZ&#8217;s second-generation product, which was introduced
in 2022 and is geared towards high-volume production and deployment.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
of the date of this Annual Report, ZOOZ operates in the market of charging infrastructure for EVs and primarily in the field of ultra-fast
charging for EVs. Based on its technology, ZOOZ develops systems comprised of an array of flywheels and supporting sub-systems, which
get charged from the electricity grid. This energy, when discharged, is added to the power from the grid, which together constitute power
levels that are twice to three times the power that is supplied from the grid, thus enabling high-power charging of the EV even in areas
where the electricity grid has limited power. ZOOZ refers to these systems as power boosters.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Use
of ZOOZ&#8217;s technology enables a power booster which is both reliable and delivers high quality repeatable performance over time,
for over 100,000 charge-discharge cycles. This is in contrast with the chemical battery-based solution, the use of which is limited to
hundreds or just a few thousands of cycles, as further detailed below.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Furthermore,
the kinetic storage system is a &#8220;green system.&#8221; It is environmentally friendly, as opposed to battery-based energy storage
solutions, which are comprised of polluting chemicals, the use of which requires complicated, expensive recycling processes and involves
other restrictions relating to transport, storage and/or use inside buildings, etc.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
2018, ZOOZ introduced its first-generation / pilot product, the KPB50, by installing the KPB50 in the Viena airport. In 2020, the KPB50
was also sold to a hotel in Germany. ZOOZ&#8217;s KPB50 product served as proof of the advantages of ZOOZ&#8217;s technology and solution
and for marketing demonstrations to customers in Europe. The KPB50 is a discontinued product, and ZOOZ&#8217;s offering are focused on
the new 2<sup>nd</sup> generation product, the ZOOZTER&#8482;-100.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
March 2021, ZOOZ consummated its initial public offering on the TASE (the &#8220;<b>Israeli IPO</b>&#8221;), pursuant to which ZOOZ offered
securities to certain Israeli institutional investors and to the Israeli public (i.e., to non-institutional Israeli investors). As part
of the Israeli IPO, ZOOZ issued (A) to the Israeli institutional investors: (i) a total of 2,506,800 ZOOZ ordinary shares par value NIS
0.00286 each, at a price of NIS 92.9 per each ZOOZ ordinary share, and (ii) a total of 164,384ZOOZ option warrants (Series 1) and 54,794
ZOOZ option warrants (Series 2) without consideration, all for a total consideration of NIS 20,380,284 (gross). The unexercised ZOOZ
option warrants (Series 1) expired in March 2022 and the unexercised ZOOZ option warrants (Series 2) expired in March, 2023; and (B)
to the Israeli public: (i) a total of 75,945 ZOOZ ordinary shares par value NIS 0.00286 each, at a price of NIS 92.98per each ZOOZ ordinary
shares, (ii) and a total of 56,958 option warrants (Series 1) and 18,986 option warrants (Series 2) without consideration, all for a
total consideration of NIS 7,061,718 gross. The total gross proceeds from the Israeli IPO were approximately NIS 27.4 million. All information
presented above reflects the Recapitalization.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"></p>

<!-- Field: Rule-Page --><div style="margin-top: 0pt; margin-bottom: 0pt; width: 25%"><div style="border-top: Black 1.5pt solid; font-size: 1pt">&#160;</div></div><!-- Field: /Rule-Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt; text-align: justify; text-indent: 0pt"><sup>1
</sup><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">An incubator company is a project company that operates
under a technological incubator and is partly financed by the IIA.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 40; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->40<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
March 2022, ZOOZ completed a financing round through a private placement and a public offering in Israel. As part of such public offering,
ZOOZ issued a total of 30,801 units, each comprised of 100 ZOOZ ordinary shares and 65 ZOOZ warrants (Series 3). The ZOOZ warrants (Series
3) will vest over a period of three years, with an exercise price of $9.1 (NIS 32.0), based on the NIS/US$ representative exchange rate
as published by the Bank of Israel as of December 31, 2022) for one year period and $1 (NIS 3.6, based on the NIS/US$ representative
exchange rate as published by the Bank of Israel as of December 31, 2022) for additional two-year period. In the private placement mentioned
above, ZOOZ issued a total of 3,736 units, each comprised of 100 ZOOZ ordinary shares and 85 ZOOZ warrants (Series 3), as well as 1,419
units, each comprised of 100 ZOOZ ordinary shares and 65 ZOOZ warrants (Series 3), for gross proceeds of $29 million (NIS 96 million,
based on the NIS/US$ representative exchange rate as published by the Bank of Israel as of December 31, 2022). All information presented
above reflects the Recapitalization.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
May 2022, ZOOZ rebranded and changed its name from Chakratec Ltd. to ZOOZ Power Ltd.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
the second half of 2022, ZOOZ introduced its second-generation product, the ZOOZTER&#8482;-100. The ZOOZTER&#8482;-100 was first introduced
to the market and installed in a pilot site in Zikhron Yaakov, Israel. Later, in 2023 the ZOOZTER&#8482;-100 was also installed in several
sites in Germany, as initial sales of this product., as further detailed below.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
ZOOZTER&#8482;-100 system is geared to solve some of the challenges facing current-generation EV ultra-fast charging infrastructure,
by providing a system that supports (power-boosts) the grid and enables ultra-fast charging for EVs, especially in locations where the
grid is power-limited. This solution is aimed to be more sustainable and safer and allow better total cost of ownership compared to the
market alternatives, which are based on chemical (Li-Ion) batteries.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Starting
2023, ZOOZ initiated market penetration efforts with deliveries of the ZOOZTER&#8482;-100 to its customers and partners in Israel, Europe
and the U.S.:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(a)
In January, 2023, a first site in Israel, which is supported by the ZOOZTER&#8482;-100, has commenced commercial operation. This site
was established as a Pilot site, in collaboration with Afcon e-mobility and Dor-Alon gas stations (the operators of &#8220;ON&#8221; charging network, which is the biggest
fast charging network in Israel), and with the support of the IIA and the Israeli Ministry of Energy. In March 2024, ZOOZ announced that
based on the successful pilot with Afcon and Dor-Alon, it was agreed with Dor-Alon that two ZOOZTER&#8482;-100 systems will be installed
at two of Dor-Alon&#8217;s gas stations along Highway 6 (one of Israel&#8217;s main transportation corridors), aiming to enable additional
ultra-fast chargers in these sites, despite the grid&#8217;s limitations. These sites are expected to be upgraded during the second quarter
of 2024. The ability of the ZOOZTER&#8482;-100 systems to support these multi-charger sites will be evaluated for a period of several
months and upon successful completion of this assessment, the ZOOZTER&#8482;-100 systems will be purchased by Dor-Alon (pursuant to terms
agreed by the parties);</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(b)
During the second quarter of 2023, two charging sites, located in Herrenberg Germany, were built (in cooperation with Mer), with fast-chargers supported by
the ZOOZTER&#8482;-100 systems, finalized commissioning and started commercial operation;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(c)
During the fourth quarter of 2023, two additional ZOOZTER&#8482;-100 systems were installed and commissioned (in cooperation with
Parkstorm GmbH) in two additional charging sites in Germany (in Reiskirchen and Weiterstadt, located in Greater Frankfurt). These
sites are expected to start commercial operation during the second quarter of 2024;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(d)
During the third quarter of 2023, the first site in the U.S., at Scotchman Gas Station in Rock&#160;Hill, South Carolina, was built, and
finalized commissioning and in October 2023, started commercial operation. This site was established as part of a joint pilot with
ARKO Corp (a major U.S. convenience stores network);</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(e)
During the third quarter of 2023, a ZOOZTER&#8482;-100 system was delivered
to the U.S. and placed at the La-Guardia airport in NYC, in preparation to a joint pilot with a major car rental company. The work in
this site was delayed until receipt of the required permits by the La-Guardia Port Authority, which was received in the first quarter
of 2024, after which the construction work commenced. The site is expected to become operational during the third quarter of 2024; and</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(f)
An additional ZOOZTER&#8482;-100 system was delivered to the U.S. and installed at La-Guardia airport in NYC, in preparation to a joint
Pilot with a major car rental company. The work in this site was delayed due to wait till the La-Guardia Port Authority will provide
the needed permit. Such permit was given in the first quarter of 2024, and construction work commenced. The site is expected to become
operational in the third quarter 2024;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(g) In January 2024, a ZOOZTER&#8482;-100 system was delivered to the U.K.,
for a first site which was built in collaboration with Osprey, one of the leading charging operators in the U.K. The construction of this
site was finalized during the first quarter of 2024 and is expected to start commercial operation during the second quarter of 2024. Osprey
and ZOOZ have agreed that the ZOOZTER&#8482;-100 system will be evaluated during the first 6 months, and if such evaluation is successfully
completed, the ZOOZTER&#8482;-100 system will be purchased by Osprey (pursuant to terms agreed by the parties);</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(h)
In March 2024, ZOOZ announced that based on the successful pilot with Afcon &amp; Dor-Alon (see above), it was agreed with Dor-Alon
that two ZOOZTER&#8482;-100 will be installed in Dor-Alon&#8217;s gas stations along Highway 6 (one of Israel&#8217;s main
transportation corridors), aiming to enable additional ultra-fast chargers in these sites, despite the grid&#8217;s limitations.
These sites are expected to be upgraded during the second quarter of 2024. The ZOOZTER&#8482;-100 ability to support these
multi-chargers sites will be evaluated for a period of several months and upon successful completion of this period, the
ZOOZTER&#8482;-100 systems will be purchased by Dor-Alon (at terms already agreed by the parties).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 41; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->41<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
April 4, 2024 (the &#8220;<b>Closing Date</b>&#8221;), Keyarch and ZOOZ consummated their previously announced Business Combination,
pursuant to that certain Business Combination Agreement, dated as of July 30, 2023 (as amended on February 9, 2024, March 8, 2024 and
March 15, 2024, the &#8220;<b>Business Combination Agreement</b>&#8221;), by and among Keyarch, ZOOZ, Merger Sub, the Sponsor, in the
capacity as representative of specified shareholders of Keyarch after the Effective Time, and, by a joinder agreement, Dan Weintraub
in the capacity as representative of the pre-Closing shareholders of ZOOZ after the effective time of the Business Combination. Pursuant
to the Closing, Keyarch became a direct, wholly-owned subsidiary of ZOOZ. <span style="background-color: white">In connection with the
Closing, certain additional agreements were entered into between ZOOZ, Keyarch and other third parties as detailed under &#8220;<i>Item
4 &#8211; Material Agreements - The Business Combination Agreement and Related Agreements</i>&#8221;. </span>In connection to the Closing
of the Business Combination, ZOOZ&#8217;s ordinary shares and public warrants began trading on the Nasdaq Capital Market under the ticker
symbols &#8220;ZOOZ&#8221; and &#8220;ZOOZW&#8221;, respectively, on April 5, 2024.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Market
Outlook</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span style="text-decoration: underline">The
EV revolution</span></i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">According
to the IEA Global EV Outlook 2023 published by the International Energy Association (the &#8220;<b>IEA Report</b>&#8221;)<sup>2</sup>,
the global EV market has witnessed rapid growth in recent years, and this momentum is expected to continue as we move toward 2030. EVs
are anticipated to constitute a substantial portion of new vehicle sales, with estimates ranging from 30% to 60% penetration by 2030,
according to the IEA Report. The total fleet of EVs are expected to exceed 240 million by 2030 with 45 million EV sales in 2030 according
to the Announced Pledges Scenario of IEA as mentioned in the IEA Report. Various factors, including advancements in battery technology,
increased environmental consciousness, and the availability of a broader range of EV models across different vehicle segments, drive
this anticipated surge in EV adoption, according to the IEA Report.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><img src="form20-f_001.jpg" alt=""/></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">China,
Europe, and the United States, which currently constitute the three major markets for EVs according to IEA Report, together accounted
for approximately 95% of global sales of EVs in 2022. According to IEA, in 2030, China is expected to account for one-third of the EV
market, Europe and the U.S. will have an additional 35%-40% share, and the rest will be divided between the rest of the world.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
substantial EV market shares of the European Union (EU) and the U.S. are also supported by governmental incentives adopted by the EU
and U.S. administrations to support and incentivize the transition to electric mobility. For example, the EU has established a strategy
for transitioning to green energy and reducing the use of polluting energy by 2050. Recently, a decision was adopted by the European
Parliament, according to which, by 2035, the sale of fossil fuel-powered vehicles will be almost entirely phased out. Similarly, the
U.S. administration has taken significant steps to foster the EV revolution. The Biden administration has outlined an ambitious plan
to decarbonize the transportation sector and achieve net-zero emissions by 2050. The American Jobs Plan includes substantial funding
for expanding EV charging infrastructure. In 2021, the Biden administration passed a law providing anticipated funding for EV infrastructure,
known as the National Electric Vehicle Infrastructure (NEVI) program.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<!-- Field: Rule-Page --><div style="margin-top: 0pt; margin-bottom: 0pt; width: 25%"><div style="border-top: Black 1.5pt solid; font-size: 1pt">&#160;</div></div><!-- Field: /Rule-Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"><sup>2</sup> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">IEA
Report 2023. <span style="text-decoration: underline">https://www.iea.org/reports/global-ev-outlook-2023.</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 42; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->42<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>The
EV charging needs (from the automaker and EV drivers&#8217; perspective)</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
rapid development of ultra-fast EV charging technology has addressed several challenges, such as range anxiety, by striking a balance
between range, performance and price. With these challenges taken into account, players within the EV industry are seeking the balance
in terms of range-performance-weight-price trade-offs, in order to enable EVs to meet consumer needs while remaining affordable and efficient.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Today,
passenger EVs typically feature battery capacities ranging from 60 kilowatt hour (&#8220;<b>kWh</b>&#8221;) to 80 kWh, which allow for
a range of approximately 400-500 kilometers per each full charge of the battery. Typically, we assume that this range satisfies most
private users&#8217; average daily driving requirements and alleviates concerns about running out of charge during daily usage.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Nonetheless,
currently, one of the main challenges in the EV market is charging time. Ultra-fast charging solutions aim to address this challenge
by significantly reducing charging times compared to traditional charging methods.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
stated above, the </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">EV market has witnessed rapid growth
in recent years and EVs are expected to constitute a substantial portion of new vehicle sales in the coming years. Such <span style="background-color: white">increase
in the number of EVs in the overall vehicle population, requires increasingly quick, reliable, and comfortable charging solutions. Consumers
expect at least a comparable convenience and freedom of mobility they are used to with internal combustion engine (ICE) vehicles today.
Charging within hours might be acceptable if the car is not needed (for example, at night or at the workplace), however with an upcoming
mobility mass-market, ZOOZ expects that EV owners will not want to rely on charging solutions that require hours to recharge their EVs,
but will want to recharge their EVs to gain meaningful additional range quickly not only during long-distance travel, but also within
the local area in which they are situated. ZOOZ expects that sudden events, spontaneous rides and unexpected travel will need to be covered
for most, if not all, customers, who will want such options to be available for their EVs. Hence, ultra-fast chargers will need to be
widely available in a wide-area network, including residential areas and not only on highways. ZOOZ&#8217;s systems, which allow the
driver to add additional milage of range in minutes (and not hours) of charging (if the car allows sufficient power input), address this
need of ultra-fast charging.</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">By
leveraging high-power charging infrastructure, such as DC (direct current) fast chargers with power outputs of 150 kW and above, EVs
are expected to be capable of re-charge their batteries much faster compared to AC (alternating current) chargers, which are currently
the common type of chargers, enabling the drivers to have the needed flexibility and availability of the EV, for long-range commute as
well as unplanned needs. Nonetheless, in order to allow such fast charging, the infrastructure needs to support such capabilities.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Efforts
are underway to improve EVs&#8217; ability to accept higher charging power and to develop even faster charging technologies, such as
ultra-high-power chargers capable of delivering 350 kW or more. These advancements will further minimize charging times, making EVs even
more practical for long-distance travel and reducing downtime for commercial fleet operators.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>The
need to build public charging infrastructure for electric vehicles</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
rapid penetration of EVs is revolutionizing the charging landscape, bringing significant transformations in how EVs are charged. This
paradigm shift encompasses multiple dimensions, including transitioning from slow alternating current (AC) charging (mainly at home or
in the workplace) to fast and ultra-fast direct current (DC) charging available to the public (in public areas). As EVs become more prevalent,
the need for efficient charging solutions is intensified, necessitating the development of high-power DC fast charging networks that
enable shorter charging times and greater availability and convenience for EV owners.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Furthermore,
the evolution of EV charging extends beyond private charging infrastructure. With the growing demand for public charging options, the
focus has shifted from centralized approach where many vehicles are charging in a charging station with multiple chargers (like many
ICE cars are being fueled today in big gas stations, to decentralized networks, where public charging is no longer limited to specific
locations, but is becoming an amenity that caters to charging needs on the go and at various destinations. This shift enables EV owners
to charge their vehicles anywhere, as part of their common errands and daily commute, whether it be at shopping centers, parking lots,
or other public spaces, thereby increasing accessibility and reducing range anxiety.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span style="text-decoration: underline">The
ultra-fast charging opportunity</span></i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Charging
infrastructure acts as the backbone for EVs, providing users with the flexibility and confidence to operate their vehicles just like
they would operate a traditional ICE car. In many urban and suburban settings, private home charging is not always feasible in housing
types like apartments or condos, due to infrastructure limitations. The public EV charging infrastructure aims to serve EV drivers on-the-go
and on public locations and is expected to be based mainly on high power DC chargers of 150kW and above (compared to residential AC charging
with 6-22 kW chargers) and to account for approximately 10% of the overall EV charging market by 2030, according to the IEA Report. Nonetheless,
the anticipated widespread deployment of EVs requires a broad distribution of public EV charging stations to address the challenge of
range anxiety and the insufficient availability of chargers at home or workplace of EV owners. Therefore, it is anticipated that the
EV public charging infrastructure, which relies on fast and ultra-fast chargers, will provide approximately 40% of the total EV charging
capacity by 2030, according to the IEA Report. As the adoption of EVs is expected to continue to rise globally, the need for a widespread,
easily accessible public charging infrastructure is becoming critical. Furthermore, for long-distance travelers or those needing a quick
recharge, charging duration needs to be sufficiently short to avoid significant delays. This has led to a growing demand for ultra-fast
charging stations that can recharge an EV&#8217;s battery substantially in just minutes, aiming to get closer to the time it takes to
refuel an ICE vehicle at a petrol station. This technology is integral in making EVs a convenient choice for all potential users and
is key to accelerating the shift towards sustainable transportation.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 43; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->43<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
indicated, Automakers are already pursuing ways to enable the EVs&#8217; batteries to be charged at ultra-fast rate. As more EV models
are available with such charging capabilities, governments and other policymakers are expected to incentivize initiatives designed to
enable public charging infrastructure to have matching capabilities. For example, in February 2022, the Biden administration published
a call for a vast rollout of fast EV charges under the National EV Infrastructure (NEVI) project. According to the NEVI guidelines, there
should be a charging station every 50 miles on the main highways crossing the U.S. (the fuel alternative corridors), each containing
at least 4 ultra-fast chargers of minimum 150kW. Such ultra-fast EV charges are intended to charge a single vehicle within approximately
15 minutes, providing an added range of approximately 150 miles allowing the EV driver to commute to the destination (or the next stop
with high-power charger) with minimal delays and sufficient flexibility. Such call is expected to incentivize the rollout of such charges
and assist in making them more available and easily accessible in cities, along highways, short-term parking areas, and various businesses.
A similar approach and trend are also seen in Europe, where the E.U. has set the goal of having ultra-fast chargers available every 60
kilometers on highways<sup>3</sup>.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition, efforts are underway to improve EVs&#8217; ability to accept higher charging power and to develop even faster charging technologies,
such as ultra-high-power chargers capable of delivering 350 kW or more. These advancements will further minimize charging times, making
EVs even more practical for long-distance travel and reducing downtime for commercial fleet operators, but will increase the strain on
the grid, with higher power to be required for this short charging.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>The
challenges in deployment of public ultra-fast charging infrastructure</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
EV industry faces several challenges that need to be addressed when considering the public ultra-fast charging infrastructure aiming
for widespread adoption and successful transition to EVs. These challenges include:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; <span style="text-decoration: underline">The
Chicken and Egg problem</span>: &#8211; Charging Point Operators (CPOs) face the dilemma of investing in charging infrastructure when the
number of EVs on the road is still limited (though growing) and the fact that it would take time for that number to constitute a significant
portion of the cars on the road. Simultaneously, potential EV owners hesitate to switch to electric vehicles due to concerns about the
availability and accessibility of charging stations, causing them the known phenomena of &#8220;Range Anxiety&#8221; which limits the
pace of EV adoption. This challenge requires a coordinated effort between CPOs, automakers, OEM manufacturers and policymakers to ensure
a balanced and mutually reinforcing EV adoption and charging infrastructure growth.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; <span style="text-decoration: underline">Grid
limitations</span>: The rapid growth of EV charging infrastructure strains the electrical grid. Insufficient grid infrastructure is a significant
challenge in deploying ultra-fast charging stations. Upgrading the grid to support higher power demands can be costly and time-consuming,
hindering the rapid deployment of charging infrastructure. This challenge is even further intensified, with the growing demand for ultra-fast
charging, which requires high-power peaks for very short durations, resulting in need of upgrading transformer and switchgear, although
average electricity consumption is growing in much slower pace. Utilities may face challenges in upgrading their infrastructure with
significantly growing pace which they may not be able to accommodate, resulting in a long wait time for necessary grid enhancements to
support the growing number of charging stations.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; <span style="text-decoration: underline">Demand
charges</span>: Many commercial charging stations face demand charges imposed by utilities. These charges are based on the peak power demand
during a billing cycle, rather than the total energy consumed. This can result in higher operational costs for charging station operators,
especially while utilization is still low, and potentially discourage the deployment of charging infrastructure. This challenge is intensified
where ultra-fast charging (requiring a high-power peak for a short time) is available, and even more so when utilization is still low,
as in this case the revenues from electricity sold to EV owners is still limited, while the cost of electricity is high due to limited
number of demand peaks during ultra-fast charging sessions.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<!-- Field: Rule-Page --><div style="margin-top: 0pt; margin-bottom: 0pt; width: 25%"><div style="border-top: Black 1.5pt solid; font-size: 1pt">&#160;</div></div><!-- Field: /Rule-Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"><sup>3</sup><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline">
https://www.europarl.europa.eu/news/en/press-room/20230707IPR02419/meps-adopt-new-rules-for-more-charging-stations-and-greener-maritime-fuels</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 44; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->44<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; <span style="text-decoration: underline">Energy
Management System (EMS) limitations</span>: Some charging sites have more than one charging port, thus allowing multiple EVs to charge simultaneously.
Such charging sites have Energy Management Systems (EMS), which allocate the maximal power levels to each port. Such allocation reduces
the power that each port can supply to the EV. Limitations in power allocation granularity (mostly due to power electronic system design)
lead to inefficient power allocation, which can lead to longer charging sessions and longer queues. Therefore, inefficient power allocation
can result in congestion at charging stations, causing frustration and inconvenience for EV users, and result in less utilization and
smaller revenues for the CPO and the business adjacent to the chargers (e.g., convenience store).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; <span style="text-decoration: underline">Location
challenges</span>: The rapid deployment of ultra-fast charging stations has led to a &#8220;land-grabbing&#8221; war among Charging Point
Operators (CPOs) and asset owners. Securing suitable locations for charging stations becomes increasingly competitive, requiring efficient
planning and cooperation between stakeholders.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; <span style="text-decoration: underline">Fleet
challenges</span>: Fleet electrification poses additional challenges, as the charging demands of large-scale commercial fleets can strain
the grid infrastructure. Simultaneously, fleet operators must ensure sufficient charging capacity to meet operational needs in specific
locations with many EVs on site, without impacting the overall grid stability and smooth fleet operations.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>The
demanding profile of high-peak power consumption by an ultra-fast charging station</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
typical charging profile of each EV model is different. Still, it typically starts at a short high demand of power which later is reduced
by the car battery management system to protect the battery. A combination of multiple EVs charging for an extended period creates a
chain-saw-like charging profile with many short high-peak surges of consumption from the grid. Therefore, efficient grid utilization
involves designing the infrastructure to accommodate the average power demand during the day rather than catering solely to the peak
demand.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
a full day of charging, the effect of different charging parameters (e.g. time of the EV starting the charging, profile of charging per
each vehicle, duration of charging, etc.) in conjunction with high utilization, which is significantly varying though the hours of the
day, can lead to a low average power demand but with several very high peaks of demand.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">An
example of the high peak demands created by multiple EV charging (in parallel, but with different charging profile and timing per each
vehicle) is illustrated in the following graphs<sup>4</sup>:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><img src="form20-f_002.jpg" alt=""/></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
graph above illustrates that each one of the EVs has a different charging profile. Since not all EVs are charging at the same time and
not with the same energy charged to each EV, the combined demand creates a chain-saw-like charging profile with many high but short peak
demands while the total demand is not reaching the maximum expected from 4 cars charging simultaneously.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"></p>

<!-- Field: Rule-Page --><div style="margin-top: 0pt; margin-bottom: 0pt; width: 25%"><div style="border-top: Black 1.5pt solid; font-size: 1pt">&#160;</div></div><!-- Field: /Rule-Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><sup>4
</sup>The graphs were prepared by ZOOZ and are for illustration purposes only.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 45; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->45<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">An
example of full-day power demand in high utilization charging station is illustrated in the below graph<sup>5</sup>:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><img src="form20-f_003.jpg" alt=""/></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
illustration presented above shows an example of the average demand of 260kW with several peaks reaching 600kW. Upgrading the grid to
accommodate 600kW will be inefficient (as the average power is much below the peak and the grid utilization will be very low) and costly
(as the cost for upgrade the grid is related to various parameters and the demand charges during the on-going operation of the site is
related to the peak demand).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Technology
background</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; <span style="text-decoration: underline">Flywheels
</span>&#8211; A flywheel is a kinetic energy storage device, in which the energy is stored in a rotating dreidel (which is called a rotor).
The amount of energy stored is proportional to the square of the rotation speed. The main advantages of flywheels are their robustness,
resilience to multiple high-power charge/discharge cycles while conserving the performance, resulting in long calendar lifespan.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following is an illustration of ZOOZ&#8217;s flywheel module:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><img src="form20-f_004.jpg" alt=""/></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.25in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Efficient
flywheels usually rotate at high speeds. However, the rotor speed is limited by the centrifugal forces that operate on the rotor. Excessive
centrifugal forces may lead to damage to the rotor. The right balance between the rotation speed and centrifugal forces is key for an
economically efficient and safe flywheel.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
mitigate safety concerns, previous-generation flywheels were installed underground. ZOOZ&#8217;s flywheel is constructed from laminated
steel, so even in unforeseeable damage to the rotor that will lead to disintegration, all the parts will be contained in the steel housing.
This design, together with the extensive testing and certification, mitigates safety concerns allowing above ground installation in crowded
areas.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
laminated steel design, apart from its superior safety, also enjoys a cost advantage over other construction methods (like forged steel
or carbon fiber). This material is widely used in the automotive industry and is manufactured by multiple vendors worldwide.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<!-- Field: Rule-Page --><div style="margin-top: 0pt; margin-bottom: 0pt; width: 25%"><div style="border-top: Black 1.5pt solid; font-size: 1pt">&#160;</div></div><!-- Field: /Rule-Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><sup>5
</sup>The graphs were prepared by ZOOZ and are for illustration purposes only.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 46; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->46<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
minimize operation losses, the flywheel rotates in a vacuum eliminating aerodynamic drag effects and is floating on a magnetic bearing.
The magnetic bearing is a frictionless bearing that can operate in vacuum, it has no wear and unlimited lifetime.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
flywheel motor has several differences compared to standard motors:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; Vacuum
operation, which make cooling the motor challenging.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; In
order to reduce the losses when the wheel is running at maximal speed of 17,000 RPM and waiting for a car to come, motor losses are minimized
by a special design, in standard motors this feature is less important because when the motor is at idle it&#8217;s not rotating and
therefore there are no losses.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
motor driver (sometimes referred to as inverter) which is the power electronics controlling the motor is based on state-of-the-art Silicon
carbide transistors to minimize losses.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; <span style="text-decoration: underline">Batteries
</span>&#8211; batteries are chemical-based storage devices. Lithium-ion batteries are currently the most wide-spread type of batteries
on the market, based on their high energy density and relatively low-cost. There are several chemistries in use: NCA, NMC and LFP. The
typical lifetime of a battery is between 1,000 to 5,000 charging cycles. One of the risks of using Lithium-ion batteries is the thermal
runaway that can cause explosion and fire of the battery.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>The
main differences between flywheels and batteries</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">While
both flywheel-based and battery-based power boosters provide a solution for ultra-fast charging when the power grid is limited, the main
differences between these two types of boosters are significant in multi-cycle, high-power applications like in the case of ultra-fast
charging:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; <span style="text-decoration: underline">Concept
of operation</span> &#8211; a battery stores / discharge energy using chemical reactions, while flywheel-based energy storage relies on
accelerating and decelerating a heavy mass and by that storing / discharging kinetic energy.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; <span style="text-decoration: underline">Charging
cycles</span> &#8211; the charging cycles of batteries (usually defined as reaching 70%-80% of their initial capacity) is limited to approximately
1,000-5,000 charging / discharging cycles due to performance degradation, which is related to the fact that the energy storage is based
on chemical reactions, according to a report issued by the ELB Energy Group<sup>6</sup>. In contrast to that, flywheels, being based
on more efficient physical storage mechanism, maintain performance and reliability during hundreds of thousands of cycles, allowing a
lifespan which is typically over 15 years (see more details regarding lifespan below).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; <span style="text-decoration: underline">C-Rate
</span>&#8211; the C-Rate refers to the power-to-energy ratio, denoting the duration necessary for discharging. A higher C-Rate facilitates
expeditious response times and swift recovery for prompt readiness in subsequent sessions. While batteries conventionally exhibit C-Rates
of 1 or lower and their lifespan is shortened (performance degradation intensified) with higher C-rates, in flywheel-based systems the
capacity of the flywheel is determined by the size of the rotor while the output power is determined by the size of the motor, therefore
the capacity is decoupled from the power output and the C-Rate is a design parameter and is not intrinsic to the technology. Typically,
due to economic reasons, flywheels operate at C-Rates of four or more.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; <span style="text-decoration: underline">Lifespan
</span>&#8211; the lifespan of batteries is usually up to 10 years. In demanding applications like power boosters and in cases when they
operate at high C-rate, multiple / continuous high-power charge &amp; discharge cycling and/or in harsh environment conditions, the battery
lifespan is much shorter (can be reduced to a few years), while the lifespan of flywheels is longer and most flywheels are specified
for a lifespan of 15-30 years.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; <span style="text-decoration: underline">Environmental
impact</span> &#8211; because of batteries&#8217; composition of rare metals and toxic materials, they are difficult to recycle and their
recycling process is polluting by itself. In contrast to that, ZOOZ&#8217;s flywheels are made from steel which is easily recyclable
and is considered to be a more environmentally friendly metal. In addition, steel is a common raw material with long lifespan and in
many cases is reused (which by itself reduces the polluting effect of the metal).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; <span style="text-decoration: underline">Safety
</span>&#8211; batteries are composed of several potentially harmful substances. The primary concern with battery technology revolves around
the toxicity and flammability of the chemicals used in their construction. Lithium-ion batteries, for instance, use a flammable content
that can potentially ignite under certain circumstances, such as when the battery is damaged or improperly handled. In some countries
the installation and usage of batteries-based ESS is limited or prohibited in certain locations due to the flammability and fire hazard
of those batteries. Moreover, the production of batteries involves complex chemical processes that can lead to the release of toxic substances
into the environment. This could cause harm to the ecosystem and human health. Similarly, when batteries have reached the end of their
life cycle, their disposal poses another significant environmental challenge. In contrast to that, Flywheels&#8217; key advantage from
a safety perspective is that flywheels do not involve hazardous chemicals, which minimizes the risk of fires or chemical leaks. In general,
flywheel systems store kinetic energy via a rotating mass. The primary safety concern is the potential for this mass to rupture, releasing
energy suddenly and causing damage or injury. Failures can arise from material defects or imbalances. Although modern designs include
containment and monitoring and are tested and certified by the regulators.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"></p>

<!-- Field: Rule-Page --><div style="margin-top: 0pt; margin-bottom: 0pt; width: 25%"><div style="border-top: Black 1.5pt solid; font-size: 1pt">&#160;</div></div><!-- Field: /Rule-Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"><sup>6</sup> <span style="text-decoration: underline">https://www.ecolithiumbattery.com/lifepo4-battery-vs-lithium-ion-batteries/</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left">&#160;</p>


<!-- Field: Page; Sequence: 47; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->47<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Energy
storage compared to power boosters</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Regular
energy storage is used when energy is drawn directly from the power grid (or alternative energy source) during off-peak/less expensive
times and then accessed during peak times when the source of energy is insufficient to provide the required demand.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
primary purpose of energy storage is to increase the available energy capacity, by complementing available energy source (e.g. electricity
grid).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Currently,
most applications use battery energy storage systems (BESS) using Lithium-ion batteries due to their relatively high-capacity density,
maturity, and cost.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">A
power booster is a type of energy storage system, which is aimed to support high-power repetitive peak surges of demand. Instead of storing
energy for later use (as for example is the case when BESS is storing solar energy to be used during dark hours), a power booster aims
to make the existing infrastructure more powerful by providing surges of high energy in short times at the highest possible speed. The
power booster charges itself from the available electric grid and then, when there is a short high-peak demand, it &#8220;flashes&#8221;
out and delivers the stored energy at a high rate (i.e. high output power).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><img src="form20-f_005.jpg" alt=""/></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
picture above illustrates the usage of the ZOOZTER&#8482;-100 as a power booster in a charging station. The system is connected between
the grid and the ultra-fast EV charger and when EVs are connected to the charger, the ZOOZTER&#8482;-100 is flashing the stored energy
and adding power to the existing power grid, enabling fast charging even if the grid capacity is not enough.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following image show the usage of a ZOOZTER&#8482;-100 as a power booster, installed in a customer site in Germany and connected to an
ultra-fast EV charger.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 48; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->48<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><img src="form20-f_006.jpg" alt=""/></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Considering
the chain-saw-like profile of the energy consumption of an EV ultra-fast charging station, a power booster can support the grid as a
&#8220;peak-shaving&#8221; storage, providing the response to the high-peak short surges of energy, while the consumption from the grid
is stabilized. In that sense a power booster can defer or avoid a grid upgrade, because grid available power can be sufficient to provide
the average consumption, while the power booster is the source for the peak-demand beyond grid&#8217;s power capacity.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
a result of using a power booster in an EV ultra-fast charging site, the charging session can be shortened, and utilization can be increased,
because the grid infrastructure is utilized in a more efficient way, and additional chargers can be installed per given grid power capacity.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>ZOOZ&#8217;s
technology and products</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>The
KPB-50</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
2018, ZOOZ introduced its first-generation / pilot product, the KPB50, by installing the KPB50 in the Viena airport, which was announced
as successful and is operated till the end of 2023. ZOOZ&#8217;s KPB50 product served mostly as proof of the advantages of ZOOZ&#8217;s
technology and solution and for marketing demonstrations for customers in Europe. One system was sold to a Premier Inn hotel in Germany
and is operational at the parking lot of the hotel since 2020.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
KPB-50 is not offered anymore to customers and all of ZOOZ&#8217;s sales and marketing efforts currently focus on the newer model of
the ZOOZTER&#8482;-100.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>The
ZOOZTER&#8482;-100</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
late 2022, ZOOZ introduced its second-generation product, the ZOOZTER&#8482;-100, initially in a pilot site in Zikhron Yaakov, Israel.
In late 2022, ZOOZ completed the first installation of the system in Israel at a fast-charging station, which was built at the Dor Alon
&#8220;Or Zikhron&#8221; station, in Zikhron Yaakov, Israel, as part of a joint pilot with Afcon Electric Transportation Ltd. and Dor
Alon, supported by the Israeli Ministry of Energy and the IIA. In addition, ZOOZ has started supplying ZOOZTER&#8482;-100 systems under
an agreement with its customers in Germany.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
ZOOZTER&#8482;-100 is a first-of-its-kind kinetic power booster based on a proprietary flywheel technology designed to enable sustainable
and cost-effective rollout of ultra-fast EV charging stations in areas where the grid is power-limited. In order to do so, the ZOOZTER&#8482;-100
is designed to provide 100kW of power for a period of 15 minutes in addition to the power provided by the grid (50kW or more), thus enabling
an EV to be charged with a power greater than 150kW (ultra-fast charging).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 49; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->49<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
ZOOZTER&#8482;-100 contains eight flywheels&#8217; modules and the equipment required to operate them. The ZOOZTER&#8482;-100 is connected
to the available grid, using a standard 3-phase connection to source the energy and convert it, by the flywheel modules, to kinetic energy.
Each flywheel module contains a half-a-ton mass levitated by a proprietary &#8220;frictionless&#8221; magnetic bearing and balanced,
to rotate around its axis, in a vacuum-sealed housing. A proprietary motor accelerates the heavy flywheel rotor to a speed of approximately
17,000 rounds per minute.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Below
is an illustration of the ZOOZTER&#8482;-100 and its internal structure:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><img src="form20-f_007.jpg" alt=""/></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
illustrated in the above graphics, the key elements of the ZOOZTER&#8482;-100 include flywheel modules, which store the kinetic energy.
Additional integral parts include the power electronics, which orchestrate the operations of the flywheel, along with inverters that
are responsible for the bi-directional conversion between AC (Alternating Current) electricity from the power grid and DC (Direct Current).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><img src="form20-f_008.jpg" alt=""/></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Once
an EV is plugged into the ultra-fast charger, the ZOOZTER&#8482;-100 can rapidly &#8220;flush&#8221; the stored kinetic energy, by decelerating
the flywheels and converting the kinetic energy back into electrical energy. By that, the ZOOZTER&#8482;-100 is designed to increase
available grid power by up to additional 100 KW and provide the boost necessary for ultra-fast charging in approximately 15 minutes.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Based
on the advantages of flywheels detailed above, ZOOZ believes that flywheels are currently a more suitable technology than batteries for
high-power, multiple cycles-per-day applications, such as EV ultra-fast charging.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Efficient
flywheels usually rotate at high speeds. However, the rotor speed is limited by the centrifugal forces that operate on the rotor. Excessive
centrifugal forces may lead to damage to the rotor. The right balance between the rotation speed and centrifugal forces is key for an
economically efficient and safe flywheel.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
mitigate safety concerns, previous-generation flywheels were installed underground. ZOOZ&#8217;s flywheel is constructed from laminated
steel, so even in unforeseeable damage to the rotor that will lead to disintegration, all the parts will be contained in the steel housing.
This design, together with the extensive testing and certification, mitigates safety concerns allowing above ground installation in crowded
areas.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
laminated steel design, apart from its superior safety, also enjoys a cost advantage over other construction methods (like forged steel
or carbon fiber). This material is widely used in the automotive industry and is manufactured by multiple vendors worldwide.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 50; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->50<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
minimize operation losses, the flywheel rotates in a vacuum eliminating aerodynamic drag effects and is floating on a magnetic bearing.
The magnetic bearing is a frictionless bearing that can operate in vacuum, it has no wear and unlimited lifetime.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
flywheel motor has several differences compared to standard motors:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; Vacuum
operation, which make cooling the motor challenging.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; In
order to reduce the losses when the wheel is running at maximal speed of 17,000 RPM and waiting for a car to come, motor losses are minimized
by a special design, in standard motors this feature is less important because when the motor is at idle it&#8217;s not rotating and
therefore there are no losses.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; The
motor driver (sometimes referred to as inverter) which is the power electronics controlling the motor is based on state-of-the-art Silicon
carbide transistors to minimize losses.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following picture is summarizing the ZOOZTER&#8482;-100 flywheel design and advantages:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><img src="form20-f_009.jpg" alt=""/></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition, the ZOOZTER&#8482;-100 embedded Energy Management System (EMS) is a software designed to control the energy load on the charging
site, interfacing seamlessly with any charging vendor and power source. This accelerates the roll-out of the charging infrastructure,
avoiding costly grid upgrades and saving the demand charges, as illustrated in the following image:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><img src="form20-f_010.jpg" alt=""/></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 51; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->51<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
has also developed a remote monitoring system, complemented by ZOOZ&#8217;s in-depth expertise. This system proactively identifies and
analyzes potential issues, often prior to any operational impact at the charging site, ensuring optimum system availability. Critical
data from the ZOOZTER&#8482;-100 is seamlessly transmitted via a cellular network to cloud-based platforms. There, a data visualization
and analysis software oversees the system, facilitating preemptive maintenance actions.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
ZOOZTER&#8482;-100 has two versions, one for the EU market certified according to the following standards: EN ISO 12100:20120, EN 602204-1:2018,
and that have a grid inverter conforming to European grid standards and a U.S.-certified version according to UL9540 with inverter that
conforms to the U.S. grid standards.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Market
Opportunity and Customers</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
is committed to accelerating the mass adoption of EVs by enabling and empowering a widespread deployment of ultra-fast charging infrastructure.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
the EV revolution is progressing, there is also a significant disruption in the ecosystem of services to vehicles. While all Internal
Combustion Engine (&#8220;<b>ICE</b>&#8221;) vehicles are fueling in a well-established gas station network, there is a new value-chain
and ecosystem being built to provide a charging infrastructure which will be used to charge EVs. This eco-system includes not only these
who owned and operated the traditional gas stations, but also new parties who wish to build, own and operate such charging infrastructure.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">At
the current early stage of this market, many of these who are active in this charging infrastructure market are new to the challenges
associated in building such infrastructure, and in particular, to the challenge of insufficient grid power to support ultra-fast charging.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">With
its unique flywheel-based kinetic power-boosting products and solutions ZOOZ aims to help its customers and partners in building, faster
and everywhere, a robust, long-lasting, and cost-effective EV ultra-fast charging infrastructure, while overcoming power limitations
of the electricity grid.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
aims to collaborate with the following types of target customers and partners:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; <span style="text-decoration: underline">Charging
Point Operators (CPOs)</span>:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">CPOs
are responsible for operating the charging infrastructure (in some cases they also build and/or own the charging sites) as part of a
widespread network of charging services (at multiple sites). They seek reliable and scalable ultra-fast charging solutions to capture
relevant locations (&#8220;land-grabbing&#8221;) with potential of high EV traffic, expand their network (as quickly as possible and
with highest possible availability of chargers) in order to attract EV drivers to be part of those being registered with their network,
and by that maximize revenue generation out of charging services provided in their charging locations. In order to do so, they need to
land-grab attractive sites, build and operate efficiently the charging stations, optimize utilization, minimize operational costs, and
integrate billing and payment systems.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; <span style="text-decoration: underline">Fleet
Operators</span>:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Fleet
operators manage large-scale commercial vehicle fleets, such as rental car companies, last mile logistics and delivery companies, or
taxi services.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 52; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->52<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">According
to a report published by McKinsey<sup>7</sup>, assuming widespread EV adoption, commercial and passenger fleets in the United States
are expected to include as many as eight million EVs by 2030 which would amount to between 10 and 15 percent of all fleet vehicles. As
such, fleet operators are considering the transition of the fleet to EVs, the primary concerns are the fleet&#8217;s operational efficiency,
considering the EV range limitations, the charging process duration and the need to minimize vehicle downtime. As for charging capabilities,
fleet operators are aware of, and concerned by, the limited availability of public fast-chargers, and on the other hand when they consider
building their own charging infrastructure, they learn, in many cases, that the grid power, at their parking/depot sites, is limited.
Slow chargers installed on these depot/parking sites can provide a partial solution, mainly for over-night charging, but due to the long
charging duration (several hours) provided by these chargers, this is not considered as a solution, since it puts at risk the efficient
usage of the EV fleet. Combining ultra-fast charging infrastructure at the fleets&#8217; depot / parking sites, can provide the needed
flexibility and a solution to enable quick and convenient charging, and will allow an efficient operation of the fleet for various planned
and unplanned tasks.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; <span style="text-decoration: underline">Business
operators and real-estate asset owners</span>:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">With
the increasing adoption of EVs, business operators (such as retail stores, convenience stores, shopping centers, restaurants, and others)
see in charging services at their locations and amenity that may attract EV drivers to shop, dine, or have other services in their business,
while they charge their vehicles. By that, not only that they can make profit out of the charging services, but they can also increase
their revenues and profits thanks to the increased traffic of customers visiting their business (and they may be losing business to competitors
who were faster in offering charging services as an additional amenity at their sites). Similarly, real-estate asset owners (such as
parking lots, rest areas, businesses as detailed above, etc.) see in fast-charging services at their location as an opportunity to enhance
their property value by offering EV charging services, especially if it is an attractive location to EV drivers to stop by on-the-go
to their destination or close to such destination. As a result, business operators and real-estate asset owners realize the opportunity
in ultra-fast charging solutions to attract EV drivers and provide a competitive advantage, as the EV owners may prefer using these chargers
to save time on-the-go to their destination and/or efficiently use the time of charging for other businesses they have in or around that
location. However, in many cases these locations of businesses and assets have power-limited grid and face challenges related to charging
infrastructure deployment and may be subject to delays and high costs of charging infrastructure construction and high operating costs
due to high demand charges.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; <span style="text-decoration: underline">Engineering,
Procurement, and Construction (EPC) Firms</span>:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
many cases the new players in this market, as detailed above, lack the technical and engineering capabilities and expertise, needed to
build the charging infrastructure. Those parties are relying on EPC firms to take responsibility for designing and implementing charging
infrastructure projects. These EPC companies require versatile, robust and scalable solutions that can be efficiently deployed and integrated
into various locations where an ultra-fast charging infrastructure is built. EPC firms face challenges such as ensuring compatibility
with local regulations, coordinating with utilities for grid connection, managing project timelines and budgets, and delivering high-quality
installations.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; <span style="text-decoration: underline">Utilities
(also referred as DSO / DNO)</span>:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Utilities
play a critical role in supporting the integration of ultra-fast charging infrastructure with the electrical grid. They need solutions
that can balance the increasing demand for electricity from charging infrastructure while maintaining grid stability and reliability.
Utilities face challenges related to grid upgrades, load management, demand response systems, and implementing tariff structures that
encourage off-peak charging to optimize energy consumption and grid utilization.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
some cases, utilities take the role of CPOs, becoming active in building charging infrastructure and providing charging services as part
of their offering to their customers. In other cases, utilities act as service providers that supports the other players in this market
(as detailed above), as they take responsibility for upgrading the grid in order to provide the power required to build the ultra-fast
charging infrastructure on site. With the increasing demand for grid upgrades (also caused by the needs to build EV charging infrastructure,
but also related to other needs), utilities face a significant challenge in providing these services at the needs pace, and in some counties
/ territories, the utilities&#8217; customers are experiencing significant delays as the queues for these services is increasing. In
addition, upgrading the grid while utilization by EV charging is still low, is a huge investment that in many cases can be deferred or
avoided. Using power booster, as part of their toolkit, can help them to provide a better service to their customers, prioritize better
their resources, save costs and defer investments.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<!-- Field: Rule-Page --><div style="margin-top: 0pt; margin-bottom: 0pt; width: 25%"><div style="border-top: Black 1.5pt solid; font-size: 1pt">&#160;</div></div><!-- Field: /Rule-Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><sup>7
</sup><span style="text-decoration: underline">https://www.mckinsey.com/capabilities/sustainability/our-insights/charging-electric-vehicle-fleets-how-to-seize-the-emerging-opportunity</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 53; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->53<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Understanding
the unique characteristics, pains, and needs of these customer types is essential for developing tailored ultra-fast charging solutions
that address their specific requirements and contribute to the overall growth and success of the EV charging ecosystem.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Product
&#8211; Market Fit</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>The
customer needs</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Each
of ZOOZ&#8217;s target customers sectors face distinct challenges and has unique requirements.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
believes that businesses operators and real-estate asset owners are searching for reliable and scalable ultra-fast charging solutions
to attract EV drivers to their locations, maximize revenue generation (from EV charging services, as well as from the increased traffic
in these businesses) and staying competitive with their competitors who already started offering charging services as amenities. Since
they are facing power-limitations of the grid on their locations, their main concerns predominantly focus on reducing the time-to-market
and initiation of charging services, while minimizing the investment, then managing charging stations efficiently, and optimizing utilization,
while reducing operational costs (in particular demand charges which are substantial as long as chargers&#8217; utilization is still
low).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
believes that in the current market phase, CPOs are mostly focusing on the rapid expansion of their networks while attempting to secure
as many locations as possible which may be attractive for EV drivers to stop by for charging (&#8220;land-grabbing&#8221;). This must
be achieved cost-effectively, limiting capital expenditure and the ongoing costs of running their businesses. In order to allow them
to expand the network as soon as possible, they require solutions that will allow them to &#8220;grab&#8221; an attractive location and
start providing there with charging services, without delaying that due to waiting in the queue for grid upgrade. As EV drivers are joining
the network and utilization of the network&#8217;s sites increase, CPOs need to add more charging ports in their sites, while using in
the most optimal way the available grid power on site. Power boosters can help them to accommodate the chain-saw-like charging profile,
as they add more charging ports on site, while reducing operational costs due to demand charges.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Given
that not all locations possess sufficient grid power to support ultra-fast charging and that grid upgrades are costly and time-consuming,
CPOs must identify creative solutions to bypass these constraints. Moreover, demand charges represent a significant obstacle, particularly
when the utilization rate of the station remains low.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
believes that similarly, fleet operators&#8217; foremost priority is streamlining the charging process to reduce vehicle downtime and
enhance fleet productivity. They require ultra-fast charging infrastructure that enables swift and effortless charging, accommodates
high-power demands, and facilitates fleet management integration to supervise charging activities. Furthermore, they require scalable
solutions that can cope with increasing fleet sizes.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Fleet
operators also face the challenge of inadequate grid power to support ultra-fast charging at many of their parking / depot locations.
Considering the considerable expense and time investment associated with grid upgrades, these operators, too, must implement various
solutions to circumvent these limitations and prevent excessive operational costs, while they advance in the transition of their fleets
to EVs. Power boosters can enable to expedite the installation of ultra-fast chargers, accommodate high-power demands, and enable a more
efficient fleet management. In addition, power booster can support the fleet operator with the needed scalability and flexibility to
gradually grow their EV fleet sizes and to initiate the transition of the fleet to EVs in additional parking / depot sites.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Main
Advantages of the ZOOZTER&#8482;-100</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Given
the described challenges for Charge Point Operator (CPOs), asset owners, and fleet operators, the implementation of the ZOOZTER&#8482;-100,
a flywheel-based power booster, can offer several substantial benefits:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; <span style="text-decoration: underline">Fast
installation</span>: the ZOOZTER&#8482;-100 can be installed quickly, thus reducing time-to-market and facilitating swift charging infrastructure
rollout.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; <span style="text-decoration: underline">Charger
agnostic</span>: the ZOOZTER&#8482;-100 is compatible with different types of chargers, offering versatility and allowing operators to avoid
being locked into one specific charger type.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; <span style="text-decoration: underline">Flexibility</span>:
with the ability to be redeployed, the ZOOZTER&#8482;-100 acts as a long-term asset that can accelerate network rollouts and flexibly
adapt to evolving needs.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; <span style="text-decoration: underline">Low
maintenance</span>: the ZOOZTER&#8482;-100 requires minimal maintenance, freeing resources for other critical business operations.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; <span style="text-decoration: underline">Lower
total cost of ownership</span>: due to its high number of charging cycles, compared to traditional battery systems, the ZOOZTER&#8482;100&#8217;s
flywheel-based system can significantly reduce the total cost of ownership, making it a cost-effective solution for power boosting.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 54; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->54<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; <span style="text-decoration: underline">Longevity</span>:
with an expected lifespan of approximately 15 years, the ZOOZTER&#8482;-100 offers a robust and durable solution, increasing chargers&#8217;
availability and quality of charging services, while minimizing maintenance and the need for frequent batteries replacements and further
contributing to operational cost savings.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; <span style="text-decoration: underline">Sustainability</span>:
the ZOOZTER&#8482;-100 stands as a &#8220;greener&#8221; alternative to traditional batteries, contributing to the sustainability goals
of businesses in the EV charging sector.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; <span style="text-decoration: underline">Safety</span>:
the ZOOZTER&#8482;-100 is designed to offer enhanced safety, as it poses no fire hazardous materials &#8211; a prevalent risk associated
with battery systems.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
ZOOZTER&#8482;-100 offers a valuable solution to help CPOs, businesses operators, asset owners, and Fleet Operators overcome key challenges,
while offering cost-effective, sustainable, safe, and flexible benefits that make it a viable long-term asset.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Competition</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
of the date of this Annual Report, ZOOZ competes with companies that offer three main types of solutions:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; Flywheel-based
power boosters;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; Standalone
battery-based energy storage systems used as power booster; and</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; Ultra-fast
chargers with integrated battery-based energy storage (as a power booster).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Competition
with flywheel-based power boosters</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
first category of competitors includes those utilizing flywheel technology, with similar concept as ZOOZ. While the overarching concept
may appear analogous, the primary differentiating factors amongst these companies lie in the design of the flywheel, the materials employed
in its construction, the production processes, and the maturity of their respective solutions.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">There
are 3 main categories of flywheel rotor materials: carbon fiber, solid steel and laminated steel. Although carbon fiber has very high
mechanical properties, economically, its cost is too high for ZOOZ&#8217;s target markets and ZOOZ believes that it has a better fit
for defense and aerospace applications.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Due
to their safety issues, solid steel flywheels are typically installed underground and therefore have a better fit for grid regulation
applications.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Laminated
rotors, similar to ZOOZ&#8217;s technology, enjoy the low cost of steel without the safety issues of the Solid Steel flywheel and can
be installed above ground.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Presently,
to ZOOZ&#8217;s knowledge, ZOOZ&#8217;s competitors who employ flywheel technology, and target the EV charging market with relevant products,
are in early stage. To ZOOZ&#8217;s knowledge, ZOOZ is the first company on the market to introduce and market a mature system which
is already in serial production.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
this category of competition, ZOOZ&#8217;s competitors include Teraloop, Adaptive Balancing Power, Levistor, and Revterra.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Competition
with standalone battery-based energy storage systems used as power booster</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
second category of competition refers to standalone battery-based energy storage systems, which are being used as Power Boosters. Such
system is built from modules of battery packs (different sizes and type gives different capacity and power) with system electronics and
SW that control the overall performance. In many cases these systems were originally designed for energy storage applications, such as
Solar farms and therefore may not be well optimized to the unique (high-power, short-peaks) profile of usage relevant for a Power Booster
supporting the grid in an ultra-fast charging station.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Key
advantages of these systems include a substantial storage capacity and relatively low upfront costs (CAPEX). However, these solutions
come with a few notable drawbacks. Firstly, they exhibit a slow response time and low C-Rate, which implies prolonged charge-discharge
periods (not suitable for the needs of an ultra-fast charging station). Secondly, they offer limited charging cycles, resulting in shorten
lifetime, driving the need to replace the batteries (in some cases multiple of times) along the years a charging site is expected to
operate. Consequently, these factors contribute to a high Total Cost of Ownership over the charging infrastructure&#8217;s lifespan,
as well as a significant sustainability challenge, as those replaced batteries need to be recycled or properly buried.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Another
significant concern with these systems is the elevated fire risk associated with chemical batteries, which might be increased due to
the high-power rapid-cycling profile of operation while supporting the grid in an ultra-fast charging station.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 55; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->55<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
this category of competition, ZOOZ&#8217;s competitors include companies such as Alfen, Kreisel, and Tesvolt.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Competition
with ultra-fast chargers with integrated battery-based energy storage</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
third category of competition refer to ultra-fast chargers with integrated battery-based storage in order to enable an ultra-fast charging
although limited grid power. This solution shares the same advantages and disadvantages as standalone batteries-based storage but also
introduces certain unique features.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">One
of the primary benefits of this integrated system is its inherent simplicity, combining all functions within a single unit. However,
this solution brings specific drawbacks that need to be factored in. Firstly, it binds the customer to a specific charger or vendor,
potentially limiting their choices. Secondly, each booster is restricted to function with a single charger, meaning that added value
of a booster is limited only to that charger (and is not supporting other chargers on the same site) and in addition any malfunctions
within the booster module could render the charger inoperative. In some cases, these products are limited by their ability to recharge
from the grid at high power, thus might be limited to support only chargers with low utilization, which may cause a long return on investment
for these chargers.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Furthermore,
the integrated design precludes the flexibility of redeploying the booster independently when there&#8217;s an upgrade to the grid power.
Therefore, while chargers with integrated battery boosters can offer streamlined operations, customers must carefully consider the potentially
limited ROI and the potential challenges of vendor lock-in, service disruption, and reduced flexibility.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
this category of competition, ZOOZ&#8217;s competitors include FreeWire, ADS-Tec, L-Charge, X-Charge and Kreisel Electric.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Material
Agreements</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Since
2017, ZOOZ has installed several units of its first-generation product, the KPB50 model, as proof-of concept and demonstration systems.
On a later stage, ZOOZ introduced its more advanced, production-ready, second-generation product &#8211; the ZOOZTER&#8482;-100 system
and entered into commercial sale agreements and cooperation agreements for establishing EV fast charging facilities, supported by the
ZOOZTER&#8482;-100, in the European market, the U.S. market, and Israel.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Cooperation
Agreement with the New York Power Authority</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
September 12, 2022, ZOOZ entered into a cooperation agreement with the New York Power Authority (&#8220;<b>NYPA</b>&#8221;) (as amended,
the &#8220;<b>NYPA Cooperation Agreement</b>&#8221;) for the development, installation, implementation and demonstration of ZOOZ&#8217;s
technology and products at locations where the power grid is limited.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to the NYPA Cooperation Agreement, ZOOZ will establish and demonstrate an ultra-fast charging station, based on the ZOOZTER&#8482;-100
system, with financing in the amount of $0.97 million to be provided by NYPA in several milestone-based installments, of which ZOOZ has
received $0.52 million as of December 31, 2023.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
the terms of the NYPA Cooperation Agreement, ZOOZ will demonstrate the operation of the charging facility for a one-year period in a
variety of scenarios, which will be jointly defined by the parties. Under the NYPA Cooperation Agreement, ZOOZ shall be required to pay
NYPA royalties from revenues derived in the U.S. from the sale, licensing or usage of ZOOZ&#8217;s product, in a total amount not to
exceed the total financing provided by NYPA pursuant to the agreement.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
ZOOZTER&#8482;-100 system for this pilot shipped in April of 2024. The Pilot site is expected to be established during the second quarter
of 2024 and start the Pilot trials&#8217; period in the third quarter of 2024.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Distribution
Agreement with Blink Charging Co.</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
December 1, 2022, ZOOZ entered into a non-exclusive distribution agreement with Blink Charging Co. (&#8220;<b>Blink</b>&#8221;), a Nasdaq-listed
company which owns and operates EV charging equipment and services in the U.S. and other jurisdictions, for the marketing, distribution,
sale and deployment of the ZOOZTER&#8482;-100 in its American configuration in the U.S. (the &#8220;<b>Blink Distribution Agreement</b>&#8221;).
Pursuant to the terms of the Blink Distribution Agreement, Blink shall be appointed as a distributor of ZOOZ&#8217;s ZOOZTER&#8482;-100
for a period of five years (unless the agreement is earlier terminated) and ZOOZ granted Blink the right to purchase ZOOZTER&#8482;-100
system at preferential prices. Following the pilot installation which is planned in Ft. Lauderdale FL (at the time of this Annual Report
the parties are still waiting for the local authority permit), the parties agreed to establish a roadmap and forecast for the sales of
ZOOZ&#8217;s products. The Blink Distribution Agreement may be extended for additional two-year periods.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 56; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->56<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Additional
Agreements</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Cooperation
Agreements with EES GmbH, Mer, Parkstorm GmbH and an Investment Firm</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
December 6, 2021 and January 18, 2022, ZOOZ, EES GmbH, an engineering company headquartered in Germany (&#8220;<b>EES</b>&#8221;) and
an unrelated third party investment firm headquartered in Germany and experienced and reputable in initiating profitable asset investments
in the energy sector for its clients (the &#8220;<b>Investment Firm</b>&#8221;) entered into cooperation agreements for setting up five
EV fast charging stations in which the ZOOZTER&#8482;-100 systems will be integrated to overcome power limitation of the grid and support
ultra-fast charging of EVs (the &#8220;<b>EES Cooperation Agreement</b>&#8221;).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
the EES Cooperation Agreements, the parties will lease real-property for setting up the stations, which will be located in several sites
in Germany, and the Investment Fund will finance the setting up of the stations by approximately EUR 0.5 million per station. Such stations
will be operated for a period of 15 years by EES (or a third party which will replace it), during which ZOOZ will be entitled to fees
for maintenance services for the ZOOZTER&#8482;-100 systems.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
of the date of this Annual Report, two of the sites (which were built in cooperation with Mer) are commercially
operational with the ZOOZTER&#8482;-100 systems and two additional sites have been established (in cooperation with Parkstorm GmbH)
and are expected to become commercially operational during the second quarter of 2024.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Cooperation
Agreement with the Arko Corp.</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
February 18, 2021, ZOOZ entered into a binding memorandum of understanding with Arko Corp. (a U.S. public company listed for trading
on the Nasdaq, which operates in the field of convenience stores and gas stations in the U.S.) and/or companies under its control (the
&#8220;<b>Arko Group</b>&#8221;), for the distribution of ZOOZ&#8217;s kinetic storage systems (as amended, the &#8220;<b>Arko Cooperation
Agreement</b>&#8221;).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to the Arko Cooperation Agreement, ZOOZ and the Arko Group will set up a pilot site for the ZOOZTER&#8482;-100 system at an Arko
Group convenience store and gas station site (Scotchman Gas Station) in Rock Hill, South Carolina. The pilot site was installed
during the third quarter of 2023 and start commercial operation during the fourth quarter of 2023.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">After
the lapse on a one-year period following the commencement of the pilot, the Arko Group will have the right to terminate the engagement
between the parties, or to expand the cooperation between the parties to additional sites of the Arko Group and order from ZOOZ additional
ZOOZTER&#8482;-100 systems. In the event that the Arko Group will extend the cooperation with ZOOZ, ZOOZ will grant the Arko Group an
exclusive right to distribute its systems in North America until the end of 2030 (subject to certain exceptions, including in cases where
the Arko Group decided not to sell such systems or pursuant to the Blink Agreement), all pursuant terms of a distribution agreement in
the form and substance to be agreed to between the parties. In case the Arko Group and ZOOZ will enter such distribution agreement, it
was agreed that Akro will buy several ZOOZTER&#8482;-100 systems to initiate deployment and will initiate needed efforts to meet sales
targets which were agreed by the parties.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
part of the Arko Cooperation Agreement and the strategic engagement between the parties, ZOOZ granted to Arko Group options to purchase
up to 26,230 ZOOZ ordinary shares, exercisable until March 21, 2026, for an exercise price per share equal to 120% of the share price
of the ZOOZ ordinary shares in the Israeli IPO (in March 2021).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Until
the end of the pilot, the Arko Group has the right to terminate the Arko Cooperation Agreement at any time and for any reason, by providing
a 10-day prior notice to ZOOZ. In the event that the cooperation between the partiers shall be extended after the end of the pilot, the
Arko Group will have the right to terminate the Arko Cooperation Agreement at any time and for any reason, by providing ZOOZ with a 12-month
prior notice, and in addition, each party will have customary termination rights (subject, in some cases, to payment of termination fees).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition, the Arko Cooperation Agreement includes customary indemnification provisions, limitations of liability, ownership of intellectual
property, confidentiality and best price (MFN) provisions, as customary in this type of engagements.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Cooperation
agreement with Afcon Electric Transportation Ltd.</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
July 22, 2022, ZOOZ entered into a cooperation agreement with Afcon Electric Transportation Ltd. (the &#8220;<b>Cooperation Agreement</b>&#8221;
and &#8220;<b>Afcon Electric</b>&#8221;, respectively), for a joint pilot project (the &#8220;<b>Project</b>&#8221;) designed to establish
a commercial ultra-fast charging infrastructure for electric vehicles, utilizing the ZOOZTER&#8482;-100 together with energy management
software (EMS) for power consumption control. The purpose of the Cooperation Agreement was to validate the ZOOZTER&#8482;-100&#8217;s
capability, necessity and reliability at one of Afcon Electric&#8217;s charging stations, as well as to serve as a demonstration site
for potential future projects involving both parties. As part of the cooperation, ZOOZ installed the ZOOZTER&#8482;-100 at a gas station
in Zikhron Yaakov, Israel. This charging station is first of its kind in Israel, capable of ultra-fast charging, overcoming the limited
power grid capacity available (the ZOOZTER&#8482;-100 on site allows ultra-fast charging at approximately 150 kWh, while the power grid
is limited to approximately 50 kWh.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 57; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->57<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
connection with the Project, ZOOZ received a grant of approximately NIS 1.2 million (equivalent to $$330 thousands based on the Exchange
Rate) from the IIA, accounting for approximately 40% of the Project&#8217;s budget. Accordingly, ZOOZ is subject to the rules and regulations
of the IIA and the Innovation Law with respect to such grant. See &#8220;<i>ZOOZ&#8217;s Business &#8212; Government Regulations&#8212;
Other Regulations.&#8221;</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Cooperation Agreement was in effect until January 31, 2024, following which, Afcon Electric exercised its right to extend the term of
the agreement for an additional 12-month period with ZOOZ&#8217;s prior approval till January 30,2025.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
the Cooperation Agreement, each party retains ownership of the intellectual property rights that it possesses at the time of signing
the agreement. Neither party is permitted to use the other party&#8217;s intellectual property without obtaining the other party&#8217;s
prior approval. In addition, the parties are subject to customary confidentiality obligations.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Binding
Memorandum of Understanding with Dor-Alon (a leading operator of Gas Stations network in Israel, and operates, jointly with Afcon Electric
Transportation, the &#8220;ON&#8221; charging network)</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
March 21, 2024, ZOOZ signed a binding memorandum of understanding with Dor-Alon, according to which, as part of a project, to be carried
out in cooperation between ZOOZ, Dor-Alon and Afcon (jointly operating the ON charging network, which is the largest fast-charging network
in Israel), the ultra-fast charging infrastructure at two Dor-Alon stations, on </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Highway
6 <span style="background-color: white">&#8211; the Magal station (on the east side of the highway) and the Na&#8217;an station (on the
west side of the highway), will be upgraded, while installing two ZOOZTER&#8482;-100 systems (one at each station), and adding charging
stations based on ultra-fast chargers, which allow charging with a power of up to 150 kW. The upgrade of the charging infrastructure
is expected to enable a significant improvement in the experience of electric vehicle drivers who travel on Highway 6 as a major transportation
corridor in Israel and are looking for charging services at these sites. In the first months of operation of the ZOOZTER&#8482;-100 systems
at the Highway 6 sites, their ability to allow the addition of charging ports, and managing a large number of charging ports will be
tested (this is different from the outline of the pilot carried out during 2023 at the Dor-Alon station). Insofar as ZOOZ&#8217;s solution
is proven to allow the addition of the aforementioned charging ports, the systems will be purchased by Dor-Alon, under conditions agreed
upon between the parties.</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Cooperation
Agreement with a global leader in the car rental business</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
November 1, 2022, ZOOZ entered into a binding memorandum of understanding (the &#8220;<b>CRSP Cooperation Agreement</b>&#8221;) to cooperate
with a global leader in the car rental business, which operates thousands of car rental offices in over 100 countries worldwide (&#8220;<b>CSRP
Sites</b>&#8221;). Pursuant to the terms of the CRSP Cooperation Agreement, the parties agreed to establish and operate a joint pilot
of charging station with ultra-fast charging infrastructure for EVs, designed to demonstrate and test ZOOZ&#8217;s solution, and the
ZOOZTER&#8482;-100&#8217;s ability to enable and support ultra-fast charging of EVs at CSRP Sites where the power grid is limited. The
parties agreed that the pilot site will be set up at the CSRP Site at the La-Guardia Airport in New York, USA.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
ZOOZTER&#8482;-100 system was delivered to the site at La-Guardia Airport in August 2023. The required permit for establishment of the
charging site were received during 1<sup>st</sup> quarter of 2024 and this led the parties to initiate the site&#8217;s construction
works. The charging site is expected to be operational during the third quarter of 2024.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
November 26, 2023, ZOOZ announced receipt of a Purchase Order for a ZOOZTER&#8482;-100 system, which is ZOOZ&#8217;s first entry into
the U.K. market, and initiates a collaboration with Osprey Charging Network, one of the top-3 leading CPOs in the U.K. The parties agreed
to collaborate and establish a first charging site in the U.K. where the limited grid will be supported by ZOOZ&#8217;s innovative kinetic
Power Booster, the ZOOZTER&#8482;-100, enabling to upgrade the charging site with 150kW ultra-fast chargers, despite the power limitations
of the electric grid on site. The parties have installed the ZOOZTER&#8482;-100 and the ultra-fast chargers during February 2024 and
await final regulatory approval to initiate the commercial operation of the site, which as of the date of this Annual Report, is expected
during the second quarter of 2024. Following initiation of the site&#8217;s commercial operation, the ZOOZTER&#8482;-100 will be evaluated
by Osprey for a period of 6 months, while the charging site is commercially operational. Upon completion of a successful evaluation,
the purchase of the ZOOZTER&#8482;-100 system will be completed, according to terms agreed by the parties. The U.K. market is one of the
leading territories in the global EV market, showing accelerated adoption of EVs and rapidly growing public fast-charging infrastructure,
and as such, the U.K. market was designated by ZOOZ as a strategic territory for the ZOOZTER&#8482;-100 market penetration and commercialization.
Therefore, ZOOZ considers this Purchase Order to be a major milestone with significant potential, as a first move into the U.K. market,
being realized while collaborating with Osprey, one of the leading CPOs in the U.K. ZOOZ plan to leverage this site for demonstrations
of the joint (with Osprey) innovative solution to other U.K. customers, to have this site as a show case of the technology&#8217;s added
value, and to promote this solution for other sites and customers in the U.K.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 58; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->58<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition to the above, ZOOZ is working to establish additional collaborations with additional customers and partners in the U.S., the
United Kingdom (U.K.) and the EU. There can be no assurance that ZOOZ&#8217;s efforts to establish such additional collaborations will be successful.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>The
Business Combination Agreement and Related Agreements</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
connection with the consummation of the Business Combination, on March 21, 2024, the extraordinary general meeting of ZOOZ&#8217;s shareholders
approved a reverse share split of the ZOOZ ordinary Shares (the &#8220;<b>Recapitalization</b>&#8221;), effective as of March 25, 2024,
at a conversion ratio between 11.3 and 11.5, which shall be determined in accordance with the Business Combination Agreement, and a corresponding
amendment to ZOOZ&#8217;s amended and restated articles of association then in effect. In addition, pursuant to the Recapitalization,
the outstanding all then-outstanding (i.e. outstanding as of January 31, 2024) ZOOZ warrants which by their terms are required to be
exercised, or whose holder elects to exercise such warrants, in connection with the Closing (the &#8220;<b>ZOOZ Continuing Warrants</b>&#8221;)
and ZOOZ options which have not been previously exercised were adjusted to reflect the Recapitalization and all ZOOZ securities outstanding
prior to the consummation of the Merger, remained outstanding following the consummation of the Merger and were not affected by the Merger
(other than adjustments in connection with the Recapitalization).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to the Business Combination Agreement and the Recapitalization, at the Effective Time (a) all Keyarch Class A and Class B ordinary shares
outstanding immediately prior to the Effective Time (excluding treasury shares and &#8220;<b>Dissenting Keyarch Shares</b>&#8221; (i.e.,
the shares subject to appraisal or dissent rights (&#8220;<b>Dissent Rights</b>&#8221;), which shares are held by Keyarch shareholders
who properly exercise those Dissent Rights) (in each case as provided in the Business Combination Agreement), were exchange for the right
to receive ZOOZ ordinary shares on a 1:1 ratio, subject to adjustment described below, (b) each outstanding Keyarch public warrant and
Keyarch private warrant were converted into the right to receive one &#8220;<b>ZOOZ Closing Warrant</b>&#8221; (i.e., a warrant of ZOOZ
entitling the holder to purchase one ZOOZ ordinary share per warrant at a price of $11.50 per whole share, and preserving the existing
public or private nature of the applicable Keyarch Warrant (as defined below), exercisable for up to an aggregate of (including warrants
which were components of publicly traded units of Keyarch described below) 6,022,500 ZOOZ ordinary shares), which have the same terms
as the applicable &#8220;<b>Keyarch Warrant</b>&#8221; (i.e., each outstanding public and private warrant of Keyarch entitling the holder
to purchase one Keyarch Class A ordinary share per warrant at a price of $11.50 per whole share), and with the public or private nature
of the applicable Keyarch Warrant being preserved in the ZOOZ Closing Warrants (i.e., the Keyarch private warrants were converted into
ZOOZ private warrants and Keyarch public warrants were converted into ZOOZ public warrants), and (c) holders of each outstanding &#8220;<b>Keyarch
Right</b>&#8221; (i.e., a right to receive one tenth (1/10) of one Keyarch Class A ordinary share) were issued the number of full shares
of Keyarch Class A ordinary shares to which such holder of Keyarch Rights were eligible, and which were exchanged for the equivalent
number of ZOOZ ordinary shares.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Upon
the Effective Time, the outstanding publicly traded units of Keyarch were separated into their component securities, consisting of one
Keyarch Class A ordinary share, one-half (1/2) of one Keyarch Warrant, and one Keyarch Right (with such Keyarch Warrants and Keyarch
Rights being exchanged or converted at the Effective Time for ZOOZ Closing Warrants or ZOOZ ordinary shares in accordance with the foregoing
description). Subject to the adjustments set forth above in the Recapitalization, each ZOOZ Continuing Warrant and ZOOZ Continuing Option
at the Effective Time remained outstanding. In addition, ZOOZ Continuing Warrants which were listed for trading on the TASE (i.e. the
ZOOZ warrants (Series 3)) also remained traded on the TASE only.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition, the ZOOZ shareholders who were ZOOZ shareholders as of immediately prior to the Closing (as of a record date determined by
ZOOZ) (the &#8220;<b>Pre-Closing ZOOZ Shareholders</b>&#8221;) are entitled to the Earnout Shares as an additional contingent consideration
upon ZOOZ&#8217;s achievement of the applicable earnout milestones (based on share price) as set forth in the Business Combination Agreement,
as amended, in the form of <span style="background-color: white">non-tradable, non-assignable </span>rights (the &#8220;<b>Earnout Rights</b>&#8221;),
that were <span style="background-color: white">issued by ZOOZ pro rata to the Pre-Closing ZOOZ Shareholders on April 4, 2024 pursuant
to a shelf offering report filed by ZOOZ in connection thereto. The Earnout Rights</span> may be converted into ZOOZ ordinary shares
within 5 years from the lapse of the first quarter following the Closing (the &#8220;<b>Earnout Period</b>&#8221;). The conversion of
the Earnout Rights (insofar as they are converted) into Earnout Shares and the issuance of the Earnout Shares will be subject to withholding
tax according to the relevant provision of the applicable law. Such withholding tax from the Earnout Shares will be conducted by any
TASE member.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Earnout Rights will be automatically (unless otherwise determined by ZOOZ) converted into ZOOZ ordinary share subject to the occurrence
of the milestone(s) listed below during the Earnout Period, as follows (the &#8220;<b>Earnout</b>&#8221;):</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; First
milestone (25% of the Earnout Rights) (i.e., 1,000,000 ZOOZ ordinary shares in the aggregate, subject to adjustment in accordance with
the Business Combination Agreement): the volume-weighted average price of Zooz ordinary shares (&#8220;<b>VWAP</b>&#8221;) of the ZOOZ
ordinary shares equals or exceeds $12 per ZOOZ ordinary share (as adjusted for share splits, share dividends, combinations or exchange
or readjustment of shares, reorganizations and recapitalizations, share sub-division (including share consolidation), split-up and the
like) for any 20 &#8220;<b>Trading Days</b>&#8221; (i.e., any day on which ZOOZ ordinary shares are actually traded on the principal
United States securities exchange or securities market on which the ZOOZ ordinary shares are then traded) within any 30 Trading Day period
during the Earnout Period;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 59; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->59<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; Second
milestone (35% of the Earnout Rights) (i.e., 1,400,000 ZOOZ ordinary shares in the aggregate, subject to adjustment in accordance with
the Business Combination Agreement): the VWAP of the ZOOZ ordinary shares equals or exceeds $16 per ZOOZ ordinary share <span style="background-color: white">(as
adjusted for share splits, share dividends, combinations or exchange or readjustment of shares, reorganizations and recapitalizations,
share sub-division (including share consolidation), split-up and the like) </span>for any 20 Trading Days within any 30 Trading Day period
during the Earnout Period; and</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; Third
milestone (40% of the Earnout Rights) (i.e., 1,600,000 ZOOZ ordinary shares in the aggregate, subject to adjustment in accordance with
the Business Combination Agreement): the VWAP of the ZOOZ ordinary shares equals or exceeds $23 per ZOOZ ordinary share <span style="background-color: white">(as
adjusted for share splits, share dividends, combinations or exchange or readjustment of shares, reorganizations and recapitalizations,
share sub-division (including share consolidation), split-up and the like) </span>for any 20 Trading Days within any 30 Trading Day period
during the Earnout Period.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
conversion of the Earnout Rights into Earnout Shares and the issuance of the Earnout Shares will be subject to withholding tax according
to the relevant provisions of applicable law. Such withholding tax from the Earnout Shares will be conducted by any TASE member. All
conversions of Earnout Rights by Pre-Closing Company Shareholders shall be made in accordance with the then-applicable rules of the TASE
and the &#8220;Nesher System&#8221; (to the extent that ZOOZ is listed for trading on the TASE at such time) and otherwise in accordance
with the rules of any stock exchange on which ZOOZ&#8217;s shares are then traded (to the extent applicable).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline">Adjustments
to the Earnout Shares</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Commencing
from the allocation date of the unregistered non-convertible Earnout Rights until the expiration of the Earnout Period, adjustments to
the unregistered non-convertible rights shall apply as follows:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">A. <span style="text-decoration: underline">Adjustments
Following Consolidation or Split of the Share Capital</span>: If ZOOZ consolidates or splits its issued ordinary shares, the number of Earnout
Shares allocated following the conversion of unregistered rights will be adjusted, as applicable, after such action. Additionally, the
VWAP will be adjusted accordingly. In such case, a holder of an unregistered right will not be entitled to receive a fractional share,
and fractional shares resulting from such adjustment will be treated as determined by ZOOZ&#8217;s board of directors.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">B. <span style="text-decoration: underline">Adjustment
Following Bonus Share Distributio</span>n: In any case where there is a change in ZOOZ&#8217;s issued share capital through a bonus share
distribution, the number of Earnout Shares held by those entitled to them upon exercise, at the time of exercise, will increase by such
number of shares to which the holder of unregistered rights was entitled had the unregistered rights been converted prior to the distribution
of the bonus shares. The VWAP will change accordingly. In such adjustment cases, the holder will not be entitled to receive a fractional
share, and fractional shares resulting from such adjustment will be treated as determined by the Company&#8217;s board of directors.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">C. <span style="text-decoration: underline">Adjustment
Following Rights Offerin</span>g: If during the Earnout Period, ZOOZ offers its shareholders securities by way of a rights offering, ZOOZ
will offer to the holders of the Earnout Rights the same securities by way of a rights offering on identical terms. The Earnout Rights
will be treated as if they were converted into Earnout Shares on the trading day before the ex-date.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">D. <span style="text-decoration: underline">Adjustment
Following Dividend Distributio</span>n: In the event that ZOOZ declares a dividend distribution, as defined in the Companies Law, whose
record date precedes the expiration of the Earnout Period, the VWAP will be reduced by the gross amount of the dividend paid to the shareholders
of ZOOZ for each ZOOZ ordinary share.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition, Keyarch&#8217;s Sponsor agreed in the Sponsor Support Agreement to subject forty percent of all of its original holdings of
Keyarch Class B ordinary shares (which the Sponsor converted to Class A ordinary shares on August 14, 2023) to the same Earnout as of
the Effective Time, other than to the extent used, in whole or in part, in connection with payment of expenses of the Business Combination,
which comprise in aggregate 1,120,000 Keyarch Class A ordinary shares, which were converted in the Business Combination into 1,120,000
ZOOZ ordinary shares (the &#8220;<b>Sponsor Earnout Shares</b>&#8221;).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline">Closing
and Effective Time of the Transactions</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
closing of the Merger and the Transactions (&#8220;<b>Closing</b>&#8221;) took place on April 4, 2024. At the Effective Time, and upon
the terms and subject to the conditions of the Business Combination Agreement, and in accordance with the </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Cayman
Islands Companies Act (as amended) <span style="background-color: white">(the &#8220;<b>Cayman Act</b>&#8221;), Keyarch and Merger Sub
consummated the Merger, pursuant to which Merger Sub was merged with and into Keyarch, with Keyarch being the surviving company, following
which the separate corporate existence of Merger Sub ceased and Keyarch continued as the surviving company.</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 60; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->60<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Upon
the terms and subject to the conditions set forth in the Business Combination Agreement and in accordance with the Cayman Act, on the
Closing Date, Keyarch and Merger Sub caused the Plan of Merger, along with all other documentation and declarations required under the
Cayman Act in connection with the Merger, to be duly executed and properly filed with the </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Registrar
of Companies of the Cayman Islands <span style="background-color: white">(the &#8220;<b>Registrar</b>&#8221;), in accordance with the
relevant provisions of the Cayman Act (together, the &#8220;<b>Merger Documents</b>&#8221;). The Merger became effective on the date
and time at which the Merger Documents were duly registered with the Registrar.</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline">Agreements
Entered into in Connection with the Business Combination Agreement</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">This
section describes the material provisions of certain additional agreements entered into or to be entered into pursuant to the Business
Combination Agreement (the &#8220;<b>Ancillary Documents</b>&#8221;) but does not purport to describe all of the terms thereof. The following
summary is qualified in its entirety by reference to the complete text of each of the Ancillary Documents, copies of which were filed
as exhibits to the Registration Statement.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Lock-Up
Agreements</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
July 30, 2023, ZOOZ officer holders each entered into a Lock-Up Agreement with ZOOZ and Keyarch (collectively, the &#8220;<b>Lock-Up
Agreements</b>&#8221;). Pursuant to the Lock-Up Agreements, each shareholder party thereto agreed not to, during the period
commencing from the Closing and ending on the earlier of (x) the date that is 180 days after the date of the Closing, (y) ZOOZ
consummates a liquidation, merger, share exchange, reorganization or other similar transaction that results in all of ZOOZ&#8217;s
shareholders having the right to exchange their ZOOZ ordinary shares for cash, securities or other property): (i) lend, offer,
pledge, hypothecate, encumber, donate, assign, sell, contract to sell, sell any option or contract to purchase, purchase any option
or contract to sell, grant any option, right or warrant to purchase, establish or increase of a put equivalent position or
liquidation with respect to or decrease of a call equivalent position with respect to or decrease of a call equivalent position
within the meaning of Section 16 of the Exchange Act and the rules and regulations of the SEC promulgated thereunder or otherwise
transfer or dispose of, directly or indirectly, any restricted securities, (ii) enter into any swap or other arrangement that
transfers to another, in whole or in part, any of the economic consequences of ownership of the restricted securities, or (iii)
publicly disclose the intention to do any of the foregoing, whether any such transaction described in clauses (i), (ii) or (iii)
above is to be settled by delivery of restricted securities or other securities, in cash or otherwise (in each case, subject to
certain limited permitted transfers where the recipient takes the shares subject to the restrictions in the Lock-Up
Agreement).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Non-Competition
and Non-Solicitation Agreement</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
July 30, 2023, the directors and executive officers of ZOOZ directly or indirectly holding ZOOZ securities as of the date of the Business
Combination Agreement entered into non-competition and non-solicitation agreements (the &#8220;<b>Non-Competition and Non-Solicitation
Agreements</b>&#8221;), pursuant to which they agreed, during the one-year period following the Closing, not to compete with ZOOZ anywhere
in Israel, the continent of North America, the People&#8217;s Republic of China, including Macao, Taiwan, and Hong Kong, the United Kingdom
and the European Union, in the business in which ZOOZ is engaged, and during such one-year restricted period, not to (i) solicit, hire
or engage employees or independent contractors of ZOOZ or (ii) solicit customers or clients of ZOOZ. The agreements also contain customary
non-disparagement and confidentiality provisions.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Assignment,
Assumption and Amendment to Warrant Agreements</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
connection with the Closing, ZOOZ, Keyarch and the Warrant Agent, entered into the Assignment, Assumption and Amendment to Public Warrant
Agreement (the &#8220;<b>Public Warrant Amendment</b>&#8221;), dated as of April 4, 2024, which amends that certain Public Warrant Agreement,
and filed with the SEC on January 27, 2022. Separately, ZOOZ, Keyarch, and the Warrant Agent entered into the Assignment, Assumption
and Amendment to Private Warrant Agreement (the &#8220;<b>Private Warrant Amendment</b>&#8221; and, together with the Public Warrant
Amendment, the &#8220;<b>Warrant Amendments</b>&#8221;), dated as of April 4, 2024, which amends that certain Private Warrant Agreement,
and filed with the SEC on January 27, 2022. Pursuant to the Warrant Amendments: (i) ZOOZ has assumed the obligations of Keyarch under
the original Public Warrant Agreement and Private Warrant Agreement, and, among other things, ZOOZ has been added as a party thereto,
and (ii) all references to Keyarch ordinary shares in the original Public Warrant Agreement and Private Warrant Agreement shall mean
ZOOZ ordinary shares and all references to &#8220;Shareholders&#8221; shall mean ZOOZ shareholders.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 61; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->61<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Sponsor
Letter Agreement and Business Combination Marketing Agreement</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
July 30, 2023, Keyarch, the Sponsor and ZOOZ entered into an agreement, as subsequently amended (the &#8220;<b>Sponsor Letter
Agreement</b>&#8221;) pursuant to which the Sponsor agreed to make commercially reasonable efforts to utilize up to 40% (or
1,120,000 shares) of its ownership of Keyarch shares (the &#8220;<b>Subject Founder Shares</b>&#8221;) to pay any portion of unpaid
Keyarch transaction expenses or incentivize investors or otherwise provider support in connection with transaction financing. Any
remaining Subject Founder Shares which were not transferred to such payees were placed in escrow at the Closing and, as converted to
ZOOZ ordinary shares, being the Sponsor Earnout Shares, will be released to the Sponsor if, during the Earnout Period, ZOOZ achieves
the milestones as described above (including with </span>respect to the percentage of such remaining Sponsor Earnout Shares to be
released upon the achievement of any targets). Any Sponsor Earnout Shares that are not released will be transferred to ZOOZ for no
consideration at the end of the Earnout Period, provided, however that at least 50% of the Sponsor Earnout Shares placed in escrow
will be released to the Sponsor at the end of the Earnout Period notwithstanding the failure of ZOOZ to achieve any earnout
milestones; and provided further that no Sponsor Earnout Shares will be released to the Sponsor under the Earnout until the EBC Note
(as defined below) is paid in full and, additionally, the Sponsor Note (as defined below) is paid in full (in that order).</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition, during 2023 and 2024, Keyarch issued certain promissory notes in favor of the Sponsor (the &#8220;<b>Pre-Closing Sponsor Notes</b>&#8221;),
which Pre-Closing Sponsor Notes were not repaid as of the Closing. On April 4, 2024, ZOOZ and Keyarch issued a promissory note in favor
of the Sponsor for the principal amount of $2,030,000 (the &#8220;<b>Sponsor Note</b>&#8221;), in satisfaction of the Pre-Closing Sponsor
Notes. The Sponsor Note matures on April 4, 2026, and accrues interest at an annual rate of 8%, which interest increases to 15% if the
Sponsor Note is not paid when due. In addition, ZOOZ is required to make mandatory cash prepayments on the Sponsor Note from time to
time in amounts equal to 25% of the gross proceeds less sales commissions received by ZOOZ from equity or equity-linked financings following
the issuance date and prior to maturity, provided that ZOOZ will not make any such prepayments until the EBC Note has been paid in full.
Further, at any time after the EBC Note has been paid in full, the Sponsor may elect to have any amount of outstanding principal and/or
accrued interest of the Sponsor Note satisfied by the transfer of Sponsor Earnout Shares then remaining in the Escrow Account (as defined
below) to the Sponsor, with the price per Sponsor Earnout Share for purposes of determining the amount of the obligations satisfied under
the Sponsor Note for such prepayment being equal to ninety percent (90%) of the volume weighted average price of an ordinary share of
ZOOZ on the principal U.S. securities exchange on which ZOOZ&#8217;s ordinary shares then trade for the five trading day period ending
on the trading day immediately prior to ZOOZ&#8217;s receipt of the applicable prepayment notice from the Sponsor. In addition, on the
maturity date of the Sponsor Note, provided that the EBC Note has been paid in full, all outstanding obligations will be satisfied by
the transfer of Sponsor Earnout Shares from the Escrow Account to the Sponsor using the same pricing terms as in the previous sentence,
with the five trading day period ending on the trading day immediately prior to such maturity date. Under the Sponsor Note, ZOOZ agreed
to file, within 30 days after the issuance date, a registration statement registering the resale by the Sponsor of the Sponsor Earnout
Shares.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to the &#8220;Business Combination Marketing Agreement,&#8221; dated January 24, 2022, as subsequently amended on April 4, 2024, between
EBC, who, among other things, served as the representative of the underwriters in Keyarch&#8217;s initial public offering, Keyarch and
(effective April 4, 2024) ZOOZ, Keyarch engaged EBC as an advisor in connection with a business combination. Under the Business Combination
Marketing Agreement, as compensation for EBC&#8217;s services, EBC is entitled to a total fee of $1,500,000, of which a total of $660,000
was paid in cash to EBC at the Closing, and the remainder of which is reflected in a promissory note dated April 4, 2024, for the principal
amount of $840,000, made by ZOOZ and Keyarch in favor of EBC (the &#8220;<b>EBC Note</b>&#8221;).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
EBC Note matures on April 4, 2026, and accrues interest at an annual rate of 8%, which interest increases to 15% if the EBC Note is not
paid when due. In addition, ZOOZ is required to make mandatory cash prepayments on the EBC Note from time to time in amounts equal to
25% of the gross proceeds less sales commissions received by ZOOZ from equity or equity-linked financings following the issuance date
and prior to maturity. Further, at any time, EBC may elect to have any amount of outstanding principal and/or accrued interest of the
EBC Note prepaid by the Sponsor by the transfer of Sponsor Earnout Shares then remaining in the Escrow Account (as defined below) to
EBC, with the price per Sponsor Earnout Share for purposes of determining the amount of the obligations satisfied under the EBC Note
for such prepayment being equal to ninety percent (90%) of the volume weighted average price of an ordinary share of ZOOZ on the principal
U.S. securities exchange on which ZOOZ&#8217;s ordinary shares then trade for the five trading day period ending on the trading day immediately
prior to the Sponsor&#8217;s and ZOOZ&#8217;s receipt of the applicable prepayment notice from EBC. In addition, on the maturity date
of the EBC Note, all outstanding obligations will be paid by the Sponsor by the transfer of Sponsor Earnout Shares from the Escrow Account
using the same pricing terms as in the previous sentence, with the five trading day period ending on the trading day immediately prior
to such maturity date. Under the EBC Note, ZOOZ agreed to file, within 30 days after the issuance date, a registration statement registering
the resale by EBC of the Sponsor Earnout Shares.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Sponsor Earnout Shares were deposited in an escrow account (the &#8220;<b>Escrow Account</b>&#8221;) at the Closing pursuant to an escrow
agreement, dated April 4, 2024 (the &#8220;Escrow Agreement&#8221;), which Escrow Agreement governs the release of such Sponsor Earnout
Shares in accordance with the Sponsor Letter Agreement, Sponsor Note and EBC Note.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 62; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->62<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Third-Party
Transaction Expenses Arrangements</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
and prior to the Closing, ZOOZ, Keyarch and other parties, including certain third-party vendors and service providers (&#8220;<b>Vendors</b>&#8221;),
that provided services to Keyarch entered into certain agreements and transactions related to the Business Combination.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
connection with and in addition to the foregoing, in connection with the Closing, ZOOZ and Keyarch entered into or assumed, as applicable,
certain other obligations to repay Business Combination transaction expenses otherwise due at Closing. These arrangements included fee
modification agreements with Vendors pursuant to which the outstanding obligations due to Vendors may be satisfied by issuance of newly
issued shares of ZOOZ issued at Closing.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Transaction
Financing Subscription Agreement</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
February 9, 2024, Keyarch and ZOOZ entered into subscription agreements (collectively, the &#8220;<b>Subscription Agreements</b>&#8221;)
with certain investors (the &#8220;<b>PIPE Investors</b>&#8221;). Under the terms of the Subscription Agreements, the PIPE Investors
agreed to subscribe for and purchase, and Keyarch agreed to issue and sell to these Investors, prior to the Closing of the Business Combination,
an aggregate of 1,300,000 Keyarch Class A ordinary shares (the &#8220;<b>Subscription Shares</b>&#8221;) for a purchase price of $10.00
per share, for gross proceeds of $13,000,000, on the terms and subject to the conditions set forth in the applicable Subscription Agreements.
Such transaction closed on April 4, 2024.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition, pursuant to the Subscription Agreement, ZOOZ agreed to register the Subscription Shares and granted customary resale registration
rights to the PIPE Investors.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Research
and Development</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
has an established data and technology-focused research and development organization centered in Israel. ZOOZ&#8217;s research and development
team has deep expertise in development of flywheels and complex systems of power boosters (being energy storage systems based on proprietary
flywheel technology) which require high engineering capabilities of system engineering, mechanical engineering, electronics and electrical
engineering, software engineering and other.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ&#8217;s
research and development activities are carried out in Israel. ZOOZ has received grants from the IIA for approved programs, as well as
from BIRD, the Israeli Ministry of Energy and Infrastructure and the Israeli Ministry of Economy and Industry.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Grants
received from the IIA</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
the Innovation Law, research and development projects which are approved by the Research Committee of the IIA are eligible for grants,
in exchange for payment of royalties from revenues generated by the sale of products (and related services) developed within the framework
of such approved project and subject to compliance with certain requirements and restrictions under the Innovation Law as detailed below,
which must generally continue to be complied with even following full repayment of all amounts payable to the IIA in royalties.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
received grants from the IIA for certain projects and may receive additional grants in the future. Under the terms of the grants received,
ZOOZ is required to pay royalties of 3% (which in some cases may be up to 5% pursuant the provisions of the Innovation Law) of the revenues
it generates from its products which incorporate IIA funded know-how, until 100% of the grant is repaid (plus Annual Interest for a File
(as such term is defined in the IIA&#8217;s rules). As of March 31, 2024, ZOOZ had received grants from the IIA in the principal amount
of NIS 2,486 thousands (approximately $675 thousands, based on the Exchange Rate). Therefore, ZOOZ&#8217;s contingent obligation for
royalties to the IIA, net of royalties already paid or accrued, is NIS 2,681 thousand (approximately $728 thousands based on the Exchange
Rate), including accumulated interest to such date.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Products
developed using the IIA grants must, as a general matter, be manufactured in Israel. The transfer of manufacturing capacity outside of
Israel in a manner that exceeds the manufacturing capacity that was declared in the recipient company&#8217;s original IIA grant application
is subject to prior written approval from the IIA (except for the transfer of less than 10% of the manufacturing capacity in the aggregate,
which event requires only a notice to the IIA, which shall be provided in writing prior to the transfer of such manufacturing rights
abroad, while the IIA has a right to deny such transfer within 30 days following the receipt of such notice). In general, the transfer
of manufacturing capacity outside of Israel may be subject an increase in the royalties&#8217; cap (<i>inter alia</i>, depending on the
manufacturing volume that is performed outside of Israel), and such transfer will be subject to payment of royalties at an accelerated
rate. The Innovation Law also provides that IIA funded know-how and any right derived therefrom may not be transferred to third parties,
unless such transfer was approved in accordance with the Innovation Law. The Research Committee operating under the IIA may approve the
transfer of IIA funded know-how between Israeli entities, provided that the transferee undertakes all the obligations in connection with
the grant as prescribed under the Innovation Law. The income from such a transaction will generally be subject to the obligation to pay
royalties to the IIA. In certain cases, the research committee may also approve a transfer of the IIA funded know-how outside of Israel,
subject to the receipt of certain payments calculated according to a formula set forth in the Innovation Law (which cannot exceed six
(6) times the grants received from the IIA plus Annual Interest, as such term is defined under the IIA&#8217;s rules). These approvals
are not required for the sale or export of any products resulting from such research and development activity or based on such IIA Funded
Know-How.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 63; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->63<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Funding
received from the BIRD Foundation</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
has also received grants within the framework of a joint research and development project (together with Blink) partially financed
by the BIRD Foundation (&#8220;<b>BIRD</b>&#8221;). In April 2020, ZOOZ entered into a Cooperation and Project Financing Agreement with BIRD and Blink, for the
development of an energy storage system to increase EV charging (the &#8220;<b>BIRD-Funded Project</b>&#8221;), for a period ended
at the end of September 2023 (as amended, the &#8220;<b>BIRD Agreement</b>&#8221;).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to the terms of the BIRD Agreement, BIRD undertook to bear 50% of the BIRD-Funded Project implementation expenses, up to a total amount
of $0.9 million (the &#8220;<b>BIRD Funding</b>&#8221;), upon achievement of several milestones. In consideration for the payment of
the BIRD Funding, ZOOZ and Blink are obligated to pay royalties equal to 5% of the sales of the American configuration of the ZOOZTER&#8482;-100
system (or 30% of the licensing of ZOOZTER&#8482;-100 systems, if such systems are licensed), until the repayment of an amount equal
to the BIRD Financing or up to 150% of the BIRD Financing.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Israeli and U.S. governments were granted non-exclusive, irrevocable licenses to use, for government purposes, the technology that will
be developed in the framework of the BIRD-Funded Project.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to the terms of the BIRD Agreement, ZOOZ may not sell or transfer to any third party any or all of the intellectual property rights and/or
ZOOZ&#8217;s technology which was developed in the framework of the BIRD-Funded Project, until the full repayment of BIRD Funding, without
the prior written consent of BIRD.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
of March 31, 2024, ZOOZ had received grants from the BIRD in the principal amount of NIS 1,353 thousands (approximately $368 thousands,
based on the Exchange Rate). Therefore, ZOOZ&#8217;s contingent obligation for royalties to BIRD, net of royalties already paid or accrued,
is NIS 1,904 thousands (approximately $547 thousands million based on the Exchange Rate).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Grant
from the Israeli Ministry of Economy and Industry</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
received a grant in the amount of NIS 186 thousands (approximately $51 thousands, based on the Exchange Rate) from the Israeli Ministry
of Economy and Industry, under an Israeli governmental program designed to assist early-stage companies with their initial international
marketing effectors (the &#8220;<b>Ministry of Economy and Industry Project</b>&#8221;). As of the date of this Annual Report, ZOOZ has
utilized the full amount of the grant and the project has ended.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
is required to pay royalties to the Israeli government from sales of its products in certain markets, at a rate of 3% per year, for a
period of up to 5 years, until the full repayment of the grant (linked to the Israeli Consumer Price Index).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Grant
from the Israeli Ministry of Energy and Infrastructure</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
December 2016, ZOOZ entered into a support and investment agreement with the Israeli Ministry of Energy and Infrastructure (the &#8220;<b>Ministry
of Energy Agreement</b>&#8221;), for a pilot and set up of demonstration facilities (the &#8220;<b>Ministry of Energy-Financed Project</b>&#8221;).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to the terms of the Ministry of Energy Agreement, ZOOZ received a grant in the amount of NIS 631 thousands million (approximately $171
thousands million, based on the Exchange Rate). According to the terms of such grant, the Israeli Ministry of Energy and Infrastructure
is entitled to receive royalties at a rate of 5% from commercialization of intellectual property developed in the framework of the Ministry
of Energy-Financed Project, until the repayment of the grant (linked to the Israeli Consumer Price Index plus interest). Under the terms
of the Ministry of Energy-Financed Project, the Israeli government was granted a non-exclusive, irrevocable licenses to use, for government
purposes, the technology and intellectual property that will be developed in the framework of the Ministry of Energy-Financed Project.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Intellectual
Property</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
relies primarily on patents, trademarks, domain names, copyright, know-how and trade secrets, confidentiality agreements and procedures,
and other contractual arrangements to protect its technology.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
owns 26 granted patents in the U.S., Europe, China and India. In addition, ZOOZ has filed 1 additional patent application in Canada,
which as of the date of this Annual Report is pending.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 64; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->64<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
relies on trade secret protection and confidentiality agreements to safeguard its interests with respect to proprietary know-how and
technology that is not patented or processes for which patents are difficult to enforce. ZOOZ believes that many elements of its technology
and processes involve proprietary know-how, technology or data that are not covered by patents or patent applications, including technical
processes, test equipment designs, algorithms, and procedures.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
typically requires its business partners to enter into confidentiality agreements before it discloses any sensitive aspects of its technology
or business plans. ZOOZ seeks to protect its trade secrets and confidential information through a variety of methods, including confidentiality
agreements with employees, third parties, and others who may have access to ZOOZ&#8217;s proprietary information. ZOOZ also requires
key employees to sign invention assignment agreements with respect to inventions arising from their employment and restrict unauthorized
access to its&#8217; proprietary technology.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Notwithstanding
ZOOZ&#8217;s efforts to protect its intellectual property, there can be no assurance the measures taken will be effective or that its
intellectual property will provide any competitive advantage. ZOOZ can provide no assurance that any patents will be issued from its
pending applications or any future applications or that any issued patents will adequately protect its proprietary technology. ZOOZ&#8217;s
intellectual property rights may be invalidated, circumvented or challenged. Furthermore, the laws of certain countries do not protect
intellectual property and proprietary rights to the same extent as the laws of the United States and, as a result, ZOOZ may be unable
to protect its intellectual property and other proprietary rights in certain jurisdictions. In addition, while ZOOZ has confidence in
the measures it takes to protect and preserve its trade secrets, it cannot guarantee these measures will not be circumvented, or that
all applicable parties have executed confidentiality or invention assignment agreements. In addition, such agreements can be breached,
and may not have adequate remedies should any such breach occur. Accordingly, ZOOZ&#8217;s trade secrets may otherwise become known or
be independently discovered by competitors.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Seasonality</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
does not believe that demand for its products is seasonal. As an early-stage company, most of ZOOZ&#8217;s revenue to date has been generated
as a result of direct marketing or sales to ZOOZ&#8217;s customers. Accordingly, ZOOZ&#8217;s revenue and results of operations may fluctuate
from period to period based on the number of customer or projects or the achievement of key milestones under its customer contracts.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Human
Capital and Employees</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Overview</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
of March 31, 2024, ZOOZ had 38 employees, all of whom are based in Israel other than one employee (employed through a third-party
company) who is based in the U.K. Of ZOOZ&#8217;s employees based in Israel, 17 employees comprise ZOOZ&#8217;s research and
development team, 11 employees comprise ZOOZ&#8217;s operations team, 6 employees comprise ZOOZ&#8217;s sales and marketing team,
and 4 employees comprise ZOOZ&#8217;s general and administrative team. In addition, ZOOZ engaged with 5 individuals under
contractor, outsourcing or professional service contracts, who are providing ZOOZ with various professional services, including
safety consultancy, controller services, IT services, IR services, etc. Given the uncertainties associated with the current
&#8220;Swords of Iron&#8221; war in Israel, as well as the duration and scope of this conflict, ZOOZ has made adjustments to its
human resources as well as adopting other expense reduction measures. These adjustments were aimed to enable ZOOZ to continue to
focus on its immediate business goals while continually assessing the ongoing impact of the conflict on its business goals in the
medium and long term.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
has entered into employment agreements with each of its employees, including executive officers. All of these agreements are at-will
and subject to termination after various notice periods, specify an employee&#8217;s duties and contain customary provisions regarding
confidentiality, intellectual property assignment and non-solicitation provisions, as well as an undertaking not to compete with ZOOZ
or in ZOOZ&#8217;s field of business.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Israeli
Law Considerations</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ&#8217;s
employees are not represented by labor unions. Nevertheless, with respect to ZOOZ&#8217;s employees in Israel, certain provisions of
the collective bargaining agreements between the Histadrut, or the General Federation of Labor in Israel, and the Coordination Bureau
of Economic Organizations (including the Industrialists&#8217; Association) may be applicable to ZOOZ&#8217;s employees by virtue of
orders of the Israeli Ministry of Labor, Social Affairs and Social Services. These provisions concern mainly the length of the workday,
determination of severance pay and other conditions of employment.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">While
ZOOZ&#8217;s employment agreements are at-will, subject to providing certain prior notice, pursuant to Israeli law, ZOOZ is legally required
to pay severance benefits upon certain circumstances, including the death of an employee or the termination of employment of an employee
without due cause. ZOOZ complies with the approval issued by the Minister of Labor under Section 14 of the Israeli Severance Pay Law,
1963, pursuant to which ZOOZ&#8217;s regular deposits with pension funds and/or insurance policies, for the benefit of its employees,
exempt ZOOZ from any additional liability towards the employees on account of severance in respect of which such deposits are made. Pursuant
to Israeli law, employers are required to conduct a hearing before making a decision on terminating an employee&#8217;s employment, regardless
of the reason. The hearing requirement includes providing notice and reasons for the contemplated termination prior to making any decision
on termination. Israeli employers and employees are also required to pay predetermined amounts to the National Insurance Institute, which
is substantially similar to the United States Social Security Administration.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 65; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->65<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Properties</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
is headquartered in Lod, Israel, where it leases office space from an unrelated third party, as well as an operational site (used for
research and development and initial production). The leased space includes ZOOZ&#8217;s offices and research and development laboratories.
ZOOZ&#8217;s lease agreement is in effect until October 30, 2024, and ZOOZ has an option to extend the lease term for an additional 3-year
period.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
July 2022, ZOOZ entered into an addendum to its lease agreement, pursuant to which ZOOZ has leased additional office space in Lod, Israel
until November 3, 2024, and ZOOZ has an option to extend the lease until November 3, 2027.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Impact
of COVID-19</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
impact of COVID-19, including changes in consumer and business behavior, pandemic fears and market downturns, and restrictions on business
and individual activities, has created significant volatility in the global economy. The spread of COVID-19 has also created a disruption
in the manufacturing, delivery and overall supply chain of vehicle manufacturers and suppliers around the world. Any sustained downturn
in demand for EVs or for components needed for ZOOZ&#8217;s product would harm our business.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
may take certain actions as may be required by government authorities or that we determine are in the best interests of our employees,
customers, suppliers, vendors and business partners.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Specifically,
difficult macroeconomic conditions, such as decreases in per capita income and level of disposable income, increased and prolonged
unemployment or a decline in consumer confidence as a result of the COVID-19 pandemic, as well as reduced spending by businesses,
could each have a material adverse effect on the demand for our products and services. For additional discussion and information
regarding the effect of COVID-19 on ZOOZ&#8217;s business, see the risk factor titled &#8220;<i>ZOOZ faces risks related to natural
disaster and health pandemics, including the coronavirus (&#8220;COVID-19&#8221;) pandemic, which could have a material adverse
effect on its business and results of operations&#8221; </i>under the section titled &#8220;Risk Factors&#8221; in this Annual
Report, and the section titled &#8220;<i>COVID-19 Impacts</i>&#8221; under &#8220;Item 5. Operating and Financial Review and
Prospects.&#8221;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Impact
of the Swords of Iron War</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
October 7, 2023, the &#8220;Swords of Iron&#8221; war started between Israel and the terrorist organizations in the Gaza Strip led
by certain armed groups in the Gaza Strip, following a surprise attack on Israel led by certain armed groups in the Gaza Strip that
included massacres, terrorism and crimes against humanity. This war is concentrated in the Gaza Strip which is along the southern
region of the State of Israel, whereas the Hezbollah terrorist organization located in Lebanon and Syria, as well as the Houthis
regime in Yemen has also engaged in hostilities. Israel has responded to the attacks against it with airstrikes and extensive
mobilization of reserves. ZOOZ&#8217;s factory is located in the city of Lod, which is more than 50 kilometers from the Gaza Strip.
ZOOZ&#8217;s facilities have not sustained any damage or injury and in accordance with the instructions of the National Emergency
Management Authority of Israel, there is no limitation or denial of access or activity limitation in ZOOZ&#8217;s facilities. None
of ZOOZ&#8217;s employees were directly harmed as a result of the war. As of the date of this Annual Report, ZOOZ&#8217;s operates
continuously, although approximately 10% of ZOOZ&#8217;s employees were in reserve duty and a significant number of ZOOZ&#8217;s
employees may be recruited again to reserves duty at any time without ZOOZ&#8217;s control. ZOOZ has adjusted, and will continue to
adjust to the extent necessary, to the security situation in accordance with the directives of the National Emergency Management
Authority. As of the date of this Annual Report, there is no known material impact on ZOOZ&#8217;s supply chain, although if the
security situation continues, this may harm ZOOZ&#8217;s production capacity, as well as marketing activities outside of Israel. As
of the date of this Annual Report, given the uncertainties associated with the current Swords of Iron war in Israel, as well as the
duration and scope of this conflict, ZOOZ has made adjustments, and may be making additional adjustments, to its human resources as
well as adopting other expense reduction measures, pursuant to which, ZOOZ&#8217;s average total monthly expenditures in
2024 and until the date of this Annual Report has been approximately $700 thousands. These adjustments are aimed to enable ZOOZ to continue to focus on its immediate
business goals while continually assessing the ongoing impact of the conflict on its business goals in the medium and long term. At
this stage, ZOOZ is unable to accurately assess the scope of the war&#8217;s impact. In ZOOZ&#8217;s estimation, the continuation of
the fighting may have a negative effect on its activities, however at this stage it is unable to anticipate the extent of the
impact.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 66; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->66<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Legal
proceedings</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">From
time to time, ZOOZ may be involved in various claims and legal proceedings relating to claims arising out of its operations. As of the
date of this Annual Report, ZOOZ is not a party to any material legal proceedings (including any such proceedings that are pending or
threatened of which ZOOZ is aware), however it may be involved in the future in legal proceedings, claims, and government investigations
in the ordinary course of business, which may include proceedings, claims, and investigations relating to, among other things, regulatory
matters, commercial matters, intellectual property, competition, tax, employment, pricing, discrimination, consumer rights, personal
injury, and property rights.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Government
Regulations</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Consumer
Protection and Data Privacy</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
conducts marketing activities that are subject to consumer protection laws in jurisdictions in which ZOOZ operates. For example, the
United States and European Union are increasingly regulating certain activities on the internet and online commerce, including the use
of information retrieved from or transmitted over the internet and user-generated content, are increasingly focused on ensuring user
privacy and information security and limiting behavioral targeting and online advertising, and are imposing new or additional rules regarding
the taxation of internet products and services, the quality of products and services as well as the liability for third-party activities.
Moreover, the applicability to the internet of existing laws governing issues such as intellectual property ownership and infringement
is uncertain and evolving.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
particular, ZOOZ is subject to an evolving set of data privacy laws. In the ordinary course of its business, ZOOZ may process a
significant amount of personal information and other regulated information from users of its products, employees and other third
parties. Accordingly, ZOOZ is, or may become, subject to numerous privacy and data protection obligations, including local and
foreign laws, regulations, guidance, and industry standards related to privacy and data protection. For additional information
regarding the consumer protection and privacy laws and regulations that affect ZOOZ&#8217;s business, see the risk factor titled
&#8220;<i>ZOOZ is subject to complex and evolving laws, regulations, rules, standards and contractual obligations regarding data
privacy and cybersecurity, which can increase the cost of doing business, compliance risks and potential liability&#8221; </i>under
the section titled &#8220;Risk Factors&#8221; in this Annual Report.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Research
and Development</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
has received governmental grants from the IIA, for the financing of a portion of its research and development expenditures. In addition,
ZOOZ has received grants from BIRD and governmental grants from the Israeli government under the Ministry of Economy and Industry Project
and under the Ministry of Energy-Financed Project, and is subject to the terms of such grants.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Employment</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
is also subject to laws governing its relationship with employees, including laws governing wages and hours, benefits, immigration and
workplace safety and health.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Other
Regulations</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ&#8217;s
business is subject to various other laws and regulations, involving matters such as income tax and other taxes, consumer protection,
online messaging, advertising and marketing, laws governing bribery and other corrupt business activities, and regulations aimed at preventing
money laundering or prohibiting business activities with specified countries or persons. As the company expands into additional markets,
it will be subject to additional laws and regulations.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
regulatory environment in each market is often complex, evolving and can be subject to significant change. Some relevant laws and regulations
are inconsistent, ambiguous and could be interpreted by regulators and courts in ways that could adversely affect ZOOZ&#8217;s business,
results of operations, and financial condition. For additional information regarding the laws and regulations that affect ZOOZ&#8217;s
business, see the section titled &#8220;Risk Factors&#8221; in this Annual Report.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
ZOOZ received grants from the IIA, it is subject to certain restrictions under the Innovation Law. These restrictions may impair ZOOZ&#8217;s
ability to perform or outsource manufacturing activities outside of Israel, granting licenses for R&amp;D purposes or otherwise transfer
outside of Israel the intellectual property and other know-how resulting, directly or indirectly, in whole or in part, in accordance
with or as a result of, research and development activities made according to an Approved Program, as well as any rights associated with
such know-how (including later developments, which derive from, are based on, or constitute improvements or modifications of such know-how)
(the &#8220;<b>IIA Funded Know-How</b>&#8221;). Below is a description of the main obligations and restrictions imposed on a recipient
of IIA grants (&#8220;<b>Recipient Company</b>&#8221;) under the Innovation Law, with respect to the use of its IIA Funded Know-How:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; <span style="text-decoration: underline">Royalty
Payment Obligation</span>. In general, the Recipient Company is obligated to pay the IIA royalties from the revenues generated from the
sale of products (and related services), whether received by the Recipient Company or any affiliated entity, developed (in all or in
part), directly or indirectly, as a result of an Approved Program, or deriving therefrom, at rates which are determined under the Innovation
Law (currently a yearly rate of between 3% to 5% on sales of products or services developed under the Approved Programs, depending on
the type of the Recipient Company&#8201;-&#8201;i.e., whether it is a &#8220;Small Company,&#8221; or a &#8220;Large Company&#8221;
as such terms are defined in the IIA&#8217;s rules and guidelines), up to the aggregate amount of the total grants received by the IIA,
plus Annual Interest for a File, as such term is defined under the IIA&#8217;s rules and guidelines.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 67; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->67<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; <span style="text-decoration: underline">Reporting
Obligations</span>. In general, the Recipient Company is subject to certain reporting obligations (such as, periodic reports regarding the
progress of the research and development activities under the Approved Programs and the related research expenses, and regarding the
scope of sales of the Recipient Company&#8217;s products). In addition, any direct change in control of a Recipient Company must be notified
to the IIA. In the event that a non-Israeli entity or a non-Israeli citizen or resident person becomes an &#8220;Interested Party&#8221;
(as such term is defined in the Securities Law) in the Recipient Company, notification to the IIA is required, accompanied by
a written undertaking (in the form available on the IIA website) by such party to be bound by the Innovation Law and by the terms of
the Approved Program.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; <span style="text-decoration: underline">IIA
Funded Know-How Transfer Limitation</span>. Under the Innovation Law, a Recipient Company is prohibited from transferring the IIA Funded
Know-How outside of Israel except under limited circumstances, and only with the approval of the IIA Research Committee and in certain
circumstances, subject to certain payments to the IIA calculated according to formulas provided under the IIA&#8217;s rules and guidelines
(which are capped to amounts specified under such rules and guidelines, generally up to 6 time the grants received (dollar linked) plus
Annual Interest, as such term is defined under the IIA&#8217;s rules). The scope of the support received, the royalties that have already
paid to the IIA, the amount of time that has elapsed between the date on which the IIA Funded Know-How was transferred and the date on
which the IIA grants were received, the sale price and the form of transaction, will be taken into account in calculating the amount
of the payment to the IIA in the event of a transfer of IIA Funded Know-How outside of Israel. A transfer for the purpose of the Innovation
Law means an actual sale of the IIA Funded Know-How, or any other transaction which in essence constitutes a transfer of such know-how
(such as, providing an exclusive license to a foreign entity for R&amp;D purposes, which precludes the Recipient Company from further
using such IIA Funded Know-How). A mere license solely to market products resulting from the IIA Funded Know-How would not be deemed
a transfer for the purpose of the Innovation Law. Upon payment of such redemption fee, the IIA Funded Know-How and the manufacturing
rights of the products supported by such IIA funding cease to be subject to the Innovation Law.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 1in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Subject
to the IIA&#8217;s prior approval, a Recipient Company may transfer IIA Funded Know-How to another Israeli company. If IIA Funded Know-How
is transferred to another Israeli entity, the transfer would still require IIA approval but will not be subject to the payment of the
redemption fee. In such case, the acquiring company would have to assume all of the Recipient Company&#8217;s responsibilities towards
the IIA as a condition to the IIA approval. The income from such transaction will generally be subject to the obligation to pay royalties
to the IIA (other than in specific circumstances that will be examined by the IIA, mainly when the transfer is between related entities).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 1in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; <span style="text-decoration: underline">Local
Manufacturing Obligation</span>. Products developed using the IIA grants must, as a general matter, be manufactured in Israel. The transfer
of manufacturing capacity outside of Israel in a manner that exceeds the manufacturing capacity that was declared in the recipient company&#8217;s
original IIA grant application is subject to prior written approval from the IIA (except for the transfer of less than 10% of the manufacturing
capacity in the aggregate, which event requires only a notice to the IIA, which shall be provided in writing prior to the transfer of
such manufacturing rights abroad, while the IIA has a right to deny such transfer within 30 days following the receipt of such notice).
In general, the transfer of manufacturing capacity outside of Israel may be subject an increase in the royalties&#8217; cap (<i>inter
alia</i>, depending on the manufacturing volume that is performed outside of Israel) and such transfer will be subject to payment of
royalties in accelerated rate.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; <span style="text-decoration: underline">IIA
Funded Know-How License Limitation</span>. The grant to a foreign entity of a right to use the IIA funded know-how (which does not entirely
prevent the Recipient Company from using the IIA Funded Know-How) is subject to receipt of the IIA&#8217;s prior approval. This approval
is subject to payment to the IIA calculated in accordance with the formulas stipulated in the IIA&#8217;s rules (such payment shall be
no less than the amount of the IIA grants received (plus Annual Interest, as such term is defined under the IIA rules), and no more than
the cap stated in the IIA rules and will generally be due only upon the receipt of the license fee from the licensee).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 1in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
IIA&#8217;s rules include a mechanism with respect to the grant of a license by a Recipient Company (which is part of a multinational
corporation) to its group entities to use its IIA Funded Know-How. Such license is subject to the IIA&#8217;s prior approval and to the
payment of 5% royalties from the income deriving from such license, with the cap of the royalties increasing to 150% of the grant amount
plus annual interest. Such mechanism includes certain requirements which must be met in order to be able to enjoy such lower royalty
payment.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 1in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; <span style="text-decoration: underline">Imposition
of Liens Over IIA Funded Know-How</span>. The Recipient Company is required to receive an IIA approval for every transaction involving the
grant of liens over IIA Funded Know-How (i.e., for both the imposing and the realization of the liens). This obligation refers to fixed
charges as well as to floating charges. In addition, to the extent that the transaction involves a foreign pledgee, the pledgee must
execute an undertaking (in the form available on the IIA website) to comply with the Innovation Law in the event of realization of the
lien.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; <span style="text-decoration: underline">Public
Offering of Securities</span>. A Recipient Company who wishes to offer its securities to the public (in Israel or abroad), must notify the
IIA regarding the expected public offering and receive the IIA approval.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 68; Value: 2 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->68<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>ZOOZ&#8217;s
Roadmap and Strategy</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ&#8217;s
vision is to become a leading global supplier who participates in the global effort to address the climate crisis and take a significant
leading role in supporting and accelerating the global effort in transitioning the automotive market to electric transportation. ZOOZ
has developed a unique flywheel-based energy storage technology, which is the core differentiating technology that provides distinct
advantage in energy storage application which are geared towards power boosting challenges, meaning applications that require highly-demanding
operational profiles, including multiple, high-frequency, high-power charge-discharge cycles throughout many years of the product&#8217;s
lifespan.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
such demanding applications, ZOOZ believes that its flywheels-based products have a clear advantage compared to products based on chemical
batteries. As a result, ZOOZ has decided to focus its products on the needs of EVs charging infrastructure market, aiming to enable and
accelerate widespread deployment of ultra-fast charging infrastructure, especially in locations where the power grid is limited. Such
ultra-fast charging sites, establish a significant challenge to the grid, with a harsh high-power chain-saw-like demand profile, where
the characteristics of a flywheel-based power booster can be highly advantageous in suppressing the strain from the grid and providing
an efficient, economical, and &#8220;green&#8221; solution for deploying the necessary infrastructure for fast-charging EVs. Such infrastructure
is essential to address &#8220;range anxiety,&#8221; and by that lift a significant barrier to the global shift towards EVs.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Thus,
ZOOZ believes that the rapidly evolving EV ultra-fast charging infrastructure market has an enormous potential for ZOOZ&#8217;s products.
Therefore, ZOOZ believes that focusing on this market in the coming years, both in terms of business operations and development efforts,
is expected to enable it to grow rapidly and establish itself as a key provider of power boosting equipment and services to this market.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Sales
and marketing strategy</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
expects its sales and marketing strategy to focus on the following key items in the coming years:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; <span style="text-decoration: underline">Geographical
spread</span>: in the coming years, ZOOZ plans to focus its operations in countries with significant growth in transition to EVs.
Initial market introduction and penetration efforts target the territories of Central and Western Europe and the U.S. (with focus on
states with high penetration of EVs, such as California, New York and Florida). At a later phase, ZOOZ intends to expand its
marketing and sales efforts to the Far East, and in particular to China, as a major global EV market, and other
countries.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; <span style="text-decoration: underline">Product
and value propositio</span>n: ZOOZ expects to leverage its unique flywheel technology and focus on related power boosting products,
targeting the EV fast charging infrastructure market. Following establishing a leading position in this market, ZOOZ believes it
will be able to leverage its products to provide additional services and complementary products in this market segment.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; <span style="text-decoration: underline">Customer
diversit</span>y: the electric vehicle charging market is diverse. ZOOZ will target customers establishing and operating fast-charging
infrastructure for EVs, especially in locations with high traffic and limited electrical infrastructure. Such customers include
Charge Point Operators (CPOs), EPC (Engineering, Procurement, Construction) firms, fleet operators, business operators &amp;
real-estate asset owners, utilities.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; <span style="text-decoration: underline">Business
model</span>s: ZOOZ&#8217;s main model is selling of its power booster systems as an equipment for ultra-fast charging infrastructure.
With and following such sale, ZOOZ provides professional services to its customers. ZOOZ may also consider leasing or renting
options to facilitate customer adoption.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>R&amp;D
strategy</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
focuses on enhancing its flywheel technology, expanding its product range, and aligning its offerings with market demands and trends
in the EV charging sector.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Based
on ZOOZ&#8217;s goals, market evolvement and product development strategy, ZOOZ will focus on the following major advancements in the
upcoming years:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
Further improvement of current flywheel design for enhancing the performance, further validation and improvement of reliability and
robustness, and reduction of production costs. This includes experiments and tests on raw material quality, manufacturing
tolerances, and improvements aimed at cost reduction, robustness, and safety throughout the product&#8217;s life. These improvements
might necessitate revisiting the certification processes of the flywheel.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 69; Options: NewSection; Value: 69 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->69<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
ZOOZTER&#8482;-100 system development: ZOOZ is already moving forward with production of the ZOOZTER&#8482;-100 system. The related
R&amp;D and engineering efforts (through NPI process) will focus on further performance improvement, reducing costs, validating and
improving reliability and robustness, key subsystem enhancement and establishing additional supply chain sources.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
Advanced next-generation flywheel development (NG-FW): as a technology-oriented company, ZOOZ is progressing with development of a
more advanced version of its flywheel technology, aiming to improve the cost-performance ratio and improve storage volume and
efficiency. This development is expected to be driven by, and adapted based on, the customers&#8217; feedback and lessons learnt
from initial market introduction through sales and pilots in the years 2023 and 2024.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
Next-generation (ZOOZTER&#8482;-NG) system development: ZOOZ is planning to move forward with the development of an advanced version
of the ZOOZTER&#8482; power booster system based on the advanced flywheel design (NG-FW). This system will cater to the growing
demand for larger storage capacities, higher power outputs, and smaller dimensions. ZOOZ is expected to analyze market trends to
characterize the future product considering market needs in the upcoming years.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
Development of supporting products: ZOOZ is aiming to work on expanding its product and service portfolio for the EV charging
infrastructure market. Examples include micro-grid management software enabling demand-charge costs reduction, continuous
monitoring, improved network efficiency, and stabilization services. Additionally, future offering may require developing software
components, electrical and electronic parts to enhance system efficiency, and advanced configurations in line with market trends and
customer needs, such as hybrid configurations (combining batteries, solar panels, and more).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Operations
and Customers&#8217; support</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
support the sales of its products and services, ZOOZ intends to establish an operations arm, capable of delivering hundreds of systems.
ZOOZ expects that this effort will encompass several key components:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
Standardized flywheel production: ZOOZ has already set up an internal infrastructure for flywheel low rate, low volume production.
In view of its expectations for a significant growth in demand, ZOOZ has initiated a plan to outsource production to partners and
subcontractors, with greater capacity for high-volume high-rate production.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
The ZOOZTER&#8482;-100 serial production: ZOOZ is outsourcing the manufacturing and assembly of the ZOOZTER&#8482;-100 integrated
system. As a first stage, the flywheel integration and final testing is done at ZOOZ&#8217;s facility. In preparation for growth in
demand to its products, ZOOZ plans to outsource also this final stage of production, such that the ZOOZTER&#8482;-100 shall be
integrated and go through the final testing procedures by the manufacturing partner and will then be shipped to ZOOZ&#8217;s
customers.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
Supplier network: ZOOZ is continuously working on development of its supply-chain with suppliers for various system components,
aiming for long-term contracts, while training alternative suppliers to assure competitiveness and redundancy.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
Local production: In certain territories, local production may be required as a criteria to win opportunities. Such local production
may also be important in reducing costs (e.g. freight) and assuring streamlined deliveries to customers. In preparation for expected
growth in ZOOZ&#8217;s orders&#8217; pipeline, ZOOZ may engage with local partners at certain target markets.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
Customer support: as ZOOZ is progressing with market introduction of its products, it is currently handling, with its own personnel,
the system installations and customer support. In preparation expected for growth in demand and install base, ZOOZ may engage with
local partners for installation and maintenance (following training by ZOOZ), thus allowing ZOOZ to focus on specialized and
professional maintenance services.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ&#8217;s
operations strategy and goals will be periodically reviewed based on market, technological, economic, and regulatory developments in
its operational regions.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ&#8217;s
roadmap and strategy contain forward-looking statements that involve risks and uncertainties and actual results could differ materially
from those anticipated in these forward-looking statements as a result of certain factors, including the risks described under the section
titled &#8220;Risk Factors&#8221; in this Annual Report. These forward-looking statements are not guarantees of future performance and
are subject to various risks and uncertainties, assumptions (including assumptions about general economic, market, industry, and operational
factors), known or unknown, which could cause the actual results to vary materially from those indicated or anticipated.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 70; Value: 69 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->70<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>C.
<span style="background-color: white">ORGANIZATIONAL STRUCTURE</span></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
were incorporated in the State of Israel on February 5, 2013 under the name Chakratec Ltd., as an Israeli corporation and operate under
the Companies Law. In May 2022, ZOOZ rebranded and changed its name from Chakratec Ltd. to ZOOZ Power Ltd., <span style="background-color: white">which
is both our legal and commercial name. Keyarch Acquisition Corporation, our wholly-owned subsidiary following the consummation of the
Business Combination, was incorporated in </span>Cayman Islands on April 23, 2021, and was formed for the purpose of effecting a merger,
capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white"><b>D.
PROPERTY, PLANTS AND EQUIPMENT</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are headquartered in Lod, Israel, where we lease office space from an unrelated third party, as well as an operational site (used for
research and development and initial production). The leased space includes our offices and research and development laboratories. Our
lease agreement is in effect until October 30, 2024, and we have an option to extend the lease term for an additional 3-year period.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
July 2022, we entered into an addendum to our lease agreement, pursuant to which we have leased additional office space in Lod, Israel
until November 3, 2024, and we have an option to extend the lease until November 3, 2027.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">To
our knowledge, there are no environmental issues that affect our use of the properties that we lease.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white"><b><span id="ch_001"></span>ITEM
4A. UNRESOLVED STAFF COMMENTS</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">None.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="ch_002"></span>ITEM
5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white"><i>You
should read the following discussion and analysis of our financial condition and results of operations together with ZOOZ&#8217;s audited
consolidated financial statements and the related notes appearing elsewhere in this Annual Report. Some of the information contained
in this discussion and analysis is set forth elsewhere in this Annual Report, including information with respect to ZOOZ&#8217;s plans
and strategy for ZOOZ&#8217;s business, and includes forward-looking statements that involve risks and uncertainties. As a result of
many factors, including those factors set forth in the section titled &#8220;Risk Factors&#8221; and &#8220;Cautionary Note Regarding
Forward-Looking Statements,&#8221; ZOOZ&#8217;s actual results could differ materially from the results described in or implied by the
forward-looking statements contained in the following discussion and analysis. Throughout this section, unless otherwise noted or the
context requires otherwise, &#8220;we,&#8221; &#8220;us,&#8221; &#8220;our&#8221; and the &#8220;Company&#8221; refer to ZOOZ and its
consolidated subsidiary, and in references to monetary amounts, &#8220;dollars&#8221; and &#8220;$&#8221; refer to U.S. Dollars, and
&#8220;NIS&#8221; refers to New Israeli Shekels.</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Certain
figures, including interest rates and other percentages included in this section, have been rounded for ease of presentation. Percentage
figures included in this section have not in all cases been calculated on the basis of such rounded figures but on the basis of such
amounts prior to rounding. For this reason, percentage amounts in this section may vary slightly from those obtained by performing the
same calculations using the figures in ZOOZ&#8217;s audited consolidated financial statements or in the associated text. Certain other
amounts that appear in this section may similarly not sum due to rounding.</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Overview</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
is committed to accelerating the electrical vehicles revolution and supporting the mass adoption of EVs around the world, by enabling
and empowering a widespread deployment of ultra-fast charging infrastructure.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ&#8217;s
power-boosting products and solutions are built with longevity and the environment in mind, helping ZOOZ&#8217;s customers to overcome,
sustainably and economically, the limitations of the existing electricity grid. By that, ZOOZ aims to help its customers and partners
in building, faster and everywhere, a robust, long-lasting, and cost-effective EV ultra-fast charging infrastructure.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
(previously called Chakratec) was founded in 2013 as an incubator private company<sup>8</sup> under the Capital Nature incubator, under
the framework of the directives of the CEO of the IIA and focused on developing a new concept of flywheel.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
develops, produces, markets and sells energy storage systems based on storing kinetic energy in flywheels for ultra-fast charging of
EVs. ZOOZ has developed proprietary flywheel technology for storing kinetic energy and as of the date of this Annual Report, has introduced
two generations of Kinetic Storage Systems &#8211; the KPB50, which was ZOOZ&#8217;s first-generation product and was introduced in 2018
as proof-of-concept and for market introduction, and the ZOOZTER&#8482;-100, ZOOZ&#8217;s second-generation product, which was introduced
in 2022 and is geared towards high-volume production and deployment.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<!-- Field: Rule-Page --><div style="width: 25%"><div style="border-top: Black 1.5pt solid; font-size: 1pt">&#160;</div></div><!-- Field: /Rule-Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><sup>8
</sup>An incubator company is a project company that operates under a technological incubator and is partly financed by the IIA.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: left; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 71; Value: 69 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->71<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
of the date of this Annual Report, ZOOZ operates in the market of charging infrastructure for EVs and primarily in the field of ultra-fast
charging for EVs. Based on its technology, ZOOZ develops systems comprised of an array of flywheels and supporting sub-systems, which
get charged from the electricity grid. This energy, when discharged, is added to the power from the grid, which together constitute the
peak power levels, beyond grid power limit, that are needed to enable high-power ultra-fast charging of the EV even in areas where the
electricity grid has limited power. ZOOZ refers to these systems as Power Boosters.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Use
of ZOOZ&#8217;s technology enables a power booster which is both reliable and delivers high-power energy surges repeatably while preserving
high-quality performance over time, for over 100,000 charge-discharge cycles. This is in contrast with the chemical battery-based solution,
the use of which is limited to hundreds or just a few thousands of cycles, as further detailed above.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Furthermore,
the kinetic storage system is a &#8220;green system.&#8221; It is environmentally friendly, as opposed to battery-based energy storage
solutions, which are comprised of polluting chemicals, the use of which requires complicated, expensive recycling processes and involves
other restrictions relating to transport, storage and/or use.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
2018, ZOOZ introduced its first-generation / pilot product, the KPB50, by installing the KPB50 in the Viena airport. In 2020 the KPB50
was also sold to a hotel in Germany. ZOOZ&#8217;s KPB50 product served as proof of the advantages of ZOOZ&#8217;s technology and solution
and for marketing demonstrations to customers in Europe. The KPB50 is a discontinued product, and ZOOZ&#8217;s offerings are focused
on the new 2<sup>nd</sup> generation product, the ZOOZTER&#8482;-100.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
March 2021, ZOOZ consummated its Israeli IPO and in May 2022, ZOOZ rebranded and changed its name from Chakratec Ltd. to ZOOZ Power Ltd.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
the second half of 2022, ZOOZ introduced its second-generation product, the ZOOZTER&#8482;-100. The ZOOZTER&#8482;-100 was first introduced
to the market and installed in a pilot site in Zikhron Yaakov, Israel. Later, in 2023 the ZOOZTER&#8482;-100 was also installed in several
sites in Germany, as initial sales of this product, as further detailed below.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
ZOOZTER&#8482;-100 system is geared to solve some of the challenges facing current-generation EV ultra-fast charging infrastructure,
by providing a system that supports (power-boosts) the grid and enables ultra-fast charging for EVs, especially in locations where the
grid is power-limited. This solution is aimed to be more sustainable and safer and allow better total cost of ownership compared to the
market alternatives, which are based on chemical (Li-Ion) batteries.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Starting
2023, ZOOZ initiated market penetration efforts with deliveries of the ZOOZTER&#8482;-100 to its customers and partners in Israel, Europe
and the U.S., and the primary efforts and delivery included the following:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(a)
In January 2023, a first site in Israel, which is supported by the ZOOZTER&#8482;-100, has commenced commercial operation. This site
was established as a pilot site, in collaboration with Afcon e-mobility and Dor-Alon gas stations (the operators of &#8220;ON&#8221;
charging network, which is the biggest fast charging network in Israel), and with the support of the IIA and the Israeli Ministry of
Energy. In March 2024, ZOOZ announced that based on the successful pilot with Afcon and Dor-Alon, it was agreed with Dor-Alon that two
ZOOZTER&#8482;-100 systems will be installed at two of Dor-Alon&#8217;s gas stations along Highway 6 (one of Israel&#8217;s main transportation
corridors), aiming to enable additional ultra-fast chargers in these sites, despite the grid&#8217;s limitations. These sites are expected
to be upgraded during the second quarter of 2024. The ability of the ZOOZTER&#8482;-100 systems to support these multi-charger sites
will be evaluated for a period of several months and upon successful completion of this assessment, the ZOOZTER&#8482;-100 systems will
be purchased by Dor-Alon (pursuant to terms agreed by the parties);</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(b)
During the second quarter of 2023, two charging sites, located in Herrenberg Germany, were built (in cooperation with Mer), with fast-chargers supported by
the ZOOZTER&#8482;-100 systems, finalized commissioning and started commercial operation;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(c)
During the fourth quarter of 2023, two additional ZOOZTER&#8482;-100 systems were installed and commissioned (in cooperation with
Parkstorm GmbH) in two additional charging sites in Germany (in Reiskirchen and Weiterstadt, located in Greater Frankfurt). These
sites are expected to start commercial operation during the second quarter of 2024;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(d)
During the third quarter of 2023, the first site in the U.S., at Scotchman Gas Station in Rock Hill, South Carolina, was built, and
finalized commissioning and in October 2023, started commercial operation. This site was established as part of a joint pilot with
ARKO Corp (a major U.S. convenience stores network);</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(e)
During the third quarter of 2023, a ZOOZTER&#8482;-100 system was delivered to the U.S. and placed at the La-Guardia airport in NYC, in preparation
to a joint pilot with a major car rental company. The work in this site was delayed until receipt of the required permits by the La-Guardia
Port Authority, which was received in the first quarter of 2024, after which the construction work commenced. The site is expected to
become operational during the third quarter of 2024; and</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 72; Value: 69 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->72<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in">(f) An additional ZOOZTER&#8482;-100 system was delivered to the U.K.,
for a first site which was built in collaboration with Osprey, one of the leading Charging Operators in the U.K. This site construction
was finalized during the first quarter of 2024 and is expected to start commercial operation during the second quarter of 2024. Osprey
and ZOOZ agreed that the ZOOZTER&#8482;-100 will be evaluated in the first 6 months, and upon successful completion of this evaluation
period, the ZOOZTER&#8482;-100 will be purchased by Osprey (at terms agreed by the parties);</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(g)
In January 2024, a ZOOZTER&#8482;-100 system was delivered to the U.K., for a first site which was built in collaboration with Osprey,
one of the leading charging operators in the U.K. The construction of this site was finalized during the first quarter of 2024 and is
expected to start commercial operation during the second quarter of 2024. Osprey and ZOOZ have agreed that the ZOOZTER&#8482;-100 system
will be evaluated during the first 6 months, and if such evaluation is successfully completed, the ZOOZTER&#8482;-100 system will be
purchased by Osprey (pursuant to terms agreed by the parties);</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in">(h) In March 2024, ZOOZ announced that based on the successful pilot with
Afcon &amp; Dor-Alon (see above), it was agreed with Dor-Alon that two ZOOZTER&#8482;-100 will be installed in Dor-Alon&#8217;s gas stations
along Highway 6 (one of Israel&#8217;s main transportation corridors), aiming to enable additional ultra-fast chargers in these sites,
despite the grid&#8217;s limitations. These sites are expected to be upgraded during the second quarter of 2024. The ZOOZTER&#8482;-100
ability to support these multi-chargers sites will be evaluated for a period of several months and upon successful completion of this
period, the ZOOZTER&#8482;-100 systems will be purchased by Dor-Alon (at terms already agreed by the parties).</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Business
Combination Agreement</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
July 30, 2023, ZOOZ and its wholly-owned subsidiary entered into the Business Combination Agreement with Keyarch. <span style="background-color: white">The
Business Combination Agreement and the related transactions were unanimously approved by both ZOOZ&#8217;s board of directors and the
Keyarch board. The Business Combination and other transactions contemplated by the Business Combination Agreement, as amended, closed
on April 4, 2024, after receipt of the required approval by ZOOZ&#8217;s shareholders and Keyarch&#8217;s shareholders and the fulfillment
of certain other conditions. In connection with the Business Combination Agreement, Keyarch also obtained commitments for the purchase
in private transactions that closed concurrently with the Business Combination of $13 million of the ZOOZ Ordinary Shares.</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Key
Factors and Trends Affecting Our Results of Operations</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span style="text-decoration: underline">Market
trends</span></i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
has adapted its flywheel-based energy storage technology and focused its offering on power boosting solution, targeting the market
of charging infrastructure for EVs. ZOOZ assume a continuation of the accelerated transition of the automotive industry to EVs, and
with that, a rapidly growing demand for public ultra-fast charging, as critical services needed to resolve the &#8220;Range
Anxiety&#8221; phenomena and allow mass adoption of EVs.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
anticipates that the automotive industry trend, to enable EV&#8217;s ultra-fast charging (allowing EV&#8217;s battery to be charged within
only a short period of a few minutes), will continue and further improve (meaning, EV battery will be capable to be charged even faster).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Increased
population of EVs, capable to ultra-fast charging, is expected to generate a growing demand for ultra-fast charging infrastructure, which
consumes electricity from the grid as high-power peak surges, thus causing a significant strain on the grid, where such charging equipment
is installed, and an increasing need for upgrades of the electricity grid to allow the deployment of such ultra-fast charging infrastructure.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">It
is expected that such grid upgrades cannot meet the demand&#8217;s needed pace and volume, thus increasing the demand for power boosting
solutions to be deployed in order to enable and accelerate the roll-out of such needed ultra-fast charging infrastructure.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Furthermore,
the increased need in expensive expansion of the grid, to enable delivery and distribution of high-power peak consumption (as needed
for ultra-fast charging sessions), may cause increase in demand charges billed by the utility companies. Such increase may extend the
need for energy-storage / power booster solution, located behind-the-meter, as a local buffer, acting as &#8220;peak-shaver&#8221; in
order to reduce the peak power which is consumed from the grid, in by that, reducing the costs associated with such consumption.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span style="text-decoration: underline">Target
territories, verticals, customers and partners</span></i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
is currently targeting the EU and the U.S. territories, with plans to later expand to far-east territories (mainly China, Japan and South
Korea). It is expected that in each of these territories, the above market trends will generate increasing demand for power boosting
solutions.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
each of those territories, it is expected that government regulations and incentives will continue to push towards adoption of EVs and
accelerated build of ultra-fast charging infrastructure.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ&#8217;s
main target verticals and use cases are fleet-related and public-ultra-fast charging infrastructure, built by utilities, charge-point
operators (CPOs), and engineering-procurement-construction companies (EPCs), in fleet-depots and parking-hubs, near businesses which
aim to attract EV drivers (such as shopping malls, convenience stores, restaurants, etc.), and along the highways and roads where drivers
would need to stop on-the-go to charge their EVs.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ&#8217;s
business results are dependent on its ability to be active in these target territories, form relationships and build collaborations with
these market players, as customers and/or partners, for building joined solutions to various use-cases which will become relevant as
they are aiming to solve the grid challenges while building the needed charging infrastructure. Furthermore, as this market is aiming
to provide long-lasting and reliable charging services, ZOOZ is expected to develop relationships with local partners who are able to
provide local repair and maintenance services at the expected level of service availability and quality.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 73; Value: 69 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->73<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
order to achieve all the above, ZOOZ is required to establish local presence as sales force and/or local partners acting as agents, resellers
and/or distributors, and partners acting as local technical and service support. Such local presence is key for acquiring new customers
and for preserving them for long-term period.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
some of these territories, ZOOZ may be required to have local manufacturing capability, in order to be eligible for government funding
and incentives, as well as to provide the needed accelerated demand for its products.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span style="text-decoration: underline">Product
&#8211; Market fit</span></i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
ultra-fast charging infrastructure market is still in its early stage. Market players are still in the learning stage of the technical
challenges and the relevant technological solutions, while developing relevant business models to overcome the complexity and challenges
of needed huge investment (much earlier than reaching profits) and the high costs of operation while utilization is still low.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ&#8217;s
ability to penetrate this market in these territories and develop robust customer-base, is dependent on its ability to take part in such
learning phase (while collaborating with the above market players), adapt its offering to the market players&#8217; needs, educate them
with the added value and differentiation of ZOOZ&#8217;s innovation and offering, and developing with them the use cases and business
models that make sense economically. This may result in a long sell cycle and piloting of the ZOOZ&#8217;s solution, in various scenarios
and use-cases, before customers and partners are moving forward with long-term commitments and orders with significant orders.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span style="text-decoration: underline">Innovation
of advanced technology</span></i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
is differentiating its offering, from other competing products and solutions, based on its innovation in the field of flywheel-based
energy storage. ZOOZ business results are dependent on its ability to mature its flywheel technology and the ZOOZTER&#8482;-100 power
booster product, develop complementary features and offering (e.g. SW-related products and add-ons), adapting the offering and market-fit
in according to lessons-learnt from market-penetration phase (pilots and early deployment) in accordance to trends, regulations and evolving
needs of the various market players.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Furthermore,
in order to keep and/or further increase its competitive advantage, ZOOZ is required to advance its flywheel technology (targeting better
performance and lower costs), enhance and further extend its portfolio of power booster products (targeting better performance, lower
cost, and additional features and configuration as needed in accordance to market-fit), and further develop complementary software-based
products and add-ons, to compete its offering and increase added-value for its customers.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span style="text-decoration: underline">Production
capacity and supply chain</span></i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
a technology and innovation focused company, ZOOZ intends to outsource the production of its products to partners who will be responsible
for procurement, manufacturing, integration and testing of ZOOZ&#8217;s products. In view of the significant demand that ZOOZ expects
for its products, ZOOZ needs to make significant efforts and investments in building its supply chain, training and certification of
its suppliers, supporting NPI and outsourcing process, as well as guiding and monitoring the performance of its suppliers to assure deliveries
of high-quality products to the customers.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">With
the expected demand growth of ZOOZ&#8217;s products, ZOOZ is expected to expand its supply-chain, establish additional suppliers and
monitor the suppliers&#8217; ability and performance while ramping-up production. As indicated, in some territories it would be required
by the authorities and / or customers, and might also be more cost effective, to establish local manufacturing capability. ZOOZ aims
to establish such capability while collaborating with local manufacturing partners, to whom ZOOZ will outsource, whole or a portion of,
the manufacturing of its products.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition, ZOOZ intends to invest in engineering and R&amp;D effort geared towards increasing robustness, reliability and serviceability
of its products, in order to retain its customers and their satisfaction from ZOOZ&#8217;s solution. Additional engineering and R&amp;D
effort will be invested in modifications and enhancement of the products, geared towards production outsourcing (adapting to different
capabilities of the suppliers), cost reduction and quality assurance.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span style="text-decoration: underline">Customer
service and technical support</span></i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
order to assure high-quality service and high retention of its customers, ZOOZ intends to establish collaboration with local (in the
target territory) partners who are able to provide customer service and first-aid technical support. ZOOZ will train these partners in
order to assure availability and high-quality serviceability of its products, and high-satisfaction of its customers.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
is expecting to remain the source for professional high-level technical support, addressing technical issues that cannot be resolved
by the local partner.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 74; Value: 69 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->74<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span style="text-decoration: underline">Investment
in human resources</span></i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
a technology-oriented company, aiming to maintain and extend its competitive advantage by innovation, advanced products, and high-quality
professional services, ZOOZ intends to keep its investment in human resources, aiming to retain its talented team, and recruit additional
talents to key positions in the company, while fostering a dynamic culture geared towards excellence, integrity and teamwork based on
can-do approach.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span style="text-decoration: underline">Continued
investment in growth</span></i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
ZOOZ is active in an early stage rapidly evolving market, which is expected to accelerate significantly in the coming years, ZOOZ is
committed to work with its customers and partners, and prepare for accelerated expansion, as part of its strategic goal to position itself
as a leading provider of Power Boosting solutions for EV charging infrastructure market. Such investment may include R&amp;D geared towards
additional products and extended offering, outsourcing and ramping up production capacity, collaborations with suppliers and partners,
mergers and acquisitions with companies with complementary capabilities, establishing sales and marketing infrastructure in various territories,
using various business models to accelerate market penetration, etc.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span style="text-decoration: underline">Economic
conditions and resulting business trends</span></i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ&#8217;s
results of operations are impacted by the relative strength of the overall economy and its effect on business investment, unemployment,
consumer spending behavior, and business and consumer demand. Our customers&#8217; underlying business activities are also linked to
the macroeconomic and geopolitical environment.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span style="text-decoration: underline">COVID-19
impacts</span></i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
impact of the COVID-19 pandemic, including changes in consumer and business behavior, pandemic fears and market downturns, and restrictions
on business and individual activities, created significant volatility in the global economy, especially in the years 2020-2022. The spread
of COVID-19 also created a disruption in the manufacturing, delivery and overall supply chain of vehicle manufacturers and suppliers
around the world. We have modified our business practices during the surge of the COVID-19 pandemic, reducing physical participation
in sales activities, meetings, events and conferences. We also implemented additional safety protocols for essential workers, implemented
cost cutting measures in order to reduce our operating costs, and if the COVID-19 pandemic surges again in the future, we may take further
actions as may be required by government authorities or that we determine are in the best interests of our employees, customers, suppliers,
vendors and business partners. There is no certainty that such actions will be sufficient to mitigate the risks posed by the virus or
otherwise be satisfactory to government authorities. If significant portions of our workforce are unable to work effectively, including
due to illness, quarantines, social distancing, government actions or other restrictions in connection with the COVID-19 pandemic, our
operations will be negatively impacted. Furthermore, if significant portions of our customers&#8217; or potential customers&#8217; workforces
are subject to stay-at-home orders or otherwise have substantial numbers of their employees working remotely for sustained periods of
time, user demand for High-Power-Charger and services will decline. In addition, any sustained downturn in demand for EVs or for components
needed for ZOOZ&#8217;s product would harm our business. Furthermore, difficult macroeconomic conditions, such as decreases in per capita
income and level of disposable income, increased and prolonged unemployment or a decline in consumer confidence as a result of the COVID-19
pandemic, as well as reduced spending by businesses, could each have a material adverse effect on the demand for our products and services.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span style="text-decoration: underline">Swards
of Iron War impacts</span></i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
October 7, 2023, the &#8220;Swords of Iron&#8221; war started between Israel and the terrorist organizations in the Gaza Strip led by
certain armed groups in the Gaza Strip, following a surprise attack on Israel led by certain armed groups in the Gaza Strip that included
massacres, terrorism and crimes against humanity. This war is concentrated in the Gaza Strip which is along the southern region of the
State of Israel, whereas the Hezbollah terrorist organization located in Lebanon and Syria, as well as the Houthis regime in Yemen has
also engaged in hostilities. Israel has responded to the attacks against it with airstrikes and extensive mobilization of reserves. ZOOZ&#8217;s
factory is located in the city of Lod, which is more than 50 kilometers from the Gaza Strip. ZOOZ&#8217;s facilities have not sustained
any damage or injury and in accordance with the instructions of the National Emergency Management Authority of Israel, there is no limitation
or denial of access or activity limitation in ZOOZ&#8217;s facilities. None of ZOOZ&#8217;s employees were directly harmed as a result
of the war. As of the date of this Annual Report, ZOOZ&#8217;s operates continuously, although approximately 10% of ZOOZ&#8217;s employees
were in reserve duty and a significant number of ZOOZ&#8217;s employees may be recruited again to reserves duty at any time without ZOOZ&#8217;s
control. ZOOZ has adjusted, and will continue to adjust to the extent necessary, to the security situation in accordance with the directives
of the National Emergency Management Authority. As of the date of this Annual Report, there is no known material impact on ZOOZ&#8217;s
supply chain, although if the security situation continues, this may harm ZOOZ&#8217;s production capacity, as well as marketing activities
outside of Israel. As of the date of this Annual Report, given the uncertainties associated with the current Swords of Iron war in Israel,
as well as the duration and scope of this conflict, ZOOZ has made and may be making additional adjustments to its human resources as
well as adopting other expense reduction measures. These adjustments are aimed to enable ZOOZ to continue to focus on its immediate business
goals while continually assessing the ongoing impact of the conflict on its business goals in the medium and long term. At this stage,
ZOOZ is unable to accurately assess the scope of the war&#8217;s impact. In ZOOZ&#8217;s estimation, the continuation of the fighting
may have a negative effect on its activities, however at this stage it is unable to anticipate the extent of the impact..</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 75; Value: 69 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->75<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Components
of Results of Operations</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
period-to-period comparisons of our results of operations have been prepared using the historical periods included in our audited consolidated
financial statements. The following discussion should be read in conjunction with the audited consolidated financial statements and related
notes included elsewhere in this Annual Report.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span style="text-decoration: underline">Revenue</span></i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Revenue
is generated from sale of ZOOZTER&#8482;-100 products, in addition to professional services provided to customers in support of installation,
operation and maintenance of these products. Future revenues&#8217; streams may also be generated from services based on software products
which will be provided as add-on / complementary features to our Power Boosting solutions. In addition, future revenues may be generated
by providing services that include consulting, training, commissioning, and other services related to supporting our customers in establishing
charging infrastructure of EVs.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span style="text-decoration: underline">Cost
of revenues</span></i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Cost
of revenues primarily consists of product costs consisting of bill-of-materials (BOM) costs, manufacturing labor costs (salaries and
related expenses), operations-related costs (salaries and expenses of related team such as procurement, quality, support, etc.), costs
related to deliveries (packaging, freight, insurance, etc.). In addition, costs are also related to salaries and expenses of team and
subcontractors providing the above-mentioned services, as well as depreciation.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
Addition, ZOOZ periodically evaluates the quantities on hand relative to current and historical selling prices and historical and projected
sales volume. Based on this evaluation, provisions are made when required to write-down inventory to its market value.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span style="text-decoration: underline">Research
and development expenses</span></i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Research
and development expenses consist primarily of employee compensation and related costs, professional services and consulting expenses,
and non-capitalized costs associated with the research of advanced innovation, development of new products and features, engineering
geared towards products&#8217; modifications, enhancement, cost reduction and outsourcing, and engineering efforts for professional support
of customers (at the stage of market introduction and acquiring new customers). Such costs are charged to the statement of operations
as incurred.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span style="text-decoration: underline">Sales
and marketing expenses</span></i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Sales
and marketing expenses consist of costs for business development, customer success, product launch costs and marketing and advertising
costs. This also includes employee compensation, agents and partners&#8217; commission fees, and related costs to support the sales and
marketing process.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span style="text-decoration: underline">General
and administrative expenses</span></i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">General
and administrative expenses consist primarily of compensation, benefits and overhead expenses associated with management. We expect that
our general and administrative expenses will increase after becoming a dual-listed company, as we expect hiring additional personnel
and implement procedures and processes to address public company regulatory requirements and customary practices. We also expect to incur
additional annual expenses for, among other things, directors&#8217; and officers&#8217; liability insurance, director fees and additional
internal and external accounting and legal and administrative resources, including increased audit and legal fees.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span style="text-decoration: underline">Depreciation</span></i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
depreciates its assets on a straight-line basis in accordance with our accounting policies. The useful lives are three years for computers,
seven years for furniture and office equipment, five years for ZOOZTER&#8482;-100 pilot systems, and the lesser of the asset useful life
or remaining lease term for leasehold improvements. ZOOZ expects depreciation expenses to increase going forward as a result of systems
deployed for pilots as part of ZOOZ&#8217;s market penetration efforts.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span style="text-decoration: underline">Financial
income, net</span></i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Financial
income, net primarily includes gains (losses) from foreign exchange fluctuations and financing income from interest on deposits. ZOOZ
conducts transactions worldwide and settles accounts with its financial intermediaries in various currencies. Interest income from cash
and cash equivalents deposited in its accounts is also included under financial income, net, which vary based on cash and cash equivalents,
and with market rates.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 76; Value: 69 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->76<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Results
of Operations</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following table sets forth our results of operations data for the periods presented:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom">
    <td style="text-align: justify">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Year ended December 31,</td><td style="font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: justify">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: justify">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">(dollars in thousands)</td><td style="font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 55%; font-weight: bold; text-align: justify">Sales</td><td style="width: 2%">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; width: 11%; text-align: right">764</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 2%">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; width: 11%; text-align: right">-</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 2%">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; width: 11%; text-align: right">-</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td style="font-weight: bold; text-align: justify">Cost of Sales</td><td>&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,869</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">178</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: justify">Gross Loss</td><td style="font-weight: bold">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(1,105</td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(178</td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">-</td><td style="font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td style="font-weight: bold; text-align: justify">Operating expenses:</td><td>&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify">Research and development expenses, net</td><td>&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">5,215</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">4,163</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,523</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: justify">Sales and marketing expenses</td><td>&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,041</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,672</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">987</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify">General and administrative expenses</td><td>&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,850</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,189</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,028</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td style="font-weight: bold; text-align: justify">Total operating expenses</td><td style="font-weight: bold">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">11,106</td><td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">8,024</td><td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">4,538</td><td style="font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify">&#160;</td><td>&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td style="font-weight: bold; text-align: justify">Operating loss</td><td style="font-weight: bold">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(12,211</td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(8,202</td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(4,538</td><td style="font-weight: bold; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: justify">Other expense, net:</td><td>&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: justify">Finance income (expenses), net</td><td>&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">456</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">377</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(43</td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify">Loss before income tax</td><td style="font-weight: bold">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(11,755</td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(7,825</td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(4,581</td><td style="font-weight: bold; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: justify">Income Tax</td><td>&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: justify">Net loss for the year</td><td style="font-weight: bold">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(11,755</td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(7,825</td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(4,581</td><td style="font-weight: bold; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: justify">Net loss per ordinary share attributable to shareholder&#8211; - basic and diluted</td><td>&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(1.99</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(1.51</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(2.27</td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify">Weighted average ordinary shares outstanding &#8211; basic and diluted in thousands</td><td>&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">5,912</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">5,166</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,020</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: justify">&#160;</td><td>&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify"><b>Net Loss</b></td><td><b>&#160;</b></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><b>&#160;</b></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><b>(11,755</b></td><td style="text-align: left"><b>)</b></td><td><b>&#160;</b></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><b>&#160;</b></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><b>(7,825</b></td><td style="text-align: left"><b>)</b></td><td><b>&#160;</b></td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left"><b>&#160;</b></td><td style="border-bottom: Black 1.5pt solid; text-align: right"><b>(4,581</b></td><td style="text-align: left"><b>)</b></td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td style="font-weight: bold; text-align: justify">Other Comprehensive loss</td><td>&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify">Reporting currency translation (gain) loss</td><td>&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(819</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(1,965</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">370</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td style="font-weight: bold; text-align: justify">Total comprehensive loss</td><td style="font-weight: bold">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(12,574</td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(9,790</td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(4,211</td><td style="font-weight: bold; text-align: left">)</td></tr>
  </table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Cost
of Sale</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom">
    <td style="text-align: justify">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Year ended December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: justify">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: justify">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">(dollars in thousands)</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 55%; text-align: justify; padding-bottom: 1.5pt">Cost of Sales</td><td style="width: 2%; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; width: 11%; text-align: right">1,869</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="width: 2%; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; width: 11%; text-align: right">178</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="width: 2%; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; width: 11%; text-align: right">-</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  </table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
2021, ZOOZ did not generate revenues.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
2022, cost of revenue primarily consists of an inventory write-off of $178 thousands. The increase in cost of revenue reflects anticipated
net realizable value on disposition of existing inventory assets.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 77; Value: 69 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->77<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
the year ended December 31, 2023, cost of revenue primarily consisted of: (a) cost of two systems that were sold in Germany and recognized
for revenues, and (b) anticipated net realizable value of disposition of existing inventory assets.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Operating
Expenses</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom">
    <td style="text-align: justify">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Year ended December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: justify">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: justify">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">(dollars in thousands)</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 55%; text-align: justify; padding-bottom: 1.5pt">Research and development, net</td><td style="width: 2%; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; width: 11%; text-align: right">5,215</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="width: 2%; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; width: 11%; text-align: right">4,163</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="width: 2%; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; width: 11%; text-align: right">1,523</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: justify; padding-bottom: 1.5pt">Sales and marketing, net</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,041</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,672</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">987</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify; padding-bottom: 1.5pt">General and administrative</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,850</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,189</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,028</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td style="font-weight: bold; text-align: justify; padding-bottom: 1.5pt">Total operating expenses</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">11,106</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">8,024</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">4,538</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td></tr>
  </table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
the year ended December 31, 2023, 2022 and 2021, the total operating expenses are offset by the changes in fair value of liability-classified
awards in the amounts of $722 thousands, $2,294 thousands and $1,661 thousands, respectively.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Research
and Development Expenses, Net</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
the year ended December 31, 2023, research and development expenses, net, increased by approximately $1,052 thousands, from $4,163 thousands
for the year ended December 31, 2022, to $5,215 thousands for the year ended December 31, 2023.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
the year ended December 31, 2022, research and development expenses, net, increased by approximately $2,640 thousands, from approximately
$1,523 million for the year ended December 31, 2021, to approximately $4,163 thousands for the year ended December 31, 2022.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
the years ended December 31, 2023, 2022 and 2021, grants from government and others, in the amounts of $118 thousand, $359 thousands
and $189 thousands, respectively, were deducted from research and development expenses.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
research and development activities related primarily to advanced stages of the development of ZOOZTER&#8482;-100, including CE certification
tests of the European configuration of the product, and the testing according to the UL standards for the U.S.-configuration. Furthermore,
the increased expenses include costs of subcontractors supporting certification process, NPI process, and development of customized components
of the flywheels and ZOOZTER&#8482;-100 (such as motors, drivers, and electrical cabinets). The increase in research and development
expenses, net, in 2023 was mainly due to testing performed as part of the U.S. certification process for the ZOOZTER&#8482;-100. The
increase in research and development expenses, net, in 2022 was due to an increase in head count and investment in two R&amp;D prototype
systems (CE-configuration and UL-configuration).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Sales
and Marketing Expenses</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Sales
and marketing expenses increased by approximately $1,369 thousands, from $1,672 thousands for the year ended December 31, 2022, to
$3,041 thousands for the year ended December 31, 2023 and by approximately $685 thousands, from $987 thousands for the year ended
December 31, 2021, to $1,672 thousands for the year ended December 31, 2022. The increase in 2023 compared to 2022 is primarily
attributed to an increase in head count, promoting pilots and turnkey projects to accelerate the penetration into target markets,
investment in the building of a pilot site at Scotchman Gas Station in Rock Hill, South Carolina (which is aimed to be a site for
demonstrations of ZOOZ solution and the ZOOZTER&#8482;-100 product to relevant U.S. customers) and increase in participation in
marketing events. The increase in 2022 compared to 2021 is primarily attributed to investment in a re-branding campaign of ZOOZ and
increased expenses in marketing materials.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in">For the years ended December 31, 2023 grants from NYPA in the amounts of
$270 thousand, were deducted from Sales and Marketing Expenses.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>General
and Administrative Expenses</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">General
and administrative expenses increased by approximately $661 thousands, from $2,189 thousands on for the year ended December 31, 2022,
to $2,850 thousands for the year ended December 31, 2023 and by approximately $161 thousands, from approximately $2,028 thousands for
the year ended December 31, 2021, to approximately $2,189 thousands for the year ended December 31, 2022. The increase in 2023 compared
to 2022 is mainly attributed to professional and legal services incurred in 2023 with respect of the Business Combination.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 78; Value: 69 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->78<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Financial
Income (expenses), Net</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Financial
income, (expenses), net, increased by approximately $79 thousands from $377 thousands for the year ended December 31, 2022, to $456 thousands
for the year ended December 31, 2023. Financial income (expenses), net, for the year ended December 31, 2022, increased by approximately
$420 thousands from financial expenses of approximately $43 thousands for the year ended December 31, 2021, to financial income,
net, of approximately $377 thousands for the year ended December 31, 2022. The increase in financial income (expenses), net, in 2023
and 2022 is primarily attributed to income from interest on bank deposits maintained in NIS and dollar, and foreign exchange fluctuations.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Liquidity
and Capital Resources</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span style="text-decoration: underline">Sources
of liquidity</span></i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
has historically funded its operations primarily from private placements of its equity securities and public offerings of its securities
following the Israeli IPO. As of the date of this Annual Report, ZOOZ&#8217;s principal sources of funding have been the net proceeds
received in the Israeli IPO and net proceeds received in a private placement and a public offering in Israel, which was completed in
March 2022, which amounted to $52 million, net, in the aggregate.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
April 4, 2024, ZOOZ consummated the Business Combination and the Merger. As part of the Business Combination and Merger, ZOOZ received
a net amount of $10 million, pursuant to the terms of the Business Combination Agreement.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span style="text-decoration: underline">Funding
requirements</span></i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
expects its expenses to increase in connection with its ongoing activities, particularly as it continues research and development
activities and incurs significant commercialization expenses related to product sales, marketing and distribution. Furthermore,
following the Closing of the Merger, ZOOZ expects to incur legal, accounting, insurance and other costs associated with operating as
a U.S. public company. Since ZOOZ has only recently commenced commercial sales of its products and considering its expected cash
usage, ZOOZ&#8217;s cash balance as of December 31, 2023, and as of the date of approval of the audited consolidated financial
statements for the period ended December 31, 2023, is not sufficient to continue ZOOZ&#8217;s operations for at least 12 months from
the date of approval of the audited consolidated financial statements. Accordingly, ZOOZ expects that it will need to obtain
substantial additional funding in connection with its continuing operations. If ZOOZ is unable to raise capital when needed or on
attractive terms, it could be forced to delay, reduce or eliminate its research and development programs or future commercialization
efforts. In order to continue ZOOZ&#8217;s operations, including research and development and sales and marketing, ZOOZ is looking
to secure financing from various sources, including additional investment funding. These circumstances raise substantial doubt about
ZOOZ&#8217;s ability to continue as a going concern.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
of December 31, 2023, ZOOZ had cash and cash equivalents of approximately $6,672 thousands. As of December 31, 2022, ZOOZ had cash
and cash equivalents of $20,569 thousands. As of April 30, 2024, ZOOZ had cash and cash equivalents of approximately 14,000
thousands (such amount includes amounts received in connection with the Closing of the Business Combination; based on its unaudited
and unreviewed balance sheet as of such date). To date, ZOOZ has not generated enough revenues from its activities and therefore
continues to depend on fundraising from new and existing investors to finance its activities, which will continue until a positive
cash flow from its business operation is achieved, although ZOOZ can give no assurance that it will be able to generate positive
cash flow from operations. These fundraising activities include the fundraising as described below under the paragraph of
&#8220;&#8212; <i>Recent Developments</i>&#8221;, as well as other equity or debt financings.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span style="text-decoration: underline">Governmental
and other grants</span></i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">A
portion of ZOOZ&#8217;s research and development efforts were financed through grants from the IIA and other Israeli governmental institutions
(the Ministry of Economy and the Ministry of Energy). The total grants that ZOOZ received from the IIA and other Israeli governmental
institutions until December 31, 2023, amounted to approximately $897 thousands. ZOOZ is required to pay to the IIA, with respect to the
royalty-bearing grants, royalties at the rate of between 3% and 5% from any income deriving from a product (including know-how) which
was developed, in whole or in part, directly or indirectly, in the framework of such royalty-bearing research and development programs,
including any derivatives, and related services thereof. The royalty payments are capped at the amount of the royalty-bearing grants
received by ZOOZ plus Annual Interest for a File (as such term is defined under the IIA&#8217;s rules).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
may in the future apply to receive additional grants from the IIA and other governmental institutions. However, ZOOZ cannot predict whether
it will be entitled to any future grants, or the amounts of any such grants. For more information regarding such grants-related programs,
please see &#8220;<i>ZOOZ&#8217;s Business &#8211; Government Regulations &#8211; Other Regulations</i>.&#8221;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
has also received grants within the framework of a joint research and development project (together with Blink) partially financed by
BIRD. In April 2020, ZOOZ entered into the BIRD Agreement, for the development of the BIRD-Funded Project.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 79; Value: 69 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->79<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to the terms of the BIRD Agreement, BIRD undertook to bear 50% of the BIRD-Funded Project implementation expenses, up to a total amount
of $0.9 million, upon achievement of several milestones. The total grants that ZOOZ received from the BIRD Foundation until December
31, 2023, amounted to approximately $368 thousand. ZOOZ is committed to pay royalties to BIRD at a rate of 5% of the sales of the American
configuration of the ZOOZTER&#8482;-100 system, up to 100% of the amount of the grants received if full repayment made by April 1, 2024,
113% if full repayment is made by April 2025, 125% if full repayment is made by April 2026, 138% if full repayment is made by April 2027,
and 150% if full repayment is made after April 2027.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
September 12, 2022, ZOOZ entered into the NYPA Cooperation Agreement with NYPA for the development, installation, implementation and
demonstration of ZOOZ&#8217;s technology and products at locations where the power grid is limited. Pursuant to the NYPA Cooperation
Agreement, ZOOZ will establish and demonstrate an ultra-fast charging station, based on the ZOOZTER&#8482;-100 system, with financing
in the amount of $0.97 million to be provided by NYPA in several milestone-based installments, of which ZOOZ received until December
31, 2023, $520 thousand. According to the NYPA Cooperation Agreement, ZOOZ shall be required to pay NYPA royalties from revenues derived
in the U.S. from the sale, licensing or usage of ZOOZ&#8217;s product, in a total amount not to exceed the total financing provided by
NYPA pursuant to the agreement.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Substantial
Doubt about the Company&#8217;s Ability to Continue as a Going Concern</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
of December 31, 2023, ZOOZ had an accumulated deficit of $47 million. During the year ended December 31, 2023, ZOOZ incurred operating
losses of approximately $12.2 million and a negative cash flow from operating activities of approximately $12.2 million. ZOOZ&#8217;s
current operating plan includes various assumptions concerning the level and timing of cash outflows for operating activities. ZOOZ&#8217;s
ability to successfully carry out its business plan is primarily dependent upon its ability to obtain sufficient additional capital and
increase its revenue and reduce its costs. There are no assurances that ZOOZ will be successful in obtaining an adequate level of financing
needed for the long-term business plan or that any financing will result in and increasing its profitability.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">These
conditions raise substantial doubt about ZOOZ&#8217;s ability to continue as a going concern. The audited consolidated financial statements
do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts
and classification of liabilities that may result from uncertainty related to ZOOZ&#8217;s ability to continue as a going concern.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
also expects its losses and the cash flow used in operations to be significantly higher in future periods as it:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; text-indent: 0.5in; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
increases its research and development expenses;</span></p>




<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></p>

<p style="font: 10pt Times New Roman, Times, Serif; text-indent: 0.5in; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
increase its expenses related to cost-reduction and production outsourcing efforts;</span></p>




<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></p>

<p style="font: 10pt Times New Roman, Times, Serif; text-indent: 0.5in; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
expand its service capabilities.</span></p>




<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></p>

<p style="font: 10pt Times New Roman, Times, Serif; text-indent: 0.5in; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
increases its sales and marketing activities; and</span></p>




<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></p>

<p style="font: 10pt Times New Roman, Times, Serif; text-indent: 0.5in; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
increases its general and administrative expenses to support the growth and U.S. public company infrastructure.</span></p>







<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition, to the extent that ZOOZ may include debt financing, it will incur interest costs as well as other charges which may be included
in any financing agreement.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Because
ZOOZ will incur the costs and expenses from these efforts before it generates revenue or positive cash flow from its operations to offset
such costs and expenses, losses and negative cash flow from operations in future periods may be significant. In addition, ZOOZ may find
that these efforts are more expensive than it currently anticipates and that these efforts may not result in the anticipated revenues
or cash flow, which would further increase ZOOZ&#8217;s losses and negative cash flow from operations and its need for additional financing.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Cash
Flows Summary</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following table summarizes ZOOZ&#8217;s cash flows for the years ended December 31, 2023, 2022 and 2021:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom">
    <td style="text-align: justify">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Year ended December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: justify">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: justify">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">(dollars in thousands)</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 55%; text-align: justify; padding-bottom: 1.5pt">Net cash used in operating activities</td><td style="width: 2%; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; width: 11%; text-align: right">(12,232</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">)</td><td style="width: 2%; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; width: 11%; text-align: right">(10,547</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">)</td><td style="width: 2%; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; width: 11%; text-align: right">(6,085</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: justify; padding-bottom: 1.5pt">Net cash used in investing activities</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(1,339</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(500</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(298</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify; padding-bottom: 1.5pt">Net cash provided by financing activities</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">27,870</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">7,645</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  </table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 80; Value: 69 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->80<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Cash
Flows from Operating Activities</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Cash
flows used in operating activities increased by approximately $1,685 thousands from approximately $10,547 thousands for the year ended
December 31, 2022, to approximately $12,232 thousands for the year ended December 31, 2023. The increase is primarily attributed to the
increase in net loss.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Cash
Flows from Investing Activities</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Cash
flows used in investing activities increased by approximately $899 thousands, from approximately $500 thousands for the year ended December
31, 2022, to approximately $1,339 thousands for the year ended December 31, 2023. The increase is primarily attributed to three ZOOZTER&#8482;-100
systems which were classified as fixed assets and are used in pilots.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Cash
Flows from Financing Activities</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Cash
flows provided by financing activities decreased by approximately $27,870 thousands, from approximately $27,870 thousands for the
year ended December 31, 2022, to 0 for the year ended December 31, 2023. The decrease is primarily attributed to capital raising in
2022.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Key
Financial and Operating Metrics</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
evaluating its business, ZOOZ considers its cash, inventory, research and development expenses, sales and marketing expenses and net
cash used in operating activities. These factors are discussed below with respect to the results of its operations for the years ended
December 31, 2023, 2022 and 2021.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom">
    <td style="text-align: justify">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Year ended December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: justify">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: justify">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">(dollars in thousands)</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 55%; text-align: justify; padding-bottom: 1.5pt">Cash</td><td style="width: 2%; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; width: 11%; text-align: right">6,672</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="width: 2%; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; width: 11%; text-align: right">20,569</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="width: 2%; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; width: 11%; text-align: right">5,661</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: justify; padding-bottom: 1.5pt">Inventory</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">2,848</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,767</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">480</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify; padding-bottom: 1.5pt">Research and development expenses</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">5,215</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">4,163</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,523</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: justify; padding-bottom: 1.5pt">Sales and marketing expenses</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,041</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,672</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">987</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify; padding-bottom: 1.5pt">Net cash used in operating activities</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(12,232</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(10,547</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(6,085</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  </table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Off-Balance
Sheet Arrangements</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
has not entered into any off-balance sheet arrangements and does not have any holdings in variable interest entities.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Contractual
Obligations, Commitments and Contingencies</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following table summarizes our contractual obligations as of December 31, 2023.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 24pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="18" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Payments due by period</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; font-style: italic">(dollars in thousands)</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Total</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2027</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2028</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 40%; text-align: left; padding-bottom: 1.5pt">Operating leases</td><td style="width: 2%; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; width: 6%; text-align: right">1,518</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="width: 2%; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; width: 6%; text-align: right">415</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="width: 2%; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; width: 6%; text-align: right">404</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="width: 2%; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; width: 6%; text-align: right">390</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="width: 2%; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; width: 6%; text-align: right">309</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="width: 2%; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; width: 1%; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; width: 6%; font-weight: bold; text-align: right">-</td><td style="width: 1%; padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td></tr>
  </table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 81; Value: 69 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->81<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Critical
Accounting Policies</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span style="text-decoration: underline">Basis
of presentation</span></i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
audited consolidated financial statements of ZOOZ have been prepared in conformity with United States generally accepted accounting
principles (U.S. GAAP).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span style="text-decoration: underline">Use
of estimates in the preparation of financial statements</span></i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the
amounts reported in the financial statements and accompanying notes. ZOOZ&#8217;s management believes that the estimates, judgments,
and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions
can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial
statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates,
and such differences may have a material impact on the Company&#8217;s financial statements. As applicable to these financial statements,
the most significant estimates relate to inventory fair value and share-based compensation.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span style="text-decoration: underline">Functional
and presentation currency</span></i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
currency of the primary economic environment in which the operations of the Company are conducted is the NIS. Thus, the functional currency
of the Company is the NIS. The Company&#8217;s presentation and reporting currency is the U.S dollar.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span style="text-decoration: underline">Inventory</span></i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Inventory
consists of raw materials, work in process and finished products. Inventories are stated at the lower of cost or net realizable value.
Inventory write-offs are provided to cover risks arising from slow-moving and obsolescent items.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
periodically evaluates the quantities on hand relative to current and historical selling prices and historical and projected sales volume.
Once written-down, a new lower cost basis for that inventory is established. Cost of inventories is assigned as follows:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
Raw material&#8211; - at cost of purchase represents the first in, first out method.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
Work in process &#8211; on the basis of direct manufacturing costs with the addition of allocable indirect manufacturing
costs.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
Finished product &#8211; based on average costs of materials, contracting and manufacturing costs.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span style="text-decoration: underline">Revenues</span></i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
generates revenues from the sale of energy storage system for supporting fast chargers for electric vehicles, based on kinetic storage
using flywheels.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration that
the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that ZOOZ determines
are within the scope of ASC 606, the entity performs the following five steps:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" border="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt">
<tr style="vertical-align: top">
    <td style="width: 0.5in">&#160;</td>
  <td style="text-align: justify; width: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">1.</span></td>
  <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Identify the contract(s) with a customer;</span></td></tr>

<tr style="vertical-align: top">
    <td>&#160;</td>
  <td style="text-align: justify">&#160;</td>
  <td style="text-align: justify">&#160;</td></tr>
<tr style="vertical-align: top">
    <td>&#160;</td>
  <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.</span></td>
  <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Identify the performance obligations in the contract;</span></td></tr>

<tr style="vertical-align: top">
    <td>&#160;</td>
  <td style="text-align: justify">&#160;</td>
  <td style="text-align: justify">&#160;</td></tr>
<tr style="vertical-align: top">
    <td>&#160;</td>
  <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.</span></td>
  <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Determine the transaction price;</span></td></tr>

<tr style="vertical-align: top">
    <td>&#160;</td>
  <td style="text-align: justify">&#160;</td>
  <td style="text-align: justify">&#160;</td></tr>
<tr style="vertical-align: top">
    <td>&#160;</td>
  <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.</span></td>
  <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Allocate the transaction price to the performance obligations
in the contract;</span></td></tr>

<tr style="vertical-align: top">
    <td>&#160;</td>
  <td style="text-align: justify">&#160;</td>
  <td style="text-align: justify">&#160;</td></tr>
<tr style="vertical-align: top">
    <td>&#160;</td>
  <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">5.</span></td>
  <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Recognize revenue when (or as) the performance obligation is
satisfied.</span></td></tr>
</table>


<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
accounts for a contract with customer when it has approval and commitment from both parties, the rights of the parties and payment terms
are identified, the contract has commercial substance and collectability of consideration is probable. ZOOZ&#8217;s contract includes
one type of performance obligation, which is satisfied at a point in time. ZOOZ recognizes revenue upon transfer of control of the system
to the customer in an amount that reflects the consideration that ZOOZ expects to receive in exchange for the system. Transfer of control
occurs generally upon the receipt of customer acceptance or once risk of loss has transferred to the customer. The acceptance received
from customers include successful installation and commissioning test of the energy storage system. ZOOZ does not provide a right of
return. ZOOZ provides to customers a limited warranty assurance that the systems are in compliance with the applicable specifications
at the time of delivery. Under the standard terms and conditions of sale, liability for certain failures of product during the stated
warranty periods are limited to repair or replacement of defective items.&#8207;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 82; Value: 69 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->82<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
the reporting period, ZOOZ delivered to its customer and installed in the customer&#8217;s site located in Germany two energy storage
systems. ZOOZ recognized the revenues related to these two systems during the reporting period, after receiving the acceptance certificate
for the systems. In addition, starting 2023, ZOOZ initiated market penetration efforts with deliveries of the ZOOZTER&#8482;-100 to its
customers and partners in Israel, Europe and the U.S., and the primary efforts included delivery and installation of ZOOZTER&#8482;-100
systems as detailed in &#8220;<i>Item 5 &#8211; Overview</i>&#8221;.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span style="text-decoration: underline">Research
and development, net</span></i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Research
and development costs are expensed to the statement of operations as incurred, net of government grants which represents participations
in research and development.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Research
and development expenses include costs directly attributable to the conduct of research and development programs, including payroll costs,
lab expenses, materials, consumables, and consulting fees. All costs associated with research and development are expensed as incurred.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
received royalty-bearing grants, which represent participation of the IIA, other Israeli governmental institutions and BIRD in approved
programs for research and development, as well as participation under the NYPA Cooperation Agreement. At the time the grants were received,
successful development of the related projects was not assured. As such, these grants are recognized as a reduction of research and development
expenses as the related costs are incurred.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span style="text-decoration: underline">Recapitalization</span></i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
connection with the consummation of the Business Combination, on March 21, 2024, the extraordinary general meeting of ZOOZ&#8217;s shareholders
approved the Recapitalization (a reverse share split of the ZOOZ ordinary shares), effective as of March 25, 2024, at a conversion ratio
between 11.3 and 11.5, which was determined in accordance with the Business Combination Agreement and was finally determined to be at
a conversion ratio of 11.43720665, and a corresponding amendment to ZOOZ&#8217;s amended and restated articles of association then in
effect.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
accounted for the Recapitalization on a retroactive basis pursuant to ASC 260. As a result, all ZOOZ ordinary shares, and options and
warrants outstanding and exercisable into ZOOZ ordinary shares, exercise prices and loss per share amounts have been adjusted, on a retroactive
basis, for all periods presented in ZOOZ audited consolidated financial statements and the applicable disclosures, to reflect such Recapitalization.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span style="text-decoration: underline">Share-based
compensation</span></i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
accounts for options granted to employees under the fair value recognition provision of ASC 718 &#8220;stock compensation&#8221;. ZOOZ
measures all share-based awards, based on their estimated fair value on the grant date.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ&#8217;s
employees and directors share-based payment awards are classified as equity awards, except for awards as described below. The grant date
fair value of these share-based payment transactions is recognized as an expense over the requisite service period using an accelerated
method, net of estimated forfeitures. ZOOZ elected to recognize compensation costs for awards conditioned only on continued service that
have a graded vesting schedule based on the multiple-option award approach. ZOOZ adopted ASU 2018-07 and therefore accounts for its equity
classified share-based payment awards to its advisors in a similar manner.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span style="text-decoration: underline">Liability
classified share-based options</span></i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Some
of the ZOOZ&#8217;s share-based awards have an exercise price denominated in US$, which is not the Company&#8217;s functional currency
and not the employees&#8217; salary currency or the currency in which the employees are paid. These awards are classified as liability
awards, measured at fair value at the date of grant and re-measured at fair value at each reporting date up to and including the settlement
date. The fair value of the awards is expensed over the respective vesting period of the individual awards with recognition of a corresponding
liability. Changes in fair value after vesting are recognized through compensation expense in the statement of operations. Compensation
expense reflects estimates of the number of awards expected to vest. The impact of forfeitures and fair value revisions, if any, are
recognized in earnings such that the cumulative expense reflects the revisions, with a corresponding adjustment to the settlement liability.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span style="text-decoration: underline">Comprehensive
loss</span></i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
complies with ASC 220, &#8220;Comprehensive Income,&#8221; which establishes rules for the reporting and display of comprehensive
income (loss) and its components. ZOOZ reports the financial impact of translating its audited consolidated financial statements
from its functional currency to its reporting currency as a component of other comprehensive income (loss).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 83; Value: 69 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->83<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span style="text-decoration: underline">Leases</span></i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
accounts for leases in accordance with ASC 842, Leases. All of ZOOZ&#8217;s leases are classified as operating leases. ZOOZ determines
if an arrangement is a lease at inception. Lease classification is governed by five criteria in ASC 842-10-25-2. If any of these five
criteria is met, ZOOZ classifies the lease as a finance lease; otherwise, ZOOZ classifies the lease as an operating lease.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Operating
leases are included as operating lease right-of-use (&#8220;<b>ROU</b>&#8221;) assets and operating lease liabilities on the balance
sheet.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ROU
assets represent ZOOZ&#8217;s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make
lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the
present value of lease payments over the lease term. The Company uses its incremental borrowing rate based on the information available
at the commencement date to determine the present value of the lease payments. ZOOZ elected the practical expedient to not separate lease
and non-lease components for all of ZOOZ&#8217;s leases, and to keep leases with an initial term of 12 months or less off the balance
sheet and recognize the associated lease payments in the statements of operations on a straight-line basis over the lease term.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
subsequently measures the ROU asset at the present value of the remaining lease payments, adjusted for the remaining balance of any lease
incentives received, any cumulative prepaid or accrued rent if the lease payments are uneven throughout the lease term and any unamortized
initial direct costs. Further, ZOOZ recognizes lease expense on a straight-line basis over the lease term.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
lease terms include options to extend or terminate the lease when it is reasonably certain that ZOOZ will exercise or not exercise the
option to renew or terminate the lease.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Emerging
Growth Company Status</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
is an &#8220;emerging growth company,&#8221; as defined in Section 2(a) of the Securities Act, as modified by the JOBS Act. As such,
ZOOZ is eligible to take advantage of certain exemptions from various reporting requirements that are applicable to other public companies
that are not &#8220;emerging growth companies&#8221; including, but not limited to, not being required to comply with the auditor attestation
requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in their periodic
reports and proxy statements, and exemptions from the requirements of holding a non-binding advisory vote on executive compensation and
shareholder approval of any golden parachute payments not previously approved. As long as ZOOZ remains an emerging growth company, it
will be exempt from the auditor attestation requirement.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Further,
Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial
accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared
effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised
financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and
comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. ZOOZ has
elected not to opt out of such extended transition period, which means that when a standard is issued or revised and it has
different application dates for public or private companies, ZOOZ, as an emerging growth company, can adopt the new or revised
standard at the time private companies adopt the new or revised standard. This may make comparison of ZOOZ&#8217;s audited
consolidated financial statements with certain other public companies difficult or impossible because of the potential differences
in accounting standards used.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
will remain an emerging growth company until the earlier of: (i) the last day of the fiscal year (a) following the fifth anniversary
of the closing of its initial public offering, which will be the closing of the Business Combination, (b) in which ZOOZ&#8217;s total
annual gross revenue of at least $1.235 billion, or (c) in which ZOOZ is deemed to be a large accelerated filer, which means the market
value of its common equity that is held by non-affiliates exceeds $700 million as of the last business day of its most recently completed
second fiscal quarter; and (ii) the date on which we have issued more than $1.00 billion in non-convertible debt securities during the
prior three-year period. References to &#8220;emerging growth company&#8221; in this Annual Report have the meaning associated with that
term in the JOBS Act.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Foreign
Private Issuer Status</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
is organized under the laws of the State of Israel. Following the consummation of the Business Combination, ZOOZ reports under the Exchange
Act as a non-U.S. company with foreign private issuer status. Under Rule 405 of the Securities Act, the determination of foreign private
issuer status is made annually on the last business day of an issuer&#8217;s most recently completed second fiscal quarter, and accordingly,
the next determination will be made with respect to ZOOZ on June 30, 2024. Even after ZOOZ no longer qualifies as an emerging growth
company, for so long as ZOOZ qualifies as a foreign private issuer, it will be exempt from certain provisions of the Exchange Act that
are applicable to U.S. domestic public companies, including:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
the rules requiring domestic filers to issue financial statements prepared under U.S. GAAP, although we intend to use U.S. GAAP in
our financial statements;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 84; Value: 69 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->84<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
the rules under the Exchange Act requiring the filing of quarterly reports on Form 10-Q or current reports on Form 8-K with the
SEC;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
the sections of the Exchange Act regulating the solicitation of proxies, consents, or authorizations in respect of a security
registered under the Exchange Act;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
the sections of the Exchange Act requiring insiders to file public reports of their share ownership and trading activities and
liability for insiders who profit from trades made in a short period of time; and</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
the selective disclosure rules by issuers of material nonpublic information under Regulation Fair Disclosure, or Regulation FD,
which regulates selective disclosure of material non-public information by issuers.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
is required to file an annual report on Form 20-F within four months of the end of each fiscal year. In addition, ZOOZ intends to publish
its results on a quarterly basis through press releases, distributed pursuant to the rules and regulations of Nasdaq. Press releases
relating to financial results and material events will also be furnished to the SEC on Form 6-K. However, the information ZOOZ is required
to file with or furnish to the SEC will be less extensive and less timely compared to that required to be filed with the SEC by U.S.
domestic issuers. Accordingly, after the Business Combination, ZOOZ shareholders will receive less or different information about ZOOZ
than a shareholder of a U.S. domestic public company would receive.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Nasdaq
market rules permit a foreign private issuer such as ZOOZ to follow the corporate governance practices of its home country. Certain corporate
governance practices in Israel, which is ZOOZ&#8217;s home country, may differ significantly from Nasdaq corporate governance listing
standards. Pursuant to the &#8220;foreign private issuer exemption,&#8221; ZOOZ is permitted to comply with Israeli corporate governance
practices instead of the Nasdaq corporate governance rules, provided that it discloses which requirements it is not following and the
equivalent Israeli requirement. Pursuant to this &#8220;home country practice exemption&#8221; with respect to the following:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
ZOOZ follows the quorum requirement for shareholder meetings in accordance with the Companies Law. As permitted under the Companies
Law, pursuant to the Articles, the quorum required for an ordinary meeting of shareholders will consist of at least
two shareholders present in person, by proxy or by other voting instrument in accordance with the Companies Law, who hold at least
25% of the voting power of its shares (and in an adjourned meeting, with some exceptions, any number of shareholders), instead of 33
1/3% of the issued share capital required under the Nasdaq corporate governance rules;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
ZOOZ intends to adopt and approve material changes to equity incentive plans in accordance with the Companies Law which does not
impose a requirement of shareholder approval for such actions. In addition, ZOOZ follows Israeli corporate governance practice
instead of the Nasdaq corporate governance rule which requires shareholder approval prior to an issuance of securities in connection
with equity-based compensation of officers, directors, employees, or consultants; and</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
ZOOZ also follows Israeli corporate governance practice instead of the Nasdaq corporate governance rule requiring shareholder
approval for certain dilutive events (such as issuances that will result in a change of control, certain transactions other than a
public offering involving issuances of a 20% or greater interest in ZOOZ and certain acquisitions of the stock or assets of another
company).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
relies on the exemptions listed above. As a result, you may not be provided with the benefits of certain corporate governance requirements
of Nasdaq applicable to U.S. domestic public companies. ZOOZ would cease to be a foreign private issuer at such time as more than 50%
of its outstanding voting securities are held by U.S. residents and any of the following three circumstances applies: (i) the majority
of its executive officers or directors are U.S. citizens or residents, (ii) more than 50% of its assets are located in the United States
or (iii) its business is administered principally in the United States.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Foreign
private issuers, similar to emerging growth companies, are also exempt from certain more stringent executive compensation disclosure
rules. Thus, even if ZOOZ no longer qualifies as an emerging growth company but remains a foreign private issuer, it will continue to
be exempt from the more stringent compensation disclosures required of public companies that are neither an emerging growth company nor
a foreign private issuer.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
at any time ZOOZ ceases to be a foreign private issuer, we will take all action necessary to comply with the applicable rules of the
SEC and Nasdaq.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 85; Value: 69 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->85<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Quantitative
and Qualitative Disclosures About Market Risk</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">For
a discussion of ZOOZ&#8217;s quantitative and qualitative disclosures about market risk, please see &#8220;<i>Item 11. Quantitative and
Qualitative Disclosures about Market Risk</i>.&#8221;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="ch_003"></span>ITEM 6.</b></span> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES</b></span></p>



<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>A.
DIRECTORS AND SENIOR MANAGEMENT</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following table sets forth information with respect to ZOOZ Power&#8217;s directors and senior management as of April 15, 2024:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; width: 90%; border-collapse: collapse; margin-right: auto">
  <tr style="vertical-align: top">
    <td style="border-bottom: Black 1.5pt solid; width: 45%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Name</b></span></td>
    <td style="width: 2%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; width: 6%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Age</b></span></td>
    <td style="width: 2%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; width: 45%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Positions</b></span></td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Avi Cohen</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">70</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chairman of the Board of Directors </span></td></tr>
  <tr style="vertical-align: top; background-color: White">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Doron Meir Vadai</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">65</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</span></td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Dan Weintraub</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">58</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</span></td></tr>
  <tr style="vertical-align: top; background-color: White">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Christine Y. Zhao</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">51</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director </span></td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Sanqiang (Larry) Wang</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">54</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director </span></td></tr>
  <tr style="vertical-align: top; background-color: White">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Fang Zheng</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">59</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director </span></td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Naama Zeldis</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">60</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director </span></td></tr>
  <tr style="vertical-align: top; background-color: White">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Boaz Weizer</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">52</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief Executive Officer</span></td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Ruth Smadja</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">48</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief Financial Officer</span></td></tr>
  <tr style="vertical-align: top; background-color: White">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Ilan Ben David</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">59</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief Technology Officer and Co-Founder</span></td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Tal Harmon</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">57</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">VP R&amp;D</span></td></tr>
  <tr style="vertical-align: top; background-color: White">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Udi Tzuri</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">58</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">VP Product</span></td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Eyal Blum</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">50</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief Revenue Officer</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Avi
Cohen</b> has served as the Chairman of the Board of Directors of ZOOZ since 2021. He also serves as a director of Nova Ltd. and Cognyte
Software (public companies on Nasdaq) as well as on the board of directors of Cortica Ltd., Sight Diagnostics and CGS Tower Networks Ltd.
From 2021 to 2023 he served as Executive Chairman of Xjet 3D Ltd. From July 2016 to September 2017 Mr. Cohen served as the CEO of MX1,
a global media service provider founded in July 2016 as a result of the acquisition of RR Media (Nasdaq: RRM) by SES S.A. and the following
merger between RR Media, and SES Platform Services GmbH. From July 2012 until the merger, Mr. Cohen served as the CEO of RR Media. Prior
to that, until March 2012, Mr. Cohen served as President and CEO of Orbit Technologies Ltd., a public company traded on the TASE. From
September 2006 to December 2008, Mr. Cohen served as Chief Operating Officer and deputy to the CEO of ECI Telecom Ltd. Prior to joining
ECI, Mr. Cohen served in a variety of executive management positions at KLA (Nasdaq: KLAC). From 2003 he was a group Vice President and
member of the executive management committee. From 1995 he was the president of KLA Israel responsible for the optical metrology division.
Prior to joining KLA, Mr. Cohen also spent three years as managing director of Octel Communications, Israel, after serving as CEO of
Allegro Intelligent Systems, which he founded, and which was acquired by Octel. Mr. Cohen holds B.Sc. and M.Sc. degrees in electrical
engineering and applied physics from Case Western Reserve University, USA.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Doron
Meir Vadai </b>has more than 30 years&#8217; experience as a CEO in the automotive market including the introduction of Hyundai and BYD
to the Israeli market. Doron is the Chairman and co-founder of Afcon electric transportation. Doron served as Co-chairman of Shlomo Motors
(formerly 277 all Motors) the importer of BYD, a world leader in electric cars and buses. Doron served as CEO of 277 all Energy and president
of the Ford distributor in Croatia, Serbia, Montenegro and Albania for three years.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>


<!-- Field: Page; Sequence: 86; Value: 69 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->86<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Dan
Weintraub </b>is the CEO of the Private VC company Ratio Technologies and serves as a board member in ZOOZ Board of Directors and in
several private companies. He was also co-chairman of the board of directors of Capital Nature. Dan has also served as the CEO of Union
Bank of Israel&#8217;s private equity arm; Director of Finance at the start-up company TeamWorks Technology; an investment banker; and
coordinator in the privatization unit at the Ministry of Finance. He also served as a board member in numerous public, state-owned and
private companies. He was also active in non-profit organizations, in his positions as VP Business Development in Israel Venture Networks
fund and as the CEO of Lotan&#8217;s Way, specializing in Wilderness Therapy for youths at risk. In addition, Dan serves as the chairman
of the Executive Committee of the &#8220;Together, Beyond Words&#8221; association, dedicated with the empowerment of Jewish and Arab
women. Dan holds a BA in economics and political science from the Hebrew University of Jerusalem and a master&#8217;s degree in business
administration from the Hebrew University of Jerusalem.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Chirstine
Y. Zhao</b> is partner of Wisdom Advisory, LLC, which provides CFO advisory services to entrepreneurs and institutions. From July 2021
to June 2023, Ms. Zhao served as Chief Financial Officer of AlTi Global Inc, (Nasdaq: ALTI) and its predecessor Tiedemann Advisors. During
the period from July 2020 to November 2023, Ms. Zhao served on the Boards of three special purpose acquisition companies (SPACs), including
Audit committee member for Jaguar Global Growth Corp I (Nasdaq: JGGC), a property tech focused SPAC; Audit Committee Chair for D and
Z Media Acquisition Corp. (NYSE: DNZ), a media and ed tech focused SPAC; and CFO and Director for Edoc Acquisition Corp. (Nasdaq: ADOC),
a healthcare-focused SPAC. Most recently, she was Governance &amp; Nomination Committee Chair of Nasdaq-listed bio-pharmaceutical company
BeyondSpring Inc. (Nasdaq: BYSI), which develops innovative immune-oncology cancer therapies, from October 2016 to January 2023. Previously,
she served as Chief Financial Officer for two large PE-backed growth-stage companies, including Best Inc., a pre-IPO logistics technology
company in China with major investors including Alibaba, Softbank, Goldman, IFC, among other large PE funds, which later priced its initial
public offering at a valuation over $3 billion (NYSE: BEST). Prior to this, she served as a Managing Director of Bank of America Merrill
Lynch and an Executive Director of JPMorgan, where she held senior positions at headquarters and global corporate and investment banking
units, across a broad spectrum of functional areas including Treasury, liquidity products, capital management, risk management, and as
regional CFO/COO in transaction banking and corporate banking units. She also worked at American Express in various capacities including
corporate strategic planning and venture investing from March 2003 to March 2008. Early in her career, Ms. Zhao worked in investment
banking at Goldman Sachs and in corporate finance/corporate development at FedEx. She has worked in New York, London, Singapore, Hong
Kong and China, and has managed teams across four continents. Ms. Zhao is a Board member of several non-profit organizations, including
Volunteers of America &#8211; Greater New York, founded in 1896 and one of America&#8217;s largest faith-based social service organizations,
and the Chinese Finance Association (TCFA) with over 8,000 members worldwide.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Sanqiang
(Larry) Wang </b>is currently a senior advisor to a number of smart electric vehicle OEMs and suppliers. He brings more than 25 years
of experience in consulting, business building and investment, in Greater China, across Asia and in the U.S.&#8239;Most recently from
2021 to 2023, he co-founded and led the investment, financing and corporate finance functions of a new premium smart electric vehicle
OEM, and successfully raised US$ 200 million from European and Chinese strategic investors. Previously he worked for McKinsey &amp; Company
for 12 years from 2004 to 2016 as a Partner and Co-Leader of the Greater China Automotive and Industrial Practice and Co-leader of Asia
Merger Management Practice, supporting OEMs, suppliers, dealer groups and PE firms. He has worked extensively in OEM strategic and operational
planning, product planning and product development, manufacturing capacity planning and footprint in China/ASEAN, JV partner selection
and negotiation, governance, sales and network, operations and organization issues and has wide experience in addressing key disruptive
trends around electrification, car connectivity, autonomous driving/ADAS, shared mobility and digitization. He also led support to many
cross-border transactions in the automotive and industrial sectors. In addition to consulting, he worked as a senior executive, in charge
of investment in international markets, and disruptive digital technology sectors for leading Chinese corporations including as Group
Executive Committee member of PingAn Group, and Deputy President of its construction technology division, and as Group Vice President
of CFLD group, in charge of its international expansion and investment. Earlier in his career, he worked for PricewaterhouseCoopers in
its management consulting division in New York, and also acted as CEO for Zhaopin.com, a leading Chinese online recruiting platform,
to turn around its business. Larry graduated from Peking University with a BA in English and Harvard Business School with a MBA.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Fang
Zheng </b>was a co-founder and portfolio manager at Neon Liberty Capital Management. Prior to co-founding Neon Liberty in 2002, Mr. Zheng
was a Vice President and portfolio manager at the JP Morgan Emerging Market Equity Group. Mr. Zheng was responsible for the team&#8217;s
investment strategy in the Asian markets and small cap arena. An employee of JP Morgan for over 6 years, Mr. Zheng began his career as
an equity research analyst in Singapore, covering the financial and property sectors. Prior to joining JP Morgan, Mr. Zheng worked at
the Ministry of Machinery and Electronics Industries and CITIC in China, and Rockefeller &amp; Co., Inc. in New York as an equity analyst.
Mr. Zheng holds a BA from the University of International Business &amp; Economics in Beijing, an MBA from Harvard Business School, and
is a CFA charter holder. Mr. Zheng is a native of China and speaks Mandarin. Mr. Zheng is based in Hong Kong.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>


<!-- Field: Page; Sequence: 87; Value: 69 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->87<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Naama
Zeldis</b> has served as the Chief Executive Officer of Aquarius-Spectrum Ltd., a private company specializing in innovative solutions
for monitoring urban water pipes and detecting hidden leaks from the earliest stage, until January 2023. Formerly, Ms. Zeldis served
as Chief Financial Officer for a variety of high-tech and industrial companies, such as Tahal Group from 2013 to 2020, Netafim Ltd. from
2005 to 2013, the Israeli subsidiary of Electronic Data Systems from 2001 to 2005 and Radguard Ltd. from 1999 to 2001. Ms. Zeldis currently
serves on the board of directors of Radware Ltd. (NASDAQ: RDWR), a global leader in application delivery and cyber security solutions
for virtual, cloud and software defined data centers; on the board of directors of Orbit Technologies Ltd. (TASE: ORBI), a company specializing
in satellite communications, tracking systems, airborne communication and audio managements solutions; on the board of directors of Aquarius
Engines (A.M.) Ltd. (TASE: AQUA), a developer of a Free Piston Linear Engine, which is integrated into a comprehensive, reliable, cost-effective,
green energy generator; and on the board of directors of Electra Real Estate Ltd. (TASE: ELCRE), a global leader in real estate investment,
development, finance, and management, mainly in the U.S. and U.K. In addition, Ms. Zeldis is a member of the board of directors (pro-bono)
of the Spirit of Israel, a non-profit public benefit company, focusing on young people at risk. Ms. Zeldis has also served as a member
of the boards of directors of several other companies, including Nova Measuring Instruments Ltd. (Nasdaq: NVMI), Rafael Advanced Defense
Systems Ltd. and Metalink Ltd. She holds a B.A. degree in accounting from the Tel Aviv University and a B.A. degree in economics and
an M.B.A. from the Hebrew University in Jerusalem.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Boaz
Weizer </b>is an accomplished executive with over 20 years of senior management experience, leading business strategy and
operations, as well as R&amp;D organizations. Prior to joining ZOOZ, he held multiple executive positions at Elbit Systems, a global
defense technology company, where he led several business lines to success, as well as the company&#8217;s large-scale and highly
technological R&amp;D organization. Before Elbit, he led an innovative automotive startup&#8217;s business unit to a successful
spin-off. Boaz is a graduate of the Israeli Naval Academy where he served as a submarine officer and chief engineer. He holds a
B.Sc. in electrical engineering and MBA from the Technion, Israel Institute of Technology.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Ruth
Smadja, </b>with over 20 years of experience Ruth became ZOOZ&#8217;s chief financial officer (CFO) in October 2022. She has
extensive experience as a corporate leader finance and business strategy, proven track record of scaling growth stage starts up to
mature business &#8211; through planning, modelling, funding, acquisitions, and mergers. Experience includes leading IPO, funding
and transaction rounds with top PEs and strategic investors. Prior to ZOOZ Power, Ruth was CFO at Telrad Networks for 11 years (sold
to Liquid Intelligent Technologies) and CFO at Nur Macroprinters (acquired by HP). Ruth holds a BA in Business
Management, major in Accounting from the Management College.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Ilan
Ben David </b>is a veteran entrepreneur and executive with a proven track record of outperforming business goals. Ilan co-founded ZOOZ
and served as the ZOOZ&#8217;s CEO from its foundation in 2013 and until 2020. Before co-founding ZOOZ, Ilan co-founded and served as
the CEO of Genoa Color Technologies, a display semiconductor company. Prior to Genoa, he held several senior executive positions in the
electronic printing industry. Ilan served in the prestigious 8200 IDF technology unit, and is the inventor of more than 20 patent families,
having earned a B.Sc. in mechanical engineering and an M.Sc. in electrical engineering, both from Tel-Aviv University.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Tal
Harmon </b>served for more than 25 years in a variety of R&amp;D and management roles in Highcon and HP Scitex, prior to joining
ZOOZ. His experience in developing and leading the development of multidisciplinary systems such as digital packaging systems and
wide format digital printing products through the full product life cycle, from problem definition through design, validation,
production and field implementation allows him to have comprehensive view of the whole product aspects &#8211; customer needs,
innovative technological solutions, productivity and serviceability. Tal holds a BSc in mathematics and computer science from
Tel-Aviv university and an MBA from Heriot Watt University.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Udi
Tzuri </b>is a marketing executive with over 20 years of expertise leading marketing and strategy for international high-tech firms.
Before joining ZOOZ, he had several top executive positions, including Director of Marketing and Product Management at Emerson-Spectronix
and Chief Marketing Officer at Applied Materials Israel. Udi graduated from Ben-Gurion University with a B.Sc. in Electrical Engineering.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Eyal
Blum </b>holds over 20 years in legal, sales and business development, Eyal has vast experience in translating tech vision into functional
reality. Prior to ZOOZ Power, Eyal was VP of Business Development at Driivz (acquired by Vontier Corporation), where he became an expert
in the global industry of electric transportation. Before that, Eyal worked as VP Corporate Operations &amp; Legal at Trans Innovations
Group, a leading provider of innovative solutions and digital systems to industries such as telecom, medical, aerospace, and energy.
Eyal holds both a BA in finance and marketing and an MBA. In addition, he has an LLB in Law and is a member of the Israeli Bar Association.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>


<!-- Field: Page; Sequence: 88; Value: 69 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->88<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>B.
COMPENSATION</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Aggregate
Executive Compensation</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
2023, the aggregate compensation paid or accrued by us to all persons listed in Item 6.A above (Directors and Senior Management), and
to other directors and officers who served as such during 2023, was approximately $1.8 million. This amount includes amounts set aside
or accrued to provide pension, severance, retirement or similar benefits, but excludes expenses (including business travel, professional
and business association dues and expenses) reimbursed to our executives and other fringe benefits commonly reimbursed or paid by companies
in Israel.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
2023, we granted to our Directors and Senior Management listed in Item 6.A, and to other directors and officers who served as such
during 2023, options to purchase a total of 195,547 ordinary shares (after applying certain adjustments to the number of shares
underlying outstanding options following the issuance of the Earnout Rights, in accordance with the respective terms of the
options). These options are exercisable at an average exercise price of $9.04 per share, and generally expire ten years after their
respective dates of grant. As of December 31, 2023, there were options to purchase a total of 758,728 ordinary shares (after
applying certain adjustments to the number of shares underlying outstanding options following the issuance of the Earnout Rights, in
accordance with the respective terms of the options) that were held by the Directors and Senior Management listed in Item 6.A and by
other directors and officers who served as such during 2023.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Individual
Compensation of Covered Office Holders</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
table below outlines the compensation granted to our five most highly compensated office holders (as such term is defined in the
Companies Law &#8211; see below under &#8220;Approvals Required for Office Holders Terms of Employment&#8221;) with respect to the
year ended December 31, 2023. All amounts reported in the table reflect the cost to the Company, as recognized in our audited
consolidated financial statements for the year ended December 31, 2023. We refer to the five individuals for whom disclosure is
provided herein as our &#8220;Covered Office Holders&#8221;.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td colspan="14" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Compensation for Services<sup>(2)</sup></b></span></p></td><td style="padding-bottom: 1.5pt">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Name and Principal Position<sup>(1)</sup></b></span></td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Salary Costs<sup>(3)</sup> ($)</b></span></td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Benefits and Perquisites ($)<sup>(4)</sup></b></span></td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Share-Based Compensation ($)<sup>(5)</sup></b></span></td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Total ($)</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 40%; text-align: left; padding-bottom: 1.5pt">Name: Boaz Weizer <br/>Title: Chief Executive</td><td style="width: 2%; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; width: 11%; text-align: right">248</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="width: 2%; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; width: 11%; text-align: right">37</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="width: 2%; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; width: 11%; text-align: right">91</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"><sup>(6)</sup></td><td style="width: 2%; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; width: 11%; text-align: right">194</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: left; padding-bottom: 1.5pt">Name: Ilan Ben David <br/>Title: Chief Technology Officer and Co- Founder</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">185</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">163</td><td style="padding-bottom: 1.5pt; text-align: left"><sup>(6)</sup></td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">22</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt">Name: Ruth Smadja <br/>Title: Chief Financial Officer</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">233</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">46</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">279</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: left; padding-bottom: 1.5pt">Name: Udi Tzuri <br/>Title: VP Product</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">210</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">28</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">37</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">275</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt">Name: Eyal Blum <br/>Title: Chief Revenue Officer</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">213</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">31</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">244</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  </table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)
All Covered Office Holders listed in the table were full-time officers of the Company during their term of service in
2023.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)
Cash compensation amounts denominated in currencies other than the dollar were converted into dollars at an exchange rate of NIS
3.689 = $1.00, which reflects the average conversion rate for 2023.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)
Costs include gross salary, including benefits mandated by applicable law which may include, to the extent applicable to each
Covered Office Holders, payments, contributions and/or allocations for pension, severance, vacation, payments for social security,
study funds and other similar benefits consistent with ZOOZ&#8217;s guidelines.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(4)
Amounts reported in this column include benefits and perquisites, including those mandated by applicable law. Such benefits and
perquisites may include, to the extent applicable to the respective Covered Office Holder, bonuses, payments, contributions, car or
car allowance, and other similar benefits and perquisites consistent with the ZOOZ&#8217;s policies.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(5)
Amounts reported in this column represent the expense recorded in our audited consolidated financial statements for the year ended
December 31, 2023, with respect to options to purchase our ordinary shares granted to our Covered Office Holders. Assumptions and
key variables used in the calculation of such amounts are discussed in Note 12 to our audited consolidated financial statements for
the year ended December 31, 2023.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in">(6) The actual amount is negative and represents a decrease in the fair
value of ZOOZ&#8217;s liabilities for share-based compensation.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 89; Value: 69 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->89<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Compensation
Policy</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>&#160;</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white"><i><span style="text-decoration: underline">Compensation
Policy under the Companies Law</span></i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">In
general, under the Companies Law, the board of directors of a public company must approve a compensation policy after receiving and considering
the recommendations of the compensation committee. In addition, the compensation policy must be approved at least once every three years,
first, by our </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Board of Directors<span style="background-color: white">,
upon recommendation of our compensation committee, and second, by a simple majority of ZOOZ ordinary shares present, in person or by
proxy, and voting (excluding abstentions) at a general meeting of shareholders, provided that either:</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; <span style="background-color: white">the
majority of such ZOOZ ordinary shares is comprised of shares held by shareholders who are not controlling shareholders and
shareholders who do not have a personal interest in such compensation policy; or</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; <span style="background-color: white">the
total number of shares of non-controlling shareholders and shareholders who do not have a personal interest in the compensation
policy voting against the policy does not exceed two percent (2%) of the aggregate voting rights in the company.</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">Under
special circumstances, the board of directors may approve the compensation policy despite the objection of the shareholders on the condition
that the compensation committee and then the board of directors decide on the basis of detailed grounds, and after discussing again with
the compensation committee, that approval of the compensation policy, despite the objection of shareholders, is for the benefit of the
company.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">If
a company adopts a compensation policy in anticipation of its initial public offering and describes such compensation policy in the prospectus
for such offering, then such compensation policy shall be deemed a validly adopted policy in accordance with the Companies Law requirements
described above. Furthermore, if the compensation policy is established in accordance with the foregoing procedures, then it will remain
in effect for a term of five years from the date such company becomes a public company. We have elected to follow such relief, and our
compensation policy, which we have adopted prior to the Israeli IPO, is described below.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">The
compensation policy must be based on certain considerations and include certain provisions and reference certain matters as set forth
in the Companies Law. The compensation policy must serve as the basis for decisions concerning the financial terms of employment or engagement
of office holders, including exculpation, insurance, indemnification, or any monetary payment or obligation of payment in respect of
employment or engagement. The compensation policy must be determined and later reevaluated according to certain factors, including: the
advancement of the company&#8217;s objectives, business plan and long-term strategy; the creation of appropriate incentives for office
holders, while considering, among other things, the company&#8217;s risk management policy; the size and the nature of the company&#8217;s
operations; and with respect to variable compensation, the contribution of the office holder towards the achievement of the company&#8217;s
long-term goals and the maximization of its profits, all with a long-term objective and according to the position of the office holder.
The compensation policy must furthermore consider the following additional factors:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; <span style="background-color: white">The
education, skills, experience, expertise, and accomplishments of the relevant office holder;</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; <span style="background-color: white">the
office holder&#8217;s position and responsibilities;</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; <span style="background-color: white">prior
compensation agreements with the office holder;</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; <span style="background-color: white">the
ratio between the cost of the terms of employment of an office holder and the cost of the employment of other employees of the
company, including employees employed through contractors who provide services to the company, and in particular the ratio between
such cost to the average and median salary of such employees of the company, as well as possible impacts of compensation disparities
between them on the work relationships in the company;</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; <span style="background-color: white">if
the terms of employment include variable components, the possibility of reducing variable components at the discretion of the board
of directors and setting a limit on the value of non-cash variable equity-based components; and</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; <span style="background-color: white">if
the terms of employment include severance compensation, the term of employment or office of the office holder, the terms of the
office holder&#8217;s compensation during such period, the company&#8217;s performance during such period, the office holder&#8217;s
individual contribution to the achievement of the company goals and the maximization of its profits, and the circumstances under
which the office holder is leaving the company.</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 90; Value: 69 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->90<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">The
compensation policy must also include, among other things:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; <span style="background-color: white">with
regards to variable components:</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 1in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9675;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">with
                                            the exception of office holders who report to the chief executive officer, a means of determining
                                            the variable components on the basis of long-term performance and measurable criteria; provided
                                            that the company may determine that an immaterial part of the variable components of the
                                            compensation package of an office holder shall be awarded based on non-measurable criteria,
                                            or if such amount is not higher than three months&#8217; salary per annum, taking into account
                                            such office holder&#8217;s contribution to the company; or</span></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif">&#160;</td><td style="font: 10pt Times New Roman, Times, Serif">&#160;</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">&#160;</td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 1in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9675;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
                                            ratio between variable and fixed components, as well as the limit of the values of variable
                                            components at the time of their payment, or in the case of equity-based compensation, at
                                            the time of grant.</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1.25in; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; <span style="background-color: white">a
condition under which the office holder will refund to the company, according to conditions to be set forth in the compensation
policy, any amounts paid as part of the office holder&#8217;s terms of employment, if such amounts were paid based on information
later to be discovered to be wrong, and such information was restated in the company&#8217;s financial statements;</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; <span style="background-color: white">the
minimum holding or vesting period of variable equity-based components to be set in the terms of office or employment, as applicable,
while taking into consideration long-term incentives; and</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679; <span style="background-color: white">a
limit to retirement grants.</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">Our
compensation policy was approved by our shareholders on February 11, 2021, as amended on October 14, 2021<span style="background-color: white">,</span> following the approval of our
</span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Board of Directors <span style="background-color: white">and
our compensation committee, respectively.</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Approvals
Required for Office Holders Terms of Employment</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
term &#8220;office holder&#8221; as defined in the Companies Law includes a director, the chief executive officer, <span style="background-color: white">chief
business manager, deputy chief executive officer, vice chief executive officer</span>, any other person fulfilling or assuming any of
the foregoing positions without regard to such person&#8217;s title, and any manager who is directly subordinated to the chief executive
officer. In addition to each person listed in the table under &#8220;<i>Item 6. Directors, Senior Management and Employees</i> <i>&#8211;
A. Directors and Senior Management</i>&#8221;, two other individuals have been office holders as of December 31, 2023.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8220;Terms
of Office and Employment&#8221; means the terms of office and employment of our office holders, including exemption and release of the
office holder from liability for breach of his or her duty of care to the Company, an undertaking to indemnify the office holder, post
factum indemnification or insurance; any grant, payment, remuneration, compensation, or other benefit provided in connection with termination
of service and any benefit, other payment or undertaking to provide any payment as aforesaid.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Compensation
for office holders subordinated to the Chief Executive Officer.</i> The terms of office and employment of office holders (other than
directors and the chief executive officer) require the approval of the compensation committee and the board of directors, provided such
terms are in accordance with the company&#8217;s compensation policy. Shareholder approval is also required if the compensation of such
officer is not in accordance with such policy. However, in special circumstances the compensation committee and then the board of directors
may nonetheless approve such compensation even if such compensation was not approved by the shareholders, following a further discussion
and for detailed reasoning.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Compensation
for office holders who are Directors or Chief Executive Officers.</i> The Terms of Office and Employment of directors, other than directors
who serve as chief executive officers and/or who possess a controlling interest in a company or who are external directors (to the extent
applicable), require the approval of the compensation committee, board of directors and shareholders by a simple majority, as long as
it complies with the compensation policy. With respect to our president and chief executive officer or with respect to any chief executive
officer, further approval of the shareholders by the Special Majority is required. However: (A) under certain circumstances, and to the
extent that the proposed Terms of Office and Employment are in compliance with the compensation policy, a company may be exempt from
receiving shareholder approval with respect to the Terms of Office and Employment of a candidate for the position of chief executive
officer (provided that the candidate is not a director) (i) provided that the company&#8217;s compensation committee and board of directors
approved such terms and that such terms: (a) are not more beneficial than the terms of the former chief executive officer, or are essentially
the same in their effect; (b) are in line with the compensation policy; and (c) are brought for shareholder approval at the next general
meeting of shareholders; and (B) a company&#8217;s compensation committee and board of directors are permitted to approve Terms of Office
and Employment of a director, without convening a general meeting of shareholders, provided that such terms are only beneficial to the
Company or that such terms are in compliance with the terms set forth in the Israeli Companies Regulations <span style="background-color: white">(Rules
Regarding Compensation and Expenses of External Directors), 2000, or the Compensation Regulations</span>. To the extent applicable, external
directors are entitled to Terms of Office and Employment as set forth in the Compensation Regulations, as supplemented by the Israeli
Companies Regulations (Alleviation for Public Companies whose shares are Traded on the Stock Exchange Outside of Israel), 2000, or the
Alleviation Regulations. In addition, the Israel Securities Authority may issue from time-to-time bulletins or staff position statements
relating to, among other things, compensation payable to external directors. Since our Board of Directors determined to opt out of the
requirement to elect and have external directors and composition criteria of the audit committee and compensation committee under the
Companies Law pursuant to the relief available under the Alleviation Regulations, as further detailed in this Item below under &#8220;Board
Practices - External Directors and Independent Directors Under the Companies Law&#8221;, we are not subject to such bulletins or staff
position statements.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 91; Value: 69 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->91<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Variable
Compensation and Annual Cash Bonuses of office holders</i>. The Companies Law requires that all variable compensation of directors and
chief executive officers be based on measurable criteria, with the exception of a non-substantial portion of up to &#8206;3 monthly salaries,
which should take into consideration the applicable office holder&#8217;s contribution to the company&#8206;. With respect to office holders
who are not directors or chief executive officers, the Companies Law allows that 100% of the variable compensation be based on non-measurable
criteria. Our Compensation Policy allows for a non-substantial portion of up to 20% (but not more than 3 monthly salaries) of the bonus
objectives for each year to be based on non-measurable criteria, provided, however, that with respect to (i) our office holders who are
not directors nor our chief executive officer, our compensation committee and board of directors may increase the portion of targets
based on non-measurable criteria above the rate of 30%, up to 60% and with respect to our chief executive officer, our compensation committee
and board of directors may increase the portion of targets based on non-measurable criteria for up to three (3) monthly base salaries.
Further, the annual cash bonus of each of our office holders who is not a director is determined according to a formula that is consistent
with the Compensation Policy and that links the bonus payment score to measurable and qualitative objectives relating to both the Company&#8217;s
performance and to the performance by each such office holder of his responsibilities. In the case of our office holders, other than
the chief executive officer, assuming that the bonus terms conform to the Compensation Policy, the annual bonus objectives and subsequent
payment scores are determined by the compensation committee and board of directors, while the bonus terms for our chief executive officer
generally require the additional approval by our shareholders. For each fiscal year, our board of directors determines the maximum target
bonus for each of our office holders, including our chief executive officer.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Compensation
Paid to our Non-Executive Directors</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
February 11, 2021, our shareholders approved, following previous resolutions made by our board of directors, and consistent with our
Compensation Policy, to compensate each of our non-executive directors whether currently in office or appointed in the future, excluding
the Chairman of the Board (each a &#8220;non-executive director&#8221;) as follows:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline">Cash
Compensation</span>. Except for our chairman of the Board of Directors, our directors are compensated in accordance with regulations promulgated
under the Companies Law concerning the remuneration of external directors (the &#8220;<b>Remuneration Regulations</b>&#8221;), as supplemented
by the Alleviation Regulations. Each of them is entitled to a cash compensation in accordance with the &#8220;fixed&#8221; amounts of
the annual and participation fees, as set forth in the Remuneration Regulations, based on the classification of the Company according
to the amount of its capital, and to reimbursement of travel expenses for participation in a meeting, which is held outside of the director&#8217;s
place of residence; currently, the sum of NIS 32 thousands (approximately $9 thousands based on the Exchange Rate) as an annual fee,
the sum of NIS 1 thousands (approximately $0.28 thousands, based on the Exchange Rate) as an in-person participation fee, NIS 0.6 thousands
(approximately $0.17thousands, based on the Exchange Rate) for conference call participation and NIS 0.5 thousands (approximately $0.14
thousands, based on the Exchange Rate) for written resolutions. As the above-mentioned amounts are within the range between the fixed
amounts set forth in the Remuneration Regulations and the maximum amounts set forth in the Foreign Listed Regulations, they are exempt
from shareholder approval, in accordance with the Israeli Companies Regulations (Relief from Related Party Transactions) &#8211; 2000
(the &#8220;<b>Relief Regulations</b>&#8221;). These cash amounts are subject to an annual adjustment for changes in the Israeli consumer
price index and to an annual adjustment in accordance with the classification of the Company according to the size of its capital. The
above-mentioned cash compensation is in line with the Company&#8217;s Compensation Policy, according to which each of the Company&#8217;s
non-executive directors is entitled to receive cash fees which include annual and participation fees.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">No
additional compensation shall be paid for attendance at a board or committee meeting.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 92; Value: 69 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->92<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">VAT
is added to the above compensation in accordance with applicable law.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline">Chairman
Cash Fee</span>. Avi Cohen servs as our chairman of the Board of Directors in a 40% position scope. In consideration for his services, he
is entitled to a NIS 30,000 monthly fee, which was approved by our shareholders on April 17, 2023, in an extraordinary general meeting
(the &#8220;<b>2023 EGM</b>&#8221;).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline">Equity
Compensation</span>. During 2023, we granted to our directors and members of our senior management detailed in Section 6.A and other
directors and executive officers who served as such during the year 2023, options to purchase 195,547 ordinary shares, in the
aggregate (after applying certain adjustments to the number of shares underlying outstanding options following the issuance of the
Earnout Rights, in accordance with the respective terms of the options), with an exercise price that ranges from $4.38 to $11.76 per
share. As of December 31, 2023, there were outstanding options to purchase a total of 531,114 ordinary shares (after applying certain adjustments to the number of shares underlying outstanding options following the issuance
of the Earnout Rights, in accordance with the respective terms of the options) that were held by our
directors and senior management, which was vested in 2023, detailed in Section 6A. In addition to cash fees, as remuneration for
their contribution and efforts as directors of the Company, and in line with the limitations set forth in our Compensation Policy
with respect to equity-based compensation, certain directors received equity grants with respect to their term of service as our
directors, which was approved to them by our shareholders at the 2023 EGM, as follows:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
To Mr. Avi Cohen, chairman of the Board of Directors, options to purchase 107,393 ordinary shares of the Company. The options will
vest over a period of 3 years from the date of the board of directors&#8217; approval of the said grant, i.e., March 2, 2023 (the
&#8220;<b>Grant Approval Date</b>&#8221;).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
To Mr. Manuel Fernandes, a former director of the Company, and to Mr. Doron Vadai, a non-executive director of the Company, options
to purchase 32,543 and 24,407 ordinary shares of the Company, respectively. The options will vest over a period of 3 years
from the Grant Approval Date.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span style="text-decoration: underline">Company
Equity Plan</span></i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
August 2015 the Company adopted the Company Equity Plan, which is managed by the ZOOZ board of directors, or by a special committee authorized
by ZOOZ board of directors.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline">Eligibility</span>.
In accordance with the Company Equity Plan and subject to applicable law, ZOOZ&#8217;s board of directors may grant options that are
not registered for trading to be exercised for ZOOZ ordinary shares (&#8220;<b>Options</b>&#8221;), to employees, officers, directors,
consultants and other selected senior service providers of ZOOZ or affiliated companies (including persons who are responsible for or
contribute to the management, growth or profitability of, or who provide substantial services to, ZOOZ or any affiliated company) (the
&#8220;<b>Grantees</b>&#8221;)).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline">Grant
of Options</span>. Options shall be granted with no consideration and evidence by an option agreement. Each Grantee shall be required to
execute, in addition to the option agreement, any and all other documents required by the Company or any affiliated company, whether
before or after the grant of the Options.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline">Exercise
Price</span>. Each Option may not be granted with an exercise price of less than the minimum price per share as will be determined in the
TASE rules and regulations from time to time, unless otherwise determined by ZOOZ&#8217;s board of directors.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline">Vesting
Schedule</span>. Unless otherwise determined by ZOOZ&#8217;s board of directors or a committee thereof administering the Company Equity
Plan, the Options shall vest over a four-year period as follows: twenty five percent (25%) will vest one calendar year from the date
of grant; and an additional 6.25% will vest each quarter thereafter for the next 36 months. In addition, the ZOOZ board of directors
may determine that certain and/or all Options shall be accelerated upon a merger of ZOOZ with another company.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline">Expiration
Date</span>. The Options will expire ten years after the grant date, unless ZOOZ board of directors determined otherwise.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline">Exercise
Period</span>. Each Option shall be exercisable from the date upon which it becomes vested until the expiration date of such Option. In
the event of a merger of ZOOZ with or into another corporation which ZOOZ is not the surviving entity, or the sale of all or substantially
all the assets or the shares of ZOOZ other than to a wholly-owned subsidiary of the parent company or other than in the framework of
a corporate reorganization, the surviving or the acquiring entity, as the case may be, or its respective parent company or subsidiary
may either assume ZOOZ&#8217;s rights and obligations under outstanding Options or substitute the outstanding Options, as determined
under the Company Equity Plan.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline">Transferability</span>.
Other than by will, the laws of descent and distribution or as otherwise provided under the Company Equity Plan, neither the awards nor
any right in connection with such awards are assignable or transferable, made subject to attachment, lien or encumbrance of any kind,
and the Grantee shall not grant with respect thereto any power of attorney or transfer deed, whether valid immediately or in the future.
Following the exercise of vested Options, the exercised shares shall be transferable in accordance with terms of the Company Equity Plan.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 93; Value: 69 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->93<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline">Termination
of Services</span>. Any Option granted in favor of any Grantee but not exercised by such Grantee within the exercise period and in strict
accordance with the terms of the Company Equity Plan, any applicable sub-plan and the applicable option agreement, shall, upon the lapse
of the exercise period, immediately expire and terminate and become null and void. Upon the termination of a Grantee&#8217;s Service
(as such term defined under the Company Equity Plan), for any reason whatsoever, any Options granted in favor of such Grantee which are
not vested Options, shall immediately expire and terminate and become null and void. Additionally, in the event of the termination of
a Grantee&#8217;s Service for Cause (as such term defined under the Company Equity Plan) (a) all of such Grantee&#8217;s vested Options
shall also, upon such termination for Cause, immediately expire and terminate and become null and void. Following termination of Grantee&#8217;s
Service other than for Cause, the expiration date of such Grantee&#8217;s vested Options shall be deemed the earlier of: (a) the expiration
date of such vested Options as was in effect immediately prior to such termination; or (b) three (3) calendar months following the date
of such termination or, if such termination is the result of death or disability of the Grantee, twelve (12) calendar months from the
date of such termination.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
the year of 2023, we granted Options to purchase 286,038 ordinary shares to 20 employees and officers of the Company (after applying
certain adjustments to the number of shares underlying outstanding options following the issuance of the Earnout Rights, in
accordance with the respective terms of the options). As of March 28, 2024, Options to purchase 79,050 ordinary shares (as adjusted
in accordance with the conversion ratio) are reserved for future issuances under the 2015 Plan.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Insurance,
Indemnification and Exemption</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Our
Office Holder&#8217;s Insurance</i>. Our Articles provide that, subject to any applicable law, the Company may enter into contract to
cover any Company officer&#8217;s liability, as imposed on them following an action they perform in their capacity as a Company officer,
to the maximum extent permitted in the law, due to each of the following:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
A violation of the duty of care toward the Company or toward another person;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
A violation of the fiduciary duty toward the Company, as long as the officer acted in good faith and had reasonable grounds for
assuming the action will not harm the Company&#8217;s best interest;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
A monetary liability imposed on them for the benefit of another person;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
Expenses the officer spent or has been charged with in connection with an Administrative Enforcement Proceeding they were subject
to, including reasonable litigation expenses, such as an attorney&#8217;s fee;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
A payment imposed on the officer for the benefit of an injured party, as stated in Section 52.BBB(A)(1)(A) of the Securities Law
(&#8220;Payment to an Injured Party&#8221;);</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
Any other Company officer liability, undertaking, or expense that may be lawfully insured now or in the future.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
the Companies Law, exemption and indemnification of, and procurement of insurance coverage for, our office holders, must be approved
by our compensation committee and our board of directors and, with respect to an office holder who is the CEO or a director, also by
our shareholders. However, according to regulations promulgated under the Companies Law, shareholders and board of directors approvals
for the procurement of such insurance are not required if the insurance policy is approved by our compensation committee and: (i) the
terms of such policy are within the framework for insurance coverage as approved by our shareholders and set forth in our Compensation
Policy; (ii) the premium paid under the insurance policy is at fair market value; and (iii) the insurance policy does not and may not
have a substantial effect on the Company&#8217;s profitability, assets or obligations.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
accordance with our Compensation Policy, <span style="background-color: white">approved by our shareholders at the 2021 annual general
meeting, </span>we are currently entitled to hold directors&#8217; and officers&#8217; liability insurance policy for the benefit of
our office holders with insurance coverage of up to $15,000,000, provided that the insurance period shall not exceed 7 years, and with
<span style="background-color: white">such annual premium reflecting market terms and not having a substantial effect on our profitability,
assets or obligations</span>.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Our
Office Holders&#8217; Indemnification.</i> Our Articles provide that, subject to any applicable law, the Company may indemnify an officer
therein due to a liability or an expense imposed on them or that they have spent following an action performed in their capacity as a
Company officer, to the maximum amount permitted under any applicable law, and as stated below:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
A monetary liability imposed on them for the benefit of another Person according to a judgment, including a judgment in a settlement
or an arbitration award that a court has ratified;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 94; Value: 69 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->94<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
Reasonable litigation expenses, including an attorney&#8217;s fee, that officer has spent because of an investigation or proceeding
administered against them by an authority that is authorized to administer an investigation or a proceeding, that concluded without
a criminal charge lodged against them, and without imposing a monetary sanction on them in lieu of a criminal proceeding, or that
has concluded without submitting a criminal charge, but by imposing a monetary sanction in lieu of a criminal proceeding, in an
offense that does not require proof of mens rea or in connection with a monetary sanction. In this Article: (1) &#8220;conclusion
without submitting a criminal charge in a matter in which a criminal investigation has been launched&#8221;; and (2) &#8220;a
monetary sanction in lieu of a criminal proceeding&#8221; are as defined in Section 260 (A)(1A) of the Companies Law;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
Reasonable litigation expenses, including an attorney&#8217;s fee, the officer spent or was charged with by a court, in a proceeding
lodged against the officer by the Company or on its behalf or by another person, or in a criminal charge the officer was acquitted
from, or in a criminal offense it was charged with, that does not require proof of mens rea;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
Expenses the officer has spent or has been charged with in connection with an Administrative Enforcement Proceeding they were
subject to, including reasonable litigation expenses, such as an attorney&#8217;s fee, to the extent permitted under the
law;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
Any Payment to an Injured Party, including reasonable litigation expenses, such as an attorney&#8217;s fee; and</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
Any liability, undertaking, or other expense for which it is or will be permissible to indemnify Company officers.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company may give an advanced undertaking to indemnify an officer due to a liability or an expense, as stated in Article 32.3 of the Articles,
as long as the advance undertaking to indemnify due to a liability, as stated in Article 32.3.1 of the Articles, is limited to events
the Board of Directors considers predictable given the Company&#8217;s activity in practice when making the undertaking to indemnify,
and to an amount or according to a criterion that Board of Directors has found reasonable under the circumstances, and that the undertaking
to indemnify states the events the Board of Directors considers foreseeable, given the Company&#8217;s activity in practice when making
the undertaking, and the amount or the criteria the Board of Directors has found reasonable under the circumstances.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
total, aggregate indemnification amount the Company will bear according to the advanced undertaking to indemnify due to such liability,
as stated in Article 32.3.1 of the Articles (along with the amounts to be received from an insurance company, if any, under an officer
liability insurance policy the Company has acquired) for all Company officers, shall be determined under the Company&#8217;s compensation
policy.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Subject
to the Companies Law, the Company may indemnify any officer after the fact, for a liability or expense, as stated in Articles 31.3.1
to 31.3.6 of the Articles, including with regards to an indemnification for a liability as stated in Article 31.3.1 of the Articles,
without applying the restrictions stated in Article 31.4 of the Articles.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Our
Office Holder&#8217;s Exemption. </i>Our Articles provide that, subject to the provisions of the Companies Law, may, at the maximum permissible
in the law, exempt an officer from all or some of their liability, in advance or in retrospect, due to damage of any kind caused to them
or that may be caused to them, directly or indirectly, if it was or is caused following a violation of the duty of care toward the Company,
including for any decision, failure to decide, or any derivative of the above, and due to any other incident, cause, liability, expense,
or damage, if it is permissible to grant an exemption due to them pursuant to the Companies Law at the relevant time for approving the
exemption, except in the event of a violation of the duty of care toward the Company within a distribution.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
foregoing also applies to a Company officer&#8217;s exemption in connection with their role as an officer in a subsidiary or position
holder in a subsidiary or in any other company that the Company has a share in, directly or indirectly, or that the Company is otherwise
interested in (&#8220;Other Company&#8221;).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Limitations
on Insurance, Indemnification and Exemption.</i> According to the Companies Law, and as long as the Companies Law does not allow otherwise,
the Company may not enter into contract to cover the liability of an officer therein, and may not indemnify or exempt any of its officers
from their liability toward the Company due to any of the following:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
A violation of the fiduciary duty, except for the purpose of indemnification and insurance due to a violation of the fiduciary duty
toward the Company, if the officer has acted in good faith, and had reasonable grounds for assuming the action will not harm the
Company&#8217;s best interests;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
A deliberate or reckless violation of the duty of care, unless it has been made out of negligence;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
An action with the intent of unlawfully making a personal gain;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
A fine, as civil fine, a monetary sanction, or a monetary settlement in lieu of a criminal proceeding imposed on them;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
Directly or indirectly insuring a proceeding under Chapter H3 (Imposition of a Monetary Sanction by the Authority), Chapter H4
(Imposition of Administrative Enforcement measures by an Enforcement Committee), or Chapter I1 (Arrangement for a Conditional
Avoidance from Launching Proceedings or Terminate Proceedings) of the Securities Law.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 95; Value: 69 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->95<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Administrative
Enforcement</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Securities Law includes an administrative enforcement procedure that may be used by the Securities Authority, to enhance
the efficacy of enforcement in the securities market in Israel. Pursuant to the Companies Law and the Securities Law, the Israel
Securities Authority is authorized to impose administrative sanctions, including monetary fines, against companies like ours and their
officers and directors for certain violations of the Securities Law or the Companies Law. Furthermore, the Securities
Law requires that the CEO of a company supervise and take all reasonable measures to prevent the company or any of its employees from
breaching the Securities Law. The CEO is presumed to have fulfilled such supervisory duty if the company adopts internal enforcement
procedures designed to prevent such breaches, appoints a representative to supervise the implementation of such procedures and takes
measures to correct the breach and prevent its reoccurrence.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
the Securities Law, a company cannot obtain insurance against or indemnify a third-party (including its officers and/or employees) for
any administrative procedure and/or monetary fine (other than for payment of damages to an injured party). The Securities Law permits
insurance and/or indemnification for expenses related to an administrative procedure, such as reasonable legal fees, provided that it
is permitted under the company&#8217;s articles of association.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have adopted and implemented an internal enforcement plan to reduce our exposure to potential breaches of sections in the Companies Law
and the Securities Law, applicable to us. Our Articles and letters of indemnification permit, among others, insurance and/or
indemnification as contemplated under the Securities Law (see &#8220;<i>Insurance, Indemnification and Exemption&#8221;</i> above).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>&#160;</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>C.
BOARD PRACTICES</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are incorporated in Israel, and, therefore, are generally subject to various corporate governance practices under Israeli law such as
with respect to external directors, independent directors, audit committee, compensation committee, an internal auditor and approvals
of interested party transactions. These matters are in addition to the requirements of The Nasdaq Capital Market and other relevant provisions
of U.S. securities laws applicable to us. Under the Nasdaq Listing Rules, a foreign private issuer may generally follow its home country
practices for corporate governance in lieu of the comparable Nasdaq Capital Market requirements, except for certain matters such as composition
and responsibilities of the audit committee and the SEC-mandated standards for the independence of its members. We currently comply with
all the above-mentioned requirements. See &#8220;<i>Item 3. Key Information &#8211; D. Risk Factor&#8211; Risks related to operations
in Israel &#8211; Being a foreign private issuer exempts us from certain SEC requirements and Nasdaq rules, which may result in less
protection that is afforded to investors under rules applicable to domestic issuers</i>&#8221;. For information regarding home country
practices followed by us see &#8220;<i>Item 16 &#8211; Corporate Governance</i>&#8221;.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Board
of Directors</span></p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
Articles provide that we may have no less than three nor more than ten directors (including independent and external directors). Currently
our board of directors consists of seven members. Our directors are elected at the annual general meeting for a term of approximately
one year, ending at the annual general meeting immediately following the annual general meeting at which they were elected or upon earlier
termination in circumstanced referred to under the Companies Law or our Articles. Our directors may further be appointed by the board
of director and in this case shall hold office until the end of the immediately following annual general meeting or upon earlier termination
in circumstanced referred to under the Companies Law or our Articles.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">None
of our directors is party to a service contract with us that provides for any severance or similar benefits upon termination of his or
her service.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 96; Value: 69 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->96<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Board
of Directors Diversity</span></p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
table below provides certain information regarding the diversity of our board of directors.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 92%; border-collapse: collapse; margin-left: 0.5in">
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <td colspan="9" style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Board
    Diversity Matrix as of April 15, 2024</b></span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: rgb(204,238,255)">
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total
    Number of Directors</span></td>
    <td>&#160;</td>
    <td colspan="7" style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">7</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: White">
    <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; width: 40%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="padding-bottom: 1.5pt; width: 2%">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; width: 13%; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Female</span></td>
    <td style="padding-bottom: 1.5pt; width: 2%">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; width: 13%; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Male</span></td>
    <td style="padding-bottom: 1.5pt; width: 2%">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; width: 13%; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Non-Binary</span></td>
    <td style="padding-bottom: 1.5pt; width: 2%">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; width: 13%; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Did
    Not Disclose Gender</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: rgb(204,238,255)">
    <td colspan="9" style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Part
    I: Gender Identity</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: White">
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Directors</span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2</span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">3</span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: rgb(204,238,255)">
    <td colspan="9" style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Part
    II: Demographic Background</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: White">
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">African
    American or Black</span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: rgb(204,238,255)">
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Alaskan
    Native or Native American</span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: White">
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Asian</span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">1</span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: rgb(204,238,255)">
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Hispanic
    or Latinx</span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: White">
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Native
    Hawaiian or Pacific Islander</span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: rgb(204,238,255)">
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">White</span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: White">
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Two
    or More Races or Ethnicities</span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: rgb(204,238,255)">
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">LGBTQ+</span></td>
    <td>&#160;</td>
    <td colspan="7" style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: White">
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Did
    Not Disclose Demographic Background</span></td>
    <td>&#160;</td>
    <td colspan="7" style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">6</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Directors
Under the Companies Law - General</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">A
nominee for service as a director in a public company may not be elected without submitting a declaration to the company, prior to his
or her election, specifying that he or she has the requisite qualifications to serve as a director, an external director or an independent
director, as applicable, and the ability to devote the appropriate time to performing his or her duties as such.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">A
director, including an external director or an independent director, who ceases to meet the statutory requirements to serve as a director,
external director or independent director, as applicable, must notify the company to that effect immediately and his or her service as
a director will expire upon submission of such notice.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>External
Directors and Independent Directors</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
the Companies Law, Israeli public companies are generally required to have on their board of directors at least two external directors
meeting certain independence criteria, provided under Israeli law. In accordance with the Alleviation Regulations, we, as an Israeli
public company with no controlling shareholder (within the meaning of the Companies Law), whose shares are listed on The Nasdaq Capital
Market, may opt out from the requirement of electing and having external directors on our board of directors and related requirements
concerning the composition of the audit and compensation committees of the board of directors, provided that we do not have a controlling
shareholder, we continue to comply with the U.S. securities laws and Nasdaq Listing Rules applicable to U.S. domestic issuers regarding
the independence of the board of directors and the composition of the audit and compensation committee, or the Opt Out Criteria. On April
15, 2024, our board of directors determined to opt out of the requirement to elect and have external directors and of the rules governing
composition of the audit committee and compensation committee under the Companies Law pursuant to the relief available under the Alleviation
Regulations, since at that time (and since that time) we have complied and continue to comply with the Opt Out Criteria. In accordance
with this decision, we currently have no external directors on our board of directors and we are subject to the U.S. securities laws
and Nasdaq Listing Rules applicable to U.S. domestic issuers regarding the independence of our board of directors and the composition
of our audit and compensation committees.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
term controlling shareholder, as used in the Companies Law for purposes of all matters related to external directors and for certain
other purposes, means a shareholder that has the ability to direct the activities of the company, other than by virtue of being an office
holder. For purposes of all matters related to external directors, a shareholder is presumed to be a controlling shareholder if the shareholder
holds 50% or more of the voting rights in the company or has the right to appoint the majority of the directors of the company or its
chief executive officer.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
the Companies Law, an &#8216;independent director&#8217; is either an external director or a director appointed or classified as such
who meets the same non-affiliation criteria as an external director, as determined by the company&#8217;s audit committee, and who has
not served as a director of the company for more than nine consecutive years. For these purposes, ceasing to serve as a director for
a period of two years or less would not be deemed to sever the consecutive nature of such director&#8217;s service. However, as our shares
are listed on The Nasdaq Capital Market, pursuant to the Alleviation Regulations, we may also classify directors who qualify as independent
directors under the relevant non-Israeli rules, as &#8216;independent directors&#8217; under the Companies Law. In addition, the Alleviation
Regulations provide that &#8216;independent directors&#8217; may be elected <span style="background-color: white">for additional terms
that do not exceed three years each, beyond the </span>9 consecutive years<span style="background-color: white">, provided that, if the
director is being re-elected for an additional term or terms beyond the 9 consecutive years, the audit committee and board of directors
must determine that, in light of the director&#8217;s expertise and special contribution to the board of directors and its committees,
the re-election for an additional term is to the company&#8217;s benefit and the director must be re-elected by the required majority
of shareholders and subject to the terms specified in the Companies Law</span>.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 97; Value: 69 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->97<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition to the requirements of the Companies Law as described above, since our shares are listed on The Nasdaq Capital Market, pursuant
to the Nasdaq Listing Rules, a majority of our directors must be independent (as defined under the Nasdaq Listing Rules). We comply with
such Nasdaq independence requirement, as 6 of our directors, has been determined by our board of directors to meet the Nasdaq independence
requirements. Since, as described above, pursuant to the Alleviation Regulations we may classify directors who qualify as independent
directors under the relevant non-Israeli rules, as &#8216;independent directors&#8217; under the Companies Law, each of these 6 directors
is also deemed to qualify as an &#8216;independent director&#8217; under the Companies Law (as supplemented by the Alleviation Regulations).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Financial
and Accounting Expertise Under the Companies Law</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>&#160;</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to the Companies Law<span style="background-color: white">, the board of directors of a publicly traded company is required to make a
determination as to the minimum number of directors who must have financial and accounting expertise </span>according to criteria set
forth under the Companies Law and regulations promulgated there under <span style="background-color: white">and based, among other things,
on the type of company, its size, the volume and complexity of the company&#8217;s activities and the number of directors.</span> Our
board of directors has determined that the minimum number of directors with financial and accounting expertise is one. Currently, all
of our directors qualify as such.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Board
Committees</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Audit
Committee</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>&#160;</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Companies Law requires public companies such as ours to appoint an audit committee, the responsibilities of which include, among other
things: (i) identifying flaws in the management of the company&#8217;s business, among other things, in consultation with the company&#8217;s
internal auditor or external auditor, and making recommendations to the board of directors as to how to correct them, (ii) reviewing
and considering certain related party transactions and certain actions involving conflicts of interest (as well as deciding whether certain
actions specified in the Companies Law are considered material or non-material and whether certain transactions are considered exceptional
or ordinary), <span style="background-color: white">(iii) establishing procedures to be followed with respect to related party transactions
with a &#8220;controlling shareholder&#8221; (where such are not extraordinary transactions), which may include, where applicable, the
establishment of a competitive process for such transaction, under the supervision of the audit committee, or individual, or other committee
or body selected by the audit committee, in accordance with criteria determined by the audit committee, (iv) determining procedures for
approving certain related party transactions with a &#8220;controlling shareholder&#8221;, which were determined by the audit committee
not to be extraordinary transactions, but which were also determined by the audit committee not to be negligible transactions, </span>(v)
reviewing the internal auditor&#8217;s work program performance, examining the company&#8217;s internal control structure and processes
<span style="background-color: white">and determining whether the internal auditor has the requisite tools and resources required to
perform his or her role,</span> (vi) examining the external auditor&#8217;s scope of work as well as the external auditor&#8217;s fees
and providing its recommendations to the appropriate corporate organ, (vii) <span style="background-color: white">overseeing the accounting
and financial reporting processes of the Company, and </span>(viii) providing arrangements regarding employee complaints with respect
to flaws in the management of the Company&#8217;s business and the protection to be provided to such employees<span style="background-color: white">.</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
the Nasdaq Listing Rules, we are required to maintain an audit committee that operates under a formal written charter and has certain
responsibilities and authority, including being directly responsible for the appointment, compensation, retention and oversight of the
work of our external auditor. However, under Israeli law and our Articles, the appointment of external auditor and their compensation
requires the approval of the shareholders, however their compensation can also be approved by our board of directors. In addition, as
described above, pursuant to the Companies Law, the audit committee is required to examine the external auditor&#8217;s scope of work
as well as the external auditor&#8217;s fees and to provide its recommendations with respect thereto to the appropriate corporate organ.
Accordingly, the appointment of our external auditor is approved by our shareholders at the audit committee&#8217;s recommendation and
its compensation for audit and non-audit services is approved by the board of directors following the audit committee&#8217;s recommendation.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have adopted a charter for the audit committee, which sets forth the purpose and responsibilities of such committee.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
carrying out its duties, the audit committee meets with management at least once in each fiscal quarter at which time, among other
things, it reviews, and either approves or disapproves, the financial results of the Company for the immediately preceding fiscal
quarter and conveys its conclusions in this regard to the board of directors. The audit committee also generally monitors the
services provided by the Company&#8217;s external auditor to ensure their independence and reviews all audit and non-audit services
provided by them. The Company&#8217;s external and internal auditors also report regularly to the audit committee and the audit
committee discusses with our external auditor the quality, not just the acceptability, of the accounting principles, the
reasonableness of significant judgments and the clarity of disclosures in our audited consolidated financial statements, as and when
it deems it appropriate to do so.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 98; Value: 69 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->98<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
the Nasdaq Listing Rules, the audit committee is required to consist of at least three independent directors, each of whom is financially
literate and at least one of whom has accounting or related financial management expertise.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have an audit committee consisting of three directors, Mrs. Naama Zeldis, who serves as the chairperson of our audit committee, Mr. Dan
Weintraub and Mrs. Christine Y. Zhao, all of whom are financially literate under the applicable rules and regulations of the SEC and
Nasdaq Listing Rules and each of whom is an audit committee financial expert, as defined by the SEC rules, and has the requisite financial
experience required under the Nasdaq Listing Rules. Additionally, each of the members of the audit committee is &#8220;independent&#8221;
as such term is defined in Rule 10A-3(b)(1) under the Exchange Act, which is different from the general test for independence of board
and committee members under the Nasdaq Listing Rules.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
audit committee composition requirements referred to under Section 115 of the Companies Law are not applicable to the Company as our
board of directors, as part of its decision to opt out of the requirement to elect external directors pursuant to the relief available
under the Alleviation Regulations, also opted out of such composition requirements on the basis that the Company complies, and will continue
to comply, with the U.S. Securities Law and Nasdaq Listing Rules concerning the composition of the audit committee, as described above.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Compensation
Committee</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>&#160;</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Companies Law generally provides that public companies such as the Company must appoint a compensation committee, the responsibilities
of which include, among others: (i) reviewing and making recommendations to the board of directors with respect to our Compensation Policy
and with respect to any updates which may be required thereto from time to time, (ii) <span style="background-color: white">reviewing
the implementation of the Compensation Policy by the Company</span>, (iii) reviewing and considering arrangements with respect to the
Terms of Office and Employment of office holders, (iv) <span style="background-color: white">exempting, under certain circumstances,
a transaction relating to the </span>Terms of Office and Employment of office holders <span style="background-color: white">from the
requirement of approval of the shareholders, </span>and (v) overseeing, subject to applicable law, the administration of the Company&#8217;s
various compensation plans and arrangements, including, incentive compensation and equity based plans. Under the Companies Law, the compensation
committee may need to seek the approval of the board of directors and the shareholders for certain compensation-related decisions, (see
&#8220;<i>Item 6 - Directors, Senior Management and Employees - B. Compensation - Approvals Required for Office Holders Terms of Employment</i>&#8221;).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have adopted a charter for the compensation committee, which sets forth the purpose and responsibilities of such committee.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
the Nasdaq Listing Rules, we are required to maintain a compensation committee consisting of at least two independent directors (as defined
under the Nasdaq Listing Rules). Each compensation committee member must also be deemed by our board of directors to meet the enhanced
independence requirements for members of the compensation committee under the Nasdaq Listing Rules, which requires, among other things,
that our board of directors considers the source of each such committee member&#8217;s compensation in considering whether he or she
is independent.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
compensation committee composition requirements referred to under Section 118A of the Companies Law are not applicable to the Company
as our board of directors, as part of its decision to opt out of the requirement to elect external directors pursuant to the relief available
under the Alleviation Regulations, also opted out of such composition requirements on the basis that the Company complies, and will continue
to comply, with the Nasdaq majority board independence requirement and with U.S. Securities Law and Nasdaq Listing Rules concerning the
composition of the compensation committee, as described above.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have a compensation committee consisting of three directors, Mr. Dan Weintraub who serves as the chairperson of our compensation committee,
Ms. Christine Y. Zhao and Mrs. Naama Zeldis. Each member of our compensation committee is an &#8216;independent director&#8217; in accordance
with the Nasdaq listing standards.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Nomination
and Corporate Governance Committee</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>&#160;</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Nasdaq Listing Rules require that director nominees be selected or recommended for the board&#8217;s selection either by a nomination
committee composed solely of independent directors, or by a majority of independent directors, in a vote in which only independent directors
participate, subject to certain exceptions. Mr. Fang Zheng, who serves as the chairman of our nomination and corporate governance committee,
Mr. Avi Cohen and Mr. Doron Meir Vadai, each an independent director, are the members of our nomination and corporate governance committee,
which, among other responsibilities, recommends director nominees for our board&#8217;s approval.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 99; Value: 69 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->99<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Internal
Auditor</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
the Companies Law, the board of directors must appoint an internal auditor, recommended by the audit committee. The role of the internal
auditor is to examine, among other matters, whether the company&#8217;s actions comply with the law and orderly business procedures.
Under the Companies Law, an interested party or an office holder of a company, or a relative of an interested party or of an office holder
of a company, as well as the company&#8217;s external auditor or any one on behalf of the external auditor may not serve as a company&#8217;s
internal auditor. The internal auditor&#8217;s tenure cannot be terminated without his or her consent, nor can he or she be suspended
from such position unless the board of directors has so resolved after hearing the opinion of the audit committee and after providing
the internal auditor with the opportunity to present his or her position to the board of directors and to the audit committee. An interested
party is defined in the Companies Law as a holder of 5% or more of the company&#8217;s outstanding shares or voting rights, any person
or entity who has the right to designate one or more directors or the chief executive officer of the company or any person who serves
as a director or as a chief executive officer of the company.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Ms.
Dana Gottesman of Ziv Haft Certified Public Accountants, a member of BDO International Limited, has served as our internal auditor since
2021. Ms. Dana Gottesman is not an employee, affiliate or office holder of the Company, or affiliated with the Company&#8217;s external
auditor.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Fiduciary
Duties and Approval of Related Party Transactions Under Israeli Law</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Fiduciary
Duties of Office Holders</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>&#160;</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Companies Law codifies the fiduciary duties that office holders owe to a company. All persons listed in the table under &#8220;<i>Item
6. Directors, Senior Management and Employees - A. Directors and Senior Management</i>&#8221; are office holders. In addition to those
persons listed in the table under Item 6.A, there were five additional individuals who were office holders of the Company as of December
31, 2023.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 26pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">An
office holder&#8217;s fiduciary duties consist of a duty of care and a duty of loyalty. The duty of care requires an office holder to
act with the standard of skills with which a reasonable office holder in the same position would have acted under the same circumstances.
The duty of care includes a duty to use reasonable means to obtain:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 26pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">&#9679;</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">information
                                            regarding the business advisability of a given action brought for the office holder&#8217;s
                                            approval or performed by the office holder by virtue of his or her position; and</span></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif">&#160;</td><td style="font: 10pt Times New Roman, Times, Serif">&#160;</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">&#160;</td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif"/><td style="font: 10pt Times New Roman, Times, Serif">&#9679;</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">all
                                            other information of importance pertaining to the aforesaid actions.</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 26pt; text-align: justify; text-indent: -13pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
duty of loyalty requires an office holder to act in good faith and for the benefit of the company and includes the duty to:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">&#9679;</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">refrain
                                            from any act involving a conflict of interest between the fulfillment of his or her position
                                            in the company and the fulfillment of any other position or his or her personal affairs;</span></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif">&#160;</td><td style="font: 10pt Times New Roman, Times, Serif">&#160;</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">&#160;</td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif"/><td style="font: 10pt Times New Roman, Times, Serif">&#9679;</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><p style="text-align: justify; margin-top: 0; margin-bottom: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">refrain from any act that is competitive with the business of the company;</span></p>
                                                                                <p style="text-align: justify; margin-top: 0; margin-bottom: 0">&#160;</p></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif"/><td style="font: 10pt Times New Roman, Times, Serif">&#9679;</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">refrain
                                            from exploiting any business opportunity of the company with the aim of obtaining a personal
                                            gain for himself or herself or for others; and</span></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif">&#160;</td><td style="font: 10pt Times New Roman, Times, Serif">&#160;</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">&#160;</td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif"/><td style="font: 10pt Times New Roman, Times, Serif">&#9679;</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">disclose
                                            to the company all relevant information and provide it with all documents relating to the
                                            company&#8217;s affairs which the office holder obtained due to his or her position in the
                                            company.</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 26pt; text-align: justify; text-indent: -13pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Disclosure
of Personal Interests of Office Holders and Approval of Certain Transactions</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>&#160;</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">The
Companies Law requires office holder<span style="background-color: white">s to</span> promptly discloses to the company any
personal interest that the<span style="background-color: white">y</span> may have, </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">and
all related material information known to him or her, in connection with any existing or proposed transaction by the company. In
addition, if the transaction is an extraordinary transaction, as defined under Israeli law, the office holder must also disclose any
personal interest held by the office holder&#8217;s spouse, siblings, parents, grandparents, descendants, spouse&#8217;s descendants
and the spouses of any of the foregoing, or a Relative. In addition, the office holder must also disclose any interest held by any
corporation in which the office holder: (i) holds at least 5% of the company&#8217;s outstanding share capital or voting rights;
(ii) is a director or general manager; or (iii) has the right to appoint at least one director or the general manager. An
extraordinary transaction is defined as a transaction which is either not in the ordinary course of business, not on market terms,
or likely to have a material impact on the company&#8217;s profitability, assets or liabilities<span style="background-color: white">.</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 100; Value: 69 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->100<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
the Companies Law, unless the articles of association of a company provide otherwise, a transaction in which an office holder has a personal
interest and which is not an extraordinary transaction, requires board approval, after the office holder complies with the above disclosure
requirement and provided the transaction is not adverse to the company&#8217;s interest. Our Articles do not provide for a different
method of approval. Furthermore, if the transaction is an extraordinary transaction, then, in addition to any approval stipulated by
the articles of association, it also must be approved by the company&#8217;s audit committee and then by the board of directors, and,
under certain circumstances, by the shareholders of the company.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">A
person with a personal interest in any matter may not generally be present at any audit committee, compensation committee or board of
directors meeting where such matter is being considered, and if he or she is a member of the committee or a director, he or she may not
generally vote on such matter at the applicable meeting.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Disclosure
of Personal Interest of Controlling Shareholders and Approval of certain Transactions</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>&#160;</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Companies Law extends the disclosure requirements applicable to an office holder to a &#8216;controlling shareholder&#8217; in a public
company. For this purpose, a &#8216;controlling shareholder&#8217; is a shareholder who has the ability to direct the activities of a
company, including a shareholder or a group of shareholders who together own 25% or more of the voting rights if no other shareholder
holds more than 50% of the voting rights.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Extraordinary
transactions of a public company with a controlling shareholder or in which a controlling shareholder has a personal interest, as well
as any engagement by a public company of a controlling shareholder or of such controlling shareholder&#8217;s Relative, directly or indirectly,
with respect to the provision of services to the company, and, if such person is also an office holder of such company, with respect
to such person&#8217;s Terms of Office and Employment as an office holder, and if such person is an employee of the company but not an
office holder, with respect to such person&#8217;s employment by the company, generally require the approval of each of the audit committee
(or with respect to Terms of Office and Employment, the compensation committee), the board of directors and the shareholders of the company,
in that order. The shareholder approval must fulfill one of the following requirements: (i) it received the positive vote of at least
a majority of the voting rights in the company who are present and voting in the meeting and held by shareholders who do not have a personal
interest in the transaction; (abstentions are disregarded) or (ii) the voting rights held by shareholders who have no personal interest
in the transaction and who have voted against the transaction, do not exceed two percent of the voting rights in the company.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Any
extraordinary transactions with a controlling shareholder or in which a controlling shareholder has a personal interest with a term of
more than three years generally need to be brought for re-approval in accordance with the above procedure every three years, unless the
audit committee determines that the duration of the transaction is reasonable given the circumstances related thereto and has been approved
by the shareholders for such longer duration.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to regulations promulgated under the Companies Law, certain transactions with a controlling shareholder or his or her Relative, or with
directors, that would otherwise require approval of a company&#8217;s shareholders may be exempt from shareholder approval upon certain
determinations of the audit committee or the compensation committee and board of directors.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
information concerning the direct and indirect personal interests of certain of our office holders and principal shareholders in certain
transactions with us, see &#8220;<i>Item 7. Major Shareholders and Related Party Transactions - B. Related Party Transactions.</i>&#8221;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Shareholders
Duties</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>&#160;</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to the Companies Law, a shareholder has a duty to: (i) act in good faith in fulfilling his obligations towards the company and the other
shareholders; and (ii) refrain from abusing his or her power with respect to the company, including, when voting at a general meeting
with respect to the following matters: (a) an amendment to the company&#8217;s articles of association; (b) an increase of the company&#8217;s
authorized share capital; (c) a merger; or (d) approval of interested party transactions that require shareholders&#8217; approval.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition, any controlling shareholder, any shareholder who knows that it possesses power to determine the outcome of a shareholder vote
and any shareholder who, pursuant to the provisions of a company&#8217;s articles of association has the power to appoint or prevent
the appointment of an office holder in the company, is under a duty of fairness towards the company. The Companies Law does not describe
the substance of such duty of fairness but states that the remedies generally available upon a breach of contract will also apply in
the event of a breach of the duty of fairness, taking into account such shareholder&#8217;s position.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 101; Value: 69 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->101<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Approval
of Significant Private Placement</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>&#160;</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
the Companies Law, a significant private placement of securities requires approval by the board of directors and the shareholders by
a simple majority. A private placement is considered a significant private placement if it results in a person becoming a controlling
shareholder, or if all of the following conditions are met: the securities issued amount to 20% or more of the company&#8217;s outstanding
voting rights before the issuance; some or all of the consideration is other than cash or listed securities or the transaction is not
on market terms; and the transaction will increase the relative holdings of a shareholder who holds 5% or more of the company&#8217;s
outstanding share capital or voting rights or will cause any person to become, as a result of the issuance, a holder of more than 5%
of the company&#8217;s outstanding share capital or voting rights. Pursuant to the <sup>10</sup>th Amendment to the Alleviation Regulations,
which became effective in March 2024, we are permitted to adhere to the pertinent U.S. securities laws and Nasdaq Regulations that apply
to U.S. domestic issuers in relation to such private offerings, insofar as they encompass rules and guidelines pertaining to private
offerings.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>D.
EMPLOYEES</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following table sets out the number of our full-time employees engaged in specified activities, at the end of the fiscal years 2023,
2022 and 2021:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom">
    <td style="font-size: 11pt">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">December 31, 2023</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">December 31, 2022</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">December 31, 2021</td><td style="font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 40%">Operation</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 16%; text-align: right">18</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 16%; text-align: right">17</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 16%; text-align: right">6</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: left">Research &amp; Development</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">20</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">17</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">12</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Sales and Marketing</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">7</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">8</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">4</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: left">General and Administration</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">5</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">5</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">3</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold">Total</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">50</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">47</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">25</td><td style="text-align: left">&#160;</td></tr>
  </table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
is headquartered in Lod, Israel. As of December 31, 2023, 49 of our employees are located in Israel and one on the U.K.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
consider our relations with our employees to be satisfactory and we have not experienced a significant labor dispute or strike. We are
not a party to any collective bargaining agreement with respect to our Israeli employees. However, we may be subject to certain labor
related statutes and to certain provisions of expansion orders the Israeli Minister of the Economy has given to collective bargaining
agreements between the Histadrut (General Federation of Labor in Israel) and the Coordinating Bureau of Economic Organizations and/or
the Industrialists&#8217; Association, which may be applicable to the employment of our Israeli employees. These statutes and provisions
and additional mandatory Israeli labor law provisions cover a wide range of subjects and provide certain minimum employment standards,
including the length of the workday and work week, minimum wages, travel expenses, contributions to a pension fund, insurance for work-related
accidents, determination of severance pay, annual and other vacations, sick pay and other conditions of employment. We generally provide
our employees with benefits and working conditions beyond the required minimum.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
severance pay liability to our Israeli employees, based upon the number of years of service and the latest monthly salary, is in the
large part covered by regular deposits with recognized pension funds, deposits with severance pay funds and purchases of insurance policies.
Pursuant to Section 14 of the Israeli Severance Pay Law 5723-1963, certain of our liabilities for employee severance rights upon termination
are covered by regular contributions to defined contribution plans, so that upon termination of employment of the relevant employees,
we are only required to release the payments made by us to such funds on account of severance and by doing so are deemed to have complied
with all of our severance payment obligations relating to the service of applicable employees with respect to the period during which
the provisions of such section apply. For information concerning our liability for severance pay, see Note 2 to our audited consolidated
financial statements for the year ended December 31, 2023.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
employees are not represented by a labor union. We have written employment contracts (including signed offers of employment) with each
of our employees.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 102; Value: 69 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->102<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>E.
SHARE OWNERSHIP</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Share
Ownership by Directors and Other Executive Officers</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">All
of the persons listed above under the caption &#8220;Directors and Senior Management&#8221; own ordinary shares of the Company and/or
options to purchase ordinary shares of the Company<sup>(1)</sup>. Except as set forth in the table below, none of the directors or executive
officers beneficially owns ordinary shares and/or ordinary shares underlying options amounting to 1% or more of the outstanding ordinary
shares. The following table sets forth certain information as of April 15, 2024, regarding the beneficial ownership by our directors
and senior management. All numbers quoted in the table are inclusive of options to purchase shares that are exercisable within 60 days
after April 15, 2024. The shares that may be issued under these options are deemed to be outstanding for the purpose of computing the
percentage of ownership of such individual or group but are not deemed to be outstanding for the purpose of computing the percentage
of ownership of the other individual or group shown in the table. <span style="background-color: white">The information in this table
is based on 12,066,115 ordinary shares outstanding as of April 15, 2024<sup>(2)</sup>.</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&#160;</p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom">
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: justify">Name</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Number of Ordinary Shares Beneficially Owned<sup>(3)</sup></b></span></td><td style="padding-bottom: 1.5pt; font-weight: bold"><sup>&#160;</sup></td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Percentage of Outstanding Ordinary Shares Beneficially Owned</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 60%; text-align: justify; padding-bottom: 1.5pt">Avi Cohen</td><td style="width: 2%; padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; width: 1%; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; width: 16%; text-align: right">88,802</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"><sup>(4)</sup></td><td style="width: 2%; padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; width: 1%; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; width: 16%; text-align: right">0.73</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: justify; padding-bottom: 1.5pt">Doron Meir Vadai</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">8,136</td><td style="padding-bottom: 1.5pt; text-align: left"><sup>&#160;</sup></td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">0.07</td><td style="padding-bottom: 1.5pt; text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify; padding-bottom: 1.5pt">Dan Weintraub</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"><sup>&#160;</sup></td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: justify; padding-bottom: 1.5pt">Christine Y. Zhao</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"><sup>&#160;</sup></td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify; padding-bottom: 1.5pt">Sanqiang (Larry) Wang</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"><sup>&#160;</sup></td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: justify; padding-bottom: 1.5pt">Fang Zheng</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">2,614,800</td><td style="padding-bottom: 1.5pt; text-align: left"><sup>(5)</sup></td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">21.24</td><td style="padding-bottom: 1.5pt; text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify; padding-bottom: 1.5pt">Naama Zeldis</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"><sup>&#160;</sup></td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: justify; padding-bottom: 1.5pt">Boaz Weizer</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">73,794</td><td style="padding-bottom: 1.5pt; text-align: left"><sup>&#160;</sup></td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">0.61</td><td style="padding-bottom: 1.5pt; text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify; padding-bottom: 1.5pt">Ruth Smadja</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">9,751</td><td style="padding-bottom: 1.5pt; text-align: left"><sup>&#160;</sup></td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">0.08</td><td style="padding-bottom: 1.5pt; text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: justify; padding-bottom: 1.5pt">Ilan Ben David</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">289,189</td><td style="padding-bottom: 1.5pt; text-align: left"><sup>(6)</sup></td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">2.37</td><td style="padding-bottom: 1.5pt; text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify; padding-bottom: 1.5pt">Tal Harmon</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">11,701</td><td style="padding-bottom: 1.5pt; text-align: left"><sup>&#160;</sup></td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">0.10</td><td style="padding-bottom: 1.5pt; text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: justify; padding-bottom: 1.5pt">Udi Tzuri</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">11,701</td><td style="padding-bottom: 1.5pt; text-align: left"><sup>&#160;</sup></td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">0.10</td><td style="padding-bottom: 1.5pt; text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify; padding-bottom: 1.5pt">Eyal Blum</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">7,800</td><td style="padding-bottom: 1.5pt; text-align: left"><sup>&#160;</sup></td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">0.06</td><td style="padding-bottom: 1.5pt; text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td style="font-weight: bold; text-align: justify; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>All directors and executive officers as a group (13 persons)<sup>(7)</sup></b></span></td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: right">3,115,674</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left"><sup>&#160;</sup></td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: right">25.36</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">%</td></tr>
  </table>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif">&#160;</td><td style="font: 10pt Times New Roman, Times, Serif"><sup>(1)</sup></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Each option is exercisable into 1.18 ordinary share (after applying certain
adjustments to the number of shares underlying outstanding options following the issuance of the Earnout Rights, in accordance with the
respective terms of the options) (i.e., were granted but not canceled, expired nor exercised) after and expires 10 years from the date
of its grant. Of the number of share options listed options to purchase 273,003 ordinary shares are vested or shall become vested within
60 days of April 15, 2024 for directors and senior management as a group.</td></tr>
                                                                                                                                      <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif">&#160;</td><td style="font: 10pt Times New Roman, Times, Serif">&#160;</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">&#160;</td></tr>
                                                                                                                                      <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><sup>(2)</sup></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Includes
                                                                                                                                                                                                                                                 12,066,115 ordinary shares of the Company; does not include 4,000,000 ZOOZ Earn Out Shares.</span></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif">&#160;</td><td style="font: 10pt Times New Roman, Times, Serif">&#160;</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">&#160;</td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif"/><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><sup>(3)</sup></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consists
                                            of 2,574,308 ordinary shares and options to purchase 541,366 ordinary shares which are vested
                                            or shall become vested within 60 days of April 15, 2024.</span></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif">&#160;</td><td style="font: 10pt Times New Roman, Times, Serif">&#160;</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">&#160;</td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif"/><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><sup>(4)</sup></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
ordinary shares and ZOOZ options. Calculation includes options to purchase 58,911 ZOOZ ordinary shares, exercisable within 60 days of
April 15, 2024.</span></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif">&#160;</td><td style="font: 10pt Times New Roman, Times, Serif">&#160;</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">&#160;</td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif"/><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><sup>(5)</sup></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Based
                                            on the Schedule 13D filed by Fang Zheng on April 11, 2024, which presented ownership as of
                                            April 4, 2024, of the 1,901,521 Ordinary Shares reported as beneficially owned by Fang Zheng
                                            (i) 150,000 Ordinary Shares, of the Company held by Fang Zheng, (ii) 2,219,550 Ordinary Shares
                                            held by the Sponsor, and (iii) 245,250 Ordinary Shares issuable upon the exercise of the
                                            Private Warrants held by the Sponsor. The Warrants are exercisable beginning 30 days after
                                            completion of the Business Combination, or May 4, 2024, until five years after such date,
                                            or May 4, 2029, and each Warrant is exercisable for one Ordinary Share at an exercise price
                                            of $11.50 per share. Fang Zheng is the majority shareholder of the Sponsor and therefore
                                            could be deemed to be the beneficial owner of all of the securities of the Issuer held of
                                            record by the Sponsor. Fang Zheng disclaims any beneficial ownership of the reported shares
                                            held by the Sponsor other than to the extent of any pecuniary interest he may have therein,
                                            directly or indirectly. Fang Zheng&#8217;s principal business address is c/o, Keywise Capital
                                            Management (HK) Limited, Room 3008-10, 30/F, Cosco Tower, 183 Queen&#8217;s Road Central,
                                            Hong Kong.</span></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif">&#160;</td><td style="font: 10pt Times New Roman, Times, Serif">&#160;</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">&#160;</td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif"/><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><sup>(6)</sup></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
ordinary shares and ZOOZ options. Calculation includes options to purchase 114,322 ZOOZ ordinary shares, exercisable within 60 days of
April 15, 2024.</span></td></tr><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif">&#160;</td><td style="font: 10pt Times New Roman, Times, Serif">&#160;</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">&#160;</td></tr>
                                <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif">&#160;</td><td style="font: 10pt Times New Roman, Times, Serif"><sup>(7)</sup></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Includes (i) a total of 2,574,308 ZOOZ ordinary shares held by directors
and executive officers, and (ii) options to purchase a total of 541,366 ordinary shares that are beneficially owned by directors and executive
officers that are exercisable within 60 days of April 15, 2024, with a weighted average exercise price of $10.2 per share and which expire
between December 2027 and April 2033.</td></tr>
                                </table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 45pt; text-align: justify; text-indent: -22.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Share
Incentive Plan</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
currently maintain one active share incentive plan, which is our 2015 Incentive Compensation Plan, or the 2015 Plan. In addition to the
discussion below, see Note 12 to our audited consolidated financial statements for the year ended December 31, 2023.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>ZOOZ
Power 2015 Incentive Compensation Plan</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>&#160;</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
August 2015, the Board of Directors approved the Company&#8217;s option plan for employees and officers, which was submitted in June
2016 to the Israel income tax authorities as a plan administered by a trustee and treated for tax purposes as a capital gain pursuant
to Section 102(b)(2). Options to non-employees and non-officers of the Company, in addition to controlling shareholders of the Company,
are to be allocated under Section 3(i) of the Income Tax Ordinance. The 2015 Plan was further amended on February 11, 2021 and on March
21, 2024.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">According
to the 2015 Plan, the Company&#8217;s Board of Directors is permitted to grant employees, officers, directors, consultants and other
senior service providers of the Company (as this term is defined by Section 102(a) to the Income Tax Ordinance unlisted options and warrants
that are exercisable into shares of the Company. The 2015 Plan is managed by the Company&#8217;s Board of Directors, or by a committee
authorized by the Board. All shares that will arise from exercising the unlisted options grants to employees, consultants and officers
under the 2015 Plan would be fully paid up on their date of allocation and, beginning on the date the Company becomes public, would be
registered in the name of the Company.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 103; Value: 69 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->103<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
March 21, 2024, the extraordinary general meeting of the Company&#8217;s shareholders approved the amendment of the 2015 Plan, and the
adoption of a U.S sub-plan, that is intended to address U.S. tax provisions, and allow for the utilization of certain U.S. tax benefits
for U.S. grantees. Following the said amendment, the 2015 Plan allows for the grant of restricted share units, and performance based
awards; it was also adjusted to reflect the Company&#8217;s dual listing.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Board administers the 2015 Plan and has the authority to designate the terms of the options granted thereunder, including the identity
of the grantees, exercise prices, grant dates, vesting schedules and expiration dates, which may be no more than ten years after the
grant date. The administration of the 2015 Plan by our Board is subject to applicable law, including with respect to the approval procedure
of compensation to office holders required under the Companies Law (for additional information on the approval procedure of compensation
to office holders, see &#8220;<i>Item 6. Directors, Senior Management and Employees</i> <i>&#8211; B. Approvals Required for Office Holders
Terms of Employment</i>&#8221;).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
a grantee leaves his or her employment or other relationship with us, or if his or her relationship with us is terminated without cause
(and other than by reason of death or disability, as defined in the 2015 Plan), the term of his or her unexercised options will generally
expire in 90 days, unless determined otherwise by our board of directors.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
of December 31, 2023, options to purchase 987,626 ordinary shares at a weighted average exercise price of approximately $8.63 per
share were outstanding (after applying certain adjustments to the number of shares underlying outstanding options following the
issuance of the Earnout Rights, in accordance with the respective terms of the options) (i.e., were granted but not canceled,
expired nor exercised) under the 2015 Plan and options to purchase 79,049 ordinary shares remained available for future grant under
the 2015 Plan (after applying certain adjustments to the number of shares underlying outstanding options following the issuance
of the Earnout Rights, in accordance with the respective terms of the options). No options to purchase ordinary shares under the 2015 Plan have ever been exercised through December
31, 2023.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Taxation
of Equity Granted under our 2015 Plan</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>&#160;</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
board of directors elected the &#8220;Capital Gains Track&#8221; (as defined in Section 102(b) (2) of the Tax Ordinance) for the grant
of equity under the 2015 Plan to Israeli grantees who are eligible for grant under said Section 102 of the Tax Ordinance.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to such election, and provided such eligible grantees comply with all the requirements of the &#8220;Capital Gains Track&#8221;, gains
derived by them, arising from the sale of shares acquired pursuant to the 2015 Plan or the exercise of options granted to them, will
generally be subject to a flat capital gains tax rate of 25%, although these gains, or part of them, will also be considered part of
a grantee&#8217;s regular salary and subject to such grantee&#8217;s regular tax rate applicable to such salary. As a result of the Company&#8217;s
election in the &#8220;Capital Gains Track&#8221; under Section 102, the Company is not allowed to claim as an expense for tax purposes
in Israel the amounts credited to the grantee as capital gains, although it is generally entitled to do so in respect of the salary income
component (if any) of such grant, if any, when the related tax is paid by the grantee as long as the grantee complies with all the requirements
of the &#8220;Capital Gains Track&#8221;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>F.
DISCLOSURE OF A REGISTRANT&#8217;S ACTION TO RECOVER ERRONEOUSLY AWARDED COMPENSATION.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
April 28, 2024, we adopted a Policy for Recovery of Erroneously Awarded Compensation, or the Clawback Policy, providing for recovery
of certain incentive-based compensation from current and former executive officers of the Company in the event we are required to restate
any of our financial statements filed with the SEC under the Exchange Act in order to correct an error that is material to the previously-issued
financial statements, or that would result in a material misstatement if the error were corrected in the current period or left uncorrected
in the current period. Adoption of the Clawback Policy was mandated by Nasdaq listing standards introduced pursuant to Exchange Act Rule
10D-1. The Clawback Policy is in addition to Section 304 of the Sarbanes-Oxley Act of 2002 which permits the SEC to order disgorgement
of bonuses and incentive-based compensation earned by a registrant issuer&#8217;s chief executive officer and chief financial officer
in the year following the filing of any financial statement that the issuer is required to restate because of misconduct, and the reimbursement
of those funds to the issuer. A copy of the Clawback Policy has been filed herewith as Exhibit 97.1.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 104; Value: 69 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->104<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="ch_004"></span>ITEM
7 MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>A.
MAJOR SHAREHOLDERS</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following table sets forth share ownership information as of April 15, 2024 (unless otherwise noted below) with respect to each person
who is known by us to be the beneficial owner of more than 5% of our outstanding ordinary shares. The information contained in the table
below has been obtained from the Company&#8217;s records or from information furnished by an individual or entity to the Company or disclosed
in public filings with the SEC. Except where otherwise indicated, and except pursuant to community property laws, we believe, based on
information furnished by such owners, that the beneficial owners of the ordinary shares listed below have sole investment and voting
power with respect to such shares.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total
&#8220;Number of Ordinary Shares Beneficially Owned&#8221; in the table below include shares that may be acquired by any of the below
entities upon the exercise of options or warrants known to us, that are either currently exercisable or will become exercisable within
60 days of April 15, 2024.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
shareholders listed below do not have any different voting rights from any of our other shareholders. The percentage of beneficial ownership
is based upon <span style="letter-spacing: -0.1pt">12,066,115</span> ordinary shares outstanding as of April 15, 2024.<sup>(1)</sup></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 90%; margin-right: auto">
  <tr style="vertical-align: bottom">
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: justify">Beneficial Owner</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: justify">Amount Owned</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: justify">Percent of Class</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 64%; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Y.D More Investments Ltd.<sup>(2)</sup></span></td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 14%; text-align: right">1,518,955</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 14%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">11.9</span></td><td style="width: 1%; text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Phoenix Provident Funds<sup>(3)</sup></span></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,266,600</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.0</span></td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Elah Fund<sup>(4)</sup></span></td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">674,332&#160;</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">5.6</span></td><td style="padding-bottom: 1.5pt; text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: justify; padding-bottom: 1.5pt">Afcon Electric Transportation LTD.<sup>(5)</sup></td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">751,470</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt; text-align: right">6.0</td><td style="padding-bottom: 1.5pt; text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify">Keyarch Global sponsor Limited<sup>(6)</sup></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">2,614,800</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">21.2</td><td style="text-align: left">%</td></tr>
  </table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 45pt; text-align: justify; text-indent: -22.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><sup>&#160;</sup></span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><sup>(1)</sup></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Includes
                                                                                                                                                                                                                                                 12,066,115 ordinary shares of the Company; does not include 4,000,000 ZOOZ Earn Out Shares.</span></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif">&#160;</td><td style="font: 10pt Times New Roman, Times, Serif">&#160;</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">&#160;</td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif"/><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><sup>(2)</sup></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The information presented in pursuant to a Schedule 13G filed with the
SEC on April 10, 2024. The
                                            securities reported herein are held by More Provident Funds and Pension Ltd. or by More Mutual
                                            Funds Management (2013) Ltd. for the benefit of beneficiaries of various provident and pension
                                            funds or mutual funds, respectively, or by More Investment House Portfolio Management Ltd.
                                            for the benefit of various portfolio management clients. More Provident Funds and Pension
                                            Ltd., More Mutual Funds Management (2013) Ltd. and More Investment House Portfolio Management
                                            Ltd. are each controlled by Y.D More Investments Ltd., which is controlled by (i) Yosef Meirov,
                                            directly and through B.Y.M. Mor Investments Ltd., a company which he controls with Michael
                                            Meirov and Dotan Meirov, (ii) Eli Levy through Elldot Ltd., a wholly owned company, (iii)
                                            Yosef Levy and (iv) Benjamin Meirov.</span></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif">&#160;</td><td style="font: 10pt Times New Roman, Times, Serif">&#160;</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">&#160;</td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif"/><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><sup>(3)</sup></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">To the Company&#8217;s knowledge, as of immediately after the Closing of
the Business Combination. Includes 92,291 Series 3 Warrants exercisable within 60 days of April 15, 2024.</span></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif">&#160;</td><td style="font: 10pt Times New Roman, Times, Serif">&#160;</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">&#160;</td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif"/><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><sup>(4)</sup></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">To the Company&#8217;s knowledge, as of immediately after the Closing of
the Business Combination. Includes 70,725 Series 3 Warrants exercisable within 60 days of April 15, 2024.</span></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif">&#160;</td><td style="font: 10pt Times New Roman, Times, Serif">&#160;</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">&#160;</td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif">&#160;</td><td style="font: 10pt Times New Roman, Times, Serif"><sup>(5)</sup></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">To the Company&#8217;s knowledge, as of immediately after the Closing of
the Business Combination. Includes 377,821 Series 3 Warrants exercisable within 60 days of April 15, 2024.</td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif">&#160;</td><td style="font: 10pt Times New Roman, Times, Serif">&#160;</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">&#160;</td></tr>
<tr style="vertical-align: top">
    <td>&#160;</td>
  <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><sup>(6)</sup></span></td>
  <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The information presented in pursuant to a Schedule 13D filed with the
SEC on April 11, 2024. Includes (i) 150,000 Ordinary Shares, of the Company held by
Fang Zheng, (ii) 2,219,550 Ordinary Shares held by the Sponsor, and (iii) 245,250 Ordinary Shares issuable upon the exercise of the Private
Warrants held by the Sponsor. The Warrants are exercisable beginning 30 days after completion of the Business Combination, or May 4,
2024, until five years after such date, or May 4, 2029, and each Warrant is exercisable for one Ordinary Share at an exercise price of
$11.50 per share. Fang Zheng is the majority shareholder of the Sponsor and therefore could be deemed to be the beneficial owner of all
of the securities of the Issuer held of record by the Sponsor. Fang Zheng disclaims any beneficial ownership of the reported shares held
by the Sponsor other than to the extent of any pecuniary interest he may have therein, directly or indirectly. Does not include <span style="background-color: white">1,120,000
SPAC Earn Out Shares</span>.</span></td></tr>
</table>


<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 22.5pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>B.
RELATED PARTY TRANSACTIONS</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Other
than as set forth below and transactions related to compensation of our executive officers and directors as described under &#8220;<i>Item
6. Directors, Senior Management and Employees - B. Compensation,</i>&#8221; since January 1, 2023, we have entered into the following
material related party transactions:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 105; Value: 69 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->105<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Registration
Rights Agreement Amendment</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
and certain equity holders of ZOOZ and certain equity holders of Keyarch are expected to enter into the Registration Rights Agreement
and the Keyarch Registration Rights Agreement Amendment, providing such shareholders with customary demand registration rights and piggyback
registration rights with respect to registration statements filed by ZOOZ after the Closing. Under the ZOOZ Lock-Up Agreement, the securityholders
of ZOOZ party thereto (other than the Sponsor) have agreed not to transfer their ZOOZ ordinary shares, except to certain permitted transferees,
beginning on the closing date of the Business Combination and continuing until the earlier of (x) the date that is 180 days after the
date of the Closing, or (y) the date after the Closing on which ZOOZ consummates a liquidation, merger, share exchange, reorganization
or other similar transaction that results in all of ZOOZ&#8217;s shareholders having the right to exchange their ZOOZ ordinary shares
for cash, securities or other property ZOOZ.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Loans
Granted to Members of the Board of Directors or Executive Management</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
of the date of this Annual Report, we have no outstanding loan or guarantee commitments to members of the board of directors or management.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white"><b>Indemnification
and Exemption Agreements</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
Articles permit us to exculpate, indemnify and insure our office holders to the fullest extent permitted by the Companies Law. Accordingly,
we release our office holders from liability and indemnify them to the fullest extent permitted by law and provide them with letters
of indemnification and exemption and release for this purpose, in the form most recently approved at our 2021 AGM. Under the letters
of indemnification and exemption and release (i) our undertaking to indemnify each office holder for monetary liabilities or obligations
imposed by a court judgment (including a settlement or an arbitrator&#8217;s award approved by a court) is limited to matters that result
from or are connected to those events or circumstances set forth therein, and (ii) the indemnification that we undertake towards all
persons whom it resolved to indemnify for the matters and circumstances described therein, jointly and in the aggregate, do not exceed
the amount equal to 25% of the Company&#8217;s shareholders&#8217; equity, per the most recent financial statements (audited or reviewed)
after the time that notice is provided to the Company.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
office holders are also covered by directors&#8217; and officers&#8217; liability insurance. For more information see &#8220;<i>Item
6. Directors, Senior Management and Employees &#8211; B. Compensation - Insurance, Indemnification and Exemption</i>.&#8221;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Collaboration
Agreement with Dor-Alon</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
January 2023, a first site in Israel, which is supported by the ZOOZTER&#8482;-100, has commenced commercial operation. This site was
established as a pilot site, in collaboration with Afcon e-mobility and Dor-Alon gas stations (the operators of the largest charging
network in Israel), and with the support of the IIA.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
March 2024, ZOOZ announced that based on the successful pilot with Afcon &amp; Dor-Alon (see above), it was agreed with Dor-Alon that
two ZOOZTER&#8482;-100 will be installed in Dor-Alon&#8217;s gas stations along Highway 6 (one of Israel&#8217;s main transportation
corridors), aiming to enable additional ultra-fast chargers in these sites, despite the grid&#8217;s limitations. These sites are expected
to be upgraded during the second quarter of 2024. The ability of the ZOOZTER&#8482;-100 to support these multi-chargers sites will be
evaluated for a period of several months and upon successful completion of this evaluation, the ZOOZTER&#8482;-100 systems will be purchased
by Dor-Alon (at terms agreed to by the parties).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
cautionary purposes only, ZOOZ has classified this transaction as a related party transaction under Israeli law.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>C.
INTERESTS OF EXPERTS AND COUNSEL</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Not
applicable.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="ch_005"></span>ITEM 8.</b></span> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FINANCIAL INFORMATION</b></span></p>



<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>A.
CONSOLIDATED STATEMENTS AND OTHER FINANCIAL INFORMATION</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Consolidated
Financial Statements</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
audited consolidated financial statements are included beginning on page F-1 of this Annual Report. See also &#8220;<i>Item 18.
Financial Statements</i>.&#8221;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Legal
Proceedings</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Currently,
we are not a party to any legal or arbitration proceedings, including governmental proceedings, that are pending or known to be contemplated,
that our management believes, individually or in the aggregate, may have, or have had in the recent past, a significant effect on our
financial position or profitability, nor are we party to any material proceeding in which any director, member of our senior management
or affiliate is a party adverse to us or our subsidiary or has a material interest adverse to us or our subsidiary.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 106; Value: 69 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->106<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Dividend
Distribution Policy</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have never paid any cash dividends on our ordinary shares, and we do not intend to pay cash dividends on our ordinary shares in the foreseeable
future. Our current policy is to retain any earnings we have (if any) for use in our business.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
the event that we decide to pay a cash dividend from income that is tax exempt under Benefiting Enterprises program (to the extent applicable),
we would be required to pay the applicable corporate tax that would otherwise have been payable on such income which would be in addition
to the tax payable by the dividend payee. See &#8220;<i>Item 10. Additional Information - E. Taxation</i>.&#8221;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>B.
SIGNIFICANT CHANGES</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Not
applicable.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="ch_006"></span>ITEM 9.</b></span> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>THE OFFER AND LISTING</b></span></p>



<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>A.
OFFER AND LISTING DETAILS</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
ordinary shares and public warrants began trading on The Nasdaq Capital Market on April 5, 2024 under the symbols &#8220;ZOOZ&#8221;
and &#8220;ZOOZW&#8221;, respectively. Our ordinary shares are traded on the Tel Aviv Stock Exchange since March 2021 and our warrants
(series 3) are traded on the Tel Aviv Stock Exchange since March 2022, under the symbols &#8220;ZOOZ&#8221; and &#8220;ZOOZ.W3&#8221;,
respectively.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>B.
PLAN OF DISTRIBUTION</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Not
applicable.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>C.
MARKETS</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
ordinary shares and public warrants began trading on The Nasdaq Capital Market on April 5, 2024. Our ordinary shares are traded on the
Tel Aviv Stock Exchange since March 2021 and our warrants (series 3) are traded on the Tel Aviv Stock Exchange since March 2022.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>D.
SELLING SHAREHOLDERS</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Not
applicable.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>E.
DILUTION</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Not
applicable.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>F.
EXPENSES OF THE ISSUE</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Not
applicable.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="ch_007"></span>ITEM 10.</b></span> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>ADDITIONAL INFORMATION</b></span></p>



<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>A.
SHARE CAPITAL</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Not
applicable.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>B.
MEMORANDUM AND ARTICLES OF ASSOCIATION</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Copy
of the ZOOZ Articles as in effect as of the date of this Annual Report is attached as Exhibit 1.1 to this Annual Report. The information
called for by this Item is set forth in Exhibit 2.1 to this Annual Report and is incorporated by reference into this Annual Report.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>C.
MATERIAL CONTRACTS</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Please
see &#8220;<i>Item 4. Information on the Company - B. Business Overview &#8211; Material Agreements &#8211; Cooperation Agreement with
the New York Power Authority</i>&#8221;, &#8220;<i>Item 4. Information on the Company - B. Business Overview &#8211; Material Agreements
- Distribution Agreement with Blink Charging Co.</i>&#8221; and &#8220;<i>Item 4. Information on the Company - B. Business Overview &#8211;
Material Agreements - The Business Combination Agreement and Related Agreements</i>&#8221; for a discussion of our material contracts.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>D.
EXCHANGE CONTROLS</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">There
are currently no exchange controls in effect in Israel that restrict the repatriation by non-residents of Israel in non-Israeli currency
of any dividends, if any are declared and paid, and liquidation distributions or the Company&#8217;s ability to import and export capital,
except that such restrictions may exist with respect to citizens of countries which are in a state of war with Israel.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 107; Value: 69 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->107<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>E.
TAXATION</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following is a brief summary of certain material Israeli and U.S. federal tax consequences concerning the ownership and disposition of
our ordinary shares and public warrants by purchasers or holders of our ordinary shares or public warrants. Because parts of this discussion
are based on new or existing tax or other legislation that has not been subject to judicial or administrative interpretation, there can
be no assurance that the views expressed herein will be accepted by the tax or other authorities in question. The summary below does
not address all of the tax consequences that may be relevant to all purchasers or holders of our ordinary shares or public warrants in
light of each purchaser&#8217;s or holder&#8217;s particular circumstances and specific tax treatment. For example, the summary below
does not address the tax treatment of residents of Israel and traders in securities who are subject to specific tax regimes. As individual
circumstances may differ, holders of our ordinary shares or public warrants should consult their own tax advisors as to U.S., Israeli
or other tax consequences of the purchase, ownership and disposition of our ordinary shares and public warrants. This discussion is not
intended, nor should it be construed, as legal or professional tax advice and it is not exhaustive of all possible tax considerations.
Each person should consult his, her or its own tax or legal advisor.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Israeli
tax considerations</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline">General
corporate tax structure in Israel</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Israeli
companies are generally subject to corporate tax at the rate of 23% effective from January 1, 2018. However, the effective tax rate payable
by a company that derives income from an Approved Enterprise, a Preferred Enterprise, a Beneficiary Enterprise or a Technological Enterprise
(as discussed below) may be considerably less. Capital gains derived by an Israeli company are generally subject to the corporate tax
rate.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline">Law
for the Encouragement of Industry (Taxes), 5729-1969</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Law for the Encouragement of Industry (Taxes), 5729-1969, generally referred to as the Industry Encouragement Law, provides several tax
benefits for &#8220;Industrial Companies&#8221;.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Industry Encouragement Law defines an &#8220;Industrial Company&#8221; as an Israeli resident-company, of which 90% or more of its income
in any tax year, other than income from certain defense loans, is derived from an &#8220;Industrial Enterprise&#8221; owned by it and
located in Israel or in the &#8220;Area&#8221;, in accordance with the definition under section 3A of the Israeli Income Tax Ordinance
(New Version) 1961, or the Ordinance. An &#8220;Industrial Enterprise&#8221; is defined as an enterprise whose principal activity in
a given tax year is industrial production.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Following
are the main tax benefits available to Industrial Companies:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
Amortization of the cost of purchased patent, rights to use a patent, and know-how, which are used for the development or
advancement of the Industrial Enterprise, over an eight-year period, commencing on the year in which such rights were first
exercised;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
Under limited conditions, an election to file consolidated tax returns with controlled Israeli Industrial Companies; and</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
Expenses related to a public offering are deductible in equal amounts over three years commencing on the year of the
offering.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Eligibility
for benefits under the Industry Encouragement Law is not contingent upon approval of any governmental authority.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline">Tax
benefits and grants for research and development</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Israeli
tax law allows, under certain conditions, a tax deduction for expenditures, including capital expenditures, related to scientific research
and development for the year in which they are incurred. Expenditures are deemed related to scientific research and development projects,
if:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
The expenditures are approved by the relevant Israeli government ministry, determined by the field of research;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
The research and development must be for the promotion of the company; and</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
The research and development is carried out by or on behalf of the company seeking such tax deduction.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
amount of such deductible expenses is reduced by the sum of any funds received through government grants for the finance of such scientific
research and development projects. No deduction under these research and development deduction rules is allowed if such deduction is
related to an expense invested in an asset depreciable under the general depreciation rules of the Israeli Income Tax Ordinance (the
&#8220;<b>Ordinance</b>&#8221;). Expenditures that are unqualified under the conditions above are deductible in equal amounts over three
years.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 108; Value: 69 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->108<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">From
time to time, we may apply to the IIA for approval to allow a tax deduction for all or most of research and development expenses during
the year incurred. There can be no assurance that such application will be accepted. If we will not be able to deduct research and development
expenses during the year they were incurred, we will be able to deduct research and development expenses during a period of three years
commencing in the year of the payment of such expenses.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline">Law
for the Encouragement of Capital Investments, 5719-1959</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Law for the Encouragement of Capital Investments, 5719-1959, generally referred to as the Investment Law, provides certain eligible companies
with incentives for capital investments in production facilities (or other eligible assets) and certain tax benefits with respect to
certain eligible income.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Investment Law was significantly amended effective as of April 1, 2005 (the &#8220;<b>2005 Amendment</b>&#8221;), as of January 1, 2011
(the &#8220;<b>2011 Amendment</b>&#8221;) and as of January 1, 2017 (the &#8220;<b>2017 Amendment</b>&#8221;). Pursuant to the 2005 Amendment,
tax benefits granted in accordance with the provisions of the Investment Law prior to its revision by the 2005 Amendment remain in force
but any benefits granted subsequently are subject to the provisions of the amended Investment Law. Similarly, the 2011 Amendment introduced
new benefits to replace those granted in accordance with the provisions of the Investment Law in effect prior to the 2011 Amendment.
However, companies entitled to benefits under the Investment Law as in effect prior to January 1, 2011, were entitled to choose to continue
to enjoy such benefits, provided that certain conditions are met, or instead irrevocably, elect to forego such benefits and apply the
benefits of the 2011 Amendment apply. The 2017 Amendment introduces new benefits for Preferred Technological Enterprises or Special Preferred
Technological Enterprises, alongside the existing tax benefits.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following discussion is a summary of the Investment Law following its most recent amendments:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Tax
benefits under the 2011 Amendment</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
2011 Amendment canceled the availability of the benefits granted to Industrial Companies under the Investment Law prior to 2011 and,
instead, introduced new benefits for income generated by a &#8220;Preferred Company&#8221; through its &#8220;Preferred Enterprise&#8221;
(as such terms are defined in the Investment Law) as of January 1, 2011. The definition of a Preferred Company includes a company incorporated
in Israel that is not fully owned by a governmental entity, and that has, among other things, Preferred Enterprise status and is controlled
and managed from Israel. Pursuant to the 2011 Amendment, a Preferred Company is entitled to a reduced corporate tax rate of 15% with
respect to its income derived by its Preferred Enterprise in 2011 and 2012, unless the Preferred Enterprise is located in development
zone &#8220;A&#8221;, in which case the rate will be 10%. Under the 2011 Amendment, such corporate tax rate was reduced from 15% and
10%, respectively, to 12.5% and 7%, respectively, in 2013, 16% and 9% respectively, in 2014, 2015 and 2016, and 16% and 7.5%, respectively,
in 2017 and thereafter. Income derived by a Preferred Company from a &#8220;Special Preferred Enterprise&#8221; (as such term is defined
in the Investment Law) would be entitled, during a benefits period of 10 years, to further reduced tax rates of 8%, or 5% if the Special
Preferred Enterprise is located in development zone &#8220;A&#8221;.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Dividends
distributed from income which is attributed to a &#8220;Preferred Enterprise&#8221; will be subject to withholding tax at source at the
following rates: (i) Israeli resident corporations&#8211;0%, (although, if such dividends are subsequently distributed to individuals
or a non-Israeli company the below rates detailed in sub sections (ii) and (iii) shall apply) (ii) Israeli resident individuals&#8211;20%
(iii) non-Israeli residents (individuals and corporations)&#8211;20%, or a reduced tax rate under the provisions of any applicable double
tax treaty (subject to the receipt in advance of a valid certificate from the ITA allowing for a reduced tax rate).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
2011 Amendment also provided transitional provisions to address companies already enjoying existing tax benefits under the Investment
Law. These transitional provisions provide, among other things, that unless an irrevocable request is made to apply the provisions of
the Investment Law as amended in 2011 with respect to income to be derived as of January 1, 2011, a Beneficiary Enterprise can elect
to continue to benefit from the benefits provided to it before the 2011 Amendment came into effect, provided that certain conditions
are met.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
of March 31, 2024, ZOOZ did not apply the new benefits under the Preferred Enterprise regime.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>New
tax benefits under the 2017 Amendment that became effective on January 1, 2017</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
2017 Amendment was enacted as part of the Economic Efficiency Law that was published on December 29, 2016, and is effective as of January
1, 2017. The 2017 Amendment provides new tax benefits for two types of &#8220;Technological Enterprises&#8221;, as described below, and
is in addition to the other existing tax beneficial programs under the Investment Law. The 2017 Amendment will apply to a Preferred Company
which meets the &#8220;Preferred Enterprise&#8221; condition and certain additional conditions, including, all the following:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
the company&#8217;s average R&amp;D expenses in the three years prior to the current tax year must be greater than or equal to the
average of 7% of its total revenue or exceed NIS 75 million per year; and</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 109; Value: 69 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->109<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
the company must also satisfy one of the following conditions: (1) the full salary at least 20% of the company&#8217;s overall
workforce, or at least 200 employees, was recorded and paid as R&amp;D expenses in the company&#8217;s financial statements; (2) a
venture capital investment of an amount of at least NIS 8 million was previously made in the company; or (3) a growth in sales by an
average of 25% over the three years preceding the tax year (provided transactions revenue of over NIS 10 million for the said
years); (4) a growth in workforce by an average of 25% over the three years preceding the tax year (provided that the company
employed at least 50 employees in the said years).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">A
Preferred Company satisfying certain conditions (including the conditions as stated above) will qualify as a &#8220;Preferred Technological
Enterprise&#8221; and will thereby enjoy a reduced corporate tax rate of 12% on income that qualifies as &#8220;Preferred Technology
Income&#8221;, as defined in the Investment Law. The tax rate is further reduced to 7.5% for a Preferred Technological Enterprise located
in development zone &#8220;A&#8221;. In addition, a Preferred Technological Enterprise will enjoy a reduced corporate tax rate of 12%
on capital gain derived from the sale of certain &#8220;Benefitted Intangible Assets&#8221; (as defined in the Investment Law) to a related
foreign company if the Benefitted Intangible Assets were acquired from a foreign company on or after January 1, 2017 for at least NIS
200 million, and the sale receives prior approval from the IIA.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
2017 Amendment further provides that a Preferred Company satisfying certain conditions (group-consolidated revenues of at least NIS 10
billion) will qualify as a &#8220;Special Preferred Technological Enterprise&#8221; and will thereby enjoy a reduced corporate tax rate
of 6% on &#8220;Preferred Technological Income&#8221; regardless of the company&#8217;s geographic location within Israel. In addition,
a Special Preferred Technological Enterprise will enjoy a reduced corporate tax rate of 6% on capital gain derived from the sale of certain
&#8220;Benefitted Intangible Assets&#8221; to a related foreign company if the Benefitted Intangible Assets were either developed by
the Special Preferred Enterprise or acquired from a foreign company on or after January 1, 2017, and the sale received prior approval
from the IIA. A Special Preferred Technological Enterprise that acquires Benefitted Intangible Assets from a foreign company for more
than NIS 500 million will be eligible for these benefits for at least ten years, subject to certain approvals as specified in the Investment
Law.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Dividends
distributed by a Preferred Technological Enterprise or a Special Preferred Technological Enterprise, paid out of Preferred Technological
Income, are generally subject to withholding tax at source at the rate of 20% or such lower rate as may be provided in an applicable
tax treaty (subject to the receipt in advance of a valid certificate from the ITA allowing for a reduced tax rate). However, if such
dividends are paid to an Israeli company, no tax is required to be withheld. If such dividends are distributed to a foreign company that
holds solely or together with other foreign companies 90% or more in the Israeli company and other conditions are met, the withholding
tax rate will be 4%. Please note that the reduced withholding tax rate of 4% will apply only on profits generated after the Preferred
Technological Enterprise was acquired by a foreign company.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
of March 31, 2024, ZOOZ did not apply for a tax ruling from the ITA or implemented benefits under The Preferred Technological Enterprise
regime.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">From
time to time, the Israeli Government has discussed reducing the benefits available to companies under the Investment Law. The termination
or substantial reduction of any of the benefits available under the Investment Law could materially increase our tax liabilities.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Taxation
of our shareholders</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline">Capital
gains taxes applicable to non-Israeli resident shareholders</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Israeli
capital gains tax is imposed on the disposition of capital assets by a non-Israeli resident if those assets (i) are located in Israel,
(ii) are shares or a right to shares in an Israeli resident corporation or (iii) represent, directly or indirectly, rights to assets
located in Israel. The Israeli tax law distinguishes between &#8220;Real Capital Gain&#8221; and &#8220;Inflationary Surplus.&#8221;
Inflationary Surplus is a portion of the total capital gain which is equivalent to the increase in the relevant asset&#8217;s price that
is attributable to the increase in the Israeli Consumer Price Index or, in certain circumstances, a foreign currency exchange rate, between
the date of purchase and the date of disposition. Inflationary Surplus is currently not subject to tax in Israel. Real Capital Gain is
the excess of the total capital gain over the Inflationary Surplus. Generally, Real Capital Gain accrued by individuals on the sale of
ZOOZ ordinary shares will be taxed at the rate of 25%. However, if the shareholder is a &#8220;substantial shareholder&#8221; at the
time of sale or at any time during the preceding 12- month period (or claims a deduction for interest and linkage differences expenses
in connection with the purchase and holding of such shares), such gain will be taxed at the rate of 30%. A &#8220;substantial shareholder&#8221;
is generally a person who alone or together with such person&#8217;s relative or another person who collaborates with such person with
respect to the material matters of the corporation on a permanent basis pursuant to an agreement, holds, directly or indirectly, at least
10% of any of the &#8220;means of control&#8221; of the corporation. &#8220;Means of control&#8221; generally include the right to vote,
receive profits, nominate a director or an executive officer, receive assets upon liquidation, or order someone who holds any of the
aforesaid rights how to act, regardless of the source of such right. Real Capital Gain derived by corporations will be generally subject
to a corporate tax rate of 23% (in 2024).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 110; Value: 69 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->110<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">A
non-Israeli resident that derives capital gains from the sale of shares of an Israeli resident company that were purchased after the
company was listed for trading on a stock exchange outside of Israel, will be exempt from Israeli tax if the shares were not held through
a permanent establishment that the non-resident maintains in Israel. However, non-Israeli corporations will not be entitled to the foregoing
exemption if Israeli residents: (i) hold, whether directly or indirectly, more than 25% of the means of control, as such term is defined
above, in such non-Israeli corporation or (ii) are the beneficiaries of, or are entitled to, 25% or more of the revenues or profits of
such non-Israeli corporation, whether directly or indirectly. In addition, such exemption is not applicable to a person whose gains from
selling or otherwise disposing of the shares are deemed to be business income.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Additionally,
a sale of securities by a non-Israeli resident may be exempt from Israeli capital gains tax under the provisions of an applicable tax
treaty (subject to the receipt in advance of a valid certificate from the ITA). For example, under Convention Between the Government
of the United States of America and the Government of the State of Israel with respect to Taxes on Income, as amended (the &#8220;United
States Israel Tax Treaty&#8221;), the sale, exchange or other disposition of shares by a shareholder who is a United States resident
(for purposes of the treaty) holding the shares as a capital asset and is entitled to claim the benefits afforded to such a resident
by the U.S. Israel Tax Treaty (a &#8220;U.S. Resident&#8221;) is generally exempt from Israeli capital gains tax unless either: (i) the
capital gain arising from such sale, exchange or disposition is attributed to real estate located in Israel; (ii) the capital gain arising
from such sale, exchange or disposition is attributed to royalties; (iii) the capital gain arising from such sale, exchange or disposition
is attributed to a permanent establishment in Israel, under certain terms; (iv) such U.S. Resident holds, directly or indirectly, shares
representing 10% or more of the voting capital during any part of the 12 month period preceding the disposition, subject to certain conditions;
or (v) such U.S. Resident is an individual and was present in Israel for 183 days or more during the relevant taxable year. In any such
case, the sale, exchange or disposition of such shares would be subject to Israeli tax, to the extent applicable. However, under the
United States-Israel Tax Treaty, a Treaty U.S. Resident may be permitted to claim a credit for the Israeli tax against the U.S. federal
income tax imposed with respect to the sale, exchange or disposition of the shares, subject to the limitations under U.S. laws applicable
to foreign tax credits. The United States-Israel Tax Treaty does not provide such credit against any U.S. state or local taxes.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
some instances where our shareholders may be liable for Israeli tax on the sale of their ordinary shares, the payment of the consideration
may be subject to the withholding of Israeli tax at source. Shareholders may be required to demonstrate that they are exempt from tax
on their capital gains in order to avoid withholding at source at the time of sale (i.e., resident certificate or other documentation<i>).</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline">Capital
gains taxes applicable to Israeli resident shareholders</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">An
Israeli resident corporation that derives capital gains from the sale of shares in an Israeli resident company that were purchased after
the company was listed for trading on a stock exchange outside of Israel will generally be subject to tax on the real capital gains generated
on such sale at the corporate tax rate of 23%. An Israeli resident individual will generally be subject to capital gain tax at the rate
of 25%. However, if the individual shareholder claims deduction of interest expenditures or is a &#8220;substantial shareholder&#8221;
at the time of the sale or at any time during the preceding twelve months period, such gain will be taxed at the rate of 30%. Individual
holders dealing in securities in Israel for whom the income from the sale of securities is considered &#8220;business income&#8221; as
defined in section 2(1) of the Ordinance are taxed at the marginal tax rates applicable to business income (up to 47% in 2024). Certain
Israeli institutions who are exempt from tax under section 9(2) or section 129(C)(a)(1) of the Ordinance (such as exempt trust fund,
pension fund) may be exempt from capital gains tax from the sale of the shares. With respect to corporate investors, capital gain tax
equal to the corporate tax rate (23% starting in 2018) will be imposed on the sale of our traded shares, unless contrary provisions in
a relevant tax treaty applies.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline">Taxation
of Israeli shareholders on receipt of dividends</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">An
Israeli resident individual is generally subject to Israeli income tax on the receipt of dividends at the rate of 25%. With respect to
a person who is a &#8220;substantial shareholder&#8221; at the time of receiving the dividend or on any time during the preceding twelve
months, the applicable tax rate is 30%. Such dividends are generally subject to Israeli withholding tax at a rate of 25% if the shares
are registered with a &#8220;nominee company&#8221;, as such term is used in the Securities Law, whether the recipient is a substantial
shareholder or not, 15% if the dividend is distributed from income attributed to an Approved Enterprise or a Beneficiary Enterprise (if
the first year the company requested to have the tax benefits apply was 2013 or before) and 20% if the dividend is distributed from income
attributed to a Preferred Enterprise or a Preferred Technological Enterprise. If the recipient of the dividend is an Israeli resident
corporation such dividend income will be exempt from tax provided the income from which such dividend is distributed was derived or accrued
within Israel and was received directly or indirectly from another corporation that is liable to Israeli corporate tax. An exempt trust
fund, pension fund or other entity that is exempt from tax under section 9(2) or section 129C(a)(1) of the Ordinance is exempt from tax
on dividend.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 111; Value: 69 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->111<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline">Taxation
of non-Israeli shareholders on receipt of dividends</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Non-Israeli
residents (either individuals or corporations) are generally subject to Israeli income tax on the receipt of dividends at the rate of
25%, which tax will be withheld at source, unless relief is provided in a treaty between Israel and the shareholder&#8217;s country of
residence. With respect to a person who is a &#8220;substantial shareholder&#8221; at the time of receiving the dividend or on any time
during the preceding twelve months, the applicable tax rate is 30%. Such dividends are generally subject to Israeli withholding tax at
a rate of 25% if the shares are registered with a nominee company (whether the recipient is a substantial shareholder or not), 15% if
the dividend is distributed from income attributed to an Approved Enterprise or a Beneficiary Enterprise (if the first year the company
requested to have the tax benefits apply was 2013 or before and subject to the receipt in advance of a valid certificate from the ITA
allowing for a reduced 15%, or such lower rate as may be provided under an applicable tax treaty), 20% if the dividend is distributed
from income attributed to a Preferred Enterprise or a Technological Enterprise, and 4% if the dividend is distributed from income attributed
to a Technological Enterprise to a foreign company that holds solely or together with other foreign companies 90% or more in the Israeli
company and other conditions are met, (please note that the reduced withholding tax rate of 4% will apply only on profits generated after
the Preferred Technological Enterprise was acquired by a foreign company), unless a reduced rate is provided under an applicable tax
treaty (subject to the receipt in advance of a valid certificate from the ITA allowing for a reduced tax rate). For example, under the
United States-Israel Tax Treaty, the maximum rate of tax withheld at source in Israel on dividends paid to a holder of our ordinary shares
who is a U.S. Resident is 25%. However, generally, the maximum rate of withholding tax on dividends, not generated by an Approved Enterprise,
a Preferred Enterprise, Beneficiary Enterprise, a Preferred Enterprise or a Preferred Technological Enterprise, that are paid to a United
States corporation holding 10% or more of the outstanding voting capital throughout the tax year in which the dividend is distributed
as well as during the previous tax year, is 12.5%, provided that not more than 25% of the gross income for such preceding year consists
of certain types of dividends and interest. Notwithstanding the foregoing, dividends distributed from income attributed to an Approved
Enterprise, Beneficiary Enterprise, Preferred Enterprise or a Preferred Technological Enterprise are not entitled to such reduced rate
under the tax treaty but are subject to a withholding tax rate of 15% for a shareholder that is a U.S. corporation, provided that the
conditions related to the outstanding voting rights and the gross income for the previous year (as set forth in the previous sentence)
are met. If the dividend is attributable partly to income derived from an Approved Enterprise, Benefited Enterprise, Preferred Enterprise
or a Preferred Technological Enterprise, and partly to other sources of income, the withholding rate will be a blended rate reflecting
the relative portions of the two types of income. We cannot assure you that we will designate the profits that we may distribute in a
way that will reduce shareholders&#8217; tax liability. Application for the reduced tax rate requires appropriate documentation presented
and specific instruction received from the ITA to the extent tax is withheld at source at the maximum rates (see above), a qualified
tax treaty recipient will be required to comply with certain administrative procedures with the Israeli Tax Authorities in order to receive
a refund of the excess tax withheld.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">A
foreign resident receiving dividend income from an Israeli company, from which the full tax was deducted, will generally be exempt from
filing a tax return in Israel with respect to such income, provided that (i) such income was not generated from business conducted in
Israel by the taxpayer, (ii) the taxpayer has no other taxable sources of income in Israel with respect to which a tax return is required
to be filed, and (iii) the taxpayer is not obligated to pay Surtax (see below) in accordance with section 121B of the Ordinance.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline">Israeli
Tax Withholding</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition to all of the above, any payment made by an Israeli resident company may be subject to Israeli withholding tax, regardless of
whether the recipient should be subject to Israeli tax with respect to the receipt of such payment, unless the recipient provides the
company with a valid certificate issued by the ITA to exempt the recipient from such withholding tax liability.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline">Surtax</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Individuals
who are subject to tax in Israel (whether any such individual is an Israeli resident or non-Israeli resident) are also subject to an
additional tax at a rate of 3% on annual income (including, but not limited to, dividends, interest and capital gain) exceeding NIS 721,560
for 2024, which amount is linked to the annual change in the Israeli consumer price index.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 112; Value: 69 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->112<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline">Estate
and Gift Tax</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Israeli
law presently does not impose estate or gift taxes.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline">Israeli
Transfer Pricing Regulations</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
November 29, 2006, Income Tax Regulations (Determination of Market Terms) promulgated under Section 85A of the Ordinance, came into effect
(&#8220;<b>TP Regulations</b>&#8221;). Section 85A of the Ordinance and the TP Regulations generally require that all cross-border transactions
carried out between related parties be conducted on an arm&#8217;s length principle basis and will be taxed accordingly.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline">Certain
Withholding Tax Consequences of the Business Combination</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Business Combination is a taxable event in Israel. Generally, the Keyarch shareholders, holders of Keyarch rights and holders of Keyarch
warrants that are not residents of Israel should, under certain conditions, be entitled to an exemption from Israeli tax while those
that are Israeli residents may be taxed on any capital gains resulting from the exchange of their Keyarch ordinary shares, the Keyarch
Rights and/or the Keyarch warrants.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ,
Merger Sub, their respective affiliates, and any other person making a payment under the Business Combination Agreement (including
the issuance of shares as consideration under the Business Combination Agreement) is required to deduct and withhold tax from the
consideration payable by them under the Business Combination Agreement in accordance with applicable legal requirements. Keyarch
applied for and received a tax ruling from the ITA exempting ZOOZ, Merger Sub and their respective agents from any obligation to
withhold Israeli tax from such consideration payable or otherwise deliverable to certain Keyarch shareholders, holders of Keyarch
rights and holders of Keyarch warrants, and deferring the taxable event to the time of the sale of the shares or warrants by such
holders, as described below. We sometimes refer to such tax ruling as the WHT Ruling. Pursuant to the terms of the WHT Ruling, such
ruling applies to each person who was a Keyarch shareholders, holder of Keyarch rights and holder of Keyarch warrants that meets all
of the following requirements: (1) it acquired all of its equity interests in Keyarch in or following Keyarch&#8217;s initial public
offering on Nasdaq; (2) it held less than 5% of outstanding Keyarch ordinary shares; (3) it was not a registered shareholder; (4) it
was not a &#8220;relative&#8221; (as defined under Section 88 of the Ordinance) of a registered shareholder; (5) it was not an
Israeli resident &#8220;office holder&#8221; as defined under the Securities Law) in Keyarch; and (6) it did not receive any
other tax ruling issued by the ITA in connection with its Keyarch equity interests, or was subject to other tax arrangement, that
may contradict the terms and conditions of the WHT Ruling. Regarding Keyarch shareholders, holders of Keyarch rights and/or holders
of Keyarch warrants (collectively, &#8220;<b>Keyarch Securityholders</b>&#8221;) that are not covered under the WHT Ruling: (1) any
Keyarch Securityholders that owned at least 5% of Keyarch outstanding shares or 5% of the rights on a fully diluted basis will be
subject to tax withholding in Israel, unless a residency declaration or an exemption certificate or other ruling from the ITA is
provided by such Keyarch Securityholders and (2) a Keyarch Securityholders that owned less than 5% of or 5% of the rights on a fully
diluted basis Keyarch outstanding shares who is not covered under the WHT Ruling will be subject to tax withholding in Israel,
unless any of the following will be provided to the Exchange Agent within 180 days from the Closing: (a) a valid declaration has
been provided by such that it has never been an Israeli tax resident and that it never maintained a permanent establishment in
Israel, (b) a SPAC Declaration (as such term is defined in the Business Combination Agreement), (c) an exemption certificate, or (d)
WHT Ruling applicable to such Keyarch Securityholder.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline">Taxation
of the conversion of the Earnout Rights into Earnout Shares and the issuance of the Earnout Shares</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Subject
to the terms and conditions set in the Business Combination Agreement, ZOOZ issued to the Pre-Closing ZOOZ Shareholders an aggregate
of 4,000,000 Earnout Rights, which were allocated among the Pre-Closing ZOOZ Shareholders according to their respective share on a pro
rata basis. The Earnout Rights will be automatically converted into ZOOZ Ordinary Shares (by ZOOZ issuing one ZOOZ Ordinary Share in
lieu of each converted Earnout Right which shall be automatically cancelled and extinguished upon such conversion), in an amount not
to exceed 4,000,000 Earnout Shares (subject to adjustment after the Closing for share splits, combinations or exchange or readjustment
of shares, reorganizations, recapitalizations, share sub-divisions (including share consolidations), split-up and the like, including
to account for any equity securities into which such shares are exchanged or converted), upon and subject to the occurrence of Earnout
Milestone(s) (as such terms defined in the Business Combination Agreement) during the Earnout Period, and without the payment of any
consideration by the Pre-Closing ZOOZ Shareholders (other than, to the extent applicable, the transfer of the applicable Withholding
Amount (as defined below) by each respective Pre-Closing ZOOZ Shareholder as described below.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
conversion of the Earnout Rights into Earnout Shares and the issuance of the Earnout Shares will be subject to withholding tax according
to the relevant provision of the applicable law. Such withholding tax from the Earnout Shares will be conducted by any TASE member.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 113; Value: 69 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->113<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Any
Tax will be required to be withheld in connection with the conversion of the Earnout Rights (or any part thereof) and/or issuance of
the Earnout Shares (or any part thereof) pursuant to any applicable law relating to taxes, any TASE member shall be authorized to withhold
such tax. However, if any Pre-Closing ZOOZ Shareholder will transfer to the TASE member the applicable withholding amount which needed
to be withheld in connection with the conversion of the Earnout Rights and issuance of the Earnout Shares, attributed to such Pre-Closing
ZOOZ Shareholder, calculated according to the applicable law during the applicable periods provided by TASE member (&#8220;<b>Withholding
Amount</b>&#8221;) then no withholding tax will be apply with respect to issuing the Earnout Shares to such Pre-Closing ZOOZ Shareholder.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>U.S.
Federal Income Tax Considerations</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline">General</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following is a summary of certain material U.S. federal income tax considerations generally applicable to the acquisition, ownership
and disposition of our ordinary shares and public warrants by U.S. Holders (as defined below) that hold our ordinary shares or public
warrants as &#8220;capital assets&#8221; (generally, property held for investment) under the Code. For this purpose, a U.S. Holder is,
a holder, who, for U.S. federal income tax purposes, is a beneficial owner of ordinary shares or public warrants and who is: (a) a citizen
or individual resident of the United States; (b) a corporation (or other entity taxable as a corporation for U.S. federal income tax
purposes) created or organized in or under the laws of the United States, any state thereof or the District of Columbia; (c) an estate
the income of which is subject to U.S. federal income tax regardless of its source; or (d) a trust that is subject to the primary supervision
of a court over its administration and one or more U.S. persons control all substantial decisions, or a trust that has validly elected
to be treated as a domestic trust under applicable Treasury Regulations. This summary does not address any tax consequences to persons
other than U.S. Holders.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
statements in this summary are based on the current U.S. federal income tax laws as contained in the Code, Treasury Regulations, and
relevant judicial decisions and administrative guidance, all as of the date hereof, and such authorities may be replaced, revoked or
modified, possibly with retroactive effect, so as to result in U.S. federal income tax consequences different from those discussed below.
No ruling has been sought from the U.S. Internal Revenue Service, or IRS, with respect to any U.S. federal income tax consequences described
below, and there can be no assurance that the IRS will not take a contrary position or that a court will not sustain such a position
in the event of a challenge.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following summary does not address all aspects of U.S. federal income tax consequences that may apply to certain types of U.S. Holders
that are subject to special treatment, such as banks, insurance companies, tax-exempt or governmental organizations, financial institutions,
broker-dealers, dealers in securities or currencies, traders in securities that elect to use the mark-to-market method of accounting
for their securities, S corporations, partnerships or other pass-through entities (or arrangements treated as a partnership) for U.S.
federal tax purposes, regulated investment companies, real estate investment trusts, &#8220;controlled foreign corporations&#8221; within
the meaning of Section 957(a) of the Code, &#8220;passive foreign investment companies&#8221; within the meaning of Section 1297(a) of
the Code, certain expatriates, persons owning, directly, constructively or by attribution, 5% or more, by voting power or value, of our
ordinary shares, persons whose &#8220;functional currency&#8221; is not the U.S. dollar, persons who hold ordinary shares as part of
a hedging, constructive sale or conversion, straddle, or other risk-reducing transaction, former U.S. citizens or long term residents
of the United States, corporations that accumulate earnings to avoid U.S. federal income tax, persons who hold our ordinary shares in
connection with a trade or business, permanent establishment or fixed base outside the United States, or persons that received an interest
in our ordinary shares through the exercise of an option or otherwise in exchange for services. In addition, it does not address consequences
relevant to holders subject to special rules, including, without limitation banks, insurance companies, and certain other financial institutions,
regulated investment companies and real estate investment trusts, tax-exempt organizations or governmental organizations, persons subject
to special tax accounting rules as a result of any item of gross income with respect to ZOOZ ordinary shares and/or ZOOZ public warrants,
as the case may be, being taken into account in an applicable financial statement, U.S. Holders having a functional currency other than
the U.S. dollar, persons who hold or received ZOOZ ordinary shares and/or ZOOZ public warrants, as the case may be, pursuant to the exercise
of any employee stock option or otherwise as compensation, and tax-qualified retirement plans.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">This
summary is a general summary and does not address all aspects of U.S. federal income taxation that may be relevant to particular U.S.
Holders based on their particular investment or tax circumstances.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">This
summary relates only to U.S. federal income taxes and does not address any other taxes, including but not limited to, U.S. state or local,
or non-U.S., taxes and does not describe all of the U.S. federal income tax consequences that may be relevant, including the special
tax accounting rules under Section 451(b) of the Code, the U.S. federal non-income tax considerations, including estate or gift tax considerations,
the Medicare contribution tax on net investment income and the alternative minimum tax.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">This
discussion does not address the tax treatment of ZOOZ ordinary shares or ZOOZ public warrants that were issued to holders of outstanding
Keyarch shares and Keyarch public and/or private warrants in connection with the Business Combination.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 114; Value: 69 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->114<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
an entity or arrangement treated as a partnership for U.S. federal income tax purposes holds ZOOZ ordinary shares and/or ZOOZ public
warrants, the tax treatment of an owner of such entity will depend on the status of the owners, the activities of the entity or arrangement
and certain determinations made at the owner level. Accordingly, entities or arrangements treated as partnerships for U.S. federal income
tax purposes and the partners in such partnerships should consult their tax advisors regarding the U.S. federal income tax consequences
to them.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>This
summary is not a substitute for careful tax planning. Investors are urged to consult their own tax advisors regarding the specific U.S.
federal, state, foreign and other tax consequences to them, in light of their own particular circumstances, of the purchase, ownership
and disposition of our ordinary shares and the effect of potential changes in applicable tax laws.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>IN
ADDITION, THE U.S. FEDERAL INCOME TAX TREATMENT OF OWNING ZOOZ ORDINARY SHARES AND ZOOZ PUBLIC OR PRIVATE WARRANTS TO ANY PARTICULAR
HOLDER WILL DEPEND ON THE HOLDER&#8217;S PARTICULAR TAX CIRCUMSTANCES. YOU ARE URGED TO CONSULT YOUR TAX ADVISOR REGARDING THE U.S. FEDERAL,
STATE, AND LOCAL, AND NON-U.S. INCOME AND OTHER TAX CONSEQUENCES TO YOU, IN LIGHT OF YOUR PARTICULAR INVESTMENT OR TAX CIRCUMSTANCES,
OF ACQUIRING, HOLDING, AND DISPOSING OF ZOOZ ORDINARY SHARES AND ZOOZ PUBLIC WARRANTS.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline">U.S.
Holders</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span style="text-decoration: underline">Distributions
on ZOOZ Ordinary Shares</span></i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
ZOOZ makes distributions of cash or property on the ZOOZ ordinary shares, such distributions will be treated for U.S. federal income
tax purposes first as a dividend to the extent of ZOOZ&#8217;s current or accumulated earnings and profits (as determined for U.S. federal
income tax purposes), and then as a tax-free return of capital to the extent of the U.S. Holder&#8217;s tax basis, with any excess treated
as capital gain from the sale or exchange of the shares. If ZOOZ does not provide calculations of its earnings and profits under U.S.
federal income tax principles, a U.S. Holder should expect all cash distributions to be reported as dividends for U.S. federal income
tax purposes. Any dividend will not be eligible for the dividends received deduction allowed to corporations in respect of dividends
received from U.S. corporations.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Subject
to the discussion below under &#8220;<i>Passive Foreign Investment Company Rules</i>,&#8221; dividends received by certain non-corporate
U.S. holders (including individuals) may be &#8220;qualified dividend income,&#8221; which is taxed at the lower applicable capital gains
rate, provided that:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
either (a) the shares are readily tradable on an established securities market in the United States (such as the Nasdaq, where the
ZOOZ ordinary shares are intended to be listed), or (b) ZOOZ is eligible for the benefits of a qualifying income tax treaty with the
United States that includes an exchange of information program;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
ZOOZ is neither a PFIC (as discussed below under below under &#8220;Passive Foreign Investment Company Rules&#8221;) nor treated as
such with respect to the U.S. holder in any taxable year in which the dividend is paid or the preceding taxable year;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
the U.S. Holder satisfies certain holding period requirements; and</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
the U.S. Holder is not under an obligation to make related payments with respect to positions in substantially similar or related
property.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">There
can be no assurances that ZOOZ will be eligible for benefits of an applicable comprehensive income tax treaty between the United States
and Israel. Furthermore, ZOOZ will not constitute a &#8220;qualified foreign corporation&#8221; for purposes of these rules if it is
a PFIC for the taxable year in which it pays a dividend or for the preceding taxable year. See &#8220;<i>Passive Foreign Investment Company
Rules.</i>&#8221; U.S. Holders should consult their own tax advisors regarding the availability of the lower rate for dividends paid
with respect to ZOOZ ordinary shares. The amount of any dividend distribution paid in foreign currency will be the U.S. dollar amount
calculated by reference to the applicable exchange rate in effect on the date of actual or constructive receipt, regardless of whether
the payment is in fact converted into U.S. dollars at that time. A U.S. Holder may have foreign currency gain or loss if the dividend
is converted into U.S. dollars after the date of receipt.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Subject
to certain exceptions, dividends on ZOOZ ordinary shares will constitute foreign source income for foreign tax credit limitation purposes.
If such dividends are qualified dividend income (as discussed above), the amount of the dividend taken into account for purposes of calculating
the foreign tax credit limitation will be limited to the gross amount of the dividend, multiplied by a fraction, the numerator of which
is the reduced rate applicable to qualified dividend income and the denominator of which is the highest rate of tax normally applicable
to dividends. The limitation on foreign taxes eligible for credit is calculated separately with respect to specific classes of income.
For this purpose, dividends distributed by ZOOZ with respect to the ZOOZ ordinary shares generally will constitute &#8220;passive category
income&#8221; but could, in the case of certain U.S. Holders, constitute &#8220;general category income.&#8221;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 115; Value: 69 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->115<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span style="text-decoration: underline">Sale,
Exchange, Redemption or Other Taxable Disposition of ZOOZ ordinary shares and ZOOZ Public and Private Warrants</span>.</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Subject
to the discussion below under &#8220;&#8212;<i>Passive Foreign Investment Company Rules</i>,&#8221; a U.S. Holder generally will recognize
gain or loss on any sale, exchange, redemption or other taxable disposition of ZOOZ ordinary shares or ZOOZ public and/or private warrants
in an amount equal to the difference between (i) the amount realized on the disposition and (ii) such U.S. Holder&#8217;s adjusted tax
basis in such ZOOZ ordinary shares and/or ZOOZ public warrants. Any gain or loss recognized by a U.S. Holder on a taxable disposition
of ZOOZ ordinary shares or ZOOZ public warrants generally will be capital gain or loss. A non-corporate U.S. Holder, including an individual,
who has held the ZOOZ ordinary shares and/or ZOOZ public warrants for more than one year generally will be eligible for reduced tax rates
for such long-term capital gains. The deductibility of capital losses is subject to limitations.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Any
such gain or loss recognized generally will be treated as U.S. source gain or loss. Accordingly, in the event any Israeli tax (including
withholding tax) is imposed upon such sale or other disposition, a U.S. holder may not be able to utilize foreign tax credits unless
such U.S. Holder has foreign source income or gain in the same category from other sources. Moreover, there are special rules under the
income tax treaty between the United States and Israel (the &#8220;<b>Treaty</b>&#8221;), which may impact a U.S. Holder&#8217;s ability
to claim a foreign tax credit. U.S. Holders are urged to consult their own tax advisors regarding the ability to claim a foreign tax
credit and the application of the Treaty to such U.S. Holder&#8217;s particular circumstances.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span style="text-decoration: underline">Exercise
or Lapse of a ZOOZ Public Warrant</span></i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Except
as discussed below with respect to the cashless exercise of a ZOOZ public warrants a U.S. Holder generally will not recognize gain or
loss upon the acquisition of a ZOOZ ordinary share on the exercise of a ZOOZ public warrant for cash. A U.S. Holder&#8217;s tax basis
in a ZOOZ ordinary share received upon exercise of a ZOOZ public warrant generally should be an amount equal to the sum of the U.S. Holder&#8217;s
tax basis in the ZOOZ public warrant exercised and the exercise price. The U.S. Holder&#8217;s holding period for a ZOOZ ordinary share
received upon exercise of a ZOOZ public warrants will generally begin on the date following the date of exercise (or possibly the date
of exercise) of the ZOOZ public and/or private warrants and will not include the period during which the U.S. Holder held the ZOOZ public
and/or private warrants. If a ZOOZ public warrant is allowed to lapse unexercised, a U.S. Holder that has otherwise received no proceeds
with respect to such ZOOZ public warrant generally will recognize a capital loss equal to such U.S. Holder&#8217;s tax basis in the ZOOZ
public warrant.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
tax consequences of a cashless exercise of a ZOOZ public warrant are not clear under current U.S. federal income tax law. A cashless
exercise may be tax-deferred, either because the exercise is not a realization event or because the exercise is treated as a recapitalization
for U.S. federal income tax purposes. In either situation, a U.S. Holder&#8217;s basis in the ZOOZ ordinary shares received would generally
equal the U.S. holder&#8217;s basis in the ZOOZ public warrant exercised for such shares. If the cashless exercise is not treated as
a realization event, a U.S. Holder&#8217;s holding period in the ZOOZ ordinary shares would generally be treated as commencing on the
date following the date of exercise (or possibly the date of exercise) of the ZOOZ public warrant. If the cashless exercise were treated
as a recapitalization, the holding period of the ZOOZ ordinary shares would generally include the holding period of the ZOOZ public warrant
exercised therefor.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">It
is also possible that a cashless exercise of a ZOOZ public warrant could be treated in part as a taxable exchange in which gain or loss
would be recognized in the manner set forth above under &#8220;<i>Sale, Exchange, Redemption or Other Taxable Disposition of ZOOZ Ordinary
Shares and ZOOZ Public Warrants</i>.&#8221; In such event, a U.S. Holder could be deemed to have surrendered warrants having an aggregate
fair market value equal to the exercise price for the total number of warrants to be exercised. The U.S. Holder would recognize capital
gain or loss in an amount generally equal to the difference between (i) the fair market value of the ZOOZ public warrant deemed surrendered
and (ii) the U.S. Holder&#8217;s tax basis in such ZOOZ public and/or private warrants deemed surrendered. In this case, a U.S. Holder&#8217;s
tax basis in the ZOOZ ordinary shares received would equal the sum of (i) U.S. Holder&#8217;s tax basis in the ZOOZ public warrant deemed
exercised and (ii) the exercise price of such ZOOZ public warrants. A U.S. Holder&#8217;s holding period for the ZOOZ ordinary shares
received in such case generally would commence on the date following the date of exercise (or possibly the date of exercise) of the ZOOZ
public warrants.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Due
to the absence of authority on the U.S. federal income tax treatment of a cashless exercise of warrants, there can be no assurance which,
if any, of the alternative tax consequences and holding periods described above would be adopted by the IRS or a court of law. Accordingly,
U.S. holders should consult their own tax advisors regarding the tax consequences of a cashless exercise of ZOOZ public and/or private
warrants.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 116; Value: 69 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->116<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span style="text-decoration: underline">Possible
Constructive Distributions</span></i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
terms of each ZOOZ public warrant provide for an adjustment to the number of ZOOZ ordinary shares for which the ZOOZ public warrant may
be exercised or to the exercise price of the ZOOZ public warrants in certain events. An adjustment which has the effect of preventing
dilution generally is not taxable. A U.S. holder of a ZOOZ public warrants would, however, be treated as receiving a constructive distribution
from ZOOZ if, for example, the adjustment increases the holder&#8217;s proportionate interest in ZOOZ&#8217;s assets or earnings and
profits (for instance, through an increase in the number of ZOOZ ordinary shares that would be obtained upon exercise of such warrant)
as a result of a distribution of cash or other property such as other securities to the holders of the ZOOZ ordinary shares which is
taxable to the U.S. Holders of such shares as described under &#8220;<i>Distributions on ZOOZ ordinary shares</i>&#8221; above. Such
constructive distribution would be subject to tax as described under that section in the same manner as if the U.S. Holder of such ZOOZ
public and/or private warrants received a cash distribution from ZOOZ equal to the fair market value of such increased interest.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span style="text-decoration: underline">Passive
Foreign Investment Company Rules</span></i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
treatment of U.S. Holders of the ZOOZ ordinary shares could be materially different from that described above, if ZOOZ is treated as
a PFIC for U.S. federal income tax purposes. A non-U.S. entity treated as a corporation for U.S. federal income tax purposes generally
will be a PFIC for U.S. federal income tax purposes for any taxable year if either:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
at least 75% of its gross income for such year is passive income, or</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
at least 50% of the value of its assets (generally based on an average of the quarterly values of the assets) during such year is attributable
to assets that produce passive income or are held for the production of passive income (including cash).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
this purpose, ZOOZ will be treated as owning its proportionate share of the assets and earning its proportionate share of the income
of any other entity treated as a corporation for U.S. federal income tax purposes in which ZOOZ owns, directly or indirectly, 25% or
more (by value) of the stock. Passive income generally includes dividends, interest, rents, royalties and capital gains.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Based
on the current and anticipated composition of the income, assets and operations of ZOOZ and its subsidiaries, there is a substantial
risk that ZOOZ may be treated as a PFIC for the taxable year that includes the Business Combination.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Nevertheless,
whether ZOOZ or any of its subsidiaries is treated as a PFIC is determined on an annual basis. The determination of whether ZOOZ or any
of its subsidiaries is a PFIC is a factual determination that depends on, among other things, the composition of ZOOZ&#8217;s income
and assets, and the value of its and its subsidiaries&#8217; shares and assets. Changes in the composition of the income or assets of
ZOOZ and its subsidiaries may cause ZOOZ to be or become a PFIC for the current or subsequent taxable years. Thus, no assurance can be
given as to whether ZOOZ will be a PFIC in 2024 or for any future taxable year. In addition, ZOOZ&#8217;s U.S. counsel expresses no opinion
with respect to ZOOZ&#8217;s PFIC status for 2024 or future taxable years.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
the PFIC rules, if ZOOZ were considered a PFIC at any time that a U.S. Holder owns ZOOZ ordinary shares or ZOOZ public warrants, ZOOZ
would continue to be treated as a PFIC with respect to such investment unless (i) it ceased to be a PFIC and (ii) (a) the U.S. Holder
has made a valid &#8220;QEF election&#8221; (as described below) for the first taxable year in which the holder owned such holder&#8217;s
ordinary shares in which ZOOZ was a PFIC, (b) a valid mark-to-market election (as described below) is in effect for the particular year,
or (c) the U.S. Holder has made a &#8220;deemed sale&#8221; election under the PFIC rules. If such a deemed sale election is made, a
U.S. Holder will be deemed to have sold its ZOOZ ordinary shares and/or ZOOZ public warrants at their fair market value on the last day
of the last taxable year in which ZOOZ is classified as a PFIC, and any gain from such deemed sale would be subject to the consequences
described below, but any loss would not be recognized. After the deemed sale election, the ZOOZ ordinary shares or ZOOZ public warrants
with respect to which the deemed sale election was made will not be treated as shares in a PFIC unless ZOOZ subsequently becomes a PFIC.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
each taxable year that ZOOZ is treated as a PFIC with respect to a U.S. Holder&#8217;s ZOOZ ordinary shares or ZOOZ public warrants,
the U.S. Holder will be subject to special tax rules with respect to any &#8220;excess distribution&#8221; (as defined below) received
and any gain realized from a sale or disposition (including a pledge) of its ZOOZ ordinary shares or ZOOZ public warrants (collectively
the &#8220;<b>Excess Distribution Rules</b>&#8221;), unless the U.S. holder makes a valid QEF election or mark-to-market election as
discussed below. Distributions received by a U.S. Holder in a taxable year that are greater than 125% of the average annual distributions
received during the shorter of the three preceding taxable years or the U.S. Holder&#8217;s holding period for the ZOOZ ordinary shares
or ZOOZ public warrants will be treated as excess distributions. Under these special tax rules:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
the excess distribution or gain will be allocated ratably over the U.S. Holder&#8217;s holding period for the ZOOZ ordinary shares
or ZOOZ public warrants;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
the amount allocated to the current taxable year, and any taxable years in the U.S. Holder&#8217;s holding period prior to the first
taxable year in which ZOOZ is a PFIC, will be treated as ordinary income; and</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 117; Value: 69 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->117<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
the amount allocated to each other taxable year will be subject to the highest tax rate in effect for individuals or corporations,
as applicable, for each such year and the interest charge generally applicable to underpayments of tax will be imposed on the
resulting tax attributable to each such year.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
the Excess Distribution Rules, the tax liability for amounts allocated to taxable years prior to the year of disposition or excess distribution
cannot be offset by any net operating losses, and gains (but not losses) realized on the sale of the ZOOZ ordinary shares or ZOOZ public
warrants cannot be treated as capital gains, even though the U.S. Holder holds the ZOOZ ordinary shares or ZOOZ public warrants as capital
assets.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Certain
of the PFIC rules may impact U.S. Holders with respect to equity interests in subsidiaries and other entities which ZOOZ may hold, directly
or indirectly, that are PFICs (collectively, &#8220;<b>Lower-Tier PFICs</b>&#8221;). There can be no assurance, however, that ZOOZ does
not own, or will not in the future acquire, an interest in a subsidiary or other entity that is or would be treated as a Lower-Tier PFIC.
U.S. holders should consult their own tax advisors regarding the application of the PFIC rules to any of ZOOZ&#8217;s subsidiaries.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
ZOOZ is a PFIC, a U.S. Holder of ZOOZ ordinary shares (but not ZOOZ public and/or private warrants, as discussed in more detail below)
may avoid taxation under the Excess Distribution Rules described above by making a &#8220;qualified electing fund&#8221; (&#8220;<b>QEF</b>&#8221;)
election. However, a U.S. Holder may make a QEF election with respect to its ZOOZ ordinary shares only if ZOOZ provides U.S. holders
on an annual basis with certain financial information specified under applicable U.S. Treasury regulations. Upon written request, ZOOZ
will endeavor to provide U.S. Holders with the required information on an annual basis to allow U.S. Holders to make a QEF election with
respect to the ZOOZ ordinary shares in the event ZOOZ is treated as a PFIC for any taxable year. There can be no assurance, however,
that ZOOZ will timely provide such information for the current year or subsequent years. The failure to provide such information on an
annual basis could prevent a U.S. Holder from making a QEF election or result in the invalidation or termination of a U.S. Holder&#8217;s
prior QEF election.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
the event ZOOZ is a PFIC, a U.S. Holder that makes a QEF election with respect to its ZOOZ ordinary shares would generally be required
to include in income for each year that ZOOZ is treated as a PFIC the U.S. Holder&#8217;s pro rata share of ZOOZ&#8217;s ordinary earnings
for the year (which would be subject to tax as ordinary income) and net capital gains for the year (which would be subject to tax at
the rates applicable to long-term capital gains), without regard to the amount of any distributions made in respect of the ZOOZ ordinary
shares. Any net deficits or net capital losses of ZOOZ for a taxable year would not be passed through and included on the tax return
of the U.S. Holder, however. A U.S. Holder&#8217;s basis in the ZOOZ ordinary shares would be increased by the amount of income inclusions
under the qualified electing fund rules. Dividends actually paid on the ZOOZ ordinary shares generally would not be subject to U.S. federal
income tax to the extent of prior income inclusions and would reduce the U.S. Holder&#8217;s basis in the ZOOZ ordinary shares by a corresponding
amount.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
ZOOZ owns any interests in a Lower-Tier PFIC, a U.S. Holder generally must make a separate QEF election for each Lower-Tier PFIC, subject
to ZOOZ&#8217;s providing the relevant tax information for each Lower-Tier PFIC on an annual basis.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
a U.S. Holder does not make a QEF election (or a mark-to-market election, as discussed below) effective from the first taxable year of
a U.S. Holder&#8217;s holding period for the ZOOZ ordinary shares in which ZOOZ is a PFIC, then the ZOOZ ordinary shares will generally
continue to be treated as an interest in a PFIC, and the U.S. Holder generally will remain subject to the Excess Distribution Rules.
A U.S. Holder that first makes a QEF election in a later year may avoid the continued application of the Excess Distribution Rules to
its ZOOZ ordinary shares by making a &#8220;deemed sale&#8221; election. In that case, the U.S. Holder will be deemed to have sold the
ZOOZ ordinary shares at their fair market value on the first day of the taxable year in which the QEF election becomes effective, and
any gain from such deemed sale would be subject to the Excess Distribution Rules described above. A U.S. Holder that is eligible to make
a QEF election with respect to its ZOOZ ordinary shares generally may do so by providing the appropriate information to the IRS in the
U.S. Holder&#8217;s timely filed tax return for the year in which the election becomes effective.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">U.S.
holders should consult their own tax advisors as to the availability and desirability of a QEF election.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
proposed Treasury regulations, if a U.S. Holder has an option, warrant, or other right to acquire stock of a PFIC, such option, warrant
or right is considered to be PFIC stock subject to the PFIC rules. However, a U.S. Holder of an option, warrant or right to acquire stock
of a PFIC may not make a QEF election that will apply to the option, warrant or other right to acquire PFIC stock. In addition, under
proposed Treasury regulations, if a U.S. Holder holds an option, warrant or other right to acquire stock of a PFIC, the holding period
with respect to shares of stock of the PFIC acquired on exercise of such option, warrant or other right will include the period that
the option, warrant or other right was held. Consequently, under the proposed Treasury regulations, if a U.S. Holder of shares made a
QEF Election, such election generally would not have been treated as a timely QEF Election with respect to shares acquired upon exercise
of warrants of the corporation and the PFIC rules discussed above will continue to apply with respect to such shares. However, a U.S.
Holder of such shares should have been eligible to make a timely QEF Election if such U.S. Holder met certain requirements and made a
&#8220;purging election,&#8221; electing in the year in which such shares were received to recognize gain (which would have been taxed
under the PFIC rules discussed above) as if such shares were sold for fair market value on the date such U.S. Holder acquired them by
exercising the corresponding warrants. U.S. Holders should consult their own tax advisors regarding the application of the PFIC rules
to ZOOZ public warrants.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 118; Value: 69 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->118<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Alternatively,
a U.S. Holder of &#8220;marketable securities&#8221; (as defined below) may make a mark-to-market election for its ZOOZ ordinary shares
to elect out of the Excess Distribution Rules discussed above if ZOOZ is treated as a PFIC. If a U.S. Holder makes a mark-to-market election
with respect to its ZOOZ ordinary shares, such U.S. Holder will include in income for each year that ZOOZ is treated as a PFIC with respect
to such ZOOZ ordinary shares an amount equal to the excess, if any, of the fair market value of the ZOOZ ordinary shares as of the close
of the U.S. Holder&#8217;s taxable year over the adjusted basis in the ZOOZ ordinary shares. A U.S. Holder will be allowed a deduction
for the excess, if any, of the adjusted basis of the ZOOZ ordinary shares over their fair market value as of the close of the taxable
year. However, deductions will be allowed only to the extent of any net mark-to-market gains on the ZOOZ ordinary shares included in
the U.S. Holder&#8217;s income for prior taxable years. Amounts included in income under a mark-to-market election, as well as gain on
the actual sale or other disposition of the ZOOZ ordinary shares, will be treated as ordinary income. Ordinary loss treatment will also
apply to the deductible portion of any mark-to-market loss on the ZOOZ ordinary shares, as well as to any loss realized on the actual
sale or disposition of the ZOOZ ordinary shares, to the extent the amount of such loss does not exceed the net mark-to-market gains for
such ZOOZ ordinary shares previously included in income. A U.S. Holder&#8217;s basis in the ZOOZ ordinary shares will be adjusted to
reflect any mark-to-market income or loss. If a U.S. Holder makes a mark-to-market election, any distributions ZOOZ makes would generally
be subject to the rules discussed above under &#8220;<i>Distributions on ZOOZ ordinary shares</i>,&#8221; except the lower rates applicable
to qualified dividend income would not apply. U.S. Holders of ZOOZ public warrants will only be able to make a mark-to-market election
with respect to their ZOOZ public warrants to the extent that such warrants are treated as &#8220;marketable securities&#8221; (as defined
below).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
mark-to-market election is available only for &#8220;marketable securities,&#8221; which are securities that are regularly traded on
a qualified exchange or other market, as defined in applicable U.S. Treasury regulations. The ZOOZ ordinary shares and ZOOZ public warrants,
which are listed on the Nasdaq, are expected to qualify as marketable securities for purposes of the PFIC rules, but there can be no
assurance that ZOOZ ordinary shares or ZOOZ public warrants will be &#8220;regularly traded&#8221; for purposes of these rules. Because
a mark-to-market election cannot be made for equity interests in any Lower-Tier PFICs, a U.S. Holder that does not make the applicable
QEF elections generally will continue to be subject to the Excess Distribution Rules with respect to its indirect interest in any Lower-Tier
PFICs as described above, even if a mark-to-market election is made for ZOOZ.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
a U.S. Holder does not make a mark-to-market election (or a QEF election, as discussed above) effective from the first taxable year of
a U.S. Holder&#8217;s holding period for the ZOOZ ordinary shares in which ZOOZ is a PFIC, then the U.S. Holder generally will remain
subject to the Excess Distribution Rules. A U.S. Holder that first makes a mark-to-market election with respect to the ZOOZ ordinary
shares in a later year will continue to be subject to the Excess Distribution Rules during the taxable year for which the mark-to-market
election becomes effective, including with respect to any mark-to-market gain recognized at the end of that year. In subsequent years
for which a valid mark-to-mark election remains in effect, the Excess Distribution Rules generally will not apply. A U.S. Holder that
is eligible to make a mark-to-market with respect to its ZOOZ ordinary shares may do so by providing the appropriate information on IRS
Form 8621 and timely filing that form with the U.S. Holder&#8217;s tax return for the year in which the election becomes effective. U.S.
Holders should consult their own tax advisors as to the availability and desirability of a mark-to-market election, as well as the impact
of such election on interests in any Lower-Tier PFICs.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">A
U.S. Holder of a PFIC may be required to file an IRS Form 8621 on an annual basis. U.S. Holders should consult their own tax advisors
regarding any reporting requirements that may apply to them if ZOOZ is a PFIC.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">U.S.
Holders are strongly encouraged to consult their tax advisors regarding the application of the PFIC rules to their particular circumstances.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Non-U.S.
Holders</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">This
section applies to Non-U.S. Holders of ZOOZ ordinary shares and ZOOZ public warrants. For purposes of this discussion, a Non-U.S. Holder
means a beneficial owner (other than a partnership or an entity or arrangement so characterized for U.S. federal income tax purposes)
of ZOOZ ordinary shares or ZOOZ public warrants that is not a U.S. Holder, and is: (i) a nonresident alien individual, other than certain
former citizens and residents of the United States, (ii) a foreign corporation, or (iii) an estate or trust that is not a U.S. Holder.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>U.S.
Federal Income Tax Consequences of the Ownership and Disposition of ZOOZ Ordinary Shares and ZOOZ Warrants to Non-U.S. Holders</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 119; Value: 69 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->119<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Subject
to the discussion below concerning backup withholding, any (i) distributions of cash or property paid to a Non-U.S. Holders in respect
of ZOOZ ordinary shares (including constructive distributions treated as dividends as discussed above under &#8220;<i>U.S. Holders&#8212;Possible
Constructive Distributions&#8221;</i>) or (ii) gain realized upon the sale or other taxable disposition of ZOOZ ordinary shares and/or
ZOOZ public warrants generally will not be subject to U.S. federal income taxation unless:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
the gain or distribution is effectively connected with the Non-U.S. Holder&#8217;s conduct of a trade or business within the United
States (and, if required by an applicable income tax treaty, the Non-U.S. holder maintains a permanent establishment in the United
States to which such gain is attributable); or</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
in the case of any gain, the Non-U.S. Holder is a nonresident alien individual present in the United States for 183 days or more
during the taxable year of the disposition and certain other requirements are met.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Gain
or distributions described in the first bullet point above generally will be subject to U.S. federal income tax on a net income basis
at the regular rates in the same manner discussed in &#8220;&#8212;<i>U.S. Holders Distributions on Ordinary Shares</i>&#8221; and &#8220;&#8212;<i>U.S.
Holders Sale, Exchange, Redemption or Other Taxable Disposition of ZOOZ Ordinary Shares and ZOOZ Public Warrants</i>.&#8221; A Non-U.S.
Holder that is a corporation also may be subject to a branch profits tax at a rate of 30% (or such lower rate specified by an applicable
income tax treaty) on such effectively connected gain, as adjusted for certain items.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Gain
described in the second bullet point above will be subject to U.S. federal income tax at a rate of 30% (or such lower rate specified
by an applicable income tax treaty), which may be offset by U.S. source capital losses of the Non-U.S. Holder (even though the individual
is not considered a resident of the United States), provided the Non-U.S. Holder has timely filed U.S. federal income tax returns with
respect to such losses.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
U.S. federal income tax treatment of a Non-U.S. Holder&#8217;s exercise of a ZOOZ public warrants, or the lapse of a ZOOZ public warrants
held by a Non-U.S. Holder, generally will correspond to the U.S. federal income tax treatment of the exercise or lapse of a warrant by
a U.S. Holder, as described under &#8220;&#8212;<i>U.S. Holders&#8212;Exercise or Lapse of a ZOOZ Public Warrant</i>,&#8221; above, although
to the extent a cashless exercise or lapse results in a taxable exchange, the consequences would be similar to those described in the
preceding paragraphs above for a Non-U.S. Holder&#8217;s gain on the sale or other disposition of the ZOOZ ordinary shares and ZOOZ public
warrants.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Non-U.S.
Holders should consult their own tax advisors regarding potentially applicable income tax treaties that may provide for different rules.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Foreign
Account Tax Compliance Act</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
United States Foreign Account Tax Compliance Act, or FATCA, imposes a reporting regime and, potentially, a 30% withholding tax on certain
payments made to certain non-U.S. financial institutions that fail to comply with certain information reporting, account identification,
withholding, certification and other FATCA related requirements in respect of their direct and indirect United States shareholders and/or
United States accountholders. To avoid becoming subject to FATCA withholding, we may be required to report information to the IRS regarding
the holders of ZOOZ ordinary shares and to withhold on a portion of payments with respect to our ordinary shares to certain holders that
fail to comply with the relevant information reporting requirements (or that hold our ordinary shares directly or indirectly through
certain non-compliant intermediaries). This withholding tax made with respect to ZOOZ ordinary shares will not apply to payments made
before the date that is two years after the date of publication of final regulations defining the term &#8220;foreign passthru payment&#8221;.
An intergovernmental agreement between the United States and another country may also modify these requirements. FATCA is particularly
complex and its application is uncertain at this time. Holders of ZOOZ ordinary shares should consult their tax advisors to obtain a
more detailed explanation of FATCA and to learn how FATCA might affect each holder in its particular circumstances.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Information
Reporting and Backup Withholding</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Information
reporting requirements may apply to dividends received by U.S. Holders of ZOOZ ordinary shares and the proceeds received on sale or other
taxable disposition of ZOOZ ordinary shares or ZOOZ public warrants effected within the United States (and, in certain cases, outside
the United States), in each case other than U.S. Holders that are exempt recipients (such as corporations). Backup withholding (currently
at a rate of 24%) may apply to such amounts if the U.S. Holder fails to provide an accurate taxpayer identification number (generally
on an IRS Form W-9 provided to the paying agent of the U.S. holder&#8217;s broker) or is otherwise subject to backup withholding. Any
payment treated as dividend payments with respect to ZOOZ ordinary shares and proceeds from the sale, exchange, redemption or other disposition
of ZOOZ ordinary shares or ZOOZ public warrants may be subject to information reporting to the IRS and possible U.S. backup withholding.
U.S. Holders should consult their own tax advisors regarding the application of the U.S. information reporting and backup withholding
rules.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 120; Value: 69 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->120<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Information
returns may be filed with the IRS in connection with, and Non-U.S. Holders may be subject to backup withholding on amounts received in
respect of, a Non-U.S. Holder&#8217;s disposition of ZOOZ ordinary shares or ZOOZ public warrants, unless the Non-U.S. Holder furnishes
to the applicable withholding agent the required certification as to its non-U.S. status, such as by providing a valid IRS Form W-8BEN,
IRS Form W-8BEN-E or IRS Form W-8ECI, as applicable, or the Non-U.S. Holder otherwise establishes an exemption. Dividends paid with respect
to ZOOZ ordinary shares and proceeds from the sale of other disposition of ZOOZ ordinary shares or ZOOZ public warrants received in the
United States by a Non-U.S. Holder through certain U.S.-related financial intermediaries may be subject to information reporting and
backup withholding unless such Non-U.S. Holder provides proof of an applicable exemption or complies with certain certification procedures
described above, and otherwise complies with the applicable requirements of the backup withholding rules.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Backup
withholding is not an additional tax. Amounts withheld as backup withholding generally may be credited against the taxpayer&#8217;s U.S.
federal income tax liability, and a taxpayer may obtain a refund of any excess amounts withheld under the backup withholding rules by
timely filing the appropriate claim for a refund with the IRS and furnishing any required information.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>F.
DIVIDENDS AND PAYING AGENTS</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Not
applicable.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>G.
STATEMENT BY EXPERTS</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Not
applicable.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>H.
DOCUMENTS ON DISPLAY</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are required to file reports and other information with the SEC under the Exchange Act, and the regulations thereunder applicable to
foreign private issuers. As a &#8220;foreign private issuer&#8221; we are exempt from the rules and regulations under the Securities
Exchange Act prescribing the furnishing and content of proxy statements, and our officers, directors and principal shareholders are exempt
from the reporting and &#8220;short-swing&#8221; profit recovery provisions contained in Section 16 of the Securities Exchange Act, with
respect to their purchase and sale of our shares. In addition, we are not required to file reports and financial statements with the
SEC as frequently or as promptly as U.S. companies whose securities are registered under the Securities Exchange Act. Furthermore, as
a &#8220;foreign private issuer&#8221;, we are also not subject to the requirements of Regulation FD (Fair Disclosure) promulgated under
the Exchange Act. Nasdaq rules generally require that companies send an annual report to shareholders prior to the annual general meeting,
however we rely upon an exception under the Nasdaq Listing Rules and follow the generally accepted business practice for companies in
Israel. Specifically, we file annual reports on Form 20-F, which contain financial statements audited by an independent accounting firm,
electronically with the SEC and post a copy on our website. We also furnish to the SEC reports on Form 6-K containing unaudited financial
information after the end of each of the first three quarters.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">You
may review a copy of our filings with the SEC, including any exhibits and schedules, at the offices of the Israel Securities Authority
at 22 Kanfei Nesharim St., Jerusalem, Israel. As a &#8220;foreign private issuer&#8221;, we were only required to file through the SEC&#8217;s
EDGAR system as of April 2024. Our periodic filings are therefore available on the SEC&#8217;s Website <i>www.sec.gov</i> from that date.
You may read and copy any reports, statements or other information that we file with the SEC, through the SEC&#8217;s EDGAR system available
on the SEC&#8217;s website. These SEC filings are also available to the public on the Israel Securities Authority&#8217;s website at
<i>www.isa.gov.il</i> and from commercial document retrieval services.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Any
statement in this Annual Report about any of our contracts or other documents is not necessarily complete. If the contract or document
is filed as an exhibit to this Annual Report, the contract or document is deemed to modify the description contained in this Annual Report.
We urge you to review the exhibits themselves for a complete description of the contract or document.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>I.
SUBSIDIARY INFORMATION</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Not
applicable.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="ch_008"></span>ITEM 11.</b></span> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK</b></span></p>



<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are exposed to various risks in relation to financial instruments. The main types of risks are foreign currency risk and interest rate
risk. While we may enter into hedging contracts from time to time, any change in the fair value of the contracts could be offset by changes
in the underlying value of the transactions being hedged. Furthermore, we do not have foreign-exchange hedging contracts in place with
respect to all currencies in which we do business.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 121; Value: 69 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->121<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Foreign
Currency Risk</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are exposed to foreign exchange risk to the extent that there is a mismatch between the currencies in which sales, purchases, and receivables
that are denominated in a currency other than our respective functional currencies. Our sales are substantially denominated in EURO or
USD, but our functional currency is in NIS. Accordingly, changes in exchange rates are reflected in reported income and loss from our
international businesses are included in our statements of operations.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
the year ended December 31, 2023, we had $819 thousands of other comprehensive loss generated from the exchange differences on translation
of foreign operations. For the year ended December 31, 2022 we had $1,965 thousands of other comprehensive loss generated from the same.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">While
we have not engaged in the hedging of our foreign currency transactions to date and have not entered into any hedging contracts for trading
or speculative purposes, we may in the future enter into derivatives or other financial instruments in an attempt to hedge our foreign
currency exchange risk. It is difficult to predict the impact hedging activities would have on our results of operations.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Credit
Risk</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
the year ended December 31, 2023, our main credit risk was that counterparties will not repay in full the accounts receivable based on
the agreed terms. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past
experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by our
board of directors. For the year ended December 31, 2022, we did not have credit risk.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Liquidity
Risk</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
manage liquidity risk by monitoring and maintaining a level of cash deemed adequate to finance our operations and mitigate the effects
of fluctuations in cash flows.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Interest
Rate Risk</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
of December 31, 2023, we had approximately $6.7 million in cash, cash equivalents, restricted cash. We mostly invest our cash
surplus in bank deposits. Since these investments typically carry fixed interest rate or yields, financial income over the holding
period is not sensitive to changes in interest rates. For more information, see Note 2 to our audited consolidated financial
statements for the year ended December 31, 2023.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Foreign
Currency Exchange Risk and Inflation</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
cost of our Israel operations, as expressed in dollars, is influenced by the extent to which any increase in the rate of inflation in
Israel is not offset (or is offset on a lagging basis) by a devaluation of the NIS in relation to the dollar. The inflation rate in Israel
was 3.0%, 5.3% and 2.8% in 2023, 2022, and 2021, respectively. The appreciation (devaluation) of the dollar against the NIS was 3.1%,
13.2% and (3.3%) in 2023, 2022 and 2021, respectively. For 2023, assuming a 10% devaluation of the dollar against the NIS, we would experience
an increase in our net loss of approximately $1.4 million, while assuming a 10% appreciation of the dollar against the NIS, we would
experience a decrease in our net loss of approximately $1.1 million. A significant portion of our expenditures is employee compensation
related. Salaries for Israel-based employees are paid in NIS and may be adjusted for changes in the Israeli consumer price index, or
CPI, through salary increases or adjustments. These upward adjustments increase salary expenses in dollar terms. The devaluation/appreciation
of the NIS against the dollar decreases/increases employee compensation expenditures as expressed in dollars proportionally. Some of
our other NIS-based expenses are either currently adjusted to dollars or are adjusted to the CPI. We currently have no foreign currency
derivative contracts to hedge against currency exchange risk fluctuation but may consider entering into such contracts in the future.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="ch_009"></span>ITEM 12.</b></span> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES</b></span></p>



<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Not
applicable.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="ch_010"></span>PART
II</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="ch_011"></span>ITEM 13.</b></span> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES</b></span></p>



<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">None.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="ch_012"></span>ITEM 14.</b></span> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS</b></span></p>



<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Not
applicable.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 122; Value: 69 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->122<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="ch_013"></span>ITEM
15. CONTROLS AND PROCEDURES</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>A.
DISCLOSURE CONTROLS AND PROCEDURES</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
maintain disclosure controls and procedures (as that term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange
Act of 1934, as amended) that are designed to ensure that information required to be disclosed in our reports under the Exchange Act
is recorded, processed, summarized and reported within the time periods specified in the SEC&#8217;s rules and forms and that such
information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as
appropriate, to allow timely decisions regarding required disclosures. Any controls and procedures, no matter how well designed and
operated, can provide only reasonable assurance of achieving the desired control objectives. Our management, with the participation
of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the design and operation of our
disclosure controls and procedures as of December 31, 2023. Based upon that evaluation, our Chief Executive Officer and Chief
Financial Officer concluded that, as of December 31, 2023, our disclosure controls and procedures were not effective to accomplish
their objectives at the reasonable assurance level due to the material weaknesses disclosed below. In light of this fact, our
management has performed additional analyses, reconciliations, and other post-closing procedures and has concluded that,
notwithstanding the material weakness in our internal control over financial reporting, the audited consolidated financial
statements for the periods covered by and included in this Annual Report on Form 20-F fairly state, in all material respects, our
financial position, results of operations and cash flows for the periods presented in conformity with U.S GAAP.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Previously
identified material weakness</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
connection with the preparation and audit of ZOOZ&#8217;s audited consolidated financial statements for the years ended December 31,
2023 and 2022, material weaknesses were identified in ZOOZ&#8217;s internal control over financial reporting. A material weakness is
a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility
that a material misstatement of ZOOZ&#8217;s audited consolidated annual financial statements will not be prevented or detected on a
timely basis.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
material weaknesses referenced above are described below:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
Segregation of duties has not been sufficiently established across the key business and financial processes. Given the size, nature
of the organization, and the current structure of the finance function, a lack of segregation of duties applied to the key business
and financial processes across the organization has been identified. A consequence of the lack of segregation of duties is the
heightened risk of fraud or material misstatement when no appropriate mitigating controls are in place.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;
Lack of personnel with appropriate knowledge and experience relating to U.S. GAAP and SEC reporting requirements to enable the
entity to design and maintain an effective financial reporting process. A lack of knowledge and experience in these areas may lead
to ZOOZ being in breach of SEC financial reporting and other related requirements, especially given that the current finance
function has not been designed to include sufficient accounting and financial reporting personnel with (i) the requisite knowledge
and experience in the application of SEC financial reporting rules and regulations; and (ii) the appropriate expertise in the
relevant U.S. accounting standards.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Remediation
activities and Plans</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
has begun implementation of a plan to remediate these material weaknesses, including implementation of an ERP system, for, among other
things, improving its appropriately designed, implemented and documented controls in inventory process, in respect of separation of operation
costs from research and development costs.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">These
remediation measures are ongoing and may include hiring additional accounting and financial reporting personnel and implementing additional
policies, procedures and controls.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
order to maintain and improve the effectiveness of ZOOZ&#8217;s internal control over financial reporting, ZOOZ has expended, and anticipate
that it will continue to expend, significant resources, including accounting-related costs and significant management oversight.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 123; Value: 69 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->123<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>B.
MANAGEMENT&#8217;S ANNUAL REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">This
Annual Report does not include a report of management&#8217;s assessment regarding internal control over financial reporting (as such
term is defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act) due to a transition period established by rules of
the SEC for newly-public companies.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>C.
ATTESTATION REPORT OF THE REGISTERED PUBLIC ACCOUNTING FIRM</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">This
Annual Report does not include an attestation report of the company&#8217;s registered public accounting firm due to a transition period
established by rules of the SEC for newly-public companies and because the Company is an emerging growth Company.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>D.
CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">There
were no changes in our internal controls over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the
Securities Exchange Act) other than as discussed above under &#8220;Remediation Activities and Plans&#8221; ,that occurred during the
period covered by this Annual Report that have materially affected, or are reasonably likely to materially affect, our internal control
over financial reporting.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="ch_014"></span>ITEM 16.</b></span> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>RESERVED</b></span></p>



<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="ch_015"></span>ITEM
16A. AUDIT COMMITTEE FINANCIAL EXPERT</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
board of directors has determined that Ms. Christine Y. Zhao and Mrs. Naama Zeldis are &#8220;audit committee financial experts&#8221;
as defined by the SEC rules and have the requisite financial experience as defined by the corporate governance rules of Nasdaq. See &#8220;<i>Item
6.A &#8211; Directors, Senior Management and Employees &#8211; Directors and Senior Management</i>&#8221; for a summary of Ms. Christine
Y. Zhao and Mrs. Naama Zeldis&#8217; relevant professional experience.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
board of directors has determined that each member of our audit committee is &#8220;independent&#8221; as such term is defined in Rule
10A-3(b)(1) under the Exchange Act, which is different from the general test for independence of board and committee members.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="ch_016"></span>ITEM
16B. CODE OF ETHICS</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have adopted a code of business conduct that applies to all of our employees, officers and directors as well as a code of ethics for
senior financial officers that applies to our chief executive officer, chief financial officer, controller and assistant controller.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
code of ethics for senior financial officers is available on our website, <i><span style="text-decoration: underline">https://www.zoozpower.com/</span></i>. However, information
contained on our website does not constitute a part of this Annual Report.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
intend to post on our website all disclosures that are required by the rules and regulations of the SEC or by the Nasdaq Listing Rules
concerning any amendments to, or waivers from, any provision of the code of business conduct or the code of ethics.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="ch_017"></span>ITEM
16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following table presents the fees billed or accrued to us by our principal accountant for professional services rendered in the years
ended December 31, 2023, and 2022, in thousands:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 80%; margin-right: auto">
  <tr style="vertical-align: bottom">
    <td style="text-align: justify">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2023</td><td style="padding-bottom: 1.5pt">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">2022</td><td style="padding-bottom: 1.5pt">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 64%; text-align: justify">Audit Fees</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">41</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">44</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: justify">Audit Related Fees</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">218</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: justify">Tax Fees</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">5</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">5</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: justify; padding-bottom: 1.5pt">All Other Fees</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">7</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: justify">Total</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">271</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">49</td><td style="text-align: left">&#160;</td></tr>
  </table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8220;Audit
Fees&#8221; include fees for the audit of our annual consolidated financial statements and review work. This category also includes services
that the independent accountant generally provides, such as consents and assistance with and review of documents filed with the SEC.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8220;Audit
Related Fees&#8221; relate to services in connection with the Business Combination.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8220;Tax
Fees&#8221; were related to ongoing tax advisory, tax compliance and tax planning services.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8220;All
Other Fees&#8221; are fees for other consulting services rendered by our principal accountant to us.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 124; Value: 69 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->124<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Pre-Approval
Policies for Non-Audit Services</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
audit committee is in charge of a policy and procedures for approval of audit and non-audit services rendered by our external auditor.
This policy generally provides that we will not engage our independent registered public accounting firm to render audit or non-audit
services unless the service is specifically approved in advance by our audit committee or the engagement is entered into pursuant to
the pre-approval procedure described below. Annually, our audit committee pre-approves specified types of services that are expected
to be provided to us by our independent registered public accounting firm during the next 12 months. Any such pre-approval is detailed
as to the particular service or type of services to be provided and is also generally subject to a maximum dollar amount. All of the
fees listed in the table above were approved by our audit committee.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 81pt; text-align: justify; text-indent: -81pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="ch_018"></span>ITEM
16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 81pt; text-align: justify; text-indent: -81pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Not
Applicable.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 63pt; text-align: justify; text-indent: -63pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="ch_019"></span>ITEM
16E. PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 63pt; text-align: justify; text-indent: -63pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Not
applicable.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 63pt; text-align: justify; text-indent: -63pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="ch_020"></span>ITEM
16F. CHANGE IN REGISTRANT&#8217;S CERTIFYING ACCOUNTANT</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 63pt; text-align: justify; text-indent: -63pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Not
applicable.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 63pt; text-align: justify; text-indent: -63pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="ch_021"></span>ITEM
16G. CORPORATE GOVERNANCE</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 63pt; text-align: justify; text-indent: -63pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font: normal 10pt Times New Roman, Times, Serif">The
Nasdaq Listing Rules require companies with securities listed thereon to comply with its corporate governance standards. As a foreign
private issuer whose shares are listed on Nasdaq, we are permitted to follow certain home country corporate governance practices instead
of those followed by U.S. companies under the Nasdaq Listing Rules, including:</span></p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font: normal 10pt Times New Roman, Times, Serif"><span style="text-decoration: underline">Shareholder
Approval</span>. Pursuant to Israeli law, we seek shareholder approval for all corporate actions requiring such approval under the requirements
of the Companies Law, which are different from the requirements for seeking shareholder approval under Nasdaq Listing Rule 5635. We seek
shareholder approval in specified situations, including upon issuance of options to directors in their capacity as directors, as required
by Israeli law.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font: normal 10pt Times New Roman, Times, Serif">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font: normal 10pt Times New Roman, Times, Serif"><span style="text-decoration: underline">Quorum
at General Meetings of Shareholders</span>. We have opted out of the requirement set under Rule 5620(c) of the Nasdaq Rules, which requires
the presence of two or more shareholders holding at least 33 1/3%, and in lieu follow our home country practice and Israeli law, according
to which the quorum for any shareholders meeting will be the presence (in person or by Proxy) of two or more shareholders holding at
least 25% of the voting rights in the aggregate - within half an hour from the time set for opening the meeting.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font: normal 10pt Times New Roman, Times, Serif">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font: normal 10pt Times New Roman, Times, Serif"><span style="text-decoration: underline">Distribution
of Annual Reports</span>. We have chosen to follow our home country practice in lieu of the requirements of Nasdaq Rule 5250(d)(1), relating
to an issuer&#8217;s furnishing of its annual report to shareholders. Specifically, we file annual reports on Form 20-F, which contain
financial statements audited by an independent accounting firm, electronically with the SEC and post a copy on our website.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font: normal 10pt Times New Roman, Times, Serif">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font: normal 10pt Times New Roman, Times, Serif"><span style="text-decoration: underline">Approval
of Material Changes to Equity Incentive Plans</span>. We have chosen to follow our home country practice and adopt and approve material
changes to equity incentive plans in accordance with the Companies Law which does not impose a requirement of shareholder approval for
such actions.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font: normal 10pt Times New Roman, Times, Serif">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 63pt; text-align: justify; text-indent: -63pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="ch_022"></span>ITEM
16H. MINE SAFETY DISCLOSURE</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 63pt; text-align: justify; text-indent: -63pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font: normal 10pt Times New Roman, Times, Serif">Not
applicable.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font: normal 10pt Times New Roman, Times, Serif">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 40.5pt; text-align: justify; text-indent: -40.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="ch_023"></span>ITEM
16I. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 40.5pt; text-align: justify; text-indent: -40.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font: normal 10pt Times New Roman, Times, Serif">Not
applicable.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font: normal 10pt Times New Roman, Times, Serif">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 63pt; text-align: justify; text-indent: -63pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="ch_024"></span>ITEM
16J. INSIDER TRADING POLICIES</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 63pt; text-align: justify; text-indent: -63pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font: normal 10pt Times New Roman, Times, Serif">Not
applicable.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font: normal 10pt Times New Roman, Times, Serif">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 63pt; text-align: justify; text-indent: -63pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="ch_025"></span>ITEM
16K. CYBERSECURITY</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 63pt; text-align: justify; text-indent: -63pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font: normal 10pt Times New Roman, Times, Serif">We
have implemented and maintain various information security processes designed to identify, assess and manage material risks from cybersecurity
threats to our critical computer networks, certain third party hosted services, communications systems, hardware and software, and our
critical data, including intellectual property, confidential information that is proprietary, strategic or competitive in nature, and
employees&#8217; information, or the Information Systems and Data.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font: normal 10pt Times New Roman, Times, Serif">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font: normal 10pt Times New Roman, Times, Serif">Our
VP R&amp;D helps identify, assess and manage our cybersecurity threats and risks by monitoring and evaluating our threat environment
using various methods including, for example by engaging third parties to conduct penetration tests on our behalf.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font: normal 10pt Times New Roman, Times, Serif">&#160;</span></p>


<!-- Field: Page; Sequence: 125; Value: 69 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->125<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font: normal 10pt Times New Roman, Times, Serif">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font: normal 10pt Times New Roman, Times, Serif">Depending
on the environment and system, we implement and maintain various technical, physical, and organizational measures, processes, standards
and policies designed to manage and mitigate material risks from cybersecurity threats to our Information Systems and Data, including,
for example, incident response policy, business continuity plan, cybersecurity insurance, firewalls in certain environments and systems,
access controls, physical security and employee cybersecurity trainings.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font: normal 10pt Times New Roman, Times, Serif">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font: normal 10pt Times New Roman, Times, Serif">Our
overall risk assessment and management processes covers material risks from cybersecurity threats. Our VP R&amp;D works with relevant
management members to prioritize and mitigate cybersecurity threats that are more likely to lead to a material impact to our business.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font: normal 10pt Times New Roman, Times, Serif">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font: normal 10pt Times New Roman, Times, Serif">We
use third-party service providers to assist us from time to time to identify, assess, and manage material risks from cybersecurity threats,
including for example professional services firms, including legal counsel, cybersecurity and cloud consultants, and a penetration testing
firm.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font: normal 10pt Times New Roman, Times, Serif">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font: normal 10pt Times New Roman, Times, Serif">We
use third-party service providers to perform a variety of functions throughout our business, including in connection with our data management,
research and development information, financial information management, payments and others. We rely on the different security levels
of these third-parties.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font: normal 10pt Times New Roman, Times, Serif">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font: normal 10pt Times New Roman, Times, Serif">For
a description of the risks from cybersecurity threats that may materially affect us and how they may do so, see our risk factors under
Part 1. Item 3D. Risk Factors in this Annual Report, including the applicable risk factors under &#8220;<i>Risk Factors - Risks Related
to Intellectual Property, Information Technology, Data Privacy and Cybersecurity</i>.&#8221;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font: normal 10pt Times New Roman, Times, Serif">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Governance</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font: normal 10pt Times New Roman, Times, Serif">Our
board of directors addresses our cybersecurity risk management as part of its general oversight function through its audit committee.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font: normal 10pt Times New Roman, Times, Serif">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font: normal 10pt Times New Roman, Times, Serif">Our
cybersecurity risk assessment and management processes are under the responsibility of our VP R&amp;D.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font: normal 10pt Times New Roman, Times, Serif">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font: normal 10pt Times New Roman, Times, Serif">Our
VP R&amp;D is responsible for hiring appropriate personnel and /or use third-party service providers, helping to integrate cybersecurity
risk considerations into our overall risk management strategy, communicating key priorities to relevant personnel, helping prepare for
cybersecurity incidents, approving cybersecurity processes, and reviewing security assessments and other security-related reports.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font: normal 10pt Times New Roman, Times, Serif">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font: normal 10pt Times New Roman, Times, Serif">The
audit committee will receive periodic reports from our VP R&amp;D concerning our significant cybersecurity threats and risk and the processes
we have implemented to address them. The audit committee will also receive various reports, summaries or presentations related to cybersecurity
threats, risk and mitigation.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font: normal 10pt Times New Roman, Times, Serif">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 63pt; text-align: justify; text-indent: -63pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="ch_026"></span>PART
III</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 63pt; text-align: justify; text-indent: -63pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="ch_027"></span>ITEM 17.</b></span> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FINANCIAL STATEMENTS</b></span></p>



<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 63pt; text-align: justify; text-indent: -63pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font: normal 10pt Times New Roman, Times, Serif">See
Item 18.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font: normal 10pt Times New Roman, Times, Serif">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="ch_028"></span>ITEM 18.</b></span> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FINANCIAL STATEMENTS</b></span></p>



<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 63pt; text-align: justify; text-indent: -63pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font: normal 10pt Times New Roman, Times, Serif">Our
audited consolidated financial statements and related notes are included in this Annual Report beginning on page F-1.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font: normal 10pt Times New Roman, Times, Serif">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in"><span style="font: normal 10pt Times New Roman, Times, Serif"></span></p>


<!-- Field: Page; Sequence: 126; Value: 69 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->126<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="ch_029"></span>Item
19. Exhibits.</b></span></p>



<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; width: 0.75in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Exhibit
    No.</b></span></td>
    <td style="padding-bottom: 1.5pt; width: 0.1in">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Exhibit</b></span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">1.</span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="https://www.sec.gov/Archives/edgar/data/1992818/000149315224010036/formf-4a.htm#th_001" style="-sec-extract: exhibit">Amended and Restated Articles of Registrant (incorporated herein by reference to Exhibit 3.2 to the Registrant&#8217;s Registration Statement on Form F-4/A, File No. 333-277295, filed with the Securities and Exchange Commission on March 15, 2024 (the &#8220;<b>F-4/A</b>&#8221;).</a></span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.1*</span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="ex2-1.htm">Description of Registrant&#8217;s Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934.</a></span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.1*</span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><a href="ex4-1.htm"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2015 Incentive Compensation Plan.</span></a></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.2</span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="https://www.sec.gov/Archives/edgar/data/1992818/000149315224009559/ex10-19.htm" style="-sec-extract: exhibit">Form of Indemnification Agreement (incorporated herein by reference to Exhibit 10.19 to the F-4/A).</a></span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.3*</span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="ex4-3.htm">Amended and Restated Compensation Policy</a></span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.5*</span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="ex4-5.htm">Amended and Restated Registration Rights Agreement, dated April 4, 2024, among the Company, Keyarch, and the &#8220;Investor&#8221; parties thereto.</a></span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.6</span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="https://www.sec.gov/Archives/edgar/data/1992818/000149315224007583/ex10-8.htm" style="-sec-extract: exhibit">Cooperation Agreement, dated September 12, 2022, between ZOOZ and the New York Power Authority (incorporated herein by reference to Exhibit 10.8 to the F-4/A).</a></span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.7</span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="https://www.sec.gov/Archives/edgar/data/1992818/000149315224007583/ex10-9.htm" style="-sec-extract: exhibit">Distribution Agreement, dated December 1, 2022, between ZOOZ and Blink Charging Co (incorporated herein by reference to Exhibit 10.9 to the F-4/A).</a></span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.8</span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="https://www.sec.gov/Archives/edgar/data/1992818/000149315224007583/ex10-10.htm" style="-sec-extract: exhibit">Summary of Lease Agreement dated July 25, 2021, as amended, between ZOOZ and REIT 1 Ltd (incorporated herein by reference to Exhibit 10.10 to the F-4/A).</a></span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">8.1</span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><a href="https://www.sec.gov/Archives/edgar/data/1992818/000149315224007583/ex21-1.htm" style="-sec-extract: exhibit"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Subsidiaries of the Registrant (incorporated herein by reference to Exhibit 21.1 to the F-4/A). </span></a></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">12.1</span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="ex12-1.htm">Certification of Chief Executive Officer required by Rules 13a-14(a) and Rule 15d-14(a) under the Securities Exchange Act of 1934, as amended.*</a></span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">12.2</span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="ex12-2.htm">Certification of Chief Financial Officer required by Rules 13a-14(a) and Rule 15d-14(a) under the Securities Exchange Act of 1934, as amended.*</a></span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">13.1</span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><a href="ex13-1.htm">Certification of the Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*</a></span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">97.1</span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><a href="ex97-1.htm"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ Power Ltd. Policy for Recovery of Erroneously Awarded Compensation.*</span></a></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">101</span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Inline
    XBRL Instance Document</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">101.SCH</span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Inline
    XBRL Taxonomy Extension Schema Document</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">101.CAL</span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Inline
    XBRL Taxonomy Extension Calculation Linkbase Document</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">101.DEF</span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Inline
    XBRL Taxonomy Extension Definition Linkbase Document</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">101.LAB</span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Inline
    XBRL Taxonomy Extension Labels Linkbase Document</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">101.PRE</span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Inline
    XBRL Taxonomy Extension Presentation Linkbase Document</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">104</span></td>
    <td>&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Cover
    Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<!-- Field: Rule-Page --><div style="width: 25%"><div style="border-top: Black 1.5pt solid; font-size: 1pt">&#160;</div></div><!-- Field: /Rule-Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8225;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">English
                                            translations from Hebrew original.</span></td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif">&#160;</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">&#160;</td></tr>
<tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Filed
                                            herewith.</span></td></tr></table>

<p style="margin-top: 0; margin-bottom: 0">&#160;</p>


<!-- Field: Page; Sequence: 127; Value: 69 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->127<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">SIGNATURES</span></p>

<p style="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the
undersigned to sign this Annual Report on its behalf.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>ZOOZ
    POWER LTD.</b></span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <td style="font: 10pt Times New Roman, Times, Serif; width: 50%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="font: 10pt Times New Roman, Times, Serif; width: 5%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="font: 10pt Times New Roman, Times, Serif; width: 45%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">By:
    </span></td>
    <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>/s/
    Boaz Weizer</i></span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Name:</span></td>
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Boaz
    Weizer</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Title:
    </span></td>
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief
    Executive Officer</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Date:
April 30, 2024</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<!-- Field: Page; Sequence: 128; Options: NewSection; Value: 128 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->128<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt">&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; width: 0.1in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center; width: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Page</b></span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <td style="font: 10pt Times New Roman, Times, Serif">&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: rgb(204,238,255)">
    <td style="font: 10pt Times New Roman, Times, Serif"><a href="#zoo_001">Report of Independent Registered Public Accounting Firm</a> (PCAOB ID #<span id="xdx_904_edei--AuditorFirmId_c20230101__20231231_znZBjuiQ02wj"> <ix:nonNumeric contextRef="From2023-01-01to2023-12-31" id="Fact000057" name="dei:AuditorFirmId">1309</ix:nonNumeric></span>) </td>
    <td style="font: 10pt Times New Roman, Times, Serif">&#160;</td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center">F-1</td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: White">
    <td style="font: 10pt Times New Roman, Times, Serif"><a href="#zoo_002"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consolidated Balance Sheets as of December 31, 2022 and December 31, 2023</span></a></td>
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-2</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: rgb(204,238,255)">
    <td style="font: 10pt Times New Roman, Times, Serif"><a href="#zoo_003"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">
    Consolidated Statements of Operations for the years ended December 31, 2021, 2022 and 2023</span></a></td>
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-3</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: White">
    <td style="font: 10pt Times New Roman, Times, Serif"><a href="#zoo_005"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> Consolidated Statements of Changes in Shareholders&#8217; (Deficit)/Equity for the years ended December 31, 2022 and 2023</span></a></td>
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-5</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: rgb(204,238,255)">
    <td style="font: 10pt Times New Roman, Times, Serif"><a href="#zoo_006"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consolidated
    Statements of Cash Flows for the years ended December 31, 2021, 2022 and 2023</span></a></td>
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-8</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: White">
    <td style="font: 10pt Times New Roman, Times, Serif"><a href="#zoo_007"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Notes to Consolidated Financial Statements</span></a></td>
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-9</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<!-- Field: Page; Sequence: 129; Options: NewSection; Value: 129 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->129<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt">&#160;</div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; text-align: left; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><img src="form20-f_011.jpg" alt=""/></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="zoo_001"></span>Report
of Independent Registered Public Accounting Firm</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
the Board of Directors and Shareholders of ZOOZ Power Ltd.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Opinion
on the Financial Statements</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have audited the accompanying consolidated balance sheets of ZOOZ Power Ltd. (the &#8220;Company&#8217;) as of December 31, 2023 and
2022, and the related consolidated statements of operations, of comprehensive loss, of redeemable convertible preferred shares and changes
in shareholders&#8217; equity and of cash flows for each of the three years in the period ended December 31, 2023, including the related
notes (collectively referred to as the &#8220;consolidated financial statements&#8221;). In our opinion, the consolidated financial statements
present fairly, in all material respects, the financial position of the Company as of December 31, 2023, and 2022, and the results of
its operations and its cash flows for each of the three years in the period ended December 31, 2023 in conformity with accounting principles
generally accepted in the United States of America.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><sup>&#160;</sup></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Substantial
Doubt about the Company&#8217;s Ability to Continue as a Going Concern</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed
in Note 1 to the consolidated financial statements, the Company has net losses and has generated negative cash flows from operating activities
for the years ended December 31, 2023, 2022 and 2021. Such circumstances raise substantial doubt about the Company&#8217;s ability to
continue as a going concern. Management&#8217;s plans in regard to these matters are also described in Note 1. The consolidated financial
statements do not include any adjustments that might result from the outcome of this uncertainty.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>&#160;</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Basis
for Opinion</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">These
consolidated financial statements are the responsibility of the Company&#8217;s management. Our responsibility is to express an opinion
on the Company&#8217;s consolidated financial statements based on our audits. We are a public accounting firm registered with the Public
Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance
with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
conducted our audits of these consolidated financial statements in accordance with the standards of the PCAOB. Those standards require
that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material
misstatement, whether due to error or fraud.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether
due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence
regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles
used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.
We believe that our audits provide a reasonable basis for our opinion.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="font: 10pt Times New Roman, Times, Serif">
    <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 50%; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; width: 50%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/
    <i><span id="xdx_90F_edei--AuditorName_c20230101__20231231_zIOi6IKFZHRe"><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" id="Fact000058" name="dei:AuditorName">Kesselman &amp; Kesselman</ix:nonNumeric></span></i></span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif">
    <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_90E_edei--AuditorLocation_c20230101__20231231_zxoVDLlHoeu8"><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" id="Fact000059" name="dei:AuditorLocation">Jerusalem,
    Israel</ix:nonNumeric></span></span></td>
    <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Certified
    Public Accountants (Isr.)</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif">
    <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">April
    30, 2024</span></td>
    <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">A
    member firm of PricewaterhouseCoopers International Limited</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have served as the Company&#8217;s auditor since 2018.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Kesselman
&amp; Kesselman, </i>Rad Tower<i>, 16 Hartom Street, Jerusalem 9777516, Israel, P.O Box 45192,</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Har
Hotzvim, Jerusalem 91451, Telephone: +972 -2- 5418200, Fax:+972 -2- 5418201, www.pwc.com/il</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0">&#160;</p>


<!-- Field: Page; Sequence: 130; Options: NewSection; Value: 1 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->1<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>&#160;</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>ZOOZ
POWER LTD.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="zoo_002"></span>CONSOLIDATED
BALANCE SHEETS</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" id="xdx_300_111_pn3n3_zUhNq88FpgG6" summary="xdx: Statement - Consolidated Balance Sheets" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="display: none; vertical-align: bottom; background-color: White">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_497_20231231_zzdkZJsP0LE9" style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_494_20221231_z2cJqIioAVj8" style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
<tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>U.S. dollars <br/>
</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>in thousands</b></span></p></td><td style="padding-bottom: 1.5pt">&#160;</td></tr>
  <tr id="xdx_40C_eus-gaap--AssetsAbstract_iB_z2OK2OBELG5k" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: center">Assets</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_409_eus-gaap--AssetsCurrentAbstract_i01B_zi0UruaFIEzi" style="vertical-align: bottom; background-color: White">
    <td style="font-weight: bold; text-align: left">CURRENT ASSETS:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_403_eus-gaap--Cash_i02I_maACzUmZ_z3cHXOjzmeL6" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 60%">Cash</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 16%; text-align: right"><ix:nonFraction name="us-gaap:Cash" contextRef="AsOf2023-12-31" id="Fact000067" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">6,672</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 16%; text-align: right"><ix:nonFraction name="us-gaap:Cash" contextRef="AsOf2022-12-31" id="Fact000068" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">20,569</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr id="xdx_400_eus-gaap--PrepaidExpenseAndOtherAssetsCurrent_i02I_maACzUmZ_zb4g7ycmn3f7" style="vertical-align: bottom; background-color: White">
    <td style="text-align: left">Prepaid expenses and other current assets</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:PrepaidExpenseAndOtherAssetsCurrent" contextRef="AsOf2023-12-31" id="Fact000070" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">752</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:PrepaidExpenseAndOtherAssetsCurrent" contextRef="AsOf2022-12-31" id="Fact000071" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">597</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_405_eus-gaap--InventoryNet_i02I_maACzUmZ_zO3O4owjJIQf" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 1.5pt">Inventory</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:InventoryNet" contextRef="AsOf2023-12-31" id="Fact000073" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">2,848</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:InventoryNet" contextRef="AsOf2022-12-31" id="Fact000074" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">1,767</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr id="xdx_40A_eus-gaap--AssetsCurrent_i02TI_mtACzUmZ_maAzuHE_zYEpEm5iawM8" style="vertical-align: bottom; background-color: White">
    <td style="font-weight: bold; text-align: left; padding-bottom: 1.5pt">TOTAL CURRENT ASSETS</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:AssetsCurrent" contextRef="AsOf2023-12-31" id="Fact000076" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">10,272</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:AssetsCurrent" contextRef="AsOf2022-12-31" id="Fact000077" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">22,933</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_404_eus-gaap--AssetsNoncurrentAbstract_i02B_ztQK4MXnSb4f" style="vertical-align: bottom; background-color: White">
    <td style="font-weight: bold; text-align: left">NON-CURRENT ASSETS:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_401_eus-gaap--OtherRestrictedAssetsNoncurrent_i02I_maANzKnI_zZ6X8bN9hOZb" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Restricted bank deposits</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:OtherRestrictedAssetsNoncurrent" contextRef="AsOf2023-12-31" id="Fact000082" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">224</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:OtherRestrictedAssetsNoncurrent" contextRef="AsOf2022-12-31" id="Fact000083" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">224</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_404_eus-gaap--PrepaidExpenseNoncurrent_i02I_maANzKnI_zjuXiRHjw5Ub" style="vertical-align: bottom; background-color: White">
    <td style="text-align: left">Prepaid expenses</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:PrepaidExpenseNoncurrent" contextRef="AsOf2023-12-31" id="Fact000085" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">79</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:PrepaidExpenseNoncurrent" contextRef="AsOf2022-12-31" id="Fact000086" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">90</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_40A_eus-gaap--OperatingLeaseRightOfUseAsset_i02I_maANzKnI_zarxw94tRG55" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Operating lease right of use assets</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:OperatingLeaseRightOfUseAsset" contextRef="AsOf2023-12-31" id="Fact000088" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">1,309</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:OperatingLeaseRightOfUseAsset" contextRef="AsOf2022-12-31" id="Fact000089" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">1,463</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_40F_eus-gaap--PropertyPlantAndEquipmentNet_i02I_maANzKnI_zrlogQf5HVYd" style="vertical-align: bottom; background-color: White">
    <td style="text-align: left; padding-bottom: 1.5pt">Property and equipment, net</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:PropertyPlantAndEquipmentNet" contextRef="AsOf2023-12-31" id="Fact000091" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">1,593</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:PropertyPlantAndEquipmentNet" contextRef="AsOf2022-12-31" id="Fact000092" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">723</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr id="xdx_403_eus-gaap--AssetsNoncurrent_i02TI_mtANzKnI_maAzuHE_zKFKqPfhCGw9" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left; padding-bottom: 1.5pt">TOTAL NON-CURRENT ASSETS</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:AssetsNoncurrent" contextRef="AsOf2023-12-31" id="Fact000094" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">3,205</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:AssetsNoncurrent" contextRef="AsOf2022-12-31" id="Fact000095" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">2,500</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr id="xdx_405_eus-gaap--Assets_i01TI_mtAzuHE_zaBL173TTo9e" style="vertical-align: bottom; background-color: White">
    <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt">TOTAL ASSETS</td><td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><ix:nonFraction name="us-gaap:Assets" contextRef="AsOf2023-12-31" id="Fact000097" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">13,477</ix:nonFraction></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><ix:nonFraction name="us-gaap:Assets" contextRef="AsOf2022-12-31" id="Fact000098" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">25,433</ix:nonFraction></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_40D_eus-gaap--LiabilitiesAndStockholdersEquityAbstract_iB_zgjys1rdTcz8" style="vertical-align: bottom; background-color: White">
    <td style="font-weight: bold; text-align: center">Liabilities and equity</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_403_eus-gaap--LiabilitiesCurrentAbstract_i01B_zYBoJllhT8a1" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left">CURRENT LIABILITIES:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_403_eus-gaap--AccountsPayableCurrent_i02I_maLCzTKm_zKaDEU08HHd5" style="vertical-align: bottom; background-color: White">
    <td style="text-align: left">Accounts payable</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:AccountsPayableCurrent" contextRef="AsOf2023-12-31" id="Fact000106" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">536</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:AccountsPayableCurrent" contextRef="AsOf2022-12-31" id="Fact000107" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">485</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_40E_eus-gaap--OtherAccountsPayableAndAccruedLiabilities_i02I_maLCzTKm_zfg5Gi4OpJWb" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Other payables and accrued expenses</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:OtherAccountsPayableAndAccruedLiabilities" contextRef="AsOf2023-12-31" id="Fact000109" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">1,387</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:OtherAccountsPayableAndAccruedLiabilities" contextRef="AsOf2022-12-31" id="Fact000110" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">352</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_403_eus-gaap--AccruedEmployeeBenefitsCurrent_i02I_maLCzTKm_zVNtpm0i0BNk" style="vertical-align: bottom; background-color: White">
    <td style="text-align: left">Short term employee benefits</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:AccruedEmployeeBenefitsCurrent" contextRef="AsOf2023-12-31" id="Fact000112" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">788</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:AccruedEmployeeBenefitsCurrent" contextRef="AsOf2022-12-31" id="Fact000113" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">766</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_404_ecustom--ShareBasedPaymentLiabilities_i02_maLCzTKm_zw2s4qGu09Qf" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Share based payment liabilities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="ZOOZ:ShareBasedPaymentLiabilities" contextRef="AsOf2023-12-31" id="Fact000115" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">232</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="ZOOZ:ShareBasedPaymentLiabilities" contextRef="AsOf2022-12-31" id="Fact000116" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">996</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_407_eus-gaap--OperatingLeaseLiabilityCurrent_i02I_maLCzTKm_z6mhDIAoqRze" style="vertical-align: bottom; background-color: White">
    <td style="text-align: left; padding-bottom: 1.5pt">Current maturities of operating lease liabilities</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:OperatingLeaseLiabilityCurrent" contextRef="AsOf2023-12-31" id="Fact000118" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">309</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:OperatingLeaseLiabilityCurrent" contextRef="AsOf2022-12-31" id="Fact000119" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">321</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr id="xdx_40A_eus-gaap--LiabilitiesCurrent_i02TI_mtLCzTKm_maLzuIa_zAgZPakBk0r" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left; padding-bottom: 1.5pt">TOTAL CURRENT LIABILITIES</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:LiabilitiesCurrent" contextRef="AsOf2023-12-31" id="Fact000121" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">3,252</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:LiabilitiesCurrent" contextRef="AsOf2022-12-31" id="Fact000122" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">2,920</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_40B_eus-gaap--LiabilitiesNoncurrentAbstract_i01B_zywE0pyaYPu6" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left">NON-CURRENT LIABILITIES:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_40F_eus-gaap--OperatingLeaseLiabilityNoncurrent_i01I_maLNzGMR_zlc0nR1LjxBf" style="vertical-align: bottom; background-color: White">
    <td style="text-align: left; padding-bottom: 1.5pt">Operating lease liabilities</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:OperatingLeaseLiabilityNoncurrent" contextRef="AsOf2023-12-31" id="Fact000127" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">1,035</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:OperatingLeaseLiabilityNoncurrent" contextRef="AsOf2022-12-31" id="Fact000128" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">1,252</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr id="xdx_401_eus-gaap--LiabilitiesNoncurrent_i02TI_mtLNzGMR_maLzuIa_zAKcRinDOip7" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left; padding-bottom: 1.5pt">TOTAL NON-CURRENT LIABILITIES</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:LiabilitiesNoncurrent" contextRef="AsOf2023-12-31" id="Fact000130" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">1,035</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:LiabilitiesNoncurrent" contextRef="AsOf2022-12-31" id="Fact000131" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">1,252</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_40B_eus-gaap--Liabilities_i01TI_mtLzuIa_maLASEz3E5_z2b9ppeF5OP6" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left; padding-bottom: 1.5pt">TOTAL LIABILITIES</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"><ix:nonFraction name="us-gaap:Liabilities" contextRef="AsOf2023-12-31" id="Fact000133" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">4,287</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"><ix:nonFraction name="us-gaap:Liabilities" contextRef="AsOf2022-12-31" id="Fact000134" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">4,172</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_402_eus-gaap--CommitmentsAndContingencies_i02I_maLASEz3E5_zUTRxMDss4m7" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left">COMMITMENTS AND CONTINGENCIES (Note 10)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl0136">-</span></span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_408_eus-gaap--StockholdersEquityAbstract_i01B_zBz98fk5KSLf" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left">SHAREHOLDERS&#8217; EQUITY (<span id="xdx_F43_zfdt9Jh98AY3">*</span>):</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_405_eus-gaap--CommonStockValue_i02I_maSEzcIF_zOT7fqCAJBod" style="vertical-align: bottom; background-color: White">
    <td>Share capital - Ordinary shares of NIS <span id="xdx_907_eus-gaap--CommonStockParOrStatedValuePerShare_iI_pid_c20231231_zVrgKzqZ11Ge" title="Common stock, par value"><span id="xdx_903_eus-gaap--CommonStockParOrStatedValuePerShare_iI_pid_c20221231_zxMSb44VsGtd" title="Common stock, par value"><ix:nonFraction name="us-gaap:CommonStockParOrStatedValuePerShare" contextRef="AsOf2023-12-31" id="Fact000145" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares"><ix:nonFraction name="us-gaap:CommonStockParOrStatedValuePerShare" contextRef="AsOf2022-12-31" id="Fact000147" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">0.00286</ix:nonFraction></ix:nonFraction></span>
    </span>par value - Authorized: <span id="xdx_906_eus-gaap--CommonStockSharesAuthorized_iI_pid_c20231231_zvYkVBsDQbL" title="Common stock, shares authorised"><span id="xdx_907_eus-gaap--CommonStockSharesAuthorized_iI_pid_c20221231_zZ1U79GyemYi" title="Common stock, shares authorised"><ix:nonFraction name="us-gaap:CommonStockSharesAuthorized" contextRef="AsOf2023-12-31" id="Fact000149" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares"><ix:nonFraction name="us-gaap:CommonStockSharesAuthorized" contextRef="AsOf2022-12-31" id="Fact000151" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">34,973,575</ix:nonFraction></ix:nonFraction></span></span>
    shares on December 31, 2023 and 2022; Issued and outstanding: <span id="xdx_90E_eus-gaap--CommonStockSharesIssued_iI_pid_c20231231_z1zuCzxq7BPf" title="Common stock, shares issued"><span id="xdx_905_eus-gaap--CommonStockSharesIssued_iI_pid_c20221231_ztIoq4yeScbe" title="Common stock, shares issued"><span id="xdx_90C_eus-gaap--CommonStockSharesOutstanding_iI_pid_c20231231_zhmKGetGcfSj" title="Common stock, shares outstanding"><span id="xdx_900_eus-gaap--CommonStockSharesOutstanding_iI_pid_c20221231_zHc91DTJQBB7" title="Common stock, shares outstanding"><ix:nonFraction name="us-gaap:CommonStockSharesIssued" contextRef="AsOf2023-12-31" id="Fact000153" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares"><ix:nonFraction name="us-gaap:CommonStockSharesIssued" contextRef="AsOf2022-12-31" id="Fact000155" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares"><ix:nonFraction name="us-gaap:CommonStockSharesOutstanding" contextRef="AsOf2023-12-31" id="Fact000157" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares"><ix:nonFraction name="us-gaap:CommonStockSharesOutstanding" contextRef="AsOf2022-12-31" id="Fact000159" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">5,912,223</ix:nonFraction></ix:nonFraction></ix:nonFraction></ix:nonFraction></span></span></span>
    </span>shares on December 31, 2023 and 2022 <span id="xdx_F47_z74CTAWSqTxc" style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt">(*)</span></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:CommonStockValue" contextRef="AsOf2023-12-31" id="Fact000142" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">5</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:CommonStockValue" contextRef="AsOf2022-12-31" id="Fact000143" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">5</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_40C_eus-gaap--AdditionalPaidInCapital_i02I_maSEzcIF_zEmEvSpvmCm1" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Additional paid-in capital <span id="xdx_F4C_z8Yviom6xb7e" style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt">(*)</span></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:AdditionalPaidInCapital" contextRef="AsOf2023-12-31" id="Fact000161" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">58,780</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:AdditionalPaidInCapital" contextRef="AsOf2022-12-31" id="Fact000162" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">58,277</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_407_eus-gaap--AccumulatedOtherComprehensiveIncomeLossNetOfTax_i02I_maSEzcIF_zIo2E0zfs1Ri" style="vertical-align: bottom; background-color: White">
    <td style="text-align: left">Accumulated other comprehensive loss <span id="xdx_F41_z99Wx9oLudA3" style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt">(*)</span></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction name="us-gaap:AccumulatedOtherComprehensiveIncomeLossNetOfTax" contextRef="AsOf2023-12-31" id="Fact000164" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">2,414</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction name="us-gaap:AccumulatedOtherComprehensiveIncomeLossNetOfTax" contextRef="AsOf2022-12-31" id="Fact000165" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">1,595</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr id="xdx_409_eus-gaap--RetainedEarningsAccumulatedDeficit_i02I_maSEzcIF_zmF9gc1VQ96a" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt">Accumulated deficit <span id="xdx_F47_zHaMUpcldAH8" style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt">(*)</span></td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction name="us-gaap:RetainedEarningsAccumulatedDeficit" contextRef="AsOf2023-12-31" id="Fact000167" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">47,181</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction name="us-gaap:RetainedEarningsAccumulatedDeficit" contextRef="AsOf2022-12-31" id="Fact000168" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">35,426</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr id="xdx_40E_eus-gaap--StockholdersEquity_i02TI_mtSEzcIF_maLASEz3E5_zgMYtnkfY3b3" style="vertical-align: bottom; background-color: White">
    <td style="font-weight: bold; text-align: left; padding-bottom: 1.5pt">TOTAL EQUITY <span id="xdx_F4A_zwnXNcy4IlYg" style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt">(*)</span></td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:StockholdersEquity" contextRef="AsOf2023-12-31" id="Fact000170" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">9,190</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:StockholdersEquity" contextRef="AsOf2022-12-31" id="Fact000171" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">21,261</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr id="xdx_40D_eus-gaap--LiabilitiesAndStockholdersEquity_i01TI_mtLASEz3E5_zhPR1seP7hLd" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt">TOTAL LIABILITIES AND EQUITY <span id="xdx_F4D_zFEoReqFApS8" style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt">(*)</span></td><td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><ix:nonFraction name="us-gaap:LiabilitiesAndStockholdersEquity" contextRef="AsOf2023-12-31" id="Fact000173" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">13,477</ix:nonFraction></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><ix:nonFraction name="us-gaap:LiabilitiesAndStockholdersEquity" contextRef="AsOf2022-12-31" id="Fact000174" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">25,433</ix:nonFraction></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td></tr>
  </table>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 15pt; text-align: right"><span id="xdx_F0A_zZ5S533alXMb" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(*)</span></td><td style="text-align: justify"><span id="xdx_F17_zBEgUqZlZd36" style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:footnote id="Footnote000175" xml:lang="en-US">Adjusted to reflect
reverse stock split, see Note 11</ix:footnote></span></td>
</tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>The
accompanying notes are an integral part of the consolidated financial statements.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center">&#160;</p>


<!-- Field: Page; Sequence: 131; Value: 1 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->2<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>ZOOZ
POWER LTD.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="zoo_003"></span>CONSOLIDATED
STATEMENTS OF OPERATIONS</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(U.S.
dollars in thousands, <span style="background-color: white">except share and per share data</span>)</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" id="xdx_302_113_pn3n3_z2Ht7xdPm6Pc" summary="xdx: Statement - Consolidated Statements of Operations" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="display: none; vertical-align: bottom; background-color: White">
    <td style="text-align: left; padding-bottom: 1.5pt">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td id="xdx_49F_20230101__20231231_zKZ1mykCtYM3" style="border-bottom: Black 1.5pt solid; text-align: right">&#160;</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td id="xdx_490_20220101__20221231_zrWGonZOrzYa" style="border-bottom: Black 1.5pt solid; text-align: right">&#160;</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td id="xdx_492_20210101__20211231_zX9BtFzyAeNf" style="border-bottom: Black 1.5pt solid; text-align: right">&#160;</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
<tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Year ended December 31</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td></tr>
  <tr id="xdx_407_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_maGPzMvn_zf4Ae2hJmUC6" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 46%">Sales</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 14%; text-align: right"><ix:nonFraction name="us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax" contextRef="From2023-01-01to2023-12-31" id="Fact000177" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">764</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 14%; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0178">-</span></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 14%; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0179">-</span></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr id="xdx_409_eus-gaap--CostOfRevenue_msGPzMvn_zuMR7xmNu7Tf" style="vertical-align: bottom; background-color: White">
    <td style="padding-bottom: 1.5pt">Cost of sales</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:CostOfRevenue" contextRef="From2023-01-01to2023-12-31" id="Fact000181" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">1,869</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:CostOfRevenue" contextRef="From2022-01-012022-12-31" id="Fact000182" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">178</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0183">-</span></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_406_eus-gaap--GrossProfit_iT_mtGPzMvn_maOILzoZy_zUED8Z5lk2k7" style="vertical-align: bottom; background-color: White">
    <td style="font-weight: bold; text-align: left">Gross loss</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">(<ix:nonFraction name="us-gaap:GrossProfit" contextRef="From2023-01-01to2023-12-31" id="Fact000185" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">1,105</ix:nonFraction></td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">(<ix:nonFraction name="us-gaap:GrossProfit" contextRef="From2022-01-012022-12-31" id="Fact000186" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">178</ix:nonFraction></td><td style="font-weight: bold; text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0187">-</span></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_403_eus-gaap--ResearchAndDevelopmentExpense_msOILzoZy_znGIxK7Fa1fb" style="vertical-align: bottom; background-color: White">
    <td style="text-align: left">Research and development, net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:ResearchAndDevelopmentExpense" contextRef="From2023-01-01to2023-12-31" id="Fact000189" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">5,215</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:ResearchAndDevelopmentExpense" contextRef="From2022-01-012022-12-31" id="Fact000190" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">4,163</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:ResearchAndDevelopmentExpense" contextRef="From2021-01-012021-12-31" id="Fact000191" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">1,523</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_40F_eus-gaap--SellingAndMarketingExpense_msOILzoZy_zohBmBdCTuC6" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Sales and marketing</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:SellingAndMarketingExpense" contextRef="From2023-01-01to2023-12-31" id="Fact000193" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">3,041</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:SellingAndMarketingExpense" contextRef="From2022-01-012022-12-31" id="Fact000194" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">1,672</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:SellingAndMarketingExpense" contextRef="From2021-01-012021-12-31" id="Fact000195" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">987</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_40E_eus-gaap--GeneralAndAdministrativeExpense_msOILzoZy_z3LlSCd3dvh5" style="vertical-align: bottom; background-color: White">
    <td style="text-align: left; padding-bottom: 1.5pt">General and administrative</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:GeneralAndAdministrativeExpense" contextRef="From2023-01-01to2023-12-31" id="Fact000197" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">2,850</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:GeneralAndAdministrativeExpense" contextRef="From2022-01-012022-12-31" id="Fact000198" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">2,189</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:GeneralAndAdministrativeExpense" contextRef="From2021-01-012021-12-31" id="Fact000199" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">2,028</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_400_eus-gaap--OperatingIncomeLoss_iT_mtOILzoZy_maILFCOzk4T_zWfDwblfW7O5" style="vertical-align: bottom; background-color: White">
    <td style="font-weight: bold; text-align: left">Operating loss</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">(<ix:nonFraction name="us-gaap:OperatingIncomeLoss" contextRef="From2023-01-01to2023-12-31" id="Fact000201" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">12,211</ix:nonFraction></td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">(<ix:nonFraction name="us-gaap:OperatingIncomeLoss" contextRef="From2022-01-012022-12-31" id="Fact000202" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">8,202</ix:nonFraction></td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">(<ix:nonFraction name="us-gaap:OperatingIncomeLoss" contextRef="From2021-01-012021-12-31" id="Fact000203" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">4,538</ix:nonFraction></td><td style="font-weight: bold; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_405_eus-gaap--InterestIncomeExpenseNet_maILFCOzk4T_zf4w3jHzRjGd" style="vertical-align: bottom; background-color: White">
    <td style="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Finance income (expenses), net</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:InterestIncomeExpenseNet" contextRef="From2023-01-01to2023-12-31" id="Fact000205" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">456</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:InterestIncomeExpenseNet" contextRef="From2022-01-012022-12-31" id="Fact000206" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">377</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction name="us-gaap:InterestIncomeExpenseNet" contextRef="From2021-01-012021-12-31" id="Fact000207" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">43</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_402_eus-gaap--IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest_iT_mtILFCOzk4T_maNILzy0w_zfp9aT1EPeIk" style="vertical-align: bottom; background-color: White">
    <td style="font-weight: bold; text-align: left">Loss before income tax</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">(<ix:nonFraction name="us-gaap:IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest" contextRef="From2023-01-01to2023-12-31" id="Fact000209" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">11,755</ix:nonFraction></td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">(<ix:nonFraction name="us-gaap:IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest" contextRef="From2022-01-012022-12-31" id="Fact000210" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">7,825</ix:nonFraction></td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; text-align: right">(<ix:nonFraction name="us-gaap:IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest" contextRef="From2021-01-012021-12-31" id="Fact000211" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">4,581</ix:nonFraction></td><td style="font-weight: bold; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_40B_eus-gaap--IncomeTaxExpenseBenefit_msNILzy0w_z4inB00XlGy6" style="vertical-align: bottom; background-color: White">
    <td style="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Income tax benefit</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0213">-</span></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0214">-</span></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0215">-</span></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_40F_eus-gaap--NetIncomeLoss_iT_mtNILzy0w_zMXYOYTXW9S5" style="vertical-align: bottom; background-color: White">
    <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt">Net loss</td><td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(<ix:nonFraction name="us-gaap:NetIncomeLoss" contextRef="From2023-01-01to2023-12-31" id="Fact000217" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">11,755</ix:nonFraction></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(<ix:nonFraction name="us-gaap:NetIncomeLoss" contextRef="From2022-01-012022-12-31" id="Fact000218" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">7,825</ix:nonFraction></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(<ix:nonFraction name="us-gaap:NetIncomeLoss" contextRef="From2021-01-012021-12-31" id="Fact000219" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">4,581</ix:nonFraction></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: left; padding-bottom: 1.5pt">Net loss per ordinary share attributable to shareholders - basic and diluted (*)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span id="xdx_90E_eus-gaap--EarningsPerShareBasic_pid_c20230101__20231231_fKg_____zTVkO9tcL0gg" title="Net loss per ordinary share attributable to shareholders basic" class="xdx_phnt_U3RhdGVtZW50IC0gQ29uc29saWRhdGVkIFN0YXRlbWVudHMgb2YgT3BlcmF0aW9ucwA_"><span id="xdx_909_eus-gaap--EarningsPerShareDiluted_pid_c20230101__20231231_fKg_____z3S6QCvJGAz5" title="Net loss per ordinary share attributable to shareholders diluted" class="xdx_phnt_U3RhdGVtZW50IC0gQ29uc29saWRhdGVkIFN0YXRlbWVudHMgb2YgT3BlcmF0aW9ucwA_">(<ix:nonFraction name="us-gaap:EarningsPerShareBasic" contextRef="From2023-01-01to2023-12-31" id="Fact000221" format="ixt:numdotdecimal" decimals="INF" sign="-" unitRef="USDPShares"><ix:nonFraction name="us-gaap:EarningsPerShareDiluted" contextRef="From2023-01-01to2023-12-31" id="Fact000223" format="ixt:numdotdecimal" decimals="INF" sign="-" unitRef="USDPShares">1.99</ix:nonFraction></ix:nonFraction></span></span></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span id="xdx_90E_eus-gaap--EarningsPerShareBasic_pid_c20220101__20221231_fKg_____z1K6wMdaYmw9" title="Net loss per ordinary share attributable to shareholders basic" class="xdx_phnt_U3RhdGVtZW50IC0gQ29uc29saWRhdGVkIFN0YXRlbWVudHMgb2YgT3BlcmF0aW9ucwA_"><span id="xdx_901_eus-gaap--EarningsPerShareDiluted_pid_c20220101__20221231_fKg_____zveTRwFAmYLj" title="Net loss per ordinary share attributable to shareholders diluted" class="xdx_phnt_U3RhdGVtZW50IC0gQ29uc29saWRhdGVkIFN0YXRlbWVudHMgb2YgT3BlcmF0aW9ucwA_">(<ix:nonFraction name="us-gaap:EarningsPerShareBasic" contextRef="From2022-01-012022-12-31" id="Fact000225" format="ixt:numdotdecimal" decimals="INF" sign="-" unitRef="USDPShares"><ix:nonFraction name="us-gaap:EarningsPerShareDiluted" contextRef="From2022-01-012022-12-31" id="Fact000227" format="ixt:numdotdecimal" decimals="INF" sign="-" unitRef="USDPShares">1.51</ix:nonFraction></ix:nonFraction></span></span></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span id="xdx_90F_eus-gaap--EarningsPerShareBasic_pid_c20210101__20211231_fKg_____zP1ze0ZJCUC5" title="Net loss per ordinary share attributable to shareholders basic" class="xdx_phnt_U3RhdGVtZW50IC0gQ29uc29saWRhdGVkIFN0YXRlbWVudHMgb2YgT3BlcmF0aW9ucwA_"><span id="xdx_907_eus-gaap--EarningsPerShareDiluted_pid_c20210101__20211231_fKg_____zjlo6FNH7Aie" title="Net loss per ordinary share attributable to shareholders diluted" class="xdx_phnt_U3RhdGVtZW50IC0gQ29uc29saWRhdGVkIFN0YXRlbWVudHMgb2YgT3BlcmF0aW9ucwA_">(<ix:nonFraction name="us-gaap:EarningsPerShareBasic" contextRef="From2021-01-012021-12-31" id="Fact000229" format="ixt:numdotdecimal" decimals="INF" sign="-" unitRef="USDPShares"><ix:nonFraction name="us-gaap:EarningsPerShareDiluted" contextRef="From2021-01-012021-12-31" id="Fact000231" format="ixt:numdotdecimal" decimals="INF" sign="-" unitRef="USDPShares">2.27</ix:nonFraction></ix:nonFraction></span></span></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 2.5pt">Weighted average ordinary shares outstanding &#8211; basic and diluted in thousands (*)</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: right"><span id="xdx_907_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_pn3n3_c20230101__20231231_fKg_____z8XUZIMeUVJ6" title="Weighted average ordinary shares outstanding basic" class="xdx_phnt_U3RhdGVtZW50IC0gQ29uc29saWRhdGVkIFN0YXRlbWVudHMgb2YgT3BlcmF0aW9ucwA_"><span id="xdx_907_eus-gaap--WeightedAverageNumberOfDilutedSharesOutstanding_pn3n3_c20230101__20231231_fKg_____zXtuU9tBLsld" title="Weighted average ordinary shares outstanding diluted" class="xdx_phnt_U3RhdGVtZW50IC0gQ29uc29saWRhdGVkIFN0YXRlbWVudHMgb2YgT3BlcmF0aW9ucwA_"><ix:nonFraction name="us-gaap:WeightedAverageNumberOfSharesOutstandingBasic" contextRef="From2023-01-01to2023-12-31" id="Fact000233" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="Shares"><ix:nonFraction name="us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding" contextRef="From2023-01-01to2023-12-31" id="Fact000235" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="Shares">5,912</ix:nonFraction></ix:nonFraction></span></span></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: right"><span id="xdx_903_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_pn3n3_c20220101__20221231_fKg_____zWcXIK35byi7" title="Weighted average ordinary shares outstanding basic" class="xdx_phnt_U3RhdGVtZW50IC0gQ29uc29saWRhdGVkIFN0YXRlbWVudHMgb2YgT3BlcmF0aW9ucwA_"><span id="xdx_905_eus-gaap--WeightedAverageNumberOfDilutedSharesOutstanding_pn3n3_c20220101__20221231_fKg_____zauZV5jFjw4e" title="Weighted average ordinary shares outstanding diluted" class="xdx_phnt_U3RhdGVtZW50IC0gQ29uc29saWRhdGVkIFN0YXRlbWVudHMgb2YgT3BlcmF0aW9ucwA_"><ix:nonFraction name="us-gaap:WeightedAverageNumberOfSharesOutstandingBasic" contextRef="From2022-01-012022-12-31" id="Fact000237" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="Shares"><ix:nonFraction name="us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding" contextRef="From2022-01-012022-12-31" id="Fact000239" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="Shares">5,166</ix:nonFraction></ix:nonFraction></span></span></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: right"><span id="xdx_90F_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_pn3n3_c20210101__20211231_fKg_____zANbhE0jDq33" title="Weighted average ordinary shares outstanding basic" class="xdx_phnt_U3RhdGVtZW50IC0gQ29uc29saWRhdGVkIFN0YXRlbWVudHMgb2YgT3BlcmF0aW9ucwA_"><span id="xdx_90A_eus-gaap--WeightedAverageNumberOfDilutedSharesOutstanding_pn3n3_c20210101__20211231_fKg_____z0DVaAbPHuLe" title="Weighted average ordinary shares outstanding diluted" class="xdx_phnt_U3RhdGVtZW50IC0gQ29uc29saWRhdGVkIFN0YXRlbWVudHMgb2YgT3BlcmF0aW9ucwA_"><ix:nonFraction name="us-gaap:WeightedAverageNumberOfSharesOutstandingBasic" contextRef="From2021-01-012021-12-31" id="Fact000241" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="Shares"><ix:nonFraction name="us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding" contextRef="From2021-01-012021-12-31" id="Fact000243" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="Shares">2,020</ix:nonFraction></ix:nonFraction></span></span></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td></tr>
  </table>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 15pt; text-align: right"><span id="xdx_F06_zIQZN2WKd7gi" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(*)</span></td><td style="text-align: justify"><span id="xdx_F13_zVeIEJnCIEp7" style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:footnote id="Footnote000244" xml:lang="en-US">Adjusted to reflect
reverse stock split, see Note 11</ix:footnote></span></td>
</tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>The
accompanying notes are an integral part of the consolidated financial statements.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 132; Value: 1 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->3<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>ZOOZ
POWER LTD.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="zoo_004"></span>CONSOLIDATED
STATEMENTS OF COMPREHENSIVE LOSS</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" id="xdx_30A_113_pn3n3_zkisQPUVZAQd" summary="xdx: Statement - Consolidated Statements of Comprehensive Loss" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="display: none; vertical-align: bottom; background-color: White">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_49E_20230101__20231231_z7BmixywgdFe" style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_491_20220101__20221231_zJhqCDge7Nml" style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_494_20210101__20211231_zf1Ef9MbDHNd" style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
<tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Year ended December 31</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">U.S. dollars in thousands</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr id="xdx_402_eus-gaap--NetIncomeLoss_maCINOTzVEY_z0kZOxCDhqUl" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 46%; font-weight: bold; text-align: left">Net Loss</td><td style="width: 2%; font-weight: bold">&#160;</td>
    <td style="width: 1%; font-weight: bold; text-align: left">&#160;</td><td style="width: 14%; font-weight: bold; text-align: right">(<ix:nonFraction name="us-gaap:NetIncomeLoss" contextRef="From2023-01-01to2023-12-31" id="Fact000246" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">11,755</ix:nonFraction></td><td style="width: 1%; font-weight: bold; text-align: left">)</td><td style="width: 2%; font-weight: bold">&#160;</td>
    <td style="width: 1%; font-weight: bold; text-align: left">&#160;</td><td style="width: 14%; font-weight: bold; text-align: right">(<ix:nonFraction name="us-gaap:NetIncomeLoss" contextRef="From2022-01-012022-12-31" id="Fact000247" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">7,825</ix:nonFraction></td><td style="width: 1%; font-weight: bold; text-align: left">)</td><td style="width: 2%; font-weight: bold">&#160;</td>
    <td style="width: 1%; font-weight: bold; text-align: left">&#160;</td><td style="width: 14%; font-weight: bold; text-align: right">(<ix:nonFraction name="us-gaap:NetIncomeLoss" contextRef="From2021-01-012021-12-31" id="Fact000248" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">4,581</ix:nonFraction></td><td style="width: 1%; font-weight: bold; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_404_eus-gaap--OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParentAbstract_iB_ziKDs0eBT9K3" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Other Comprehensive income (loss)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_407_eus-gaap--OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax_i01_maCINOTzf0j_zZHhb2Ify403" style="vertical-align: bottom; background-color: White">
    <td style="text-align: left; padding-bottom: 1.5pt">Reporting currency translation gain (loss)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction name="us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax" contextRef="From2023-01-01to2023-12-31" id="Fact000254" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">819</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction name="us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax" contextRef="From2022-01-012022-12-31" id="Fact000255" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">1,965</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax" contextRef="From2021-01-012021-12-31" id="Fact000256" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">370</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_40D_eus-gaap--OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent_i01T_maCINOTzVEY_mtCINOTzf0j_z9QziYRcWTH" style="vertical-align: bottom; background-color: White">
    <td style="text-align: left; padding-bottom: 1.5pt">Total other comprehensive income (loss)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction name="us-gaap:OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent" contextRef="From2023-01-01to2023-12-31" id="Fact000258" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">819</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction name="us-gaap:OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent" contextRef="From2022-01-012022-12-31" id="Fact000259" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">1,965</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent" contextRef="From2021-01-012021-12-31" id="Fact000260" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">370</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_406_eus-gaap--ComprehensiveIncomeNetOfTax_iT_mtCINOTzVEY_zSMbaRfiZiHb" style="vertical-align: bottom; background-color: White">
    <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt">Total comprehensive loss</td><td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(<ix:nonFraction name="us-gaap:ComprehensiveIncomeNetOfTax" contextRef="From2023-01-01to2023-12-31" id="Fact000262" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">12,574</ix:nonFraction></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(<ix:nonFraction name="us-gaap:ComprehensiveIncomeNetOfTax" contextRef="From2022-01-012022-12-31" id="Fact000263" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">9,790</ix:nonFraction></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(<ix:nonFraction name="us-gaap:ComprehensiveIncomeNetOfTax" contextRef="From2021-01-012021-12-31" id="Fact000264" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">4,211</ix:nonFraction></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td></tr>
  </table>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>The
accompanying notes are an integral part of the consolidated financial statements.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>


<!-- Field: Page; Sequence: 133; Value: 1 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->4<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>ZOOZ
POWER LTD.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="zoo_005"></span>CONSOLIDATED
STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED SHARES AND CHANGES IN SHAREHOLDERS&#8217; EQUITY</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(U.S.
dollars in thousands, <span style="background-color: white">except share and per share data</span>)</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" id="xdx_301_114_pn3n3_zQbtpKJhIRzg" summary="xdx: Statement - Consolidated Statements of Redeemable Convertible Preferred Shares And Changes In Shareholders' Equity" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="display: none; vertical-align: bottom; background-color: White">
    <td style="text-align: left">&#160;</td><td id="xdx_4B9_us-gaap--StatementEquityComponentsAxis_us-gaap--PreferredStockMember_us-gaap--StatementClassOfStockAxis_us-gaap--RedeemableConvertiblePreferredStockMember_z83UgDcBh9ud">&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_4BF_us-gaap--StatementEquityComponentsAxis_us-gaap--CommonStockMember_zVVfvxPs5jzh" style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_4B7_us-gaap--StatementEquityComponentsAxis_us-gaap--AdditionalPaidInCapitalMember_z1CubbmoEi35" style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_4B4_us-gaap--StatementEquityComponentsAxis_us-gaap--AccumulatedOtherComprehensiveIncomeMember_zlBuy79B9qfi" style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_4BE_us-gaap--StatementEquityComponentsAxis_us-gaap--RetainedEarningsMember_zFrW0H4RkwG8" style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_4B0_zJk5DZNpY2Ye" style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
<tr style="vertical-align: bottom">
    <td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td>&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">Accumulated</td><td style="font-weight: bold">&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Share capital</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="padding-bottom: 1.5pt; font-weight: bold; text-align: center">Additional</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="padding-bottom: 1.5pt; font-weight: bold; text-align: center">other</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">Number of</td><td style="font-weight: bold">&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td>&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">paid-in</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">comprehensive</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">Accumulated</td><td style="font-weight: bold">&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Shares (**)</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">capital</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">income (loss)</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">loss</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Total</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td></tr>
  <tr id="xdx_437_c20230101__20231231_eus-gaap--StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest_iS_zvIgMmDZ3q0e" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 21%; font-weight: bold">BALANCE AS OF JANUARY 1, 2023</td><td style="width: 2%"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl0266">-</span></span></td>
    <td style="width: 2%; text-align: left">&#160;</td><td id="xdx_988_eus-gaap--SharesOutstanding_iS_pid_c20230101__20231231__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_fKio___zRazDfHWzwy2" title="Balance, shares" style="width: 9%; text-align: right"><ix:nonFraction name="us-gaap:SharesOutstanding" contextRef="AsOf2022-12-31_us-gaap_CommonStockMember" id="Fact000273" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">5,912,223</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" contextRef="AsOf2022-12-31_us-gaap_CommonStockMember" id="Fact000267" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">5</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" contextRef="AsOf2022-12-31_us-gaap_AdditionalPaidInCapitalMember" id="Fact000268" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">58,277</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">(<ix:nonFraction name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" contextRef="AsOf2022-12-31_us-gaap_AccumulatedOtherComprehensiveIncomeMember" id="Fact000269" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">1,595</ix:nonFraction></td><td style="width: 1%; text-align: left">)</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">(<ix:nonFraction name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" contextRef="AsOf2022-12-31_us-gaap_RetainedEarningsMember" id="Fact000270" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">35,426</ix:nonFraction></td><td style="width: 1%; text-align: left">)</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" contextRef="AsOf2022-12-31" id="Fact000271" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">21,261</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td style="font-weight: bold; text-align: left">CHANGES IN 2023:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_406_eus-gaap--AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue_zgnRSjZgAaQf" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Share-based compensation</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0276">-</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue" contextRef="From2023-01-012023-12-31_us-gaap_AdditionalPaidInCapitalMember" id="Fact000277" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">503</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0278">-</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0279">-</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue" contextRef="From2023-01-01to2023-12-31" id="Fact000280" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">503</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_409_eus-gaap--NetIncomeLoss_zjuWybWAd3J2" style="vertical-align: bottom; background-color: White">
    <td style="text-align: left">Net loss</td><td><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl0282">-</span></span></td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0283">-</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0284">-</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0285">-</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction name="us-gaap:NetIncomeLoss" contextRef="From2023-01-012023-12-31_us-gaap_RetainedEarningsMember" id="Fact000286" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">11,755</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction name="us-gaap:NetIncomeLoss" contextRef="From2023-01-01to2023-12-31" id="Fact000287" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">11,755</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr id="xdx_402_eus-gaap--OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent_zQg1bx0ulf36" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt">Other comprehensive loss</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0290">-</span></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0291">-</span></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction name="us-gaap:OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent" contextRef="From2023-01-012023-12-31_us-gaap_AccumulatedOtherComprehensiveIncomeMember" id="Fact000292" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">819</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0293">-</span></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction name="us-gaap:OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent" contextRef="From2023-01-01to2023-12-31" id="Fact000294" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">819</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr id="xdx_432_c20230101__20231231_eus-gaap--StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest_iE_z7zCg3lM2zz3" style="vertical-align: bottom; background-color: White">
    <td style="font-weight: bold; padding-bottom: 2.5pt">BALANCE AS OF DECEMBER 31, 2023</td><td style="font-weight: bold; padding-bottom: 2.5pt"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl0296">-</span></span></td>
    <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&#160;</td><td id="xdx_98C_eus-gaap--SharesOutstanding_iE_pid_c20230101__20231231__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_fKio___zXmMM53ZZV37" title="Balance, shares" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><ix:nonFraction name="us-gaap:SharesOutstanding" contextRef="AsOf2023-12-31_us-gaap_CommonStockMember" id="Fact000303" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">5,912,223</ix:nonFraction></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><ix:nonFraction name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" contextRef="AsOf2023-12-31_us-gaap_CommonStockMember" id="Fact000297" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">5</ix:nonFraction></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><ix:nonFraction name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" contextRef="AsOf2023-12-31_us-gaap_AdditionalPaidInCapitalMember" id="Fact000298" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">58,780</ix:nonFraction></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(<ix:nonFraction name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" contextRef="AsOf2023-12-31_us-gaap_AccumulatedOtherComprehensiveIncomeMember" id="Fact000299" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">2,414</ix:nonFraction></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(<ix:nonFraction name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" contextRef="AsOf2023-12-31_us-gaap_RetainedEarningsMember" id="Fact000300" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">47,181</ix:nonFraction></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><ix:nonFraction name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" contextRef="AsOf2023-12-31" id="Fact000301" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">9,190</ix:nonFraction></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td></tr>
  </table>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 15pt; text-align: right"><span id="xdx_F01_zUJNTnj15r3b" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(**)</span></td><td style="text-align: justify"><span id="xdx_F13_zhzPGvHmjCPj" style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:footnote id="Footnote000304" xml:lang="en-US">Adjusted to reflect
reverse stock split, see Note 11</ix:footnote></span></td>
</tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>The
accompanying notes are an integral part of the consolidated financial statements.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 134; Value: 1 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->5<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>ZOOZ
POWER LTD.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">CONSOLIDATED
STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED SHARES AND CHANGES IN SHAREHOLDERS&#8217; EQUITY</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(U.S.
dollars in thousands, <span style="background-color: white">except share and per share data</span>)</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="display: none; vertical-align: bottom; background-color: White">
    <td style="text-align: left; padding-bottom: 1.5pt">&#160;</td><td id="xdx_4B9_us-gaap--StatementEquityComponentsAxis_us-gaap--PreferredStockMember_us-gaap--StatementClassOfStockAxis_us-gaap--RedeemableConvertiblePreferredStockMember_z6IVUBAImpxf" style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">&#160;</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td id="xdx_4B6_us-gaap--StatementEquityComponentsAxis_us-gaap--CommonStockMember_zxBmkPqfGLEf" style="border-bottom: Black 1.5pt solid; text-align: right">&#160;</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td id="xdx_4B6_us-gaap--StatementEquityComponentsAxis_us-gaap--AdditionalPaidInCapitalMember_z64PjFwoL7Pj" style="border-bottom: Black 1.5pt solid; text-align: right">&#160;</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td id="xdx_4B3_us-gaap--StatementEquityComponentsAxis_us-gaap--AccumulatedOtherComprehensiveIncomeMember_zzz0L3YV8afh" style="border-bottom: Black 1.5pt solid; text-align: right">&#160;</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td id="xdx_4B3_us-gaap--StatementEquityComponentsAxis_us-gaap--RetainedEarningsMember_zwoT6zT0jNEj" style="border-bottom: Black 1.5pt solid; text-align: right">&#160;</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td id="xdx_4B4_zvA1mbVo8dI1" style="border-bottom: Black 1.5pt solid; text-align: right">&#160;</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
<tr style="vertical-align: bottom">
    <td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td>&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">Accumulated</td><td style="font-weight: bold">&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Share capital</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="padding-bottom: 1.5pt; font-weight: bold; text-align: center">Additional</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="padding-bottom: 1.5pt; font-weight: bold; text-align: center">other</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">Number of</td><td style="font-weight: bold">&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td>&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">paid-in</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">comprehensive</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">Accumulated</td><td style="font-weight: bold">&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Shares (**)</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">capital</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">income (loss)</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">loss</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Total</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td></tr>
  <tr id="xdx_438_c20220101__20221231_eus-gaap--StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest_iS_zPrYLdFxrvtj" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 21%; font-weight: bold">BALANCE AS OF JANUARY 1, 2022</td><td style="width: 2%"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl0306">-</span></span></td>
    <td style="width: 2%; text-align: left">&#160;</td><td id="xdx_98A_eus-gaap--SharesOutstanding_iS_pid_c20220101__20221231__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_fKio___zOSiqUkBs3D6" title="Balance, shares" style="width: 9%; text-align: right"><ix:nonFraction name="us-gaap:SharesOutstanding" contextRef="AsOf2021-12-31_us-gaap_CommonStockMember" id="Fact000313" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">2,295,736</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" contextRef="AsOf2021-12-31_us-gaap_CommonStockMember" id="Fact000307" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">2</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" contextRef="AsOf2021-12-31_us-gaap_AdditionalPaidInCapitalMember" id="Fact000308" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">29,867</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" contextRef="AsOf2021-12-31_us-gaap_AccumulatedOtherComprehensiveIncomeMember" id="Fact000309" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">370</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">(<ix:nonFraction name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" contextRef="AsOf2021-12-31_us-gaap_RetainedEarningsMember" id="Fact000310" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">27,601</ix:nonFraction></td><td style="width: 1%; text-align: left">)</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" contextRef="AsOf2021-12-31" id="Fact000311" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">2,638</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr id="xdx_435_c20220101__20221231_eus-gaap--StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest_iS_zrdB9t79j69e" style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold">Balance</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_98F_eus-gaap--SharesOutstanding_iS_pid_c20220101__20221231__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_fKio___zUq8FqAdDWp4" title="Balance, shares" style="text-align: right"><ix:nonFraction name="us-gaap:SharesOutstanding" contextRef="AsOf2021-12-31_us-gaap_CommonStockMember" id="Fact000322" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">2,295,736</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" contextRef="AsOf2021-12-31_us-gaap_CommonStockMember" id="Fact000316" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">2</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" contextRef="AsOf2021-12-31_us-gaap_AdditionalPaidInCapitalMember" id="Fact000317" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">29,867</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" contextRef="AsOf2021-12-31_us-gaap_AccumulatedOtherComprehensiveIncomeMember" id="Fact000318" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">370</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" contextRef="AsOf2021-12-31_us-gaap_RetainedEarningsMember" id="Fact000319" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">27,601</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" contextRef="AsOf2021-12-31" id="Fact000320" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">2,638</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="font-weight: bold; text-align: left">CHANGES IN 2022:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_402_eus-gaap--StockIssuedDuringPeriodValueNewIssues_zYCpwZyzRyQi" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Private placement and public offering of shares and warrants, net of issuance costs of $<span id="xdx_904_eus-gaap--PaymentsOfStockIssuanceCosts_c20220101__20221231_zbQ7Evaj6O5e" title="Net of issuance costs"><ix:nonFraction name="us-gaap:PaymentsOfStockIssuanceCosts" contextRef="From2022-01-012022-12-31" id="Fact000331" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">1,700</ix:nonFraction></span></td><td><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl0324">-</span></span></td>
    <td style="text-align: left">&#160;</td><td id="xdx_988_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_pid_c20220101__20221231__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_fKio___z0oZ4By9p2Oi" title="Private placement and public offering of shares and warrants, net of issuance costs of $1,700, shares" style="text-align: right"><ix:nonFraction name="us-gaap:StockIssuedDuringPeriodSharesNewIssues" contextRef="From2022-01-012022-12-31_us-gaap_CommonStockMember" id="Fact000333" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">3,616,487</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:StockIssuedDuringPeriodValueNewIssues" contextRef="From2022-01-012022-12-31_us-gaap_CommonStockMember" id="Fact000325" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">3</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:StockIssuedDuringPeriodValueNewIssues" contextRef="From2022-01-012022-12-31_us-gaap_AdditionalPaidInCapitalMember" id="Fact000326" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">27,867</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0327">-</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0328">-</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:StockIssuedDuringPeriodValueNewIssues" contextRef="From2022-01-012022-12-31" id="Fact000329" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">27,870</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_406_eus-gaap--AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue_zYuIKfK0jvFa" style="vertical-align: bottom; background-color: White">
    <td style="text-align: left">Share-based compensation</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0336">-</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue" contextRef="From2022-01-012022-12-31_us-gaap_AdditionalPaidInCapitalMember" id="Fact000337" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">543</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0338">-</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0339">-</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue" contextRef="From2022-01-012022-12-31" id="Fact000340" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">543</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_408_eus-gaap--NetIncomeLoss_zyJfkaWkjTIf" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Net loss</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0343">-</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0344">-</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0345">-</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction name="us-gaap:NetIncomeLoss" contextRef="From2022-01-012022-12-31_us-gaap_RetainedEarningsMember" id="Fact000346" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">7,825</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction name="us-gaap:NetIncomeLoss" contextRef="From2022-01-012022-12-31" id="Fact000347" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">7,825</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr id="xdx_409_eus-gaap--OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent_zRcnaF5ea3Ze" style="vertical-align: bottom; background-color: White">
    <td style="text-align: left; padding-bottom: 1.5pt">Other comprehensive loss</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0350">-</span></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0351">-</span></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction name="us-gaap:OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent" contextRef="From2022-01-012022-12-31_us-gaap_AccumulatedOtherComprehensiveIncomeMember" id="Fact000352" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">1,965</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0353">-</span></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction name="us-gaap:OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent" contextRef="From2022-01-012022-12-31" id="Fact000354" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">1,965</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr id="xdx_43F_c20220101__20221231_eus-gaap--StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest_iE_zdhGaxwteh0b" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; padding-bottom: 2.5pt">BALANCE AS OF DECEMBER 31, 2022</td><td style="font-weight: bold; padding-bottom: 2.5pt"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="-sec-ix-hidden: xdx2ixbrl0356">-</span></span></td>
    <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&#160;</td><td id="xdx_98D_eus-gaap--SharesOutstanding_iE_pid_c20220101__20221231__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_fKio___zKus16HmkR43" title="Balance, shares" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><ix:nonFraction name="us-gaap:SharesOutstanding" contextRef="AsOf2022-12-31_us-gaap_CommonStockMember" id="Fact000363" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">5,912,223</ix:nonFraction></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><ix:nonFraction name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" contextRef="AsOf2022-12-31_us-gaap_CommonStockMember" id="Fact000357" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">5</ix:nonFraction></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><ix:nonFraction name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" contextRef="AsOf2022-12-31_us-gaap_AdditionalPaidInCapitalMember" id="Fact000358" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">58,277</ix:nonFraction></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(<ix:nonFraction name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" contextRef="AsOf2022-12-31_us-gaap_AccumulatedOtherComprehensiveIncomeMember" id="Fact000359" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">1,595</ix:nonFraction></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(<ix:nonFraction name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" contextRef="AsOf2022-12-31_us-gaap_RetainedEarningsMember" id="Fact000360" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">35,426</ix:nonFraction></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><ix:nonFraction name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" contextRef="AsOf2022-12-31" id="Fact000361" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">21,261</ix:nonFraction></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td></tr>
  <tr id="xdx_430_c20220101__20221231_eus-gaap--StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest_iE_z2zRQp6ZB5j8" style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; padding-bottom: 2.5pt">Balance</td><td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&#160;</td><td id="xdx_980_eus-gaap--SharesOutstanding_iE_pid_c20220101__20221231__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_fKio___zRYjEsqKr0S3" title="Balance, shares" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><ix:nonFraction name="us-gaap:SharesOutstanding" contextRef="AsOf2022-12-31_us-gaap_CommonStockMember" id="Fact000372" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">5,912,223</ix:nonFraction></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><ix:nonFraction name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" contextRef="AsOf2022-12-31_us-gaap_CommonStockMember" id="Fact000366" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">5</ix:nonFraction></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><ix:nonFraction name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" contextRef="AsOf2022-12-31_us-gaap_AdditionalPaidInCapitalMember" id="Fact000367" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">58,277</ix:nonFraction></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(<ix:nonFraction name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" contextRef="AsOf2022-12-31_us-gaap_AccumulatedOtherComprehensiveIncomeMember" id="Fact000368" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">1,595</ix:nonFraction></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(<ix:nonFraction name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" contextRef="AsOf2022-12-31_us-gaap_RetainedEarningsMember" id="Fact000369" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">35,426</ix:nonFraction></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><ix:nonFraction name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" contextRef="AsOf2022-12-31" id="Fact000370" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">21,261</ix:nonFraction></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td></tr>
</table>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 15pt; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(*)</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Represents less
than $1 thousand</span></td>
</tr></table>


<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 15pt; text-align: right"><span id="xdx_F04_z0oC1zH3Q444" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(**)</span></td><td style="text-align: justify"><span id="xdx_F13_z8iNWUvmKbz" style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:footnote id="Footnote000373" xml:lang="en-US">Adjusted to reflect
reverse stock split, see Note 11</ix:footnote></span></td>
</tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>The
accompanying notes are an integral part of the consolidated financial statements.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 135; Value: 1 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->6<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>ZOOZ
POWER LTD.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">CONSOLIDATED
STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED SHARES AND CHANGES IN SHAREHOLDERS&#8217; EQUITY</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(U.S.
dollars in thousands, <span style="background-color: white">except share and per share data</span>)</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="display: none; vertical-align: bottom; background-color: White">
    <td style="font-weight: bold; text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_4B9_us-gaap--StatementEquityComponentsAxis_us-gaap--PreferredStockMember_us-gaap--StatementClassOfStockAxis_us-gaap--RedeemableConvertiblePreferredStockMember_zifYTYjV9yyg" style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_4BA_us-gaap--StatementEquityComponentsAxis_us-gaap--CommonStockMember_zztNUwQNqjJ9" style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_4BD_us-gaap--StatementEquityComponentsAxis_us-gaap--AdditionalPaidInCapitalMember_zPiB3ykZCsql" style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_4B4_us-gaap--StatementEquityComponentsAxis_us-gaap--AccumulatedOtherComprehensiveIncomeMember_z2lTFak9NWAh" style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_4B3_us-gaap--StatementEquityComponentsAxis_us-gaap--RetainedEarningsMember_zxNmo0M7jY75" style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_4B4_zn8sTIdy7mV1" style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
<tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="6" style="font-weight: bold; text-align: center">Redeemable</td><td style="font-weight: bold">&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="6" style="font-weight: bold; text-align: center">Convertible</td><td style="font-weight: bold">&#160;</td><td>&#160;</td>
    <td colspan="6" style="text-align: center">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">Accumulated</td><td style="font-weight: bold">&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Preferred Shares</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Share capital</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="padding-bottom: 1.5pt; font-weight: bold; text-align: center">Additional</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="padding-bottom: 1.5pt; font-weight: bold; text-align: center"> other</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Number of<br/>
 Shares (**)</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Number&#160;of<br/>
</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Shares</b></span></p></td><td style="padding-bottom: 1.5pt">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>paid-in</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>capital</b></span></p></td><td style="padding-bottom: 1.5pt">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><br/>

                                                                                 comprehensive</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>income</b></span></p></td><td style="padding-bottom: 1.5pt">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Accumulated</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>loss</b></span></p></td><td style="padding-bottom: 1.5pt">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Total</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td></tr>
  <tr id="xdx_437_c20210101__20211231_eus-gaap--StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest_iS_zzFfM5Sxh6v4" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 20%; font-weight: bold">BALANCE AS OF JANUARY 1, 2021</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td id="xdx_98D_eus-gaap--SharesOutstanding_iS_pid_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--PreferredStockMember__us-gaap--StatementClassOfStockAxis__us-gaap--RedeemableConvertiblePreferredStockMember_fKio___zE4hx988lmj2" title="Balance, shares" style="width: 6%; text-align: right"><ix:nonFraction name="us-gaap:SharesOutstanding" contextRef="AsOf2020-12-31_us-gaap_PreferredStockMember_us-gaap_RedeemableConvertiblePreferredStockMember" id="Fact000382" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">18,881,400</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 6%; text-align: right"><ix:nonFraction name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" contextRef="AsOf2020-12-31_us-gaap_PreferredStockMember_us-gaap_RedeemableConvertiblePreferredStockMember" id="Fact000375" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">21,878</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td id="xdx_98A_eus-gaap--SharesOutstanding_iS_pid_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_znBCTwx73LA2" title="Balance, shares" style="width: 6%; text-align: right"><ix:nonFraction name="us-gaap:SharesOutstanding" contextRef="AsOf2020-12-31_us-gaap_CommonStockMember" id="Fact000384" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">349,736</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 6%; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0376">-</span></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 6%; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0377">-</span></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 6%; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0378">-</span></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 6%; text-align: right">(<ix:nonFraction name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" contextRef="AsOf2020-12-31_us-gaap_RetainedEarningsMember" id="Fact000379" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">23,020</ix:nonFraction></td><td style="width: 1%; text-align: left">)</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 6%; text-align: right">(<ix:nonFraction name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" contextRef="AsOf2020-12-31" id="Fact000380" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">23,020</ix:nonFraction></td><td style="width: 1%; text-align: left">)</td></tr>
  <tr id="xdx_438_c20210101__20211231_eus-gaap--StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest_iS_zsb8JO8nApEl" style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold">Balance</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_988_eus-gaap--SharesOutstanding_iS_pid_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--PreferredStockMember__us-gaap--StatementClassOfStockAxis__us-gaap--RedeemableConvertiblePreferredStockMember_fKio___zg6D8KwBKhsl" title="Balance, shares" style="text-align: right"><ix:nonFraction name="us-gaap:SharesOutstanding" contextRef="AsOf2020-12-31_us-gaap_PreferredStockMember_us-gaap_RedeemableConvertiblePreferredStockMember" id="Fact000393" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">18,881,400</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" contextRef="AsOf2020-12-31_us-gaap_PreferredStockMember_us-gaap_RedeemableConvertiblePreferredStockMember" id="Fact000386" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">21,878</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_986_eus-gaap--SharesOutstanding_iS_pid_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zfR5d17fCFK" title="Balance, shares" style="text-align: right"><ix:nonFraction name="us-gaap:SharesOutstanding" contextRef="AsOf2020-12-31_us-gaap_CommonStockMember" id="Fact000395" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">349,736</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0387">-</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0388">-</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0389">-</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" contextRef="AsOf2020-12-31_us-gaap_RetainedEarningsMember" id="Fact000390" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">23,020</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" contextRef="AsOf2020-12-31" id="Fact000391" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">23,020</ix:nonFraction></td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
    <td style="font-weight: bold; text-align: left">CHANGES IN 2021:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_40D_eus-gaap--StockIssuedDuringPeriodValueConversionOfConvertibleSecurities_zNZAUyU1Nla7" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>Conversion of preferred shares into ordinary shares</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_98D_eus-gaap--StockIssuedDuringPeriodSharesConversionOfConvertibleSecurities_pid_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--PreferredStockMember__us-gaap--StatementClassOfStockAxis__us-gaap--RedeemableConvertiblePreferredStockMember_fKio___zUfwwohDBOIh" title="Conversion of preferred shares into ordinary shares, shares" style="text-align: right">(<ix:nonFraction name="us-gaap:StockIssuedDuringPeriodSharesConversionOfConvertibleSecurities" contextRef="From2021-01-012021-12-31_us-gaap_PreferredStockMember_us-gaap_RedeemableConvertiblePreferredStockMember" id="Fact000404" format="ixt:numdotdecimal" decimals="INF" sign="-" unitRef="Shares">18,881,400</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction name="us-gaap:StockIssuedDuringPeriodValueConversionOfConvertibleSecurities" contextRef="From2021-01-012021-12-31_us-gaap_PreferredStockMember_us-gaap_RedeemableConvertiblePreferredStockMember" id="Fact000397" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">21,878</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_98E_eus-gaap--StockIssuedDuringPeriodSharesConversionOfConvertibleSecurities_pid_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zRPkaI6NFZuc" title="Conversion of preferred shares into ordinary shares, shares" style="text-align: right"><ix:nonFraction name="us-gaap:StockIssuedDuringPeriodSharesConversionOfConvertibleSecurities" contextRef="From2021-01-012021-12-31_us-gaap_CommonStockMember" id="Fact000406" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">1,650,875</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 9pt"><span style="-sec-ix-hidden: xdx2ixbrl0398">-</span></span><span id="xdx_F2E_zGSFidQLHzR8" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(*)</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:StockIssuedDuringPeriodValueConversionOfConvertibleSecurities" contextRef="From2021-01-012021-12-31_us-gaap_AdditionalPaidInCapitalMember" id="Fact000399" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">21,878</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0400">-</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0401">-</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:StockIssuedDuringPeriodValueConversionOfConvertibleSecurities" contextRef="From2021-01-012021-12-31" id="Fact000402" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">21,878</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_402_eus-gaap--StockIssuedDuringPeriodValueNewIssues_zDe9i9tGHaub" style="vertical-align: bottom; background-color: White">
    <td style="text-align: left">Initial Public Offering of shares and warrants, net of issuance costs of $<span id="xdx_904_eus-gaap--PaymentsOfStockIssuanceCosts_c20210101__20211231__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--IPOMember_z4C6vhyMg01b" title="Net of issuance costs"><ix:nonFraction name="us-gaap:PaymentsOfStockIssuanceCosts" contextRef="From2021-01-012021-12-31_us-gaap_IPOMember" id="Fact000415" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">600</ix:nonFraction></span></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0408">-</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_982_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_pid_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zCi0BooRsAlg" title="Initial Public Offering of shares and warrants, net of issuance costs of $600, shares" style="text-align: right"><ix:nonFraction name="us-gaap:StockIssuedDuringPeriodSharesNewIssues" contextRef="From2021-01-012021-12-31_us-gaap_CommonStockMember" id="Fact000417" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">295,125</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:StockIssuedDuringPeriodValueNewIssues" contextRef="From2021-01-012021-12-31_us-gaap_CommonStockMember" id="Fact000409" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">2</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:StockIssuedDuringPeriodValueNewIssues" contextRef="From2021-01-012021-12-31_us-gaap_AdditionalPaidInCapitalMember" id="Fact000410" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">7,643</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0411">-</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0412">-</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:StockIssuedDuringPeriodValueNewIssues" contextRef="From2021-01-012021-12-31" id="Fact000413" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">7,645</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_402_eus-gaap--AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue_zsblxwPkOs06" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Share-based compensation</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0419">-</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0420">-</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue" contextRef="From2021-01-012021-12-31_us-gaap_AdditionalPaidInCapitalMember" id="Fact000421" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">346</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0422">-</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0423">-</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue" contextRef="From2021-01-012021-12-31" id="Fact000424" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">346</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_40D_eus-gaap--NetIncomeLoss_zs2goIfrBwe1" style="vertical-align: bottom; background-color: White">
    <td style="text-align: left">Net loss</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0426">-</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0427">-</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0428">-</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0429">-</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction name="us-gaap:NetIncomeLoss" contextRef="From2021-01-012021-12-31_us-gaap_RetainedEarningsMember" id="Fact000430" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">4,581</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction name="us-gaap:NetIncomeLoss" contextRef="From2021-01-012021-12-31" id="Fact000431" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">4,581</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr id="xdx_40F_eus-gaap--OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent_zgwP9LLdnLhh" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt">Other comprehensive income</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0433">-</span></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0434">-</span></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0435">-</span></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent" contextRef="From2021-01-012021-12-31_us-gaap_AccumulatedOtherComprehensiveIncomeMember" id="Fact000436" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">370</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0437">-</span></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent" contextRef="From2021-01-012021-12-31" id="Fact000438" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">370</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr id="xdx_437_c20210101__20211231_eus-gaap--StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest_iE_zBiVMoFsGz8l" style="vertical-align: bottom; background-color: White">
    <td style="font-weight: bold; padding-bottom: 2.5pt">BALANCE AS OF DECEMBER 31, 2021</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td id="xdx_98A_eus-gaap--SharesOutstanding_iE_pid_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--PreferredStockMember__us-gaap--StatementClassOfStockAxis__us-gaap--RedeemableConvertiblePreferredStockMember_fKio___zuFMPZgmNkU4" title="Balance, shares" style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0447">-</span></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0440">-</span></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&#160;</td><td id="xdx_982_eus-gaap--SharesOutstanding_iE_pid_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_fKio___z4ShcqttWg1" title="Balance, shares" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><ix:nonFraction name="us-gaap:SharesOutstanding" contextRef="AsOf2021-12-31_us-gaap_CommonStockMember" id="Fact000449" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">2,295,736</ix:nonFraction></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><ix:nonFraction name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" contextRef="AsOf2021-12-31_us-gaap_CommonStockMember" id="Fact000441" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">2</ix:nonFraction></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><ix:nonFraction name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" contextRef="AsOf2021-12-31_us-gaap_AdditionalPaidInCapitalMember" id="Fact000442" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">29,867</ix:nonFraction></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><ix:nonFraction name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" contextRef="AsOf2021-12-31_us-gaap_AccumulatedOtherComprehensiveIncomeMember" id="Fact000443" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">370</ix:nonFraction></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(<ix:nonFraction name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" contextRef="AsOf2021-12-31_us-gaap_RetainedEarningsMember" id="Fact000444" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">27,601</ix:nonFraction></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><ix:nonFraction name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" contextRef="AsOf2021-12-31" id="Fact000445" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">2,638</ix:nonFraction></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td></tr>
  <tr id="xdx_43D_c20210101__20211231_eus-gaap--StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest_iE_z1zh9uKx0289" style="display: none; vertical-align: bottom; background-color: White">
    <td style="font-weight: bold; padding-bottom: 2.5pt"> Balance</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td id="xdx_984_eus-gaap--SharesOutstanding_iE_pid_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--PreferredStockMember__us-gaap--StatementClassOfStockAxis__us-gaap--RedeemableConvertiblePreferredStockMember_fKio___z6seJZFVVyNg" title="Balance, shares" style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0458">-</span></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0451">-</span></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&#160;</td><td id="xdx_980_eus-gaap--SharesOutstanding_iE_pid_c20210101__20211231__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_fKio___zNY81mXeuLl1" title="Balance, shares" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><ix:nonFraction name="us-gaap:SharesOutstanding" contextRef="AsOf2021-12-31_us-gaap_CommonStockMember" id="Fact000460" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">2,295,736</ix:nonFraction></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><ix:nonFraction name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" contextRef="AsOf2021-12-31_us-gaap_CommonStockMember" id="Fact000452" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">2</ix:nonFraction></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><ix:nonFraction name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" contextRef="AsOf2021-12-31_us-gaap_AdditionalPaidInCapitalMember" id="Fact000453" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">29,867</ix:nonFraction></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><ix:nonFraction name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" contextRef="AsOf2021-12-31_us-gaap_AccumulatedOtherComprehensiveIncomeMember" id="Fact000454" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">370</ix:nonFraction></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(<ix:nonFraction name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" contextRef="AsOf2021-12-31_us-gaap_RetainedEarningsMember" id="Fact000455" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">27,601</ix:nonFraction></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><ix:nonFraction name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" contextRef="AsOf2021-12-31" id="Fact000456" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">2,638</ix:nonFraction></td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td></tr>
</table>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 15pt; text-align: right"><span id="xdx_F0D_zzkWR2V0IO72" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(*)</span></td><td style="text-align: justify"><span id="xdx_F1A_zguwyrU9cX99" style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:footnote id="Footnote000461" xml:lang="en-US">Represents less
than $1 thousand</ix:footnote></span></td>
</tr></table>


<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 15pt; text-align: right"><span id="xdx_F03_zylhOXwMaMG5" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(**)</span></td><td style="text-align: justify"><span id="xdx_F1B_z1JzMBSg3Fc5" style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:footnote id="Footnote000462" xml:lang="en-US">Adjusted to reflect
reverse stock split, see Note 11</ix:footnote></span></td>
</tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>The
accompanying notes are an integral part of the consolidated financial statements.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 136; Value: 1 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->7<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>ZOOZ
POWER LTD.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="zoo_006"></span>CONSOLIDATED
STATEMENTS OF CASH FLOWS</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" id="xdx_30F_112_pn3n3_zRVpWPTaFnF5" summary="xdx: Statement - Consolidated Statements of Cash Flows" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_495_20230101__20231231_zqLd6jg8GcQb" style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_497_20220101__20221231_zfE2WLdliWWk" style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_49B_20210101__20211231_ztxn1LqpDgMd" style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
<tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Year ended December 31</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">U.S. dollars in thousands</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr id="xdx_405_eus-gaap--NetCashProvidedByUsedInOperatingActivitiesAbstract_iB_ziRZeKFJlEr3" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left">CASH FLOWS FROM OPERATING ACTIVITIES:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_409_eus-gaap--NetIncomeLoss_i01_maNCPBUzLE0_ziYfax5rIFgg" style="vertical-align: bottom; background-color: White">
    <td style="width: 46%; text-align: left">Net loss</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 14%; text-align: right">(<ix:nonFraction name="us-gaap:NetIncomeLoss" contextRef="From2023-01-01to2023-12-31" id="Fact000468" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">11,755</ix:nonFraction></td><td style="width: 1%; text-align: left">)</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 14%; text-align: right">(<ix:nonFraction name="us-gaap:NetIncomeLoss" contextRef="From2022-01-012022-12-31" id="Fact000469" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">7,825</ix:nonFraction></td><td style="width: 1%; text-align: left">)</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 14%; text-align: right">(<ix:nonFraction name="us-gaap:NetIncomeLoss" contextRef="From2021-01-012021-12-31" id="Fact000470" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">4,581</ix:nonFraction></td><td style="width: 1%; text-align: left">)</td></tr>
  <tr id="xdx_408_eus-gaap--AdjustmentsNoncashItemsToReconcileNetIncomeLossToCashProvidedByUsedInOperatingActivitiesAbstract_i01B_ztEBMw2rspl" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Adjustments to reconcile net loss to net cash used in operating activities:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_401_eus-gaap--Depreciation_i02_maNCPBUzLE0_zmm8m1EKAxGd" style="vertical-align: bottom; background-color: White">
    <td>Depreciation</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:Depreciation" contextRef="From2023-01-01to2023-12-31" id="Fact000476" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">239</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:Depreciation" contextRef="From2022-01-012022-12-31" id="Fact000477" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">131</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:Depreciation" contextRef="From2021-01-012021-12-31" id="Fact000478" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">44</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_407_eus-gaap--NoninterestIncome_i02N_di_msNCPBUzLE0_zYPaPNmpIL4g" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Non-cash finance expenses (income), net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction name="us-gaap:NoninterestIncome" contextRef="From2023-01-01to2023-12-31" id="Fact000480" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">206</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-indent: 10pt; text-align: right">(<ix:nonFraction name="us-gaap:NoninterestIncome" contextRef="From2022-01-012022-12-31" id="Fact000481" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">279</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:NoninterestIncome" contextRef="From2021-01-012021-12-31" id="Fact000482" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">34</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_40F_ecustom--IncreaseDecreaseInOperatingLeaseAssetsAndLiabilities_i02N_di_msNCPBUzLE0_zo0Or25qltPe" style="vertical-align: bottom; background-color: White">
    <td style="text-align: left">Net changes in operating lease assets and liabilities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction name="ZOOZ:IncreaseDecreaseInOperatingLeaseAssetsAndLiabilities" contextRef="From2023-01-01to2023-12-31" id="Fact000484" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">148</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="ZOOZ:IncreaseDecreaseInOperatingLeaseAssetsAndLiabilities" contextRef="From2022-01-012022-12-31" id="Fact000485" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">119</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction name="ZOOZ:IncreaseDecreaseInOperatingLeaseAssetsAndLiabilities" contextRef="From2021-01-012021-12-31" id="Fact000486" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">3</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr id="xdx_402_eus-gaap--GainLossOnDispositionOfAssets_i02N_di_msNCPBUzLE0_zw38eliDAiCh" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Gain from disposal of assets</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0488">-</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction name="us-gaap:GainLossOnDispositionOfAssets" contextRef="From2022-01-012022-12-31" id="Fact000489" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">16</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0490">-</span></td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_40B_eus-gaap--ShareBasedCompensation_i02_maNCPBUzLE0_zZPYKfdbZhX4" style="vertical-align: bottom; background-color: White">
    <td style="text-align: left">Share-based compensation</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction name="us-gaap:ShareBasedCompensation" contextRef="From2023-01-01to2023-12-31" id="Fact000492" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">219</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction name="us-gaap:ShareBasedCompensation" contextRef="From2022-01-012022-12-31" id="Fact000493" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">1,751</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction name="us-gaap:ShareBasedCompensation" contextRef="From2021-01-012021-12-31" id="Fact000494" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">1,315</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr id="xdx_401_eus-gaap--IncreaseDecreaseInOperatingCapitalAbstract_i02B_zgEN1rHn98E4" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Changes in operating assets and liabilities:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_40E_eus-gaap--IncreaseDecreaseInAccountsReceivable_i03N_di_msNCPBUzLE0_zd1LDkoULYi7" style="vertical-align: bottom; background-color: White">
    <td style="text-align: left">Trade receivables</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0500">-</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0501">-</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:IncreaseDecreaseInAccountsReceivable" contextRef="From2021-01-012021-12-31" id="Fact000502" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">36</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_40E_eus-gaap--IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets_i03N_di_msNCPBUzLE0_zSRGqFUDktdb" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Prepaid expenses and other current assets</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction name="us-gaap:IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets" contextRef="From2023-01-01to2023-12-31" id="Fact000504" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">163</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction name="us-gaap:IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets" contextRef="From2022-01-012022-12-31" id="Fact000505" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">74</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction name="us-gaap:IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets" contextRef="From2021-01-012021-12-31" id="Fact000506" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">132</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr id="xdx_405_eus-gaap--IncreaseDecreaseInInventories_i03N_di_msNCPBUzLE0_z60qFhT4jps9" style="vertical-align: bottom; background-color: White">
    <td>Inventory</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction name="us-gaap:IncreaseDecreaseInInventories" contextRef="From2023-01-01to2023-12-31" id="Fact000508" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">1,117</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction name="us-gaap:IncreaseDecreaseInInventories" contextRef="From2022-01-012022-12-31" id="Fact000509" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">1,405</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction name="us-gaap:IncreaseDecreaseInInventories" contextRef="From2021-01-012021-12-31" id="Fact000510" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">462</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr id="xdx_40F_eus-gaap--IncreaseDecreaseInOtherAccountsPayable_i03_maNCPBUzLE0_zlTJxzSg2WL4" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Accounts payable</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:IncreaseDecreaseInOtherAccountsPayable" contextRef="From2023-01-01to2023-12-31" id="Fact000512" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">64</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:IncreaseDecreaseInOtherAccountsPayable" contextRef="From2022-01-012022-12-31" id="Fact000513" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">10</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction name="us-gaap:IncreaseDecreaseInOtherAccountsPayable" contextRef="From2021-01-012021-12-31" id="Fact000514" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">28</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr id="xdx_409_eus-gaap--IncreaseDecreaseInAccountsPayableAndOtherOperatingLiabilities_i03_maNCPBUzLE0_zNrUPtIwVaW7" style="vertical-align: bottom; background-color: White">
    <td style="text-align: left">Other payables and accrued expenses</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:IncreaseDecreaseInAccountsPayableAndOtherOperatingLiabilities" contextRef="From2023-01-01to2023-12-31" id="Fact000516" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">1,028</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:IncreaseDecreaseInAccountsPayableAndOtherOperatingLiabilities" contextRef="From2022-01-012022-12-31" id="Fact000517" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">51</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:IncreaseDecreaseInAccountsPayableAndOtherOperatingLiabilities" contextRef="From2021-01-012021-12-31" id="Fact000518" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">244</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_40E_eus-gaap--IncreaseDecreaseInEmployeeRelatedLiabilities_i03_maNCPBUzLE0_zci1KDZOmFS3" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt">Short term employee benefits</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:IncreaseDecreaseInEmployeeRelatedLiabilities" contextRef="From2023-01-01to2023-12-31" id="Fact000520" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">45</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:IncreaseDecreaseInEmployeeRelatedLiabilities" contextRef="From2022-01-012022-12-31" id="Fact000521" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">492</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:IncreaseDecreaseInEmployeeRelatedLiabilities" contextRef="From2021-01-012021-12-31" id="Fact000522" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">78</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr id="xdx_402_eus-gaap--NetCashProvidedByUsedInOperatingActivities_i03T_mtNCPBUzLE0_maCCERCzJEz_zJk1qt7YqO3" style="vertical-align: bottom; background-color: White">
    <td style="text-align: left; padding-bottom: 1.5pt">Net cash used in operating activities</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction name="us-gaap:NetCashProvidedByUsedInOperatingActivities" contextRef="From2023-01-01to2023-12-31" id="Fact000524" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">12,232</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction name="us-gaap:NetCashProvidedByUsedInOperatingActivities" contextRef="From2022-01-012022-12-31" id="Fact000525" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">10,547</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction name="us-gaap:NetCashProvidedByUsedInOperatingActivities" contextRef="From2021-01-012021-12-31" id="Fact000526" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">6,085</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_405_eus-gaap--NetCashProvidedByUsedInInvestingActivitiesAbstract_iB_zkAsKLIJY9v5" style="vertical-align: bottom; background-color: White">
    <td style="font-weight: bold; text-align: left">CASH FLOWS FROM INVESTING ACTIVITIES:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_405_eus-gaap--PaymentsToAcquirePropertyPlantAndEquipment_i01N_di_msNCPBUzB0q_zNmJWYYFzOJd" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Purchase of property and equipment</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction name="us-gaap:PaymentsToAcquirePropertyPlantAndEquipment" contextRef="From2023-01-01to2023-12-31" id="Fact000532" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">1,365</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction name="us-gaap:PaymentsToAcquirePropertyPlantAndEquipment" contextRef="From2022-01-012022-12-31" id="Fact000533" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">500</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction name="us-gaap:PaymentsToAcquirePropertyPlantAndEquipment" contextRef="From2021-01-012021-12-31" id="Fact000534" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">298</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr id="xdx_406_eus-gaap--ProceedsFromSaleOfPropertyPlantAndEquipment_i01_maNCPBUzB0q_zplLyFFcdmwi" style="vertical-align: bottom; background-color: White">
    <td style="text-align: left">Grants received for property and equipment</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:ProceedsFromSaleOfPropertyPlantAndEquipment" contextRef="From2023-01-01to2023-12-31" id="Fact000536" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">250</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0537">-</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0538">-</span></td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_40E_ecustom--ProceedsFromLongTermRestrictedDeposits_i01_maNCPBUzB0q_zeiO4GjB3bXl" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt">Long term restricted deposits</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction name="ZOOZ:ProceedsFromLongTermRestrictedDeposits" contextRef="From2023-01-01to2023-12-31" id="Fact000540" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">224</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0541">-</span></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0542">-</span></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr id="xdx_40D_eus-gaap--NetCashProvidedByUsedInInvestingActivities_i01T_mtNCPBUzB0q_maCCERCzJEz_zspGlOv47Sog" style="vertical-align: bottom; background-color: White">
    <td style="text-align: left; padding-bottom: 1.5pt">Net cash used in investing activities</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction name="us-gaap:NetCashProvidedByUsedInInvestingActivities" contextRef="From2023-01-01to2023-12-31" id="Fact000544" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">1,339</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction name="us-gaap:NetCashProvidedByUsedInInvestingActivities" contextRef="From2022-01-012022-12-31" id="Fact000545" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">500</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction name="us-gaap:NetCashProvidedByUsedInInvestingActivities" contextRef="From2021-01-012021-12-31" id="Fact000546" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">298</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_40B_eus-gaap--NetCashProvidedByUsedInFinancingActivitiesAbstract_iB_z1Kv3DEZFqMf" style="vertical-align: bottom; background-color: White">
    <td style="font-weight: bold; text-align: left">CASH FLOWS FROM FINANCING ACTIVITIES:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_401_ecustom--ProceedsFromIssuanceOfSharesAndWarrants_i01_maNCPBUzGSg_zIu13Vhv72C7" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt">Proceeds from issuance of shares and warrants, net of issuance costs</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0552">-</span></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="ZOOZ:ProceedsFromIssuanceOfSharesAndWarrants" contextRef="From2022-01-012022-12-31" id="Fact000553" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">27,870</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="ZOOZ:ProceedsFromIssuanceOfSharesAndWarrants" contextRef="From2021-01-012021-12-31" id="Fact000554" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">7,645</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr id="xdx_403_eus-gaap--NetCashProvidedByUsedInFinancingActivities_i01T_mtNCPBUzGSg_maCCERCzJEz_zEJ2juTzHz9" style="vertical-align: bottom; background-color: White">
    <td style="text-align: left; padding-bottom: 1.5pt">Net cash provided by financing activities</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0556">-</span></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:NetCashProvidedByUsedInFinancingActivities" contextRef="From2022-01-012022-12-31" id="Fact000557" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">27,870</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:NetCashProvidedByUsedInFinancingActivities" contextRef="From2021-01-012021-12-31" id="Fact000558" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">7,645</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_401_eus-gaap--EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations_maCCERCzJEz_zR11S9AfjPJ4" style="vertical-align: bottom; background-color: White">
    <td style="text-align: left">Effect of change in exchange on cash balances held in foreign currencies</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction name="us-gaap:EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations" contextRef="From2023-01-01to2023-12-31" id="Fact000560" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">550</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction name="us-gaap:EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations" contextRef="From2022-01-012022-12-31" id="Fact000561" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">1,906</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations" contextRef="From2021-01-012021-12-31" id="Fact000562" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">428</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_400_eus-gaap--CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect_iT_mtCCERCzJEz_zQsSLyLDiIXc" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Net change in cash and restricted cash equivalent</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect" contextRef="From2023-01-01to2023-12-31" id="Fact000564" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">14,121</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect" contextRef="From2022-01-012022-12-31" id="Fact000565" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">14,917</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect" contextRef="From2021-01-012021-12-31" id="Fact000566" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">1,690</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_402_eus-gaap--CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations_iS_zyGTpxJkPWs1" style="vertical-align: bottom; background-color: White">
    <td style="text-align: left; padding-bottom: 1.5pt">Cash and restricted cash equivalent at beginning of year</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations" contextRef="AsOf2022-12-31" id="Fact000568" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">20,793</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations" contextRef="AsOf2021-12-31" id="Fact000569" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">5,876</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations" contextRef="AsOf2020-12-31" id="Fact000570" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">4,186</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr id="xdx_40C_eus-gaap--CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations_iE_zdqIWHSUuKo9" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 2.5pt">Cash and restricted cash equivalent at end of year</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations" contextRef="AsOf2023-12-31" id="Fact000572" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">6,672</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations" contextRef="AsOf2022-12-31" id="Fact000573" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">20,793</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations" contextRef="AsOf2021-12-31" id="Fact000574" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">5,876</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_409_eus-gaap--SupplementalCashFlowInformationAbstract_iB_z4mYsL0Ca1V3" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-decoration: underline; font-weight: bold; text-align: left">Supplemental disclosure of cash flow information</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td style="font-weight: bold; text-align: left">Non-cash activity:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_403_eus-gaap--RightOfUseAssetObtainedInExchangeForFinanceLeaseLiability_i01_zGWOGey2oh9f" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 2.5pt">Lease liabilities arising from obtaining right-of-use assets</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:RightOfUseAssetObtainedInExchangeForFinanceLeaseLiability" contextRef="From2023-01-01to2023-12-31" id="Fact000580" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">55</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:RightOfUseAssetObtainedInExchangeForFinanceLeaseLiability" contextRef="From2022-01-012022-12-31" id="Fact000581" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">319</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:RightOfUseAssetObtainedInExchangeForFinanceLeaseLiability" contextRef="From2021-01-012021-12-31" id="Fact000582" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">1,496</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td></tr>
  <tr id="xdx_403_ecustom--PurchaseOfEquipment_i01_zxqPYV7YaCd3" style="vertical-align: bottom; background-color: White">
    <td style="padding-bottom: 2.5pt">Purchase of equipment</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0584">-</span></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0585">-</span></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="ZOOZ:PurchaseOfEquipment" contextRef="From2021-01-012021-12-31" id="Fact000586" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">196</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td></tr>
  <tr id="xdx_401_ecustom--ReclassificationOfInventoryToPropertyAndEquipment_i01_zc99lgEJ3GOk" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 2.5pt">Reclassification of inventory to property and equipment</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="ZOOZ:ReclassificationOfInventoryToPropertyAndEquipment" contextRef="From2023-01-01to2023-12-31" id="Fact000588" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">195</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0589">-</span></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0590">-</span></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td></tr>
  <tr id="xdx_406_eus-gaap--ConversionOfStockAmountConverted1_i01_zDogXqgyInw3" style="vertical-align: bottom; background-color: White">
    <td style="padding-bottom: 2.5pt">Conversion of preferred shares into ordinary shares</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0592">-</span></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0593">-</span></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:ConversionOfStockAmountConverted1" contextRef="From2021-01-012021-12-31" id="Fact000594" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">21,878</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td></tr>
  </table>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>The
accompanying notes are an integral part of the consolidated financial statements.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center">&#160;</p>


<!-- Field: Page; Sequence: 137; Value: 1 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->8<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>ZOOZ
POWER LTD.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="zoo_007"></span>NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<ix:nonNumeric contextRef="From2023-01-01to2023-12-31" escape="true" id="Fact000596" name="us-gaap:OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock"><p id="xdx_809_eus-gaap--OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock_z1WNuMc6gh82" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase"><b>Note
1 - <span id="xdx_82B_zUt4T71ZcxUf">GENERAL</span>:</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ZOOZ
Power Ltd. (hereinafter - &#8220;the Company&#8221;), an Israeli company, was incorporated and commenced operations in Israel on February
5, 2013. The offices of the Company are located at 4 Hamelacha St., Lod, Israel. The Company operates as <span id="xdx_909_eus-gaap--NumberOfOperatingSegments_uInteger_c20130204__20130205_zLVjM53hZ3re" title="Number of operating segments">one</span> operating segment and is
engaged in developing, manufacturing, marketing and selling of Energy Storage Solutions, for electric vehicles. The system is based on
kinetic storage using flywheels.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
March 2021, the Company completed an initial public offering of shares and marketable warrants on the Tel Aviv Stock Exchange and became
a public company and started trading on that day. In March 2022, the Company completed a public offering of shares and warrants. For
more information see note 11.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
June 2023, the Company established a subsidiary in the Cayman Islands, ZOOZ Power Cayman (hereinafter - &#8220;the subsidiary&#8221;).
The subsidiary is wholly owned by the Company. The subsidiary did not operate during 2023.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
July 30, 2023, the Company entered into a business combination agreement with Keyarch Acquisition Corporation, a public company incorporated
in the Cayman Islands, then traded on the Nasdaq Global Market, which was issued as a Special Purpose Acquisition Company (SPAC) and
additional related agreements, according to which a reverse triangular merger take effect, in which the Company recently established
a subsidiary registered in the Cayman Islands with which the SPAC company will merge, such that the SPAC has become a private company
fully owned (<span id="xdx_909_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_pid_dp_uPure_c20230730__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--KeyarchAcquisitionCorporationMember_z8BMJ0LfyrYd" title="Equity method investment ownership percentage"><ix:nonFraction name="us-gaap:EquityMethodInvestmentOwnershipPercentage" contextRef="AsOf2023-07-30_custom_KeyarchAcquisitionCorporationMember" id="Fact000600" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">100</ix:nonFraction></span>%) by the Company, against the allocation of shares and tradable warrants of the Company to the shareholders and holders
of the SPAC&#8217;s tradable warrants.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_909_eus-gaap--BusinessCombinationContingentConsiderationArrangementsDescription_c20230101__20231231__us-gaap--TypeOfArrangementAxis__custom--BusinessCombinationAgreementMember__us-gaap--BusinessAcquisitionAxis__custom--KeyarchAcquisitionCorporationMember_zEj0OxyFe9Xk" title="Business combination contingent consideration arrangements description"><ix:nonNumeric contextRef="From2023-01-012023-12-31_custom_BusinessCombinationAgreementMember_custom_KeyarchAcquisitionCorporationMember" id="Fact000602" name="us-gaap:BusinessCombinationContingentConsiderationArrangementsDescription">The
Company&#8217;s shareholders prior to the closing are entitled to additional contingent consideration of up to 4 million ordinary shares
upon the Company&#8217;s achievement of the applicable earnout milestones (hereinafter - &#8220;the Earnout Rights&#8221;) (based on
share price) as set forth in the Business Combination Agreement, in the form of non-tradable, non-assignable rights, that were issued
by the Company pro rata to the Pre-Closing company Shareholders on April 4, 2024. The Earnout Rights may be converted into ZOOZ ordinary
shares within 5 years from the lapse of the first quarter following the Closing Upon meeting the applicable milestones.</ix:nonNumeric></span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
February 9, 2024, Keyarch and the Company entered into subscription agreements with certain investors (hereinafter - &#8220;subscription
agreements&#8221;). Under the terms of the Subscription Agreements, the PIPE Investors agreed to subscribe for and purchase, an aggregate
of <span id="xdx_905_eus-gaap--StockRepurchasedDuringPeriodShares_c20240208__20240209__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--TypeOfArrangementAxis__custom--SUbscriptionAgreementsMember_zKGhQACJfdib" title="Number of purchase of shares"><ix:nonFraction name="us-gaap:StockRepurchasedDuringPeriodShares" contextRef="From2024-02-082024-02-09_us-gaap_SubsequentEventMember_custom_SubscriptionAgreementsMember" id="Fact000604" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">1,300,000</ix:nonFraction></span> Keyarch Class A ordinary shares for a purchase price of $<span id="xdx_90E_eus-gaap--SharePrice_iI_pid_c20240209__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--TypeOfArrangementAxis__custom--SubscriptionAgreementsMember_zKDBLmQ7fpE4" title="Share price"><ix:nonFraction name="us-gaap:SharePrice" contextRef="AsOf2024-02-09_us-gaap_SubsequentEventMember_custom_SubscriptionAgreementsMember" id="Fact000606" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">10.00</ix:nonFraction></span> per share, for gross proceeds of $<span id="xdx_90D_eus-gaap--StockRepurchasedDuringPeriodValue_c20240208__20240209__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--TypeOfArrangementAxis__custom--SUbscriptionAgreementsMember_z666dJJyl74i" title="Gross proceeds from purchase of shares"><ix:nonFraction name="us-gaap:StockRepurchasedDuringPeriodValue" contextRef="From2024-02-082024-02-09_us-gaap_SubsequentEventMember_custom_SubscriptionAgreementsMember" id="Fact000608" format="ixt:numdotdecimal" decimals="0" unitRef="USD">13,000,000</ix:nonFraction></span>. In addition,
pursuant to the Subscription Agreement, the Company agreed to register the Subscription Shares and granted customary resale registration
rights to PIPE Investors.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
March 21, 2024, <span id="xdx_903_eus-gaap--StockholdersEquityReverseStockSplit_c20240320__20240321__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zoRX5z4r8tE4" title="Stockholders equity reverse stock split"><ix:nonNumeric contextRef="From2024-03-202024-03-21_us-gaap_SubsequentEventMember" id="Fact000610" name="us-gaap:StockholdersEquityReverseStockSplit">the extraordinary general meeting of the Company&#8217;s shareholders approved a reverse share split of the Company&#8217;s
ordinary Shares, effective as of March 25, 2024, at a conversion ratio of 11.43720665</ix:nonNumeric></span>.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company accounted for the Reverse Stock Splits on a retroactive basis pursuant to ASC 260. As a result, all common stock, warrants,
and options outstanding and exercisable for common stock, exercise prices and loss per share amounts have been adjusted, on a retroactive
basis, for all periods presented in these financial statements and the applicable disclosures, to reflect such Reverse Stock Split.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
closing of the Merger and the Transactions took place on April 4, 2024. At the Effective Time, and upon the terms and subject to the
conditions of the Business Combination Agreement, and in accordance with the Cayman Act, Keyarch and Merger Sub consummated the
Merger, pursuant to which Merger Sub was merged with and into Keyarch, with Keyarch being the surviving company, following which the
separate corporate existence of Merger Sub ceased and Keyarch continued as the surviving company Pursuant to the Closing, Keyarch
became a direct, wholly-owned subsidiary of the Company. As part of the merger $<span id="xdx_90E_eus-gaap--PaymentsToAcquireBusinessesGross_pn6n6_c20240403__20240404__us-gaap--TypeOfArrangementAxis__custom--BusinessCombinationAgreementMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zAjhnIAunbil" title="Net amount invested in merger"><ix:nonFraction name="us-gaap:PaymentsToAcquireBusinessesGross" contextRef="From2024-04-032024-04-04_custom_BusinessCombinationAgreementMember_us-gaap_SubsequentEventMember" id="Fact000612" format="ixt:numdotdecimal" decimals="-6" scale="6" unitRef="USD">10</ix:nonFraction>
million</span> net was invested in the company.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify">&#160;</p>


<ix:exclude><!-- Field: Page; Sequence: 138; Value: 1 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->9<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page --></ix:exclude>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>ZOOZ
POWER LTD.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
connection to the Closing of the Business Combination, the Company&#8217;s ordinary shares and public warrants began trading on the Nasdaq
Capital Market under the ticker symbols &#8220;ZOOZ&#8221; and &#8220;ZOOZW&#8221;, respectively, on April 5, 2024, and became a dual
Company.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Following
the Issuance of Earnout rights in April 2024, the company&#8217;s options and warrants conversion ratio has been adjusted, so each option
or warrant will be exercisable to <span id="xdx_90B_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_c20240430__us-gaap--TypeOfArrangementAxis__custom--BusinessCombinationAgreementsMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zm0T22gwfq14" title="Exercise price of warrants"><ix:nonFraction name="us-gaap:ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1" contextRef="AsOf2024-04-30_custom_BusinessCombinationAgreementsMember_us-gaap_SubsequentEventMember" id="Fact000614" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">1.18961</ix:nonFraction></span> common share.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Current
impact of Swords of Iron War</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
October 7, 2023, following a surprise attack by the terrorist organization, Hamas, from the Gaza Strip, the Israeli government declared
the &#8220;Swords of Iron&#8221; War. Following the attack from the Gaza Strip, an attack was also launched towards northern Israel by
the terrorist organization, Hezbollah, from Lebanon and tensions in other sectors increased. As of the date of approval of the financial
statements, the security situation in both the southern sector and the northern sector remained tense, and the uncertainty regarding
the return to normalcy remains.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
part of dealing with the threats of a Swords of Iron War, the Israeli government ordered the evacuation of dozens of localities located
in the south of the country, around the Gaza Strip, and in the north of the country, along the border with Lebanon, and also imposed
restrictions on various gatherings, activities in workplaces and educational activities in accordance with the directives of the Home
Front Command. In addition, many citizens were called to reserve service for extended periods of time.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company&#8217;s factory is located in the city of Lod. The Company&#8217;s facilities were not damaged during the war. In accordance
with the guidelines of the National Emergency Authority, there is no denial of access or any restriction in the activity of the Company&#8217;s
facilities. As of the date of approval of the financial statements, the Company operates normally. As of the date of publication of the
financial statements, there is no material impact on the Company&#8217;s supply chain. However, if the security situation continues for
an extended period of time, the Company&#8217;s production capacity and even marketing and advertising activities outside of Israel may
be affected. At this stage, the Company cannot reasonably assess the consequences of the continuation of the Swords of Iron War on the
level of its activity and the results of this activity. These consequences depend, among other things, on the duration and scope of the
war, on its economic effects on the entire economy in Israel and on the ability to raise capital from foreign and local investors and
the industry in which the Company operates.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company continues regularly to monitor the development of events and considers the implications for its business activity and the measures
it will take accordingly.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Current
impact of the current financial markets and economic conditions</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify">&#160;</p>


<ix:exclude><!-- Field: Page; Sequence: 139; Value: 1 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->10<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page --></ix:exclude>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>ZOOZ
POWER LTD.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company&#8217;s business may materially be affected by conditions in the financial markets and economic conditions in the U.S. and Europe.
2022 was characterized by steep declines and significant volatility in global markets, driven by investor concerns over inflation, rising
interest rates, slowing economic growth and geopolitical uncertainty. Inflation across many key economies reached generational highs,
prompting central banks to take monetary policy tightening actions that are likely to create headwinds to economic growth. Continued
global supply chain disruption, including due to China&#8217;s recurrent restrictions and the ongoing war between Russia and Ukraine,
are also contributing to mounting inflationary pressure. In 2022, in the U.S., annual inflation rose to the highest level in over 40
years. Concurrently, Europe experienced high year-over-year inflation. In response to rising inflation, the Federal Reserve raised the
federal funds target range and the European Central Bank raised rates for the first time in 11 years. Both central banks reiterated expectations
for additional increases in the coming months. While several key economic factors, including employment, wage growth and household savings
have demonstrated resilience, the U.S. economic contraction in 2022 has opened a debate among economists as to whether the U.S. has entered,
or in the near term will enter, a recession.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Liquidity</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company has net losses for the years ended December 31, 2023, 2022 and 2021 in the amounts of $<span id="xdx_904_eus-gaap--NetIncomeLoss_iN_pn3n3_di_c20230101__20231231_zwb63rjBdI7b" title="Net loss"><ix:nonFraction name="us-gaap:NetIncomeLoss" contextRef="From2023-01-01to2023-12-31" id="Fact000616" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">11,755</ix:nonFraction></span> thousands $<span id="xdx_901_eus-gaap--NetIncomeLoss_iN_pn3n3_di_c20220101__20221231_zFEqvngTBodb" title="Net loss"><ix:nonFraction name="us-gaap:NetIncomeLoss" contextRef="From2022-01-012022-12-31" id="Fact000618" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">7,825</ix:nonFraction></span> thousands and
$<span id="xdx_90B_eus-gaap--NetIncomeLoss_iN_pn3n3_di_c20210101__20211231_zCxrfmdUMTLh" title="Net loss"><ix:nonFraction name="us-gaap:NetIncomeLoss" contextRef="From2021-01-012021-12-31" id="Fact000620" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">4,581</ix:nonFraction></span> thousands and negative cash flows from operating activities in the amounts of $<span id="xdx_90F_eus-gaap--NetCashProvidedByUsedInOperatingActivities_iN_pn3n3_di_c20230101__20231231_zo48BzF11Cs" title="Net cash provided by used in operating activities"><ix:nonFraction name="us-gaap:NetCashProvidedByUsedInOperatingActivities" contextRef="From2023-01-01to2023-12-31" id="Fact000622" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">12,232</ix:nonFraction></span> thousand $<span id="xdx_902_eus-gaap--NetCashProvidedByUsedInOperatingActivities_iN_pn3n3_di_c20220101__20221231_zczsPXUvWH0k" title="Net cash provided by used in operating activities"><ix:nonFraction name="us-gaap:NetCashProvidedByUsedInOperatingActivities" contextRef="From2022-01-012022-12-31" id="Fact000624" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">10,547</ix:nonFraction></span> thousand and $<span id="xdx_905_eus-gaap--NetCashProvidedByUsedInOperatingActivities_iN_pn3n3_di_c20210101__20211231_zBriU4kepdC" title="Net cash provided by used in operating activities"><ix:nonFraction name="us-gaap:NetCashProvidedByUsedInOperatingActivities" contextRef="From2021-01-012021-12-31" id="Fact000626" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">6,085</ix:nonFraction></span> thousand,
respectively.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company has historically financed its operations over the years by raising funds from investors. On April 4, 2024, the Company finalized
a merger deal with a SPAC. As part of the merger <span id="xdx_90B_eus-gaap--PaymentsToAcquireBusinessesGross_pn6n6_c20240403__20240404__us-gaap--TypeOfArrangementAxis__custom--BusinessCombinationAgreementMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zdKI85zKGVE9" title="Payment for merger"><ix:nonFraction name="us-gaap:PaymentsToAcquireBusinessesGross" contextRef="From2024-04-032024-04-04_custom_BusinessCombinationAgreementMember_us-gaap_SubsequentEventMember" id="Fact000628" format="ixt:numdotdecimal" decimals="-6" scale="6" unitRef="USD">10</ix:nonFraction></span> million USD net, was invested in the company (for details, see above). Since the
Company has just started commercial sales of its products and considering the Company&#8217;s expected cash usage, the Company&#8217;s
cash balance as of December 31, 2023, and as of the date of approval of the financial statements is not sufficient to continue the Company&#8217;s
operations for at least 12 months from the date of approval of the financial statements. These circumstances raise substantial doubt
about the Company&#8217;s ability to continue as a going concern.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
order to continue the Company&#8217;s operations, including research and development and sales and marketing, the Company is looking
to secure financing from various sources, including additional investment funding.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
financial statements do not include any adjustments that might result from the outcome of this uncertainty.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" escape="true" id="Fact000630" name="us-gaap:SignificantAccountingPoliciesTextBlock"><p id="xdx_800_eus-gaap--SignificantAccountingPoliciesTextBlock_zmeKO62HHhe5" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase"><b>Note
2 - <span id="xdx_82C_ztPyxMP7Usf3">SIGNIFICANT ACCOUNTING POLICIES</span>:</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: -42.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase">&#160;</span></p>

<ix:nonNumeric contextRef="From2023-01-01to2023-12-31" escape="true" id="Fact000632" name="us-gaap:BasisOfAccountingPolicyPolicyTextBlock"><p id="xdx_841_eus-gaap--BasisOfAccountingPolicyPolicyTextBlock_zwN1sg931833" style="font: 10pt Times New Roman, Times, Serif; text-indent: 0pt; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_865_zR0qI1i2uNt6">Basis
of presentation of financial statements</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
financial statements of the Company have been prepared in conformity with United States generally accepted accounting principles (U.S.
GAAP)</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" escape="true" id="Fact000634" name="us-gaap:UseOfEstimates"><p id="xdx_848_eus-gaap--UseOfEstimates_zBpRrIjqm5rf" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_867_z1dObz5h93F3">Use
of estimates in the preparation of financial statements</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the
amounts reported in the financial statements and accompanying notes. The Company&#8217;s management believes that the estimates, judgments,
and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions
can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial
statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates,
and such differences may have a material impact on the Company&#8217;s financial statements. As applicable to these financial statements,
the most significant estimates relate to inventory net realizable value and share-based compensation.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify">&#160;</p>


<ix:exclude><!-- Field: Page; Sequence: 140; Value: 1 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->11<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page --></ix:exclude>

<p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>ZOOZ
POWER LTD.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" escape="true" id="Fact000636" name="us-gaap:ForeignCurrencyTransactionsAndTranslationsPolicyTextBlock"><p id="xdx_843_eus-gaap--ForeignCurrencyTransactionsAndTranslationsPolicyTextBlock_zFlpQ0uJL4L9" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_864_zIGAMxJiWBTd">Functional
and Presentation Currency</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
currency of the primary economic environment in which the operations of the Company are conducted is the New Israeli Shekel (&#8220;NIS&#8221;).
Thus, the functional currency of the Company is the NIS. The Company&#8217;s presentation and reporting currency is the U.S dollar.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Balances
in non-NIS currencies are translated into NIS using historical and current exchange rates for non-monetary and monetary balances, respectively.
For non-NIS transactions and other items in the statements of operations (indicated below), the following exchange rates are used: (i)
for transactions - exchange rates at transaction dates; and (ii) for other items (derived from non-monetary balance sheet items such
as depreciation and amortization) - historical exchange rates. Currency transaction gains and losses are presented in finance income
or expenses, as appropriate.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
financial statements are translated into the reporting currency, the U.S dollar, using the current rate method - equity accounts are
translated using historical exchanges rates, while all other balance sheet accounts are translated using the exchanges rates in effect
at the balance sheet date. Statement of operations amounts have been translated using the average exchange rate for the year, unless
this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, The resulting
translation adjustments are reported as a component of shareholders&#8217; equity in accumulated other comprehensive income (loss). Exchange
rates of NIS to U.S dollar as of December 31, 2023 and 2022 are <span id="xdx_90D_eus-gaap--ForeignCurrencyExchangeRateTranslation1_iI_pid_c20231231_z6epx3jxQiic" title="Exchange rate"><ix:nonFraction name="us-gaap:ForeignCurrencyExchangeRateTranslation1" contextRef="AsOf2023-12-31" id="Fact000638" format="ixt:numdotdecimal" decimals="INF" unitRef="Pure">3.63</ix:nonFraction></span> and <span id="xdx_907_eus-gaap--ForeignCurrencyExchangeRateTranslation1_iI_pid_c20221231_zLpHz8xmIBTj" title="Exchange rate"><ix:nonFraction name="us-gaap:ForeignCurrencyExchangeRateTranslation1" contextRef="AsOf2022-12-31" id="Fact000640" format="ixt:numdotdecimal" decimals="INF" unitRef="Pure">3.52</ix:nonFraction></span>, respectively.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" escape="true" id="Fact000642" name="us-gaap:FairValueMeasurementPolicyPolicyTextBlock"><p id="xdx_84A_eus-gaap--FairValueMeasurementPolicyPolicyTextBlock_z207orobbWE3" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_86B_zwI2EwYtwmwi">Fair
Value Measurements</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Fair
value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. A hierarchy has been established for inputs used in measuring fair value that maximizes
the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Observable
inputs are inputs that are developed using market data, such as publicly available information about actual events or transactions, and
that reflect the assumptions that market participants would use when pricing the asset or liability. Unobservable inputs are inputs for
which market data are not available and that are developed using the best information available about the assumptions that market participants
would use when pricing the asset or liability.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
fair value hierarchy is categorized into three levels. Level 1 inputs are quoted prices (unadjusted) in active markets for identical
assets or liabilities that the reporting entity can access at the measurement date. Level 2 inputs include inputs other than quoted prices
included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable
inputs for the asset or liability.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level
1 inputs) and the lowest priority to unobservable inputs (Level 3 inputs). Categorization within the valuation hierarchy is based upon
the lowest level of input that is significant to the fair value measurement.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
carrying amounts of other current assets, account payables and other payables and accrued expenses approximate fair value because of
their generally short maturities.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify">&#160;</p>


<ix:exclude><!-- Field: Page; Sequence: 141; Value: 1 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->12<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page --></ix:exclude>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>ZOOZ
POWER LTD.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" escape="true" id="Fact000644" name="ZOOZ:RestrictedLongTermBankDepositsPolicyTextBlock"><p id="xdx_840_ecustom--RestrictedLongTermBankDepositsPolicyTextBlock_zeE3ocY736E4" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_868_zOt4zmVxfHW1">Restricted
long-term bank deposits</span></span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Restricted
long-term bank deposits are deposits with a maturity of more than one year. The bank deposits are used as a security for the Company&#8217;s
lease agreements. Long-term bank deposits are denominated in NIS. The interest on the Company&#8217;s deposits is insignificant. As of
December 31, 2023 and 2022, the Company had a lien on the Company&#8217;s bank deposits in respect of bank guarantees granted in order
to secure its lease agreements. The fair value of bank deposits approximates the carrying value since they bear interest at rates close
to the prevailing market rates.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" escape="true" id="Fact000646" name="us-gaap:ConcentrationRiskCreditRisk"><p id="xdx_843_eus-gaap--ConcentrationRiskCreditRisk_zoIgODqxqOxi" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_86E_zkNIbGvSZqR1">Concentration
of credit risks</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Financial
instruments that potentially subject the Company to concentrations of credit risk consist principally of cash, restricted long-term deposits
and other receivables.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">All
the Company&#8217;s cash and restricted long-term bank deposits are invested in banks within Israel. The Company is exposed to credit
risk in the event of default by the financial institutions to the extent of the amounts recorded on the accompanying balance sheets exceed
federally insured limits. The Company places its cash and deposits with financial institutions for which management believes there is
limited credit loss exposure with respect to the investments.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" escape="true" id="Fact000648" name="us-gaap:InventoryPolicyTextBlock"><p id="xdx_844_eus-gaap--InventoryPolicyTextBlock_zBBcSsmN3I0e" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_862_zI617DEryHUi">Inventory</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Inventory
consists of raw materials, work in process and finished products. Inventories are stated at the lower of cost or net realizable value.
Inventory write-offs are provided to cover risks arising from slow-moving and obsolescent items.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company periodically evaluates the quantities on hand relative to current and historical selling prices and historical and projected
sales volume. Once written-down, a new lower cost basis for that inventory is established . Cost of inventories is assigned as follows:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Raw
materials - at cost of purchase represents the first in, first out method.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Work
in process - on the basis of direct manufacturing costs with the addition of allocable indirect manufacturing costs.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Finished
products - based on average costs of materials, contracting and manufacturing costs.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" escape="true" id="Fact000650" name="us-gaap:PropertyPlantAndEquipmentPolicyTextBlock"><p id="xdx_849_eus-gaap--PropertyPlantAndEquipmentPolicyTextBlock_z91JcnyHcyKi" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_86C_zJbSKxIZvnl1">Property
and equipment</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<ix:nonNumeric contextRef="From2023-01-01to2023-12-31" escape="true" id="Fact000652" name="ZOOZ:PropertyPlantAndEquipmentsTextBlock"><p id="xdx_897_ecustom--PropertyPlantAndEquipmentsTextBlock_zCwWJVLLknJj" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Property
and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated by the straight-line method over the estimated
useful lives of the assets at the following annual rates:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;<span id="xdx_8BF_zdxCpHN0Zrqi" style="display: none">SCHEDULE
OF PROPERTY AND EQUIPMENT ANNUAL RATES</span></span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 60%; margin-right: auto">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">%</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 80%; text-align: left">Computers and peripherals</td><td style="width: 2%">&#160;</td>
    <td style="width: 18%; text-align: center"><span id="xdx_90B_eus-gaap--PropertyPlantAndEquipmentSalvageValuePercentage_iI_pid_dp_uPure_c20231231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--ComputerEquipmentMember_zBBSQUIk39N1" title="Computers and peripherals"><ix:nonFraction name="us-gaap:PropertyPlantAndEquipmentSalvageValuePercentage" contextRef="AsOf2023-12-31_us-gaap_ComputerEquipmentMember" id="Fact000654" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">33</ix:nonFraction></span></td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: left">Office furniture and equipment</td><td>&#160;</td>
    <td style="text-align: center"><span id="xdx_900_eus-gaap--PropertyPlantAndEquipmentSalvageValuePercentage_iI_pid_dp_uPure_c20231231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--OfficeEquipmentMember_z0MjVJsvCc3j" title="Computers and peripherals"><ix:nonFraction name="us-gaap:PropertyPlantAndEquipmentSalvageValuePercentage" contextRef="AsOf2023-12-31_us-gaap_OfficeEquipmentMember" id="Fact000656" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">7</ix:nonFraction></span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Machines and electronic devices</td><td>&#160;</td>
    <td style="text-align: center"><span id="xdx_905_eus-gaap--PropertyPlantAndEquipmentSalvageValuePercentage_iI_pid_dp_uPure_c20231231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--MachineryAndEquipmentMember__srt--RangeAxis__srt--MinimumMember_zwDv9WH1eeIk" title="Computers and peripherals"><ix:nonFraction name="us-gaap:PropertyPlantAndEquipmentSalvageValuePercentage" contextRef="AsOf2023-12-31_us-gaap_MachineryAndEquipmentMember_srt_MinimumMember" id="Fact000658" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">15</ix:nonFraction></span>-<span id="xdx_906_eus-gaap--PropertyPlantAndEquipmentSalvageValuePercentage_iI_pid_dp_uPure_c20231231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--MachineryAndEquipmentMember__srt--RangeAxis__srt--MaximumMember_zVit91pQskoh" title="Computers and peripherals"><ix:nonFraction name="us-gaap:PropertyPlantAndEquipmentSalvageValuePercentage" contextRef="AsOf2023-12-31_us-gaap_MachineryAndEquipmentMember_srt_MaximumMember" id="Fact000660" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">33</ix:nonFraction></span></td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: left">Energy storage systems</td><td>&#160;</td>
    <td style="text-align: center"><span id="xdx_903_eus-gaap--PropertyPlantAndEquipmentSalvageValuePercentage_iI_pid_dp_uPure_c20231231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--EnergyEquipmentMember_zDNEe0Lk7iFi" title="Property and equipment, annual rates"><ix:nonFraction name="us-gaap:PropertyPlantAndEquipmentSalvageValuePercentage" contextRef="AsOf2023-12-31_us-gaap_EnergyEquipmentMember" id="Fact000662" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">20</ix:nonFraction></span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Leasehold improvements</td><td>&#160;</td>
    <td style="text-align: center"><span id="xdx_90F_eus-gaap--PropertyPlantAndEquipmentSalvageValuePercentage_iI_pid_dp_uPure_c20231231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember__srt--RangeAxis__srt--MinimumMember_zduVvuzdBg65" title="Property and equipment, annual rates"><ix:nonFraction name="us-gaap:PropertyPlantAndEquipmentSalvageValuePercentage" contextRef="AsOf2023-12-31_us-gaap_LeaseholdImprovementsMember_srt_MinimumMember" id="Fact000664" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">21</ix:nonFraction></span>-<span id="xdx_906_eus-gaap--PropertyPlantAndEquipmentSalvageValuePercentage_iI_pid_dp_uPure_c20231231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember__srt--RangeAxis__srt--MaximumMember_zocu0plylX6j" title="Property and equipment, annual rates"><ix:nonFraction name="us-gaap:PropertyPlantAndEquipmentSalvageValuePercentage" contextRef="AsOf2023-12-31_us-gaap_LeaseholdImprovementsMember_srt_MaximumMember" id="Fact000666" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">26</ix:nonFraction></span></td></tr>
  </table>

</ix:nonNumeric><p id="xdx_8A9_zYisjR4dQPQj" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Leasehold
improvements are amortized over the terms of the respective leases or the estimated useful lives of the improvements, whichever is shorter.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company&#8217;s property and equipment include, among other things, energy storage systems that were manufactured by the Company and
transferred to a third party free of charge for the purpose of a marketing pilot. At the end of a period agreed between the parties,
the systems will be returned to the Company.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Grants
that relate to assets are presented in the statement of financial position by deducting the grant in order to arrive at the book value
of the asset. The grant is recognized in profit or loss over the life of a depreciable asset through the imputation of reduced depreciation.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">&#160;</p>


<ix:exclude><!-- Field: Page; Sequence: 142; Value: 1 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->13<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page --></ix:exclude>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>ZOOZ
POWER LTD.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" escape="true" id="Fact000668" name="us-gaap:ImpairmentOrDisposalOfLongLivedAssetsPolicyTextBlock"><p id="xdx_84E_eus-gaap--ImpairmentOrDisposalOfLongLivedAssetsPolicyTextBlock_zAIDjF1iEx65" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_864_zqp5tYTODYB5">Impairment
of long-lived assets</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company tests long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset
may no longer be recoverable. Recoverability of long-lived assets is measured by comparing the carrying amount of the long-lived asset
to the estimated undiscounted future cash flows expected to be generated by the asset. If the sum of the expected undiscounted cash flow
is less than the carrying amount of the asset, the Company recognizes an impairment loss, which is the excess of the carrying amount
over the fair value of the asset, using the expected future discounted cash flows.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
the years ended December 31, 2023, 2022 and 2021, the Company did not recognize an impairment loss on its long-lived assets.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" escape="true" id="Fact000670" name="us-gaap:EarningsPerSharePolicyTextBlock"><p id="xdx_849_eus-gaap--EarningsPerSharePolicyTextBlock_z1MGTam16fg2" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_862_z0pldgp7Vowj">Basic
and diluted net loss per share</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company&#8217;s basic net loss per share is calculated by dividing net loss attributable to ordinary shareholders by the weighted-average
number of ordinary shares outstanding for the period, without consideration of potentially dilutive securities. The diluted net loss
per share is calculated by giving effect to all potentially dilutive securities outstanding for the period using the treasury share method
or the if-converted method based on the nature of such securities. All share options, warrants and preferred shares were excluded from
the calculation of diluted net loss per ordinary share because their effect would have been anti-dilutive for the years presented.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company computes net loss per share using the two-class method required for participating securities. The two-class method requires income
available to ordinary shareholders for the period to be allocated between ordinary shares and participating securities based upon their
respective rights to receive dividends as if all income for the period had been distributed. These participating securities do not contractually
require the holders of such shares to participate in the Company&#8217;s losses. As such, a net loss for the periods presented was not
allocated to the Company&#8217;s participating securities.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
the year ended December 31, 2023, the Company had <span id="xdx_908_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20230101__20231231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--EmployeeStockOptionMember_zIr4nWaYtXWe" title="Dilutive securities"><ix:nonFraction name="us-gaap:AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount" contextRef="From2023-01-012023-12-31_us-gaap_EmployeeStockOptionMember" id="Fact000672" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">834,172</ix:nonFraction></span> options and <span id="xdx_907_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20230101__20231231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--WarrantMember_z9nPGNNjGPM3" title="Dilutive securities"><ix:nonFraction name="us-gaap:AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount" contextRef="From2023-01-012023-12-31_us-gaap_WarrantMember" id="Fact000674" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">39,710</ix:nonFraction></span> warrants, and for the year ended December 31 2022, the Company
had <span id="xdx_903_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20220101__20221231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--EmployeeStockOptionMember_z4MwgpgPuJO1" title="Antidilutive securities"><ix:nonFraction name="us-gaap:AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount" contextRef="From2022-01-012022-12-31_us-gaap_EmployeeStockOptionMember" id="Fact000676" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">711,539</ix:nonFraction></span> options, <span id="xdx_90A_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20220101__20221231__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--WarrantMember_zeFRLewGNosc" title="Antidilutive securities"><ix:nonFraction name="us-gaap:AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount" contextRef="From2022-01-012022-12-31_us-gaap_WarrantMember" id="Fact000678" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">39,710</ix:nonFraction></span> warrants. These securities were not considered when calculating diluted loss per share since their effect
is anti-dilutive.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" escape="true" id="Fact000680" name="us-gaap:CollaborativeArrangementAccountingPolicy"><p id="xdx_847_eus-gaap--CollaborativeArrangementAccountingPolicy_z6IlxdXAixdh" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_864_z2wYCvyGPOLi">Collaborative
arrangements</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company entered into collaborative arrangements with partners that fall under the scope of Topic 808, &#8220;Collaborative Arrangements&#8221;
(&#8220;ASC 808&#8221;). While these arrangements are in the scope of ASC 808, the Company may analogize to ASC 606 for some aspects
of the arrangements.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
terms of the Company&#8217;s collaborative arrangements typically include reimbursements or cost-sharing of research and development
expenses. Each of these payments results in an offset against research and development expenses.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
certain collaborative arrangements, the Company has been reimbursed for a portion of its research and development expenses or participates
in the cost-sharing of such research and development expenses. Such reimbursements and cost-sharing arrangements have been reflected
as a reduction of research and development expense in the Company&#8217;s statements of operations, as the Company does not consider
performing research and development services for reimbursement to be a part of its ongoing major or central operations.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify">&#160;</p>


<ix:exclude><!-- Field: Page; Sequence: 143; Value: 1 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->14<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page --></ix:exclude>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>ZOOZ
POWER LTD.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" escape="true" id="Fact000682" name="us-gaap:RevenueFromContractWithCustomerPolicyTextBlock"><p id="xdx_849_eus-gaap--RevenueFromContractWithCustomerPolicyTextBlock_zSg49ftdgmDe" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_86F_z8qEDndx6hq8">Revenues</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company generates revenues from the sale of energy storage system for supporting fast chargers for electric vehicles, based on kinetic
storage using flywheels.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration
that the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that the
Company determines are within the scope of ASC 606, the entity performs the following five steps:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <td style="font: 10pt Times New Roman, Times, Serif; width: 48px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="font: 10pt Times New Roman, Times, Serif; width: 24px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">1.</span></td>
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Identify
    the contract(s) with a customer;</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.</span></td>
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Identify
    the performance obligations in the contract;</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.</span></td>
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Determine
    the transaction price;</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.</span></td>
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Allocate
    the transaction price to the performance obligations in the contract;</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">5.</span></td>
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Recognize
    revenue when (or as) the performance obligation is satisfied.</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company accounts for a contract with customer when it has approval and commitment from both parties, the rights of the parties and payment
terms are identified, the contract has commercial substance and collectability of consideration is probable. The Company&#8217;s contract
includes one type of performance obligation, which is satisfied at a point in time. The Company recognizes revenue upon transfer of control
of the system to the customer in an amount that reflects the consideration the Company expects to receive in exchange for the system.
Transfer of control occurs generally upon the receipt of customer acceptance or once risk of loss has transferred to the customer. The
acceptance received from customers include successful installation and commissioning test of the energy storage system. The Company does
not provide a right of return. The Company provide to customers a limited warranty assurance that the systems are in compliance with
the applicable specifications at the time of delivery. Under the standard terms and conditions of sale, liability for certain failures
of product during the stated warranty periods are limited to repair or replacement of defective items.&#8207;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
the reporting period the Company delivered to its client and installed in the client&#8217;s site located in Germany two energy storage
systems. The Company recognized the revenues related to these two systems during the reporting period, after receiving the acceptance
certificate for the systems.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company&#8217;s trade receivable balances are driven by sale of energy storage systems. Credit is granted based on evaluation of a customer&#8217;s
financial condition and generally, collateral is not required. Trade receivable balances are stated at amounts due from customers net
of a provision for current expected losses.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<ix:exclude><!-- Field: Page; Sequence: 144; Value: 1 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->15<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page --></ix:exclude>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>ZOOZ
POWER LTD.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Trade
receivables are reduced by an allowance for current expected losses. The Company maintains the allowance for estimated losses resulting
from the inability of the Company&#8217;s customers to make required payments. The allowance represents the current estimate of lifetime
expected credit losses over the remaining duration of existing accounts receivable considering current market conditions and supportable
forecasts when appropriate. The estimate is a result of the Company&#8217;s ongoing evaluation of collectability, customer creditworthiness,
historical levels of credit losses, and future expectations.&#8207;&#8207; As of December 31, 2023, the Company has collected all trade receivable
balances.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" escape="true" id="Fact000684" name="us-gaap:ResearchAndDevelopmentExpensePolicy"><p id="xdx_84F_eus-gaap--ResearchAndDevelopmentExpensePolicy_zLmO5FOxbCGe" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_86E_zreKUjXiWB4f">Research
and development, net</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Research
and development costs are expensed to the statement of operations as incurred, net of government grants which represents participations
in research and development.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Research
and development expenses include costs directly attributable to the conduct of research and development programs, including payroll costs,
lab expenses, materials, consumables, and consulting fees. All costs associated with research and development are expensed as incurred.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company receives royalty-bearing grants, which represents participation of the Israel Innovation Authority (hereafter &#8220;IIA&#8221;),
other governmental institutions (the Ministry of Economy and the Ministry of Energy) and the BIRD Foundation (&#8220;BIRD&#8221;) in
approved programs for research and development. At the time the grants were received, successful development of the related projects
was not assured. Grants are recognized as a reduction of research and development expenses as the related costs are incurred. For more
information see note 16a.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" escape="true" id="Fact000686" name="us-gaap:SellingGeneralAndAdministrativeExpensesPolicyTextBlock"><p id="xdx_842_eus-gaap--SellingGeneralAndAdministrativeExpensesPolicyTextBlock_zIQGDlvDOZP2" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_860_zQ1aVKLkFlfi">Sales
and marketing</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company receives royalty-bearing grants, which represents participation of the New York Power Authority (hereafter &#8220;NYPA&#8221;)
in approved programs for sales and marketing. These grants are recognized as a reduction of sales and marketing expenses as the related
costs are incurred.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" escape="true" id="Fact000688" name="us-gaap:IncomeTaxPolicyTextBlock"><p id="xdx_849_eus-gaap--IncomeTaxPolicyTextBlock_zdv74v1WsaBa" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_861_zpHWB0gRTv76">Income
taxes</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company accounts for income taxes in accordance with ASC 740, &#8220;Income Taxes&#8221; (&#8220;ASC 740&#8221;). ASC 740 prescribes
the use of the liability method whereby deferred tax asset and liability account balances are determined based on differences between
financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect
when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets
to their estimated realizable value, if it is more likely than not that a portion or all the deferred tax assets will not be realized.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ASC
740-10, &#8220;Income Taxes&#8221; (&#8220;ASC 740-10&#8221;) clarifies the accounting for uncertainty in income taxes recognized in
an enterprise&#8217;s financial statements. This standard contains a two-step approach to recognizing and measuring a liability for uncertain
tax positions.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence
indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit,
including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount
that is more than 50% likely to be realized upon ultimate settlement. The Company accrues interest and penalties related to unrecognized
tax benefits in its taxes on income.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify">&#160;</p>


<ix:exclude><!-- Field: Page; Sequence: 145; Value: 1 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->16<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page --></ix:exclude>

<p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>ZOOZ
POWER LTD.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company believes that its income tax filing positions and deductions will be sustained on audit and does not anticipate any adjustments
that will result in a material change to its financial position.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" escape="true" id="Fact000690" name="us-gaap:ShareBasedCompensationOptionAndIncentivePlansPolicy"><p id="xdx_847_eus-gaap--ShareBasedCompensationOptionAndIncentivePlansPolicy_zARZoHgDic3k" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_861_zaDTvHFkJkTj">Share-based
compensation</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company accounts for options granted to employees under the fair value recognition provision of ASC 718 &#8220;stock compensation&#8221;.
The Company measures all share-based awards, based on their estimated fair value on the grant date.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company&#8217;s employees and directors share-based payment awards are classified as equity awards, except for awards as described below.
The grant date fair value of these share-based payment transactions is recognized as an expense over the requisite service period using
an accelerated method, net of estimated forfeitures. The Company elected to recognize compensation costs for awards conditioned only
on continued service that have a graded vesting schedule based on the multiple-option award approach. The Company accounts for its equity
classified share-based payment awards to its advisors in a similar manner.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company uses the Black-Scholes option-pricing model to determine the fair value of stock options. The determination of the fair value
of stock-based payment awards on the date of grant using an option- pricing model is affected by the Company&#8217;s stock price as well
as assumptions regarding number of complex and subjective variables. These variables include the estimated stock price volatility over
the term of the awards; actual and projected employee stock option exercise behaviors, which is referred to as expected term; risk-free
interest rate and expected dividends.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
expected term is calculated using the simplified method, as the Company has concluded that its historical share option exercise experience
does not provide a reasonable basis to estimate the expected option term. The Company uses an average historical stock price volatility
based on a combined weighted average of the Company&#8217;s historical average volatility and that of a selected peer group of comparable
public companies within the industry that were deemed to be representative of future stock price trends as the Company does not have
a sufficient historical trading history of its own Common Stock. The Company will continue to apply this process until a sufficient amount
of historical information regarding the volatility of its own stock price becomes available. The Company bases the risk-free interest
rate used in its option-pricing models on U.S. Treasury zero-coupon issues with remaining terms similar to the expected term to maturity
of its equity awards. The Company does not anticipate paying any cash dividends in the foreseeable future and therefore uses an expected
dividend yield of zero.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Liability
classified share-based options</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Some
of the Company&#8217;s share-based awards have an exercise price denominated in USD, which is not the Company&#8217;s functional currency
and not the employees&#8217; salary currency or the currency in which the employees are paid. These awards are classified as liability
awards, measured at fair value at the date of grant and re-measured at fair value at each reporting date up to and including the settlement
date. The determination of the fair value of these awards is described in Note 12. The fair value of the awards is expensed over the
respective vesting period of the individual awards with recognition of a corresponding liability. Changes in fair value after vesting
are recognized through compensation expense in the statement of operations. Compensation expense reflects estimates of the number of
awards expected to vest. The impact of forfeitures and fair value revisions, if any, are recognized in earnings such that the cumulative
expense reflects the revisions, with a corresponding adjustment to the settlement liability.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify">&#160;</p>


<ix:exclude><!-- Field: Page; Sequence: 146; Value: 1 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->17<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page --></ix:exclude>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>ZOOZ
POWER LTD.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" escape="true" id="Fact000692" name="us-gaap:CompensationRelatedCostsPolicyTextBlock"><p id="xdx_84B_eus-gaap--CompensationRelatedCostsPolicyTextBlock_zMQdwsrh9Pg9" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_867_zF7hQFAcpYe8">Severance
pay</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
Israeli law, the Company is required to pay a severance payment to its employees in Israel upon dismissal of an employee or upon termination
of employment in certain other circumstances. The Company makes ongoing deposits into its Israeli employee pension plans to fund their
severance liabilities. For its employees who are employed under the Section 14 of the Severance Pay Law, 1963 (&#8220;Section 14&#8221;),
the Company makes deposits with certain insurance companies for accounts controlled by each applicable employee in order to secure the
employee&#8217;s rights upon termination. In addition, the related obligations and amounts deposited on behalf of the applicable employees
for such obligations are not presented on the Company&#8217;s balance sheets, as the amounts funded are not under the control of management
and the Company is legally released from the obligation to pay any severance payments to the employees once the required deposit amounts
have been paid. For the years ended December 31, 2023, 2022 and 2021, severance pay expenses were $<span id="xdx_90A_eus-gaap--SeveranceCosts1_pn3n3_c20230101__20231231_zuBfV2KToydg" title="Severance pay expenses"><ix:nonFraction name="us-gaap:SeveranceCosts1" contextRef="From2023-01-01to2023-12-31" id="Fact000694" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">375</ix:nonFraction></span> thousand, $<span id="xdx_903_eus-gaap--SeveranceCosts1_pn3n3_c20220101__20221231_zMJWnv6TQPv2" title="Severance pay expenses"><ix:nonFraction name="us-gaap:SeveranceCosts1" contextRef="From2022-01-012022-12-31" id="Fact000696" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">253</ix:nonFraction></span> thousand and $<span id="xdx_904_eus-gaap--SeveranceCosts1_pn3n3_c20210101__20211231_zKNEJHhi0o4a" title="Severance pay expenses"><ix:nonFraction name="us-gaap:SeveranceCosts1" contextRef="From2021-01-012021-12-31" id="Fact000698" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">181</ix:nonFraction></span>
thousand, respectively.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" escape="true" id="Fact000700" name="us-gaap:ComprehensiveIncomePolicyPolicyTextBlock"><p id="xdx_84D_eus-gaap--ComprehensiveIncomePolicyPolicyTextBlock_zfjUkwM9APmb" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_867_zj7EWo7Q4JPb">Comprehensive
loss</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company complies with ASC 220, &#8220;Comprehensive Income,&#8221; which establishes rules for the reporting and display of comprehensive
income (loss) and its components. The Company reports the financial impact of translating its financial statements from its functional
currency to its reporting currency as a component of other comprehensive income (loss).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" escape="true" id="Fact000702" name="us-gaap:LesseeLeasesPolicyTextBlock"><p id="xdx_844_eus-gaap--LesseeLeasesPolicyTextBlock_zBo0LU4da2R4" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_864_zuquvOhoxoSc">Leases</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company accounts for leases in accordance with ASC 842, Leases. All of the Company&#8217;s leases are classified as operating leases.
The Company determines if an arrangement is a lease at inception. Lease classification is governed by five criteria in ASC 842-10-25-2.
If any of these five criteria is met, the Company classifies the lease as a finance lease; otherwise, the Company classifies the lease
as an operating lease.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Operating
leases are included as operating lease right-of-use (&#8220;ROU&#8221;) assets and operating lease liabilities on the balance sheet.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">ROU
assets represent the Company&#8217;s right to use an underlying asset for the lease term and lease liabilities represent its obligation
to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based
on the present value of lease payments over the lease term. The Company uses its incremental borrowing rate based on the information
available at the commencement date to determine the present value of the lease payments. The Company elected the practical expedient
to not separate lease and non-lease components for all of the Company leases, and to keep leases with an initial term of 12 months or
less off the balance sheet and recognize the associated lease payments in the statements of operations on a straight-line basis over
the lease term.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company subsequently measures the ROU asset at the present value of the remaining lease payments, adjusted for the remaining balance
of any lease incentives received, any cumulative prepaid or accrued rent if the lease payments are uneven throughout the lease term and
any unamortized initial direct costs. Further, the Company recognizes lease expense on a straight-line basis over the lease term.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
lease terms include options to extend or terminate the lease when it is reasonably certain that the Company will exercise or not exercise
the option to renew or terminate the lease.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span>&#160;</p>


<ix:exclude><!-- Field: Page; Sequence: 147; Value: 1 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->18<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page --></ix:exclude>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>ZOOZ
POWER LTD.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" escape="true" id="Fact000704" name="ZOOZ:ContingentLiabilitiesPolicyTextBlock"><p id="xdx_844_ecustom--ContingentLiabilitiesPolicyTextBlock_zedSSVee0STb" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_866_ziZqsoDAfldb">Contingent
Liabilities</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Certain
conditions may exist as of the date of the financial statements, which may result in a loss to the Company, but which will only be resolved
when one or more future events occur or fail to occur. If the assessment of a contingency indicates that it is probable that a material
loss has been incurred and the amount of the liability can be estimated, then the estimated liability is recorded as accrued expenses
in the Company&#8217;s financial statements. If the assessment indicates that a potential material loss contingency is not probable but
is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate
of the range of possible loss if determinable and material are disclosed. As of December 31, 2023, no contingent liabilities have been
recognized.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" escape="true" id="Fact000706" name="us-gaap:NewAccountingPronouncementsPolicyPolicyTextBlock"><p id="xdx_847_eus-gaap--NewAccountingPronouncementsPolicyPolicyTextBlock_z74jAhWaLUWh" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_861_z9Wg4ziK5G3i">Accounting
Pronouncements effective in future periods</span>:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
December 2023, the FASB issued ASU 2023-09 Improvements to Income Tax Disclosures. The ASU improves the transparency of income tax disclosures
by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid
disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures. This
ASU is effective for the Company for annual periods beginning after December 15, 2025. The Company is evaluating the potential impact
of this guidance on its financial statements.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
November 2023, the FASB issued ASU No. 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The ASU
improves reportable segments disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The
ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December
15, 2024. Early adoption is permitted. The Company is evaluating the potential impact of this guidance on its financial statements.</span></p>
</ix:nonNumeric><p id="xdx_856_z9Q4yvv6bXql" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" escape="true" id="Fact000708" name="us-gaap:FairValueMeasurementInputsDisclosureTextBlock"><p id="xdx_802_eus-gaap--FairValueMeasurementInputsDisclosureTextBlock_zTXI9tSFkQS3" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase"><b>NOTE
3 - <span id="xdx_82C_zLutMVLWeGp">FAIR VALUE MEASUREMENT</span>:</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company&#8217;s financial instruments consist mainly of cash, restricted long-term deposits and other current assets, accounts payable
and other payables. Other than the share-based payment liabilities, the recorded amounts approximate their respective fair value because
of the liquidity and short period of time to maturity, receipt, or payment of these instruments.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company&#8217;s financial instruments which are considered as a Level 3 measurement is the share-based payment liability. For more information
see Note 12.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase">&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" escape="true" id="Fact000710" name="us-gaap:CashAndCashEquivalentsDisclosureTextBlock"><p id="xdx_800_eus-gaap--CashAndCashEquivalentsDisclosureTextBlock_zizLiYzoQ5m9" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase"><b>Note
4 - <span id="xdx_826_zpgNHjxXX3j5">CASH AND RESTRICTED CASH EQUIVALENT</span>:</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<ix:nonNumeric contextRef="From2023-01-01to2023-12-31" escape="true" id="Fact000712" name="us-gaap:ScheduleOfCashAndCashEquivalentsTableTextBlock"><p id="xdx_893_eus-gaap--ScheduleOfCashAndCashEquivalentsTableTextBlock_zDBmVKTrD1Ig" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following table provides a reconciliation of cash and restricted deposits reported on the balance sheets that sum to the same total amount
as shown in the statements of cash flows:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;<span id="xdx_8BE_z4vx3CyvSAB7" style="display: none">SCHEDULE
OF RECONCILIATION OF CASH AND RESTRICTED DEPOSITS</span></span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 93%; margin-left: 0.5in">
  <tr style="display: none; vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" id="xdx_495_20231231_zzx0o8hDx2ua" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" id="xdx_498_20221231_zjtZByQB2Q3b" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
<tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">U.S. dollars in thousands</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr id="xdx_408_eus-gaap--Cash_iI_pn3n3_maRCACEzbDW_zmV4yBAUr3Qb" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 60%">Cash</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 16%; text-align: right"><ix:nonFraction name="us-gaap:Cash" contextRef="AsOf2023-12-31" id="Fact000714" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">6,672</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 16%; text-align: right"><ix:nonFraction name="us-gaap:Cash" contextRef="AsOf2022-12-31" id="Fact000715" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">20,569</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr id="xdx_40E_eus-gaap--RestrictedCash_iI_pn3n3_maRCACEzbDW_zleEDK8hBNQd" style="vertical-align: bottom; background-color: White">
    <td style="text-align: left; padding-bottom: 1.5pt">Restricted deposits <sup id="xdx_F4A_zaIUk8C3BgMa">(1)</sup></td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0717">-</span></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:RestrictedCash" contextRef="AsOf2022-12-31" id="Fact000718" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">224</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr id="xdx_401_eus-gaap--RestrictedCashAndCashEquivalents_iTI_pn3n3_mtRCACEzbDW_zSo7HmqE9Jw1" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 2.5pt">Total cash and restricted cash equivalent shown in the statement of cash flows</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:RestrictedCashAndCashEquivalents" contextRef="AsOf2023-12-31" id="Fact000720" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">6,672</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:RestrictedCashAndCashEquivalents" contextRef="AsOf2022-12-31" id="Fact000721" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">20,793</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td></tr>
  </table>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span id="xdx_F0C_zWBC9eSt5Pw8" style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</span></td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span id="xdx_F14_z8EELSnNNQmh" style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:footnote id="Footnote000722" xml:lang="en-US">As
    of December 31, 2022, the Company&#8217;s restricted deposits consisted of bank deposits that were denominated in New Israeli Shekel.
    Restricted deposits are presented at cost including accrued interest. These bank deposits are used as security for collateralizing
    the Company&#8217;s lease contracts.</ix:footnote></span></td></tr>
  </table>
</ix:nonNumeric><p id="xdx_8AD_z3WIeoUVr7wj" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>


<ix:exclude><!-- Field: Page; Sequence: 148; Value: 1 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->19<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page --></ix:exclude>

<p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>ZOOZ
POWER LTD.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 42.5pt; text-align: justify; text-indent: -42.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase">&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" escape="true" id="Fact000724" name="us-gaap:OtherCurrentAssetsTextBlock"><p id="xdx_801_eus-gaap--OtherCurrentAssetsTextBlock_zPihObb63P0l" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase"><b>Note
5 - <span id="xdx_820_zhSUjepSkCBj">PREPAID EXPENSES AND OTHER CURRENT ASSETS</span>:</b></span></p>

<ix:nonNumeric contextRef="From2023-01-01to2023-12-31" escape="true" id="Fact000726" name="us-gaap:DeferredCostsCapitalizedPrepaidAndOtherAssetsDisclosureTextBlock"><p id="xdx_898_eus-gaap--DeferredCostsCapitalizedPrepaidAndOtherAssetsDisclosureTextBlock_z7xYIn5fKrq7" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;<span id="xdx_8B7_ztEFEEgQhDZ5" style="display: none">SCHEDULE
OF PREPAID EXPENSES AND OTHER CURRENT ASSETS</span></span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 93%; margin-left: 0.5in">
  <tr style="display: none; vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" id="xdx_495_20231231_zpEU6rtywur5" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" id="xdx_49F_20221231_zS8eIeaLnFNg" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
<tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">U.S. dollars in thousands</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td></tr>
  <tr id="xdx_404_eus-gaap--PrepaidExpenseCurrent_iI_pn3n3_maPEAOAzdlh_znqsIJKzzJMa" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 60%; text-align: left">Prepaid expenses</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 16%; text-align: right"><ix:nonFraction name="us-gaap:PrepaidExpenseCurrent" contextRef="AsOf2023-12-31" id="Fact000728" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">203</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 16%; text-align: right"><ix:nonFraction name="us-gaap:PrepaidExpenseCurrent" contextRef="AsOf2022-12-31" id="Fact000729" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">66</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr id="xdx_40F_ecustom--PrepaidInstitutions_iI_pn3n3_maPEAOAzdlh_zbw6djXwDMs1" style="vertical-align: bottom; background-color: White">
    <td>Institutions</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="ZOOZ:PrepaidInstitutions" contextRef="AsOf2023-12-31" id="Fact000731" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">117</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="ZOOZ:PrepaidInstitutions" contextRef="AsOf2022-12-31" id="Fact000732" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">216</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_409_eus-gaap--Supplies_iI_pn3n3_maPEAOAzdlh_zcll4YcEOMul" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Advances to suppliers</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:Supplies" contextRef="AsOf2023-12-31" id="Fact000734" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">304</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:Supplies" contextRef="AsOf2022-12-31" id="Fact000735" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">16</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_403_eus-gaap--OtherPrepaidExpenseCurrent_iI_pn3n3_maPEAOAzdlh_zjCpLtR9fAMa" style="vertical-align: bottom; background-color: White">
    <td style="padding-bottom: 1.5pt">Other</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:OtherPrepaidExpenseCurrent" contextRef="AsOf2023-12-31" id="Fact000737" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">128</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:OtherPrepaidExpenseCurrent" contextRef="AsOf2022-12-31" id="Fact000738" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">299</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr id="xdx_400_eus-gaap--PrepaidExpenseAndOtherAssetsCurrent_iTI_pn3n3_mtPEAOAzdlh_zQ3lcQs9SUP2" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 2.5pt"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt">Total</span></td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:PrepaidExpenseAndOtherAssetsCurrent" contextRef="AsOf2023-12-31" id="Fact000740" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">752</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:PrepaidExpenseAndOtherAssetsCurrent" contextRef="AsOf2022-12-31" id="Fact000741" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">597</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td></tr>
  </table>

</ix:nonNumeric><p id="xdx_8A9_z7pjRSu1ggSh" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase">&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" escape="true" id="Fact000743" name="us-gaap:InventoryDisclosureTextBlock"><p id="xdx_80A_eus-gaap--InventoryDisclosureTextBlock_zRPyy46lDF2j" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase"><b>Note
6 &#8211; <span id="xdx_821_zpCstb0MEKl">INVENTORY</span>:</b></span></p>

<ix:nonNumeric contextRef="From2023-01-01to2023-12-31" escape="true" id="Fact000745" name="us-gaap:ScheduleOfInventoryCurrentTableTextBlock"><p id="xdx_894_eus-gaap--ScheduleOfInventoryCurrentTableTextBlock_zLGdktQSay9k" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 42.5pt; text-indent: -42.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;<span id="xdx_8B9_z3yqs2rh1toc" style="display: none">SCHEDULE
OF INVENTORY</span></span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 93%; margin-left: 0.5in">
  <tr style="display: none; vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" id="xdx_495_20231231_z8BK2y9BuQc8" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" id="xdx_49F_20221231_zsgZgpKXtsJg" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
<tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">U.S. dollars in thousands</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td></tr>
  <tr id="xdx_400_eus-gaap--InventoryRawMaterials_iI_pn3n3_maINzp8a_zKVA3NIDBtnb" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 60%; text-align: left">Raw materials</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 16%; text-align: right"><ix:nonFraction name="us-gaap:InventoryRawMaterials" contextRef="AsOf2023-12-31" id="Fact000747" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">955</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 16%; text-align: right"><ix:nonFraction name="us-gaap:InventoryRawMaterials" contextRef="AsOf2022-12-31" id="Fact000748" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">558</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr id="xdx_404_eus-gaap--InventoryWorkInProcess_iI_pn3n3_maINzp8a_zrIkNPLfMVgl" style="vertical-align: bottom; background-color: White">
    <td style="text-align: left">Work in process</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:InventoryWorkInProcess" contextRef="AsOf2023-12-31" id="Fact000750" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">425</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:InventoryWorkInProcess" contextRef="AsOf2022-12-31" id="Fact000751" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">904</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_403_eus-gaap--InventoryFinishedGoods_iI_pn3n3_maINzp8a_ztN7Fn0ju6o2" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt">Finished goods</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:InventoryFinishedGoods" contextRef="AsOf2023-12-31" id="Fact000753" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">1,468</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:InventoryFinishedGoods" contextRef="AsOf2022-12-31" id="Fact000754" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">305</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr id="xdx_403_eus-gaap--InventoryNet_iTI_pn3n3_mtINzp8a_zTN0RxJVo1qb" style="vertical-align: bottom; background-color: White">
    <td style="padding-bottom: 2.5pt"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt">Total</span></td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:InventoryNet" contextRef="AsOf2023-12-31" id="Fact000756" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">2,848</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:InventoryNet" contextRef="AsOf2022-12-31" id="Fact000757" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">1,767</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td></tr>
  </table>

</ix:nonNumeric><p id="xdx_8A2_zb7nlag4lq61" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company recorded an inventory write-off of $<span id="xdx_902_eus-gaap--InventoryWriteDown_pn3n3_c20230101__20231231_zAtxPWIvttd5" title="Inventory write off"><ix:nonFraction name="us-gaap:InventoryWriteDown" contextRef="From2023-01-01to2023-12-31" id="Fact000759" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">1,123</ix:nonFraction></span> thousand and $<span id="xdx_900_eus-gaap--InventoryWriteDown_pn3n3_c20220101__20221231_zXsJynLFBkWd" title="Inventory write off"><ix:nonFraction name="us-gaap:InventoryWriteDown" contextRef="From2022-01-012022-12-31" id="Fact000761" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">178</ix:nonFraction></span> thousand in 2023 and 2022, respectively, which is presented within
cost of sales in the statement of operations. In addition, the Company recorded an inventory write off of $<span id="xdx_906_eus-gaap--InventoryWriteDown_pn3n3_c20230101__20231231__us-gaap--PublicUtilitiesInventoryAxis__us-gaap--PublicUtilitiesInventoryRawMaterialsMember_zbBPNr0uYMye" title="Inventory write off"><ix:nonFraction name="us-gaap:InventoryWriteDown" contextRef="From2023-01-012023-12-31_us-gaap_PublicUtilitiesInventoryRawMaterialsMember" id="Fact000763" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">144</ix:nonFraction></span> thousand in 2023 related
to raw materials which are not expected to be used during the future production process. Inventory write-offs were recorded to reflect
anticipated net realizable value on disposition of existing inventory assets.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" escape="true" id="Fact000765" name="us-gaap:PropertyPlantAndEquipmentDisclosureTextBlock"><p id="xdx_80A_eus-gaap--PropertyPlantAndEquipmentDisclosureTextBlock_zkTDt7rY6Xyl" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase"><b>Note
7 - <span id="xdx_823_zgK5uyAg3ua">PROPERTY AND EQUIPMENT</span>:</b></span></p>

<ix:nonNumeric contextRef="From2023-01-01to2023-12-31" escape="true" id="Fact000767" name="us-gaap:PropertyPlantAndEquipmentTextBlock"><p id="xdx_89C_eus-gaap--PropertyPlantAndEquipmentTextBlock_zSbkPpXnMDT8" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 42.5pt; text-indent: -42.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8B8_z7LwzJJYpe6j" style="display: none">SCHEDULE
OF PROPERTY AND EQUIPMENT</span></span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 93%; margin-left: 0.5in">
  <tr style="display: none; vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" id="xdx_495_20231231_zFOO8HRC5FQc" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" id="xdx_491_20221231_z2HjIGVbZSu6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
<tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">U.S. dollars in thousands</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold">Cost:</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td></tr>
  <tr id="xdx_40F_eus-gaap--PropertyPlantAndEquipmentGross_iI_pn3n3_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--ComputerEquipmentMember_zWZdQW5uhZW5" style="vertical-align: bottom; background-color: White">
    <td style="width: 60%; text-align: left">Computers and peripheral equipment</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 16%; text-align: right"><ix:nonFraction name="us-gaap:PropertyPlantAndEquipmentGross" contextRef="AsOf2023-12-31_us-gaap_ComputerEquipmentMember" id="Fact000769" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">254</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 16%; text-align: right"><ix:nonFraction name="us-gaap:PropertyPlantAndEquipmentGross" contextRef="AsOf2022-12-31_us-gaap_ComputerEquipmentMember" id="Fact000770" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">115</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr id="xdx_40D_eus-gaap--PropertyPlantAndEquipmentGross_iI_pn3n3_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--OfficeEquipmentMember_zlh2JC9F6049" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Office furniture and equipment</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:PropertyPlantAndEquipmentGross" contextRef="AsOf2023-12-31_us-gaap_OfficeEquipmentMember" id="Fact000772" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">170</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:PropertyPlantAndEquipmentGross" contextRef="AsOf2022-12-31_us-gaap_OfficeEquipmentMember" id="Fact000773" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">163</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_403_eus-gaap--PropertyPlantAndEquipmentGross_iI_pn3n3_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--MachineryAndEquipmentMember_z4BYNX5X1hta" style="vertical-align: bottom; background-color: White">
    <td style="text-align: left">Machines and equipment</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:PropertyPlantAndEquipmentGross" contextRef="AsOf2023-12-31_us-gaap_MachineryAndEquipmentMember" id="Fact000775" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">652</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:PropertyPlantAndEquipmentGross" contextRef="AsOf2022-12-31_us-gaap_MachineryAndEquipmentMember" id="Fact000776" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">550</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_400_eus-gaap--PropertyPlantAndEquipmentGross_iI_pn3n3_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_zjzxuZzV9vb3" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Leasehold improvements</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:PropertyPlantAndEquipmentGross" contextRef="AsOf2023-12-31_us-gaap_LeaseholdImprovementsMember" id="Fact000778" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">264</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:PropertyPlantAndEquipmentGross" contextRef="AsOf2022-12-31_us-gaap_LeaseholdImprovementsMember" id="Fact000779" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">252</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_407_eus-gaap--PropertyPlantAndEquipmentGross_iI_pn3n3_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--EnergyEquipmentMember_zPCatdUjyJp9" style="vertical-align: bottom; background-color: White">
    <td style="text-align: left; padding-bottom: 1.5pt">Energy storage systems</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:PropertyPlantAndEquipmentGross" contextRef="AsOf2023-12-31_us-gaap_EnergyEquipmentMember" id="Fact000781" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">844</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0782">-</span></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr id="xdx_40D_eus-gaap--PropertyPlantAndEquipmentGross_iI_pn3n3_zLtiE0h9y1m5" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 1.5pt"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt">Property plant and equipment
    gross</span></td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:PropertyPlantAndEquipmentGross" contextRef="AsOf2023-12-31" id="Fact000784" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">2,184</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:PropertyPlantAndEquipmentGross" contextRef="AsOf2022-12-31" id="Fact000785" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">1,080</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_401_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_pn3n3_di_zVNbq1k42k74" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left">Accumulated depreciation:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction name="us-gaap:AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment" contextRef="AsOf2023-12-31" id="Fact000787" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">591</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction name="us-gaap:AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment" contextRef="AsOf2022-12-31" id="Fact000788" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">357</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_405_eus-gaap--PropertyPlantAndEquipmentNet_iI_pn3n3_zGpK47oltIp1" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt">Depreciated cost</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:PropertyPlantAndEquipmentNet" contextRef="AsOf2023-12-31" id="Fact000790" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">1,593</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:PropertyPlantAndEquipmentNet" contextRef="AsOf2022-12-31" id="Fact000791" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">723</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td></tr>
  </table>

</ix:nonNumeric><p id="xdx_8A2_zF3MiWtMgXfa" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
the years ended December 31, 2023, 2022 and 2021, depreciation expenses amounted to $<span id="xdx_90A_eus-gaap--Depreciation_pn3n3_c20230101__20231231_z0eCa260Anje" title="Depreciation expenses"><ix:nonFraction name="us-gaap:Depreciation" contextRef="From2023-01-01to2023-12-31" id="Fact000793" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">239</ix:nonFraction></span> thousand, $<span id="xdx_908_eus-gaap--Depreciation_pn3n3_c20220101__20221231_zHhV5O7yrxJl" title="Depreciation expenses"><ix:nonFraction name="us-gaap:Depreciation" contextRef="From2022-01-012022-12-31" id="Fact000795" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">131</ix:nonFraction></span> thousand, and $<span id="xdx_90F_eus-gaap--Depreciation_pn3n3_c20210101__20211231_z0nBAd79U63" title="Depreciation expenses"><ix:nonFraction name="us-gaap:Depreciation" contextRef="From2021-01-012021-12-31" id="Fact000797" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">44</ix:nonFraction></span> thousand, respectively.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase">&#160;</span></p>


<ix:exclude><!-- Field: Page; Sequence: 149; Value: 1 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->20<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page --></ix:exclude>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>ZOOZ
POWER LTD.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase"><b>&#160;</b></span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" escape="true" id="Fact000799" name="us-gaap:AccountsPayableAndAccruedLiabilitiesDisclosureTextBlock"><p id="xdx_805_eus-gaap--AccountsPayableAndAccruedLiabilitiesDisclosureTextBlock_zd1yfGPvzUa7" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase"><b>Note
8 - <span id="xdx_828_zV0RiMYxYpXf">OTHER PAYABLES AND ACCRUED EXPENSES</span>:</b></span></p>

<ix:nonNumeric contextRef="From2023-01-01to2023-12-31" escape="true" id="Fact000801" name="us-gaap:ScheduleOfAccountsPayableAndAccruedLiabilitiesTableTextBlock"><p id="xdx_898_eus-gaap--ScheduleOfAccountsPayableAndAccruedLiabilitiesTableTextBlock_zAdFhFuKFCgc" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;<span id="xdx_8BE_zLKM2eRJJnk9" style="display: none">SCHEDULE
OF OTHER PAYABLES AND ACCRUED EXPENSES</span></span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 93%; margin-left: 0.5in">
  <tr style="display: none; vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" id="xdx_495_20231231_z3mxdWfAaXfd" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" id="xdx_490_20221231_zzuJDuvi0C0c" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
<tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">U.S. dollars in thousands</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr id="xdx_40F_eus-gaap--AccruedLiabilitiesCurrent_iI_pn3n3_maAPAALz8Hj_zCaFzBpEpmTi" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 60%; text-align: left">Accrued expenses</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 16%; text-align: right"><ix:nonFraction name="us-gaap:AccruedLiabilitiesCurrent" contextRef="AsOf2023-12-31" id="Fact000803" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">975</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 16%; text-align: right"><ix:nonFraction name="us-gaap:AccruedLiabilitiesCurrent" contextRef="AsOf2022-12-31" id="Fact000804" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">252</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr id="xdx_40D_ecustom--GrantsInAdvance_iI_pn3n3_maAPAALz8Hj_zEGYuNrIbitb" style="vertical-align: bottom; background-color: White">
    <td style="text-align: left">Grants in advance</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="ZOOZ:GrantsInAdvance" contextRef="AsOf2023-12-31" id="Fact000806" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">268</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="ZOOZ:GrantsInAdvance" contextRef="AsOf2022-12-31" id="Fact000807" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">90</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_408_eus-gaap--OtherAccruedLiabilitiesCurrent_iI_pn3n3_maAPAALz8Hj_zHr8W6fXQ3P9" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 1.5pt">Others</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:OtherAccruedLiabilitiesCurrent" contextRef="AsOf2023-12-31" id="Fact000809" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">144</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:OtherAccruedLiabilitiesCurrent" contextRef="AsOf2022-12-31" id="Fact000810" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">10</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr id="xdx_40B_eus-gaap--AccountsPayableAndAccruedLiabilitiesCurrent_iTI_pn3n3_mtAPAALz8Hj_zTWWFdJzyj15" style="vertical-align: bottom; background-color: White">
    <td style="padding-bottom: 2.5pt"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt">Other payables and accrued
    expenses</span></td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent" contextRef="AsOf2023-12-31" id="Fact000812" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">1,387</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent" contextRef="AsOf2022-12-31" id="Fact000813" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">352</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td></tr>
  </table>

</ix:nonNumeric><p id="xdx_8A1_zKdF5HJy6st1" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 42.5pt; text-align: justify; text-indent: -42.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase">&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" escape="true" id="Fact000815" name="us-gaap:LesseeOperatingLeasesTextBlock"><p id="xdx_809_eus-gaap--LesseeOperatingLeasesTextBlock_z1mnQNuIVrMk" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase"><b>Note
9 - <span id="xdx_82D_zw7lD7Gmg5Jg">OPERATING LEASES</span>:</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company is party to a lease agreement for its facilities located in Israel through November 2024. The Company has the option to extend
the agreement for an additional <span id="xdx_902_eus-gaap--LesseeOperatingLeaseTermOfContract_iI_dtY_c20231231__us-gaap--TypeOfArrangementAxis__custom--LeaseAgreementMember_zXnS9VXtVXwg" title="Option to extend, term"><ix:nonNumeric contextRef="AsOf2023-12-31_custom_LeaseAgreementMember" format="ixt-sec:duryear" id="Fact000817" name="us-gaap:LesseeOperatingLeaseTermOfContract">3</ix:nonNumeric></span>-year period. Upon exercising the extension option, the annual rental payments will increase by <span id="xdx_905_ecustom--AnnualRentalPaymentsPercentage_iI_pid_dp_uPure_c20231231__us-gaap--TypeOfArrangementAxis__custom--LeaseAgreementMember_zxCev3bOkw0j" title="Annual rental payments percentage"><ix:nonFraction name="ZOOZ:AnnualRentalPaymentsPercentage" contextRef="AsOf2023-12-31_custom_LeaseAgreementMember" id="Fact000819" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">3</ix:nonFraction></span>%.
The Company concluded that it is reasonably certain that it will exercise the renewal option. Accordingly, such renewal option was included
in determining the lease term.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company also leases vehicles for its employees with different commencement and ending periods in Israel (for 3 years periods). The Company
has an option terminate these lease agreements, which may result in penalties of insignificant amounts. The Company concluded that it
is not reasonably certain that it will exercise the termination option. Accordingly, such termination option was not included in determining
the lease term.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
company has short term agreements for the of parking spaces for periods of up to <span id="xdx_900_eus-gaap--LesseeOperatingLeaseDescription_c20230101__20231231_zuIjazTlb7Zg" title="Parking spaces for periods"><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" id="Fact000821" name="us-gaap:LesseeOperatingLeaseDescription">12 months</ix:nonNumeric></span>.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company&#8217;s operating lease expenses are recognized on a straight-line basis. Operating lease costs for the years ended December
31, 2023, 2022 and 2021 were as follows:</span></p>

<ix:nonNumeric contextRef="From2023-01-01to2023-12-31" escape="true" id="Fact000823" name="us-gaap:LeaseCostTableTextBlock"><p id="xdx_896_eus-gaap--LeaseCostTableTextBlock_z2DkisLxDYKg" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;<span id="xdx_8B8_zxZG5Giu5CF" style="display: none">SCHEDULE
OF OPERATING LEASE COST</span></span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 93%; margin-left: 0.5in">
  <tr style="display: none; vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" id="xdx_49C_20230101__20231231_ziBWdzV0YBNg" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" id="xdx_490_20220101__20221231_zDUu7lui6GPh" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" id="xdx_49D_20210101__20211231_zP1Z7Hae6ktf" style="border-bottom: Black 1.5pt solid; font-weight: bold">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
<tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">U.S. dollars in thousands</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr id="xdx_409_eus-gaap--OperatingLeaseCost_pn3n3_maLCzJLt_zrpB0hBDjb17" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 46%; text-align: left">Operating lease cost</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 14%; text-align: right"><ix:nonFraction name="us-gaap:OperatingLeaseCost" contextRef="From2023-01-01to2023-12-31" id="Fact000825" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">781</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 14%; text-align: right"><ix:nonFraction name="us-gaap:OperatingLeaseCost" contextRef="From2022-01-012022-12-31" id="Fact000826" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">760</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 14%; text-align: right"><ix:nonFraction name="us-gaap:OperatingLeaseCost" contextRef="From2021-01-012021-12-31" id="Fact000827" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">209</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr id="xdx_40E_eus-gaap--ShortTermLeaseCost_pn3n3_maLCzJLt_zOrPIUoHVbQl" style="vertical-align: bottom; background-color: White">
    <td style="text-align: left; padding-bottom: 1.5pt">Short term lease costs</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:ShortTermLeaseCost" contextRef="From2023-01-01to2023-12-31" id="Fact000829" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">18</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:ShortTermLeaseCost" contextRef="From2022-01-012022-12-31" id="Fact000830" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">14</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0831">-</span></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr id="xdx_40F_eus-gaap--LeaseCost_iT_pn3n3_mtLCzJLt_zQnReNoZHcQ" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 2.5pt">Total lease costs</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:LeaseCost" contextRef="From2023-01-01to2023-12-31" id="Fact000833" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">799</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:LeaseCost" contextRef="From2022-01-012022-12-31" id="Fact000834" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">774</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:LeaseCost" contextRef="From2021-01-012021-12-31" id="Fact000835" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">209</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td></tr>
  </table>

</ix:nonNumeric><p id="xdx_8A9_z5uwOVFx58Ib" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<ix:nonNumeric contextRef="From2023-01-01to2023-12-31" escape="true" id="Fact000837" name="ZOOZ:CashFlowAndOtherInformationRelatedToOperatingLeasesTableTextBlock"><p id="xdx_898_ecustom--CashFlowAndOtherInformationRelatedToOperatingLeasesTableTextBlock_zSw7TsVkmx5f" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Cash
flow and other information related to operating leases were as follows:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;<span id="xdx_8BF_zxoZFkeOSCFh" style="display: none">SCHEDULE
OF CASH FLOW AND OTHER INFORMATION RELATED TO OPERATING LEASES</span></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 93%; margin-left: 0.5in">
  <tr style="display: none; vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" id="xdx_49C_20230101__20231231_z6WBuXh5kvw9" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" id="xdx_490_20220101__20221231_zhZrSpK1kckh" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" id="xdx_49D_20210101__20211231_z3Sa9TFm9N55" style="border-bottom: Black 1.5pt solid; font-weight: bold">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
<tr style="vertical-align: bottom">
    <td>&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td colspan="10" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>December
31</b></span></p></td><td style="padding-bottom: 1.5pt">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">U.S. dollars in thousands</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr id="xdx_401_ecustom--CashPaidForAmountsIncludedInMeasurementOfLeaseLiability_pn3n3_zB5qfIXiEqM" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 46%; text-align: left; padding-bottom: 1.5pt">Cash paid for amounts included in the measurement of lease liabilities</td><td style="width: 2%; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; width: 14%; text-align: right"><ix:nonFraction name="ZOOZ:CashPaidForAmountsIncludedInMeasurementOfLeaseLiability" contextRef="From2023-01-01to2023-12-31" id="Fact000839" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">443</ix:nonFraction></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="width: 2%; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; width: 14%; text-align: right"><ix:nonFraction name="ZOOZ:CashPaidForAmountsIncludedInMeasurementOfLeaseLiability" contextRef="From2022-01-012022-12-31" id="Fact000840" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">250</ix:nonFraction></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="width: 2%; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; width: 14%; text-align: right"><ix:nonFraction name="ZOOZ:CashPaidForAmountsIncludedInMeasurementOfLeaseLiability" contextRef="From2021-01-012021-12-31" id="Fact000841" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">106</ix:nonFraction></td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr id="xdx_405_eus-gaap--RightOfUseAssetObtainedInExchangeForOperatingLeaseLiability_pn3n3_zvvhPvnLg8v8" style="vertical-align: bottom; background-color: White">
    <td style="text-align: left; padding-bottom: 2.5pt">Right-of-use assets obtained in exchange for new operating lease liabilities</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:RightOfUseAssetObtainedInExchangeForOperatingLeaseLiability" contextRef="From2023-01-01to2023-12-31" id="Fact000843" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">108</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:RightOfUseAssetObtainedInExchangeForOperatingLeaseLiability" contextRef="From2022-01-012022-12-31" id="Fact000844" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">319</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:RightOfUseAssetObtainedInExchangeForOperatingLeaseLiability" contextRef="From2021-01-012021-12-31" id="Fact000845" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">1,496</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td></tr>
  </table>

</ix:nonNumeric><p id="xdx_8AB_z7fMNhqokrkl" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<ix:exclude><!-- Field: Page; Sequence: 150; Value: 1 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->21<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page --></ix:exclude>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>ZOOZ
POWER LTD.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<ix:nonNumeric contextRef="From2023-01-01to2023-12-31" escape="true" id="Fact000847" name="ZOOZ:OtherInformationRelatedToOperatingLeasesTableTextBlock"><p id="xdx_894_ecustom--OtherInformationRelatedToOperatingLeasesTableTextBlock_zkF02sGqy0j3" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8B2_zCW3TPl5q7nh">Other
information related to operating leases were as follows</span>:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;<span id="xdx_8B1_zRQK2hKqO1P3" style="display: none">SCHEDULE
OF OTHER INFORMATION RELATED TO OPERATING LEASES</span></span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 93%; margin-left: 0.5in">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>Weighted-average remaining lease term</td><td>&#160;</td>
    <td colspan="2" style="text-align: center"><span id="xdx_90A_eus-gaap--OperatingLeaseWeightedAverageRemainingLeaseTerm1_iI_dtY_c20231231_znZnuoxhykEd" title="Weighted-average remaining lease term"><ix:nonNumeric contextRef="AsOf2023-12-31" format="ixt-sec:duryear" id="Fact000849" name="us-gaap:OperatingLeaseWeightedAverageRemainingLeaseTerm1">3.9</ix:nonNumeric></span> years</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: center"><span id="xdx_90A_eus-gaap--OperatingLeaseWeightedAverageRemainingLeaseTerm1_iI_dtY_c20221231_zotsLxOSBMMb" title="Weighted-average remaining lease term"><ix:nonNumeric contextRef="AsOf2022-12-31" format="ixt-sec:duryear" id="Fact000851" name="us-gaap:OperatingLeaseWeightedAverageRemainingLeaseTerm1">4.7</ix:nonNumeric></span> years</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td style="width: 60%; text-align: left; padding-bottom: 2.5pt">Weighted-average discount rate</td><td style="width: 2%; padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; width: 16%; text-align: right"><span id="xdx_900_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_pid_dp_uPure_c20231231_zCeaBK8MwDsa" title="Weighted-average discount rate"><ix:nonFraction name="us-gaap:OperatingLeaseWeightedAverageDiscountRatePercent" contextRef="AsOf2023-12-31" id="Fact000853" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">12.88</ix:nonFraction></span></td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left">%</td><td style="width: 2%; padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; width: 16%; text-align: right"><span id="xdx_90D_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_pid_dp_uPure_c20221231_z1DOiFMoxtCd" title="Weighted-average discount rate"><ix:nonFraction name="us-gaap:OperatingLeaseWeightedAverageDiscountRatePercent" contextRef="AsOf2022-12-31" id="Fact000855" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">12.27</ix:nonFraction></span></td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left">%</td></tr>
  </table>

</ix:nonNumeric><p id="xdx_8A4_zw4m992ixNI5" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<ix:nonNumeric contextRef="From2023-01-01to2023-12-31" escape="true" id="Fact000857" name="us-gaap:LesseeOperatingLeaseLiabilityMaturityTableTextBlock"><p id="xdx_890_eus-gaap--LesseeOperatingLeaseLiabilityMaturityTableTextBlock_ztNQp94GDehk" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
table below presents value of lease liabilities of the company for the lease period (USD thousands):</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;<span id="xdx_8B2_zhNaIYXAiBLi" style="display: none">SCHEDULE
OF PRESENT VALUE OF LEASE LIABILITIES</span></span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 93%; margin-left: 0.5in">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" id="xdx_499_20231231_zzNPBN1R1xL6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31,<br/>
 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr id="xdx_40C_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_pn3n3_maLOLLPzvDC_z462WbwPer33" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 80%; text-align: left">2024</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 16%; text-align: right"><ix:nonFraction name="us-gaap:LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths" contextRef="AsOf2023-12-31" id="Fact000859" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">415</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr id="xdx_40C_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearTwo_iI_pn3n3_maLOLLPzvDC_zWOvkg0KHPK" style="vertical-align: bottom; background-color: White">
    <td style="text-align: left">2025</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:LesseeOperatingLeaseLiabilityPaymentsDueYearTwo" contextRef="AsOf2023-12-31" id="Fact000861" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">404</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_402_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearThree_iI_pn3n3_maLOLLPzvDC_zY3MzSAUIlBj" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">2026</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:LesseeOperatingLeaseLiabilityPaymentsDueYearThree" contextRef="AsOf2023-12-31" id="Fact000863" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">390</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_403_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFour_iI_pn3n3_maLOLLPzvDC_zNDtUfr636tf" style="vertical-align: bottom; background-color: White">
    <td style="text-align: left; padding-bottom: 1.5pt">2027</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:LesseeOperatingLeaseLiabilityPaymentsDueYearFour" contextRef="AsOf2023-12-31" id="Fact000865" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">309</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr id="xdx_40D_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iTI_pn3n3_mtLOLLPzvDC_mtOLLCzpy6_zccRLgSdjxk4" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Total operating lease payments</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:LesseeOperatingLeaseLiabilityPaymentsDue" contextRef="AsOf2023-12-31" id="Fact000867" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">1,518</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_401_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iNI_pn3n3_di_maOLLCzpy6_z7C38WCVsU8g" style="vertical-align: bottom; background-color: White">
    <td style="text-align: left; padding-bottom: 1.5pt">Less: imputed interest</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction name="us-gaap:LesseeOperatingLeaseLiabilityUndiscountedExcessAmount" contextRef="AsOf2023-12-31" id="Fact000869" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">174</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr id="xdx_400_eus-gaap--OperatingLeaseLiability_iTI_pn3n3_maOLLCzpy6_zyDhvdj5Xqi1" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 2.5pt">Present value of lease liabilities</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:OperatingLeaseLiability" contextRef="AsOf2023-12-31" id="Fact000871" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">1,344</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td></tr>
  </table>

</ix:nonNumeric><p id="xdx_8A5_zWzA4unJmH9b" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0pt; margin-bottom: 0pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase">&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" escape="true" id="Fact000873" name="us-gaap:CommitmentsAndContingenciesDisclosureTextBlock"><p id="xdx_806_eus-gaap--CommitmentsAndContingenciesDisclosureTextBlock_zaNl379Lqof8" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase"><b>NOTE
10 - <span id="xdx_82B_zqpG2JQDcfnd">COMMITMENTS AND CONTINGENCIES</span>:</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0pt; margin-bottom: 0pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Commitment
to pay royalties to the Israel Innovation Authority and other participation grants</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Since
incorporation of the Company and through 2023, the Company received grants for participation in research and development the IIA, other
governmental institutions (the Ministry of Economy and the Ministry of Energy) the BIRD Foundation, and from NYPA In the case of project
termination and/or unsuccessful development prior to having a mature product and beginning of sales, the Company does not have any commitment
to pay royalties. As a precondition for receiving the grants, the Company committed to pay royalties in a range of <span id="xdx_90D_ecustom--RoyaltiesPercentage_pid_dp_uPure_c20230101__20231231__srt--RangeAxis__srt--MinimumMember_zGlKl9QK7vYl" title="Royalties percentage"><ix:nonFraction name="ZOOZ:RoyaltiesPercentage" contextRef="From2023-01-012023-12-31_srt_MinimumMember" id="Fact000875" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">11</ix:nonFraction></span>% to <span id="xdx_90E_ecustom--RoyaltiesPercentage_pid_dp_uPure_c20230101__20231231__srt--RangeAxis__srt--MaximumMember_zkZE1TXGR2b2" title="Royalties percentage"><ix:nonFraction name="ZOOZ:RoyaltiesPercentage" contextRef="From2023-01-012023-12-31_srt_MaximumMember" id="Fact000877" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">16</ix:nonFraction></span>% (pending
territory) of revenue generated from selling the products, and up to the amount of grants received, based on a letter of commitment entered
with those entities.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total
contingent obligations as of December 31, 2023 and 2022, amounted to $<span id="xdx_90F_eus-gaap--LossContingencyAccrualAtCarryingValue_iI_pn5n6_c20231231_zeJvYgZoYnL" title="Contingency liability"><ix:nonFraction name="us-gaap:LossContingencyAccrualAtCarryingValue" contextRef="AsOf2023-12-31" id="Fact000879" format="ixt:numdotdecimal" decimals="-5" scale="6" unitRef="USD">2.0</ix:nonFraction></span> million and $<span id="xdx_907_eus-gaap--LossContingencyAccrualAtCarryingValue_iI_pn5n6_c20221231_zmT2cwSM1ZF6" title="Contingency liability"><ix:nonFraction name="us-gaap:LossContingencyAccrualAtCarryingValue" contextRef="AsOf2022-12-31" id="Fact000881" format="ixt:numdotdecimal" decimals="-5" scale="6" unitRef="USD">1.3</ix:nonFraction></span> million, respectively.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company receives royalty-bearing grants, which represent participation of BIRD in approved programs for funding, covering up to <span id="xdx_90A_ecustom--CommitmentOfContingenciesCostsPercentage_dp_uPure_c20230101__20231231__dei--LegalEntityAxis__custom--BIRDFoundationMember_zQvskqPqHfnf" title="Development costs"><ix:nonFraction name="ZOOZ:CommitmentOfContingenciesCostsPercentage" contextRef="From2023-01-012023-12-31_custom_BIRDFoundationMember" id="Fact000883" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">50</ix:nonFraction>%</span> of
project development costs. These grants are recognized as a reduction of research and development expenses as the related costs are incurred.
For the years ended December 31,2023, 2022 and 2021, the Company received $<span id="xdx_909_eus-gaap--LossContingencyReceivableProceeds_pn5n6_c20230101__20231231__dei--LegalEntityAxis__custom--BIRDFoundationMember_zKMJWHSowpyh" title="Contingent received"><ix:nonFraction name="us-gaap:LossContingencyReceivableProceeds" contextRef="From2023-01-012023-12-31_custom_BIRDFoundationMember" id="Fact000885" format="ixt:numdotdecimal" decimals="-5" scale="6" unitRef="USD">0.1</ix:nonFraction></span> million $<span id="xdx_900_eus-gaap--LossContingencyReceivableProceeds_pn5n6_c20220101__20221231__dei--LegalEntityAxis__custom--BIRDFoundationMember_zcjGPjZTHjo" title="Contingent received"><ix:nonFraction name="us-gaap:LossContingencyReceivableProceeds" contextRef="From2022-01-012022-12-31_custom_BIRDFoundationMember" id="Fact000887" format="ixt:numdotdecimal" decimals="-5" scale="6" unitRef="USD">0.1</ix:nonFraction></span> million and $<span id="xdx_90C_eus-gaap--LossContingencyReceivableProceeds_pn5n6_c20210101__20211231__dei--LegalEntityAxis__custom--BIRDFoundationMember_zOLeLU0BHXDa" title="Contingent received"><ix:nonFraction name="us-gaap:LossContingencyReceivableProceeds" contextRef="From2021-01-012021-12-31_custom_BIRDFoundationMember" id="Fact000889" format="ixt:numdotdecimal" decimals="-5" scale="6" unitRef="USD">0.2</ix:nonFraction></span> million from BIRD, respectively.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_902_eus-gaap--LongTermPurchaseCommitmentDescription_c20230101__20231231__dei--LegalEntityAxis__custom--BIRDFoundationMember_zOUeHRA4mrd5" title="Royality payments description"><ix:nonNumeric contextRef="From2023-01-012023-12-31_custom_BIRDFoundationMember" id="Fact000891" name="us-gaap:LongTermPurchaseCommitmentDescription">The
Company is committed to pay royalties to BIRD at a rate of 5% of the sales of its product, up to 100% of the amount of the grants received
if full repayment made by April 1, 2024, 113% if full repayment is made by April 2025, 125% if full repayment is made by April 2026,
138% if full repayment is made by April 2027, and 150% if full repayment is made after April 2027</ix:nonNumeric></span>.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify">&#160;</p>


<ix:exclude><!-- Field: Page; Sequence: 151; Value: 1 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->22<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page --></ix:exclude>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>ZOOZ
POWER LTD.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company receives royalty-bearing grants, which represent participation of IIA in approved programs for funding, covering up to <span id="xdx_90F_ecustom--CommitmentOfContingenciesOfDevelopmentcostsPercentage_dp_uPure_c20230101__20231231_zcLVCf6Ip6ni" title="Development costs"><ix:nonFraction name="ZOOZ:CommitmentOfContingenciesOfDevelopmentcostsPercentage" contextRef="From2023-01-01to2023-12-31" id="Fact000893" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">50</ix:nonFraction>%</span> of
project development costs. These grants are recognized as a reduction of research and development expenses as the related costs are incurred.
For the years ended December 31, 2023, 2022 and 2021, the Company received $<span id="xdx_908_eus-gaap--LossContingencyReceivableProceeds_pn5n6_c20230101__20231231_zUyugjRa7RIg" title="Contingent received"><ix:nonFraction name="us-gaap:LossContingencyReceivableProceeds" contextRef="From2023-01-01to2023-12-31" id="Fact000895" format="ixt:numdotdecimal" decimals="-5" scale="6" unitRef="USD">0.3</ix:nonFraction></span> million, $<span id="xdx_906_eus-gaap--LossContingencyReceivableProceeds_c20220101__20221231_zPzx1gcjJzOb" title="Contingent received"><ix:nonFraction name="us-gaap:LossContingencyReceivableProceeds" contextRef="From2022-01-012022-12-31" id="Fact000897" format="ixt:numdotdecimal" decimals="0" unitRef="USD">0</ix:nonFraction></span> and $<span id="xdx_905_eus-gaap--LossContingencyReceivableProceeds_pn5n6_c20210101__20211231_zFF3InN4vEwk" title="Contingent received"><ix:nonFraction name="us-gaap:LossContingencyReceivableProceeds" contextRef="From2021-01-012021-12-31" id="Fact000899" format="ixt:numdotdecimal" decimals="-5" scale="6" unitRef="USD">0.1</ix:nonFraction></span> million from IIA, respectively.
The amount of $<span id="xdx_90F_ecustom--ContigentOfAmountOtherReceivables_iI_pn5n6_c20221231_zFAT4PDjld8d" title="Contingent of amount other receivables"><ix:nonFraction name="ZOOZ:ContigentOfAmountOtherReceivables" contextRef="AsOf2022-12-31" id="Fact000901" format="ixt:numdotdecimal" decimals="-5" scale="6" unitRef="USD">0.3</ix:nonFraction></span> million received in 2023 from the IIA was recorded as &#8220;Other Receivables&#8221; in 2022. <span id="xdx_904_eus-gaap--LongTermPurchaseCommitmentDescription_c20230101__20231231_zv7h0xZ04E9e" title="Royalty interest rate description"><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" id="Fact000903" name="us-gaap:LongTermPurchaseCommitmentDescription">The Company is committed
to pay royalties to the Israeli Government at a rate of 3% to 5% of the sales of its product, up to 100% of the amount of the grants
received plus Annual Interest for a File, as such term is defined under the IIA&#8217;s rules and guidelines</ix:nonNumeric></span>. In 2023 the Company paid
$<span id="xdx_90F_eus-gaap--InventoryFirmPurchaseCommitmentLoss_pn3n3_c20230101__20231231_zRK9PZTLEWLg" title="Inventory purchase commitment loss"><ix:nonFraction name="us-gaap:InventoryFirmPurchaseCommitmentLoss" contextRef="From2023-01-01to2023-12-31" id="Fact000905" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">23</ix:nonFraction></span> thousand to the Innovation Authority with respect of sales recognized during the year.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
amounts deducted from research and development expenses are $<span id="xdx_903_ecustom--ContingentOfResearchAndDevelopmentExpense_pn3n3_c20230101__20231231_zLY01aM4RdFg" title="Contingent research and development"><ix:nonFraction name="ZOOZ:ContingentOfResearchAndDevelopmentExpense" contextRef="From2023-01-01to2023-12-31" id="Fact000907" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">382</ix:nonFraction></span> thousand, $<span id="xdx_904_ecustom--ContingentOfResearchAndDevelopmentExpense_pn3n3_c20220101__20221231_zO8FS7HPeIil" title="Contingent research and development"><ix:nonFraction name="ZOOZ:ContingentOfResearchAndDevelopmentExpense" contextRef="From2022-01-012022-12-31" id="Fact000909" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">359</ix:nonFraction></span> thousand and $<span id="xdx_903_ecustom--ContingentOfResearchAndDevelopmentExpense_pn3n3_c20210101__20211231_z0jtRmSyOxQ7" title="Contingent research and development"><ix:nonFraction name="ZOOZ:ContingentOfResearchAndDevelopmentExpense" contextRef="From2021-01-012021-12-31" id="Fact000911" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">189</ix:nonFraction></span> thousands for the years ended on December
31, 2023, 2022 and 2021, respectively.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Engagement
in collaborations agreements and pilot programs:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">1.</span></td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Collaboration
    agreement with Blink</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.75in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
February 2020, the Company engaged in a collaboration agreement with Blink, a company engaged in development, marketing, and distribution
of equipment for electric vehicles, for the development of an energy storage system for the U.S. market designed to accelerate EV charging.
<span id="xdx_90D_ecustom--PaymentOfRoyaltyPercentageOnNetProductSales_iI_dp_uPure_c20231231_zTZU6wiYYLG" title="Payment of royalty percentage"><ix:nonFraction name="ZOOZ:PaymentOfRoyaltyPercentageOnNetProductSales" contextRef="AsOf2023-12-31" id="Fact000913" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">50</ix:nonFraction>%</span> of the project&#8217;s approved budget was funded by BIRD. Under the agreement, the Company is responsible for the development and
manufacturing of the facility for the U.S. market in compliance with U.S. standards, while Blink is responsible for the manufacturing
of a high-power EV charger, and for the marketing and distribution of the joint product. The Company is committed under the agreement
to pay <span id="xdx_904_ecustom--PaymentOfRoyaltyPercentageAgreementtSales_iI_dp_uPure_c20231231_zXaol2lTK0Qh" title="Payment of royalty percentage agreement sales"><ix:nonFraction name="ZOOZ:PaymentOfRoyaltyPercentageAgreementtSales" contextRef="AsOf2023-12-31" id="Fact000915" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">5</ix:nonFraction>%</span> royalties on U.S. sales and up to the amount of the grant.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.</span></td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Collaboration
    agreement with Afcon Electric Transportation LTD.</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.75in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
July 2022, the Company entered into an agreement with Afcon Electric Transportation Ltd. (hereafter - &#8220;Afcon&#8221;), in a cooperation
agreement for the establishment and execution of a pilot for an ultra-fast charging infrastructure for electric vehicles, based on a
ZOOZTER-100 kinetic storage system in combination with the energy management software (EMS) for smart management of power consumption
on the site produced by the Company.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.75in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
engagement in the agreement is subject to the approval from the IIA for a pilot support grant amounting to <span id="xdx_900_ecustom--PaymentOfGrantAmountInterest_iI_dp_uPure_c20231231_zFZtfQEedCGd" title="Payment of grant amount interest"><ix:nonFraction name="ZOOZ:PaymentOfGrantAmountInterest" contextRef="AsOf2023-12-31" id="Fact000917" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">40</ix:nonFraction>%</span> of the project budget,
in the amount of $<span id="xdx_905_ecustom--CollaborativeArrangementsOfGrantPayment_iI_pn5n6_c20231231_zFamqUQc8GAh" title="Collaborative grants payment"><ix:nonFraction name="ZOOZ:CollaborativeArrangementsOfGrantPayment" contextRef="AsOf2023-12-31" id="Fact000919" format="ixt:numdotdecimal" decimals="-5" scale="6" unitRef="USD">0.3</ix:nonFraction></span> million.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">&#160;</p>


<ix:exclude><!-- Field: Page; Sequence: 152; Value: 1 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->23<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page --></ix:exclude>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>ZOOZ
POWER LTD.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.</span></td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Collaboration
    agreement with New York Power Authority</span></td></tr>
  </table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.75in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
September 12, 2022, the Company engaged in a cooperation agreement with the NYPA for the development, installation, integration and demonstration
of the Company&#8217;s systems for use as ultra-fast charging infrastructure for electric vehicles, in locations with limited power grid
capacity. Under the agreement, the Company is expected to construct and demonstrate with NYPA&#8217;s funding of up to $<span id="xdx_90A_ecustom--CollaborativeArrangementsFundingPayment_iI_pn5n6_c20231231_zQaW5zbasiZ2" title="Payments for fund"><ix:nonFraction name="ZOOZ:CollaborativeArrangementsFundingPayment" contextRef="AsOf2023-12-31" id="Fact000921" format="ixt:numdotdecimal" decimals="-5" scale="6" unitRef="USD">0.9</ix:nonFraction></span> million,
of which the Company received $<span id="xdx_909_ecustom--CollaborativeArrangementsAssetsAcquisitionAndUpfrontPayment_iI_pn5n6_c20231231_z91RS3OizTlg" title="Collaborative assets acquisition"><ix:nonFraction name="ZOOZ:CollaborativeArrangementsAssetsAcquisitionAndUpfrontPayment" contextRef="AsOf2023-12-31" id="Fact000923" format="ixt:numdotdecimal" decimals="-5" scale="6" unitRef="USD">0.5</ix:nonFraction></span> million during 2023) an ultra-fast charging station based on the Company&#8217;s system. According
to the contract, the Company is obliged to pay royalties in the range between <span id="xdx_90E_ecustom--PaymentOfRoyaltyPercentageOnNetProductSales_iI_pid_dp_uPure_c20231231__srt--RangeAxis__srt--MinimumMember_zkGWElUQAGJd" title="Payment of royalty percentage sales"><ix:nonFraction name="ZOOZ:PaymentOfRoyaltyPercentageOnNetProductSales" contextRef="AsOf2023-12-31_srt_MinimumMember" id="Fact000925" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">1.5</ix:nonFraction>%</span> to <span id="xdx_908_ecustom--PaymentOfRoyaltyPercentageOnNetProductSales_iI_dp_uPure_c20231231__srt--RangeAxis__srt--MaximumMember_zsGbvaQpKsv" title="Payment of royalty percentage sales"><ix:nonFraction name="ZOOZ:PaymentOfRoyaltyPercentageOnNetProductSales" contextRef="AsOf2023-12-31_srt_MaximumMember" id="Fact000927" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">2</ix:nonFraction>%</span> until the receipts received from NYPA are fully
covered.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" escape="true" id="Fact000929" name="us-gaap:StockholdersEquityNoteDisclosureTextBlock"><p id="xdx_80A_eus-gaap--StockholdersEquityNoteDisclosureTextBlock_zrPzD1cDVQcb" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase"><b>Note
11 - <span id="xdx_82F_zS5b2QIOj563">EQUITY</span>:</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
March 2024, the Company&#8217;s general meeting of shareholders approved a reverse split of shares on a conversion ratio of <span id="xdx_902_eus-gaap--StockIssuedDuringPeriodSharesReverseStockSplits_c20240331__20240331_zLJLX2MQsnV7" title="Number of shares reserve stock splits"><ix:nonFraction name="us-gaap:StockIssuedDuringPeriodSharesReverseStockSplits" contextRef="From2024-03-312024-03-31" id="Fact000931" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">11.4372</ix:nonFraction></span>.
All numbers of shares and options, and warrants presented in these financial statements are after retrospective application of the reverse-split.
For more information see Note 1.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Each
holder of the Company&#8217;s ordinary shares, par value NIS <span id="xdx_901_eus-gaap--SaleOfStockPricePerShare_iI_pid_uILSPShares_c20240331_zDH0cYrQQ0b1" title="Sale of stock price per share"><ix:nonFraction name="us-gaap:SaleOfStockPricePerShare" contextRef="AsOf2024-03-31" id="Fact000933" format="ixt:numdotdecimal" decimals="INF" unitRef="ILSPShares">0.00286</ix:nonFraction></span> per share, is entitled to one vote. The holders of ordinary shares
are also entitled to receive dividends whenever funds are legally available and declared by the Company&#8217;s Board of Directors (the
&#8220;Board&#8221;). Since inception, the Company has not declared any dividends.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
February 2021, the Company converted <span id="xdx_90A_eus-gaap--ConvertiblePreferredStockSharesIssuedUponConversion_iI_pid_c20210228_zkZRKeWpfeth" title="Converted preferred shares"><ix:nonFraction name="us-gaap:ConvertiblePreferredStockSharesIssuedUponConversion" contextRef="AsOf2021-02-28" id="Fact000935" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">467,571</ix:nonFraction></span> preferred shares into <span id="xdx_905_eus-gaap--SharesIssued_iI_pid_c20210228_zrLseSq5ScVc" title="Ordinary shares"><ix:nonFraction name="us-gaap:SharesIssued" contextRef="AsOf2021-02-28" id="Fact000937" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">1,565,000</ix:nonFraction></span> ordinary shares before the split as describe below (Following
the reverse split in March 2024, as described above, the converted preferred shares would have differed from <span id="xdx_907_eus-gaap--ConvertiblePreferredStockSharesIssuedUponConversion_iI_pid_c20240331__srt--RangeAxis__srt--MinimumMember_zn0glkEmUobh" title="Converted preferred shares"><ix:nonFraction name="us-gaap:ConvertiblePreferredStockSharesIssuedUponConversion" contextRef="AsOf2024-03-31_srt_MinimumMember" id="Fact000939" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">18,881,400</ix:nonFraction></span> ordinary shares
to <span id="xdx_90F_eus-gaap--ConvertiblePreferredStockSharesIssuedUponConversion_iI_pid_c20240331__srt--RangeAxis__srt--MaximumMember_zur6ljBdDJTl" title="Converted preferred shares"><ix:nonFraction name="us-gaap:ConvertiblePreferredStockSharesIssuedUponConversion" contextRef="AsOf2024-03-31_srt_MaximumMember" id="Fact000941" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">1,650,875</ix:nonFraction></span> ordinary shares).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
February 2021, the Company&#8217;s general meeting of shareholders approved the split of all classes in its issued and paid-up share
capital into ordinary shares. Additionally, the general meeting approved a split of shares on a 40:1 ratio.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
February 18, 2021, the Company signed a binding memorandum with Arko shortly before obtaining permission to issue a complementary prospectus
ahead of an initial public offering (IPO) of the Company on the Tel Aviv Stock Exchange (&#8220;TASE&#8221;), granting <span id="xdx_906_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAvailableForGrant_iI_c20210218__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--IPOMember_zzsbWWVGybe4" title="Grant shares"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAvailableForGrant" contextRef="AsOf2021-02-18_us-gaap_IPOMember" id="Fact000943" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">26,230</ix:nonFraction></span> warrants
for the acquisition of ordinary shares of<span id="xdx_907_eus-gaap--SaleOfStockDescriptionOfTransaction_c20210218__20210218__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--IPOMember_z0ywCg4xQBHd" title="Description of transaction"> <ix:nonNumeric contextRef="From2021-02-182021-02-18_us-gaap_IPOMember" id="Fact000945" name="us-gaap:SaleOfStockDescriptionOfTransaction">the Company, exercisable for a price per share at 120% of a the share price that would be determined
at the IPO and for a period of five years</ix:nonNumeric></span>. As of December 31, 2023, the warrants have yet to be exercised. Sales and marketing expenses
for the year ended December 31, 2021 include an expense of $<span id="xdx_90E_eus-gaap--MarketingExpense_pn3n3_c20210101__20211231_z84BFQfL0yl9" title="Sales and marketing expenses"><ix:nonFraction name="us-gaap:MarketingExpense" contextRef="From2021-01-012021-12-31" id="Fact000947" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">269</ix:nonFraction></span> thousand.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
March 2021, <span id="xdx_904_ecustom--BusinessAcquisitionEquityInterestIssuedOrIssuableDescriptions_c20210101__20210331_zbHMKlpZNVfb" title="Business acquisition description"><ix:nonNumeric contextRef="From2021-01-012021-03-31" id="Fact000949" name="ZOOZ:BusinessAcquisitionEquityInterestIssuedOrIssuableDescriptions">the Company completed an IPO of its securities on the TASE and issued to the public <span id="xdx_909_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20210101__20210331_zIhXb98n2vFj" title="Number of shares issued"><ix:nonFraction name="us-gaap:StockIssuedDuringPeriodSharesNewIssues" contextRef="From2021-01-012021-03-31" id="Fact000951" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">33,754</ix:nonFraction></span> units, each composed of 8.74 ordinary
shares, 6.56 Series 1 and 2.19 Series 2 options. Option series 1 will exercise period is within one year, with an exercise price of $<span id="xdx_903_eus-gaap--StockOptionExercisePriceDecrease_pid_c20210101__20210331__us-gaap--StatementClassOfStockAxis__custom--OptionOneMember_zpSTUpvCEu19" title="Stock option exercise price"><ix:nonFraction name="us-gaap:StockOptionExercisePriceDecrease" contextRef="From2021-01-012021-03-31_custom_OptionOneMember" id="Fact000953" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">29.7</ix:nonFraction></span>
(NIS <span id="xdx_908_eus-gaap--StockOptionExercisePriceDecrease_pid_uILSPShares_c20210101__20210331__us-gaap--StatementClassOfStockAxis__custom--OptionOneMember_zIL1YgeC9LDd" title="Stock option exercise price"><ix:nonFraction name="us-gaap:StockOptionExercisePriceDecrease" contextRef="From2021-01-012021-03-31_custom_OptionOneMember" id="Fact000955" format="ixt:numdotdecimal" decimals="INF" unitRef="ILSPShares">92.9</ix:nonFraction></span>). Option series 2 exercise period is within two years, with an exercise price of $<span id="xdx_905_eus-gaap--StockOptionExercisePriceDecrease_pid_c20210101__20210331__us-gaap--StatementClassOfStockAxis__custom--OptionTwoMember_zkYD8FkCuqjg" title="Stock option exercise price"><ix:nonFraction name="us-gaap:StockOptionExercisePriceDecrease" contextRef="From2021-01-012021-03-31_custom_OptionTwoMember" id="Fact000957" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">44.6</ix:nonFraction></span> (NIS <span id="xdx_907_eus-gaap--StockOptionExercisePriceDecrease_pid_uILSPShares_c20210101__20210331__us-gaap--StatementClassOfStockAxis__custom--OptionTwoMember_zOBBNoHBEevf" title="Stock option exercise price"><ix:nonFraction name="us-gaap:StockOptionExercisePriceDecrease" contextRef="From2021-01-012021-03-31_custom_OptionTwoMember" id="Fact000959" format="ixt:numdotdecimal" decimals="INF" unitRef="ILSPShares">139.5</ix:nonFraction></span>). Gross issue proceeds were
$<span id="xdx_90E_eus-gaap--PaymentsOfStockIssuanceCosts_pn5n6_c20210101__20211231_zcBPU1941idl" title="Payments of debt issuance costs"><ix:nonFraction name="us-gaap:PaymentsOfStockIssuanceCosts" contextRef="From2021-01-012021-12-31" id="Fact000961" format="ixt:numdotdecimal" decimals="-5" scale="6" unitRef="USD">8.4</ix:nonFraction></span> million (NIS <span id="xdx_905_eus-gaap--PaymentsOfStockIssuanceCosts_pn5n6_uILS_c20210101__20211231_z0hx5qhU2AM7" title="Payments of debt issuance costs"><ix:nonFraction name="us-gaap:PaymentsOfStockIssuanceCosts" contextRef="From2021-01-012021-12-31" id="Fact000963" format="ixt:numdotdecimal" decimals="-5" scale="6" unitRef="ILS">27.4</ix:nonFraction></span> million). Issuance costs were $<span id="xdx_908_eus-gaap--PaymentsOfDebtIssuanceCosts_pn5n6_c20210101__20211231_zX14ZgpBcbK3" title="Payments of debt issuance costs"><ix:nonFraction name="us-gaap:PaymentsOfDebtIssuanceCosts" contextRef="From2021-01-012021-12-31" id="Fact000965" format="ixt:numdotdecimal" decimals="-5" scale="6" unitRef="USD">0.6</ix:nonFraction></span> million (NIS <span id="xdx_90F_eus-gaap--PaymentsOfDebtIssuanceCosts_pn5n6_uILS_c20210101__20211231_zcADyRiF9Ntf" title="Payments of debt issuance costs"><ix:nonFraction name="us-gaap:PaymentsOfDebtIssuanceCosts" contextRef="From2021-01-012021-12-31" id="Fact000967" format="ixt:numdotdecimal" decimals="-5" scale="6" unitRef="ILS">1.9</ix:nonFraction></span> million), recognized as a deduction from additional paid-in
capital</ix:nonNumeric></span>.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
March 2022, <span id="xdx_90B_ecustom--BusinessAcquisitionEquityInterestIssuedOrIssuableDescriptions_c20220101__20220331_z1I7lTqgL5fb" title="Business acquisition description"><ix:nonNumeric contextRef="From2022-01-012022-03-31" id="Fact000969" name="ZOOZ:BusinessAcquisitionEquityInterestIssuedOrIssuableDescriptions">the Company completed a financing round through a private placement and a public offering. As part of the public offering,
the Company issued <span id="xdx_901_eus-gaap--SharesIssued_iI_c20220331__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--PrivatePlacementMember_zTZKWeLOXZd9" title="Shares issued"><ix:nonFraction name="us-gaap:SharesIssued" contextRef="AsOf2022-03-31_us-gaap_PrivatePlacementMember" id="Fact000971" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">352,276</ix:nonFraction></span> units, each composed of <span id="xdx_905_eus-gaap--SharesIssuedPricePerShare_iI_c20220331_zgEAnKl45geh" title="Share issued price per share"><ix:nonFraction name="us-gaap:SharesIssuedPricePerShare" contextRef="AsOf2022-03-31" id="Fact000973" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">8.74</ix:nonFraction></span> ordinary shares and <span id="xdx_908_eus-gaap--SharesIssuedPricePerShare_iI_c20220331__us-gaap--StatementClassOfStockAxis__custom--SeriesThreeMember_zMxYSWAJvvX9" title="Share issued price per share"><ix:nonFraction name="us-gaap:SharesIssuedPricePerShare" contextRef="AsOf2022-03-31_custom_SeriesThreeMember" id="Fact000975" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">5.68</ix:nonFraction></span> Series 3 options. The options will vest over a period
of 3 years, with an exercise price of $<span id="xdx_90F_eus-gaap--StockOptionExercisePriceDecrease_pid_c20220101__20220331_zU46V0SlmrPh" title="Stock option exercise price"><ix:nonFraction name="us-gaap:StockOptionExercisePriceDecrease" contextRef="From2022-01-012022-03-31" id="Fact000977" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">9.1</ix:nonFraction></span> (NIS 32) for one year period and $11.4 (NIS 41.2) for additional two years period. In the
private placement, the Company issued <span id="xdx_90B_eus-gaap--SharesIssued_iI_c20220331_zEDkmbZc2aa" title="Shares issued"><ix:nonFraction name="us-gaap:SharesIssued" contextRef="AsOf2022-03-31" id="Fact000979" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">42,735</ix:nonFraction></span> units, each composed of <span id="xdx_900_eus-gaap--StockIssuedDuringPeriodSharesIssuedForServices_pid_c20220101__20220331_z3bIeekxA4Al" title="Number of shares issued for services"><ix:nonFraction name="us-gaap:StockIssuedDuringPeriodSharesIssuedForServices" contextRef="From2022-01-012022-03-31" id="Fact000981" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">8.74</ix:nonFraction></span> ordinary shares and 7.43 Series 3 options as well as 16,239
units, each composed of 8.74 ordinary shares and 5.68 Series 3 options. Gross issue proceeds were $<span id="xdx_903_eus-gaap--ProceedsFromIssuanceOrSaleOfEquity_pn6n6_c20220101__20220331_z59MYYNB2xKc" title="Proceeds from issuance or sale of equity"><ix:nonFraction name="us-gaap:ProceedsFromIssuanceOrSaleOfEquity" contextRef="From2022-01-012022-03-31" id="Fact000983" format="ixt:numdotdecimal" decimals="-6" scale="6" unitRef="USD">29</ix:nonFraction></span> million (NIS <span id="xdx_90D_eus-gaap--ProceedsFromIssuanceOrSaleOfEquity_pn6n6_uILS_c20220101__20220331_zR4pRcGU4sve" title="Proceeds from issuance or sale of equity"><ix:nonFraction name="us-gaap:ProceedsFromIssuanceOrSaleOfEquity" contextRef="From2022-01-012022-03-31" id="Fact000985" format="ixt:numdotdecimal" decimals="-6" scale="6" unitRef="ILS">96</ix:nonFraction></span> million). Issuance
costs amounted to USD <span id="xdx_907_eus-gaap--PaymentsOfDebtIssuanceCosts_pn5n6_c20220101__20220331_zDoafGgsRHa6" title="Payments of debt issuance costs"><ix:nonFraction name="us-gaap:PaymentsOfDebtIssuanceCosts" contextRef="From2022-01-012022-03-31" id="Fact000987" format="ixt:numdotdecimal" decimals="-5" scale="6" unitRef="USD">1.7</ix:nonFraction></span> million (NIS <span id="xdx_906_eus-gaap--PaymentsOfDebtIssuanceCosts_pn5n6_uILS_c20220101__20220331_zoGsBOGrSzb9" title="Payments of debt issuance costs"><ix:nonFraction name="us-gaap:PaymentsOfDebtIssuanceCosts" contextRef="From2022-01-012022-03-31" id="Fact000989" format="ixt:numdotdecimal" decimals="-5" scale="6" unitRef="ILS">5.7</ix:nonFraction></span> million), including NIS <span id="xdx_90C_eus-gaap--StockIssuedDuringPeriodValueNewIssues_pn5n6_uILS_c20220101__20220331_zUPrnE64n8Ql" title="Number of shares issued, value"><ix:nonFraction name="us-gaap:StockIssuedDuringPeriodValueNewIssues" contextRef="From2022-01-012022-03-31" id="Fact000991" format="ixt:numdotdecimal" decimals="-5" scale="6" unitRef="ILS">0.5</ix:nonFraction></span> million paid to an advisor through the allocation of shares and
Series 3 options, were recognized as a deduction from additional paid-in capital</ix:nonNumeric></span>.</span></p>
<!-- Field: Split-Segment; Name: 001 -->
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.75in; text-align: justify">&#160;</p>


<ix:exclude><!-- Field: Page; Sequence: 153; Value: 1 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->24<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page --></ix:exclude>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>ZOOZ
POWER LTD.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" escape="true" id="Fact000993" name="us-gaap:DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock"><p id="xdx_800_eus-gaap--DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock_zXFzsesD2nIa" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase"><b>Note
12 - <span id="xdx_826_zcZD5deJ5O1k">SHARE BASED COMPENSATION</span>:</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
2015 Incentive Compensation Plan (&#8220;2015 Plan&#8221;)</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
August 2015, the Board of Directors approved the Company&#8217;s option plan for employees and officers, which was submitted in June
2016 to the Israel income tax authorities as a plan administered by a trustee and treated for tax purposes as a capital gain pursuant
to Section 102(b)(2). Options to non-employees and non-officers of the Company, in addition to controlling shareholders of the Company,
are to be allocated under Section 3(i) of the Income Tax Ordinance.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">According
to the 2015 Plan, the Company&#8217;s Board of Directors is permitted to grant employees, officers, directors, consultants and other
senior service providers of the Company (as this term is defined by Section 102(a) to the Income Tax Ordinance unlisted options and warrants
that are exercisable into shares of the Company. The 2015 Plan is managed by the Company&#8217;s Board of Directors, or by a committee
authorized by the Board. All shares that will arise from exercising the unlisted options grants to employees, consultants and officers
under the 2015 Plan would be fully paid up on their date of allocation and, beginning on the date the Company becomes public, would be
registered in the name of the Company.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
exercise price for each option or warrant is as determined by the Board of Directors, but provided that if the Board of Directors does
not indicate otherwise, the exercise price would be the fair market value of the Company&#8217;s share on the date of the decision to
allocate.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_909_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardTermsOfAward_c20230101__20231231__us-gaap--PlanNameAxis__custom--TwoThousandFifteenIncentiveCompensationPlanMember_zmRoBpxrLKw8" title="Share-based payment award, terms of award"><ix:nonNumeric contextRef="From2023-01-012023-12-31_custom_TwoThousandFifteenIncentiveCompensationPlanMember" id="Fact000995" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardTermsOfAward">The
vesting period, unless the Company&#8217;s Board of Directors determines otherwise in respect to any specific grantee is (1) 25% of options
would vest after twelve consecutive months of services by the grantee since the date of grant; (2) 6.25% of options would vest after
every three (3) additional months of consecutive service by the grantee, until 100% of the options vest, after four (4) years after grant
date.</ix:nonNumeric></span> Further, the Company&#8217;s Board of Director is permitted, at its exclusive judgment, to accelerate vesting of all or part of
an option of warrant in the event of a merger of the Company with another company.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Unless
expired at an earlier date, the unexercised options would expire after <span id="xdx_903_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardExpirationPeriod_dc_c20230101__20231231__us-gaap--PlanNameAxis__custom--TwoThousandFifteenIncentiveCompensationPlanMember_zjMTqyoVZRpa" title="Share-based payment award, expiration period"><ix:nonNumeric contextRef="From2023-01-012023-12-31_custom_TwoThousandFifteenIncentiveCompensationPlanMember" format="ixt-sec:durwordsen" id="Fact000997" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardExpirationPeriod">ten years</ix:nonNumeric></span> after grant date.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Equity
classified awards</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
November 2021, the Company granted <span id="xdx_90B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pid_c20211101__20211130__us-gaap--GranteeStatusAxis__us-gaap--ShareBasedPaymentArrangementNonemployeeMember__srt--TitleOfIndividualAxis__srt--OfficerMember_zDErKxCAuNli" title="Number of options granted"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross" contextRef="From2021-11-012021-11-30_us-gaap_ShareBasedPaymentArrangementNonemployeeMember_srt_OfficerMember" id="Fact000999" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">78,621</ix:nonFraction></span> options (unlisted), exercisable into ordinary shares of the Company, to an officer who is a
related party, with whom the Company has no employment relationship, for an exercise price of NIS <span id="xdx_906_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pid_uILSPShares_c20211101__20211130__us-gaap--GranteeStatusAxis__us-gaap--ShareBasedPaymentArrangementNonemployeeMember__srt--TitleOfIndividualAxis__srt--OfficerMember_zvgZwdC5s5ce" title="Weighted average exercise price"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice" contextRef="From2021-11-012021-11-30_us-gaap_ShareBasedPaymentArrangementNonemployeeMember_srt_OfficerMember" id="Fact001001" format="ixt:numdotdecimal" decimals="INF" unitRef="ILSPShares">74.8</ix:nonFraction></span> per share.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
November 2021, the Company granted <span id="xdx_909_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pid_c20211101__20211130__srt--TitleOfIndividualAxis__custom--EmployeesOrOfficersMember_zvQMpgO6BZDg" title="Number of options granted"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross" contextRef="From2021-11-012021-11-30_custom_EmployeesOrOfficersMember" id="Fact001003" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">13,989</ix:nonFraction></span> options (unlisted), exercisable into ordinary shares of the Company, to employees or officers,
for an exercise price of NIS <span id="xdx_90A_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pid_uILSPShares_c20211101__20211130__srt--TitleOfIndividualAxis__custom--EmployeesOrOfficersMember_zK8JJTzDYuel" title="Weighted average exercise price"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice" contextRef="From2021-11-012021-11-30_custom_EmployeesOrOfficersMember" id="Fact001005" format="ixt:numdotdecimal" decimals="INF" unitRef="ILSPShares">65.6</ix:nonFraction></span> per share.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
November 2021, the Company granted <span id="xdx_900_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pid_c20211101__20211130__srt--TitleOfIndividualAxis__srt--OfficerMember_zJnB4WRhH07g" title="Number of options granted"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross" contextRef="From2021-11-012021-11-30_srt_OfficerMember" id="Fact001007" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">13,989</ix:nonFraction></span> options (unlisted), exercisable into ordinary shares of the Company, to an officer, for an
exercise price of NIS <span id="xdx_90A_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pid_uILSPShares_c20211101__20211130__srt--TitleOfIndividualAxis__srt--OfficerMember_zhmsab885Psg" title="Weighted average exercise price"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice" contextRef="From2021-11-012021-11-30_srt_OfficerMember" id="Fact001009" format="ixt:numdotdecimal" decimals="INF" unitRef="ILSPShares">65.6</ix:nonFraction></span> per share.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
July 2022, the Company granted <span id="xdx_90E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pid_c20220701__20220731__us-gaap--GranteeStatusAxis__us-gaap--ShareBasedPaymentArrangementEmployeeMember__srt--TitleOfIndividualAxis__custom--EmployeesOrOfficersMember_zYIym7VHNl8c" title="Number of options granted"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross" contextRef="From2022-07-012022-07-31_us-gaap_ShareBasedPaymentArrangementEmployeeMember_custom_EmployeesOrOfficersMember" id="Fact001011" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">82,187</ix:nonFraction></span> options (unlisted), exercisable into ordinary shares of the Company, to employees or officers with
whom the Company has employment relationships, for an exercise price of NIS <span id="xdx_907_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pid_uILSPShares_c20220701__20220731__us-gaap--GranteeStatusAxis__us-gaap--ShareBasedPaymentArrangementEmployeeMember__srt--TitleOfIndividualAxis__custom--EmployeesOrOfficersMember_zMlaHRHr1pDb" title="Weighted average exercise price"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice" contextRef="From2022-07-012022-07-31_us-gaap_ShareBasedPaymentArrangementEmployeeMember_custom_EmployeesOrOfficersMember" id="Fact001013" format="ixt:numdotdecimal" decimals="INF" unitRef="ILSPShares">21.6</ix:nonFraction></span> per share.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
July 2022, the Company granted <span id="xdx_90D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pid_c20220701__20220731__us-gaap--GranteeStatusAxis__us-gaap--ShareBasedPaymentArrangementEmployeeMember__srt--TitleOfIndividualAxis__srt--OfficerMember_zviCmWuvzxkg" title="Number of options granted"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross" contextRef="From2022-07-012022-07-31_us-gaap_ShareBasedPaymentArrangementEmployeeMember_srt_OfficerMember" id="Fact001015" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">17,486</ix:nonFraction></span> options (unlisted), exercisable into ordinary shares of the Company, to an officer, with whom the
Company has employment relationship for an exercise price of NIS <span id="xdx_90B_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pid_uILSPShares_c20220701__20220731__us-gaap--GranteeStatusAxis__us-gaap--ShareBasedPaymentArrangementEmployeeMember__srt--TitleOfIndividualAxis__srt--OfficerMember_zUNfkt9wWVZc" title="Weighted average exercise price"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice" contextRef="From2022-07-012022-07-31_us-gaap_ShareBasedPaymentArrangementEmployeeMember_srt_OfficerMember" id="Fact001017" format="ixt:numdotdecimal" decimals="INF" unitRef="ILSPShares">26.8</ix:nonFraction></span> per share.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.75in; text-align: justify">&#160;</p>


<ix:exclude><!-- Field: Page; Sequence: 154; Value: 1 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->25<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page --></ix:exclude>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>ZOOZ
POWER LTD.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
August 2022, the Company granted <span id="xdx_907_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pid_c20220801__20220831__us-gaap--GranteeStatusAxis__us-gaap--ShareBasedPaymentArrangementEmployeeMember__srt--TitleOfIndividualAxis__srt--OfficerMember_z1SXgsJiID47" title="Number of options granted"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross" contextRef="From2022-08-012022-08-31_us-gaap_ShareBasedPaymentArrangementEmployeeMember_srt_OfficerMember" id="Fact001019" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">52,460</ix:nonFraction></span> options (unlisted), exercisable into ordinary shares of the Company, to officers, with whom the
Company has employment relationships for an exercise price of NIS <span id="xdx_900_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pid_uILSPShares_c20220701__20220731__us-gaap--GranteeStatusAxis__us-gaap--ShareBasedPaymentArrangementEmployeeMember__srt--TitleOfIndividualAxis__srt--OfficerMember_ztAVMSgUQYce" title="Weighted average exercise price"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice" contextRef="From2022-07-012022-07-31_us-gaap_ShareBasedPaymentArrangementEmployeeMember_srt_OfficerMember" id="Fact001021" format="ixt:numdotdecimal" decimals="INF" unitRef="ILSPShares">26.8</ix:nonFraction></span> per share.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
October 2022, the Company granted <span id="xdx_900_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pid_c20221001__20221031__us-gaap--GranteeStatusAxis__us-gaap--ShareBasedPaymentArrangementEmployeeMember__srt--TitleOfIndividualAxis__srt--OfficerMember_zfnc0EaoPwbh" title="Number of options granted"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross" contextRef="From2022-10-012022-10-31_us-gaap_ShareBasedPaymentArrangementEmployeeMember_srt_OfficerMember" id="Fact001023" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">26,230</ix:nonFraction></span> options (unlisted), exercisable into ordinary shares of the Company, to an officer, with whom
the Company has employment relationship for an exercise price of NIS <span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pid_uILSPShares_c20220701__20220731__us-gaap--GranteeStatusAxis__us-gaap--ShareBasedPaymentArrangementEmployeeMember__srt--TitleOfIndividualAxis__srt--OfficerMember_zNawKmNicbxc" title="Weighted average exercise price"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice" contextRef="From2022-07-012022-07-31_us-gaap_ShareBasedPaymentArrangementEmployeeMember_srt_OfficerMember" id="Fact001025" format="ixt:numdotdecimal" decimals="INF" unitRef="ILSPShares">26.8</ix:nonFraction></span> per share.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
December 2022, the Company granted <span id="xdx_90A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pid_c20221201__20221231__us-gaap--GranteeStatusAxis__us-gaap--ShareBasedPaymentArrangementEmployeeMember__srt--TitleOfIndividualAxis__custom--EmployeesOrOfficersMember_zxJa0DmZswt9" title="Number of options granted"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross" contextRef="From2022-12-012022-12-31_us-gaap_ShareBasedPaymentArrangementEmployeeMember_custom_EmployeesOrOfficersMember" id="Fact001027" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">13,989</ix:nonFraction></span> options (unlisted), exercisable into ordinary shares of the Company, to employees or officers,
and with whom the Company has employment relationships for an exercise price of NIS <span id="xdx_903_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pid_uILSPShares_c20221201__20221231__us-gaap--GranteeStatusAxis__us-gaap--ShareBasedPaymentArrangementEmployeeMember__srt--TitleOfIndividualAxis__custom--EmployeesOrOfficersMember_zIox3L17FkZ8" title="Weighted average exercise price"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice" contextRef="From2022-12-012022-12-31_us-gaap_ShareBasedPaymentArrangementEmployeeMember_custom_EmployeesOrOfficersMember" id="Fact001029" format="ixt:numdotdecimal" decimals="INF" unitRef="ILSPShares">17.4</ix:nonFraction></span> per share.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
February 2023, the Company granted <span id="xdx_90C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pid_c20230201__20230228__us-gaap--GranteeStatusAxis__us-gaap--ShareBasedPaymentArrangementEmployeeMember__srt--TitleOfIndividualAxis__custom--EmployeesMember_ztfSEyvGVGj8" title="Number of options granted"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross" contextRef="From2023-02-012023-02-28_us-gaap_ShareBasedPaymentArrangementEmployeeMember_custom_EmployeesMember" id="Fact001031" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">13,115</ix:nonFraction></span> options (unlisted), exercisable into ordinary shares of the Company, to an employee, with whom
the Company has employment relationships for an exercise price of NIS <span id="xdx_90B_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pid_uILSPShares_c20230201__20230228__us-gaap--GranteeStatusAxis__us-gaap--ShareBasedPaymentArrangementEmployeeMember__srt--TitleOfIndividualAxis__custom--EmployeesMember_z8OtZbGhAtI3" title="Weighted average exercise price"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice" contextRef="From2023-02-012023-02-28_us-gaap_ShareBasedPaymentArrangementEmployeeMember_custom_EmployeesMember" id="Fact001033" format="ixt:numdotdecimal" decimals="INF" unitRef="ILSPShares">17.7</ix:nonFraction></span> per share.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
March 2023, the Company granted <span id="xdx_900_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pid_c20230301__20230331__us-gaap--GranteeStatusAxis__us-gaap--ShareBasedPaymentArrangementEmployeeMember__srt--TitleOfIndividualAxis__custom--EmployeesMember_zxr30HT7WcGe" title="Number of options granted"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross" contextRef="From2023-03-012023-03-31_us-gaap_ShareBasedPaymentArrangementEmployeeMember_custom_EmployeesMember" id="Fact001035" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">39,782</ix:nonFraction></span> options (unlisted), exercisable into ordinary shares of the Company, to employees, with whom the
Company has employment relationships for an exercise price of NIS <span id="xdx_904_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pid_uILSPShares_c20230301__20230331__us-gaap--GranteeStatusAxis__us-gaap--ShareBasedPaymentArrangementEmployeeMember__srt--TitleOfIndividualAxis__custom--EmployeesMember_zrDpIcadQiA6" title="Weighted average exercise price"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice" contextRef="From2023-03-012023-03-31_us-gaap_ShareBasedPaymentArrangementEmployeeMember_custom_EmployeesMember" id="Fact001037" format="ixt:numdotdecimal" decimals="INF" unitRef="ILSPShares">15.9</ix:nonFraction></span> per share.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
April 2023, the Company granted <span id="xdx_901_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pid_c20230401__20230430__us-gaap--GranteeStatusAxis__us-gaap--ShareBasedPaymentArrangementEmployeeMember__srt--TitleOfIndividualAxis__srt--OfficerMember_zLOuQUdWgNwb" title="Number of options granted"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross" contextRef="From2023-04-012023-04-30_us-gaap_ShareBasedPaymentArrangementEmployeeMember_srt_OfficerMember" id="Fact001039" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">90,275</ix:nonFraction></span> options (unlisted), exercisable into ordinary shares of the Company, to an officer who is a related
party, with whom the Company has no employment relationship. The options will vest over <span id="xdx_903_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1_pid_dtY_c20230401__20230430__us-gaap--GranteeStatusAxis__us-gaap--ShareBasedPaymentArrangementEmployeeMember__srt--TitleOfIndividualAxis__srt--OfficerMember_zt3L1wa9pr34" title="Share-based payment award, award vesting period"><ix:nonNumeric contextRef="From2023-04-012023-04-30_us-gaap_ShareBasedPaymentArrangementEmployeeMember_srt_OfficerMember" format="ixt-sec:duryear" id="Fact001041" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1">3</ix:nonNumeric></span> years from the date of the grant - <span id="xdx_906_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardAwardVestingRightsPercentage_pid_dp_c20230401__20230430__us-gaap--GranteeStatusAxis__us-gaap--ShareBasedPaymentArrangementEmployeeMember__srt--TitleOfIndividualAxis__srt--OfficerMember_zm3D5DPdnGpi" title="Share-based payment award, award vesting rights, percentage"><ix:nonFraction name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardAwardVestingRightsPercentage" contextRef="From2023-04-012023-04-30_us-gaap_ShareBasedPaymentArrangementEmployeeMember_srt_OfficerMember" id="Fact001043" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">33</ix:nonFraction>%</span> each
year. The exercise price for each option is variable in each tranche: NIS <span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pid_uILSPShares_c20230401__20230430__us-gaap--GranteeStatusAxis__us-gaap--ShareBasedPaymentArrangementEmployeeMember__srt--TitleOfIndividualAxis__srt--OfficerMember__us-gaap--VestingAxis__us-gaap--ShareBasedCompensationAwardTrancheOneMember_zCzvehOTSfd4" title="Weighted average exercise price"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice" contextRef="From2023-04-012023-04-30_us-gaap_ShareBasedPaymentArrangementEmployeeMember_srt_OfficerMember_us-gaap_ShareBasedCompensationAwardTrancheOneMember" id="Fact001045" format="ixt:numdotdecimal" decimals="INF" unitRef="ILSPShares">28.6</ix:nonFraction></span>, NIS <span id="xdx_908_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pid_uILSPShares_c20230401__20230430__us-gaap--GranteeStatusAxis__us-gaap--ShareBasedPaymentArrangementEmployeeMember__srt--TitleOfIndividualAxis__srt--OfficerMember__us-gaap--VestingAxis__us-gaap--ShareBasedCompensationAwardTrancheTwoMember_zu2hF0TSuON8" title="Weighted average exercise price"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice" contextRef="From2023-04-012023-04-30_us-gaap_ShareBasedPaymentArrangementEmployeeMember_srt_OfficerMember_us-gaap_ShareBasedCompensationAwardTrancheTwoMember" id="Fact001047" format="ixt:numdotdecimal" decimals="INF" unitRef="ILSPShares">32.0</ix:nonFraction></span>, NIS <span id="xdx_900_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pid_uILSPShares_c20230401__20230430__us-gaap--GranteeStatusAxis__us-gaap--ShareBasedPaymentArrangementEmployeeMember__srt--TitleOfIndividualAxis__srt--OfficerMember__us-gaap--VestingAxis__us-gaap--ShareBasedCompensationAwardTrancheThreeMember_zBgklj8dNRUl" title="Weighted average exercise price"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice" contextRef="From2023-04-012023-04-30_us-gaap_ShareBasedPaymentArrangementEmployeeMember_srt_OfficerMember_us-gaap_ShareBasedCompensationAwardTrancheThreeMember" id="Fact001049" format="ixt:numdotdecimal" decimals="INF" unitRef="ILSPShares">42.7</ix:nonFraction></span>, respectively.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
grant of the options was made against the cancellation of <span id="xdx_906_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod_pid_c20211101__20211130__srt--TitleOfIndividualAxis__srt--OfficerMember_zj5QgYzVafc5" title="Number of options forfeitures"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod" contextRef="From2021-11-012021-11-30_srt_OfficerMember" id="Fact001051" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">78,621</ix:nonFraction></span> options that were granted to that officer in November 2021. The accounting
treatment of the grant of the options that replaced the canceled options was carried out by way of a modification. The incremental fair
value granted, which is the difference between the fair value of the new options issued and the fair value of the canceled options at
the time the new options were granted, will be recognized as an expense over the vesting period of the new grant.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
April 2023, the Company granted <span id="xdx_90C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pid_c20230401__20230430__us-gaap--GranteeStatusAxis__us-gaap--ShareBasedPaymentArrangementEmployeeMember__srt--TitleOfIndividualAxis__custom--TwoDirectorsMember_zwdqJz4FQ8eh" title="Number of options granted"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross" contextRef="From2023-04-012023-04-30_us-gaap_ShareBasedPaymentArrangementEmployeeMember_custom_TwoDirectorsMember" id="Fact001053" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">47,873</ix:nonFraction></span> options (unlisted), exercisable into ordinary shares of the Company, to two directors, with whom
the Company has no employment relationships. The options will vest over <span id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1_pid_dtY_c20230401__20230430__us-gaap--GranteeStatusAxis__us-gaap--ShareBasedPaymentArrangementEmployeeMember__srt--TitleOfIndividualAxis__custom--TwoDirectorsMember_z2gAn4MhGuZ9" title="Share-based payment award, award vesting period"><ix:nonNumeric contextRef="From2023-04-012023-04-30_us-gaap_ShareBasedPaymentArrangementEmployeeMember_custom_TwoDirectorsMember" format="ixt-sec:duryear" id="Fact001055" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1">3</ix:nonNumeric></span> years from the date of the grant - <span id="xdx_90C_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardAwardVestingRightsPercentage_pid_dp_c20230401__20230430__us-gaap--GranteeStatusAxis__us-gaap--ShareBasedPaymentArrangementEmployeeMember__srt--TitleOfIndividualAxis__custom--TwoDirectorsMember_zj8CIUn0drR2" title="Share-based payment award, award vesting rights, percentage"><ix:nonFraction name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardAwardVestingRightsPercentage" contextRef="From2023-04-012023-04-30_us-gaap_ShareBasedPaymentArrangementEmployeeMember_custom_TwoDirectorsMember" id="Fact001057" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">33</ix:nonFraction>%</span> each year. The exercise
price for each option is variable in each tranche: NIS <span id="xdx_908_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pid_uILSPShares_c20230401__20230430__us-gaap--GranteeStatusAxis__us-gaap--ShareBasedPaymentArrangementEmployeeMember__srt--TitleOfIndividualAxis__custom--TwoDirectorsMember__us-gaap--VestingAxis__us-gaap--ShareBasedCompensationAwardTrancheOneMember_zR3jZ2nVsyTa" title="Weighted average exercise price"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice" contextRef="From2023-04-012023-04-30_us-gaap_ShareBasedPaymentArrangementEmployeeMember_custom_TwoDirectorsMember_us-gaap_ShareBasedCompensationAwardTrancheOneMember" id="Fact001059" format="ixt:numdotdecimal" decimals="INF" unitRef="ILSPShares">28.6</ix:nonFraction></span>, NIS <span id="xdx_901_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pid_uILSPShares_c20230401__20230430__us-gaap--GranteeStatusAxis__us-gaap--ShareBasedPaymentArrangementEmployeeMember__srt--TitleOfIndividualAxis__custom--TwoDirectorsMember__us-gaap--VestingAxis__us-gaap--ShareBasedCompensationAwardTrancheTwoMember_zbPO8EUFI3L" title="Weighted average exercise price"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice" contextRef="From2023-04-012023-04-30_us-gaap_ShareBasedPaymentArrangementEmployeeMember_custom_TwoDirectorsMember_us-gaap_ShareBasedCompensationAwardTrancheTwoMember" id="Fact001061" format="ixt:numdotdecimal" decimals="INF" unitRef="ILSPShares">32.0</ix:nonFraction></span>, NIS <span id="xdx_90A_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pid_uILSPShares_c20230401__20230430__us-gaap--GranteeStatusAxis__us-gaap--ShareBasedPaymentArrangementEmployeeMember__srt--TitleOfIndividualAxis__custom--TwoDirectorsMember__us-gaap--VestingAxis__us-gaap--ShareBasedCompensationAwardTrancheThreeMember_z6vODLlsBQwf" title="Weighted average exercise price"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice" contextRef="From2023-04-012023-04-30_us-gaap_ShareBasedPaymentArrangementEmployeeMember_custom_TwoDirectorsMember_us-gaap_ShareBasedCompensationAwardTrancheThreeMember" id="Fact001063" format="ixt:numdotdecimal" decimals="INF" unitRef="ILSPShares">42.7</ix:nonFraction></span>, respectively.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
August 2023, the Company granted <span id="xdx_904_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pid_c20230801__20230831__us-gaap--GranteeStatusAxis__us-gaap--ShareBasedPaymentArrangementEmployeeMember__srt--TitleOfIndividualAxis__custom--EmployeesMember_z6kbcJF7RjKj" title="Number of options granted"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross" contextRef="From2023-08-012023-08-31_us-gaap_ShareBasedPaymentArrangementEmployeeMember_custom_EmployeesMember" id="Fact001065" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">49,400</ix:nonFraction></span> options (unlisted), exercisable into ordinary shares of the Company, to employees, with whom
the Company has employment relationships for an exercise price of NIS <span id="xdx_907_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pid_uILSPShares_c20230801__20230831__us-gaap--GranteeStatusAxis__us-gaap--ShareBasedPaymentArrangementEmployeeMember__srt--TitleOfIndividualAxis__custom--EmployeesMember_z26FZft55wwe" title="Weighted average exercise price"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice" contextRef="From2023-08-012023-08-31_us-gaap_ShareBasedPaymentArrangementEmployeeMember_custom_EmployeesMember" id="Fact001067" format="ixt:numdotdecimal" decimals="INF" unitRef="ILSPShares">12.1</ix:nonFraction></span> per share.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
value of benefit is measured on the grant date by reference to the fair value of the granted equity instruments, as described above.
The fair value is calculated using the Black and Scholes formula, with the following assumptions:</span></p>

<ix:nonNumeric contextRef="From2023-01-012023-12-31_custom_EquityClassifiedAwardsMember" escape="true" id="Fact001069" name="us-gaap:ScheduleOfShareBasedPaymentAwardStockOptionsValuationAssumptionsTableTextBlock"><p id="xdx_897_eus-gaap--ScheduleOfShareBasedPaymentAwardStockOptionsValuationAssumptionsTableTextBlock_hus-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember_znHFNEWcamN5" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;<span id="xdx_8B7_z0VAJYgOmQGh" style="display: none">SCHEDULE OF FAIR VALUE ASSUMPTIONS</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 93%; margin-left: 0.5in">
  <tr style="vertical-align: bottom">
    <td style="padding-bottom: 1.5pt; text-align: center">&#160;</td><td style="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">2023</td><td style="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&#160;</td><td style="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">2022</td><td style="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&#160;</td><td style="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">2021</td><td style="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 46%; text-align: left">Dividend yield</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 14%; text-align: center"><span id="xdx_90B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_pid_dp_c20230101__20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember_z0UOeYGkdESe" title="Dividend yield"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate" contextRef="From2023-01-012023-12-31_custom_EquityClassifiedAwardsMember" id="Fact001071" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">0</ix:nonFraction>%</span></td><td style="width: 1%; text-align: left"/><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 14%; text-align: center"><span id="xdx_909_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_pid_dp_c20220101__20221231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember_zsZ0U5N8MEVg" title="Dividend yield"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate" contextRef="From2022-01-012022-12-31_custom_EquityClassifiedAwardsMember" id="Fact001073" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">0</ix:nonFraction></span></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 14%; text-align: center"><span id="xdx_909_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_pid_dp_c20210101__20211231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember_zEp3E1yhsj76" title="Dividend yield"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate" contextRef="From2021-01-012021-12-31_custom_EquityClassifiedAwardsMember" id="Fact001075" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">0</ix:nonFraction>%</span></td><td style="width: 1%; text-align: left"/></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td style="padding-bottom: 2.5pt; text-align: left">Expected volatility</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_900_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMinimum_pid_dp_c20230101__20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember_z6uaHCerHy31" title="Expected volatility minimum"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMinimum" contextRef="From2023-01-012023-12-31_custom_EquityClassifiedAwardsMember" id="Fact001077" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">74</ix:nonFraction>%</span>-<span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMaximum_pid_dp_c20230101__20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember_zxjyEFVPeE6k" title="Expected volatility maximum"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMaximum" contextRef="From2023-01-012023-12-31_custom_EquityClassifiedAwardsMember" id="Fact001079" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">76</ix:nonFraction>%</span> &#160;</span></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMinimum_pid_dp_c20220101__20221231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember_z0FU7jptBc6g" title="Expected volatility minimum"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMinimum" contextRef="From2022-01-012022-12-31_custom_EquityClassifiedAwardsMember" id="Fact001081" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">52</ix:nonFraction>%</span>-<span id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMaximum_pid_dp_c20220101__20221231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember_zPfBCAlnTInk" title="Expected volatility maximum"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMaximum" contextRef="From2022-01-012022-12-31_custom_EquityClassifiedAwardsMember" id="Fact001083" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">76</ix:nonFraction>%</span></span></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_904_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMinimum_pid_dp_c20210101__20211231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember_zHpOmtEpemB5" title="Expected volatility minimum"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMinimum" contextRef="From2021-01-012021-12-31_custom_EquityClassifiedAwardsMember" id="Fact001085" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">55</ix:nonFraction>%</span>-<span id="xdx_907_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMaximum_pid_dp_c20210101__20211231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember_zRSGWSFf2hug" title="Expected volatility maximum"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMaximum" contextRef="From2021-01-012021-12-31_custom_EquityClassifiedAwardsMember" id="Fact001087" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">75</ix:nonFraction>%</span> &#160;</span></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 2.5pt; text-align: left">Risk-free interest rate</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_909_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMinimum_pid_dp_c20230101__20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember_znWgBDOyGS17" title="Risk-free interest rate minimum"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMinimum" contextRef="From2023-01-012023-12-31_custom_EquityClassifiedAwardsMember" id="Fact001089" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">3.3</ix:nonFraction>%</span>-<span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMaximum_pid_dp_c20230101__20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember_zo77aqQmaNJ9" title="Risk-free interest rate maximum"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMaximum" contextRef="From2023-01-012023-12-31_custom_EquityClassifiedAwardsMember" id="Fact001091" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">3.9</ix:nonFraction>%</span> &#160;</span></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMinimum_pid_dp_c20220101__20221231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember_ztNCLL1fDc2l" title="Risk-free interest rate minimum"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMinimum" contextRef="From2022-01-012022-12-31_custom_EquityClassifiedAwardsMember" id="Fact001093" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">2.4</ix:nonFraction>%</span>-<span id="xdx_905_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMaximum_pid_dp_c20220101__20221231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember_zlcOMXN1lwhd" title="Risk-free interest rate maximum"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMaximum" contextRef="From2022-01-012022-12-31_custom_EquityClassifiedAwardsMember" id="Fact001095" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">3.1</ix:nonFraction>%</span></span></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_90A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMinimum_pid_dp_c20210101__20211231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember_zOMi6DHybWea" title="Risk-free interest rate minimum"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMinimum" contextRef="From2021-01-012021-12-31_custom_EquityClassifiedAwardsMember" id="Fact001097" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">0.75</ix:nonFraction>%</span>-<span id="xdx_90A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMaximum_pid_dp_c20210101__20211231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember_zCriZirtJtRg" title="Risk-free interest rate maximum"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMaximum" contextRef="From2021-01-012021-12-31_custom_EquityClassifiedAwardsMember" id="Fact001099" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">2</ix:nonFraction>%</span> &#160;</span></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td style="padding-bottom: 2.5pt; text-align: left">Expected term (years)</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_90A_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20230101__20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__srt--RangeAxis__srt--MinimumMember_zElT57Rtm5hc" title="Expected term (years)"><ix:nonNumeric contextRef="From2023-01-012023-12-31_custom_EquityClassifiedAwardsMember_srt_MinimumMember" format="ixt-sec:duryear" id="Fact001101" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1">4</ix:nonNumeric></span>-<span id="xdx_905_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_c20230101__20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__srt--RangeAxis__srt--MaximumMember_z9CPOyMGV0ba" title="Expected term (years)"><ix:nonNumeric contextRef="From2023-01-012023-12-31_custom_EquityClassifiedAwardsMember_srt_MaximumMember" format="ixt-sec:durwordsen" id="Fact001103" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1">7 years</ix:nonNumeric></span> &#160;</span></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_907_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20220101__20221231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__srt--RangeAxis__srt--MinimumMember_zEwwMRe9HzN1" title="Expected term (years)"><ix:nonNumeric contextRef="From2022-01-012022-12-31_custom_EquityClassifiedAwardsMember_srt_MinimumMember" format="ixt-sec:duryear" id="Fact001105" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1">5</ix:nonNumeric></span>-<span id="xdx_90A_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_c20220101__20221231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__srt--RangeAxis__srt--MaximumMember_zCy3twUBVLof" title="Expected term (years)"><ix:nonNumeric contextRef="From2022-01-012022-12-31_custom_EquityClassifiedAwardsMember_srt_MaximumMember" format="ixt-sec:durwordsen" id="Fact001107" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1">7 years</ix:nonNumeric></span></span></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_90F_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20220101__20221231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__srt--RangeAxis__srt--MinimumMember_zmNntI95gOqa" title="Expected term (years)"><ix:nonNumeric contextRef="From2022-01-012022-12-31_custom_EquityClassifiedAwardsMember_srt_MinimumMember" format="ixt-sec:duryear" id="Fact001109" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1">5</ix:nonNumeric></span>-<span id="xdx_906_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_c20210101__20211231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__srt--RangeAxis__srt--MaximumMember_zxMLuz0lYFi9" title="Expected term (years)"><ix:nonNumeric contextRef="From2021-01-012021-12-31_custom_EquityClassifiedAwardsMember_srt_MaximumMember" format="ixt-sec:durwordsen" id="Fact001111" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1">6 years</ix:nonNumeric></span> &#160;</span></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 2.5pt">Exercise price (USD)</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_909_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iI_pid_dp_c20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__srt--RangeAxis__srt--MinimumMember_zdhopyOuzyXg" title="Exercise price (USD)"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice" contextRef="AsOf2023-12-31_custom_EquityClassifiedAwardsMember_srt_MinimumMember" id="Fact001113" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="USDPShares">3.32</ix:nonFraction></span>-<span id="xdx_90E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iI_pid_dp_c20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__srt--RangeAxis__srt--MaximumMember_z4jiDQpvGgh7" title="Exercise price (USD)"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice" contextRef="AsOf2023-12-31_custom_EquityClassifiedAwardsMember_srt_MaximumMember" id="Fact001115" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="USDPShares">11.78</ix:nonFraction></span> &#160;</span></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_90C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iI_pid_dp_c20221231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__srt--RangeAxis__srt--MinimumMember_z9VbTvTH1oO3" title="Exercise price (USD)"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice" contextRef="AsOf2022-12-31_custom_EquityClassifiedAwardsMember_srt_MinimumMember" id="Fact001117" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="USDPShares">4.92</ix:nonFraction></span>-<span id="xdx_909_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iI_pid_dp_c20221231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__srt--RangeAxis__srt--MaximumMember_zjzluPUFXrcc" title="Exercise price (USD)"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice" contextRef="AsOf2022-12-31_custom_EquityClassifiedAwardsMember_srt_MaximumMember" id="Fact001119" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="USDPShares">7.55</ix:nonFraction></span></span></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_908_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iI_pid_dp_c20211231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__srt--RangeAxis__srt--MinimumMember_zdI0ZyrDbFM2" title="Exercise price (USD)"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice" contextRef="AsOf2021-12-31_custom_EquityClassifiedAwardsMember_srt_MinimumMember" id="Fact001121" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="USDPShares">5.15</ix:nonFraction></span>-<span id="xdx_903_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iI_pid_dp_c20211231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__srt--RangeAxis__srt--MaximumMember_zeB3DPsRrZXl" title="Exercise price (USD)"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice" contextRef="AsOf2021-12-31_custom_EquityClassifiedAwardsMember_srt_MaximumMember" id="Fact001123" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="USDPShares">21.16</ix:nonFraction></span> &#160;</span></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td></tr>
  </table>

</ix:nonNumeric><p id="xdx_8A1_zztZlyJPjkI7" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span>&#160;</p>


<ix:exclude><!-- Field: Page; Sequence: 155; Value: 1 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->26<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page --></ix:exclude>

<p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>ZOOZ
POWER LTD.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<ix:nonNumeric contextRef="From2023-01-012023-12-31_custom_EquityClassifiedAwardsMember" escape="true" id="Fact001125" name="us-gaap:ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock"><p id="xdx_899_eus-gaap--ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock_hus-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember_zo4OZyPIxdFg" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following is summary information of equity classified options in 2023:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;<span id="xdx_8BC_zU54KDimD5Qf" style="display: none">SCHEDULE OF STOCK OPTIONS ACTIVITY</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 93%; margin-left: 0.5in">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="14" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Year ended December 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Weighted average exercise price</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Weighted average remaining contractual life</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Aggregate Intrinsic</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Number</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">USD</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Years</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Value</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 40%; text-align: left">Outstanding at beginning of year</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_pid_c20230101__20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember_zN9TvxwsHO6" title="Number of options, Outstanding" style="width: 11%; text-align: right"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber" contextRef="AsOf2022-12-31_custom_EquityClassifiedAwardsMember" id="Fact001127" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">298,955</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_pid_c20230101__20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember_zzEPhHKoCVI" title="Weighted average exercise price, Outstanding" style="width: 11%; text-align: right"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice" contextRef="AsOf2022-12-31_custom_EquityClassifiedAwardsMember" id="Fact001129" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">8.46</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 11%; text-align: right"><span id="xdx_901_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20230101__20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember_zIA2m7LGdOZf" title="Weighted average remaining contractual life, Outstanding beginning"><ix:nonNumeric contextRef="From2023-01-012023-12-31_custom_EquityClassifiedAwardsMember" format="ixt-sec:duryear" id="Fact001131" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2">9.4</ix:nonNumeric></span></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 11%; text-align: right"><span id="xdx_90A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iS_c20230101__20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember_zkg5xqjfbaQg" title="Aggregate Intrinsic Value, Outstanding"><span style="-sec-ix-hidden: xdx2ixbrl1133">-</span></span></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td>Expired</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExpirationsInPeriod_iN_pid_di_c20230101__20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember_zdUoGAq022N6" title="Number of options, Expired" style="text-align: right">(<ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExpirationsInPeriod" contextRef="From2023-01-012023-12-31_custom_EquityClassifiedAwardsMember" id="Fact001135" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">110,945</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExpirationsInPeriodWeightedAverageExercisePrice_pid_c20230101__20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember_zdGqPQkLRN77" title="Weighted average exercise price, Expired" style="text-align: right"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExpirationsInPeriodWeightedAverageExercisePrice" contextRef="From2023-01-012023-12-31_custom_EquityClassifiedAwardsMember" id="Fact001137" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">16.81</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>Granted</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pid_c20230101__20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember_zzh0g28kNePd" title="Number of options, Granted" style="text-align: right"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross" contextRef="From2023-01-012023-12-31_custom_EquityClassifiedAwardsMember" id="Fact001139" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">240,447</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_pid_c20230101__20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember_z2PPJPKk4t5k" title="Weighted average exercise price, Granted" style="text-align: right"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice" contextRef="From2023-01-012023-12-31_custom_EquityClassifiedAwardsMember" id="Fact001141" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">5.60</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span id="xdx_90B_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsGrantedWeightedAverageRemainingContractualTerm2_dtY_c20230101__20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember_zPdiEuW6V3q8" title="Weighted average remaining contractual life, Granted"><ix:nonNumeric contextRef="From2023-01-012023-12-31_custom_EquityClassifiedAwardsMember" format="ixt-sec:duryear" id="Fact001143" name="ZOOZ:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsGrantedWeightedAverageRemainingContractualTerm2">9.3</ix:nonNumeric></span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: left; padding-bottom: 2.5pt">Outstanding at end of year</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_pid_c20230101__20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember_zVSEc9aFwrOi" title="Number of options, Outstanding" style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber" contextRef="AsOf2023-12-31_custom_EquityClassifiedAwardsMember" id="Fact001145" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">428,457</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_pid_c20230101__20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember_zECDeaS2ha14" title="Weighted average exercise price, Outstanding" style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice" contextRef="AsOf2023-12-31_custom_EquityClassifiedAwardsMember" id="Fact001147" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">7.55</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: right"><span id="xdx_905_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm_dtY_c20230101__20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember_zfm5TKem8b85" title="Weighted average remaining contractual life, Outstanding ending"><ix:nonNumeric contextRef="From2023-01-012023-12-31_custom_EquityClassifiedAwardsMember" format="ixt-sec:duryear" id="Fact001149" name="ZOOZ:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm">8.9</ix:nonNumeric></span></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: right"><span id="xdx_90C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iE_c20230101__20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember_z9EcWxW2n2wf" title="Aggregate Intrinsic Value, Outstanding"><span style="-sec-ix-hidden: xdx2ixbrl1151">-</span></span></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 2.5pt">Exercisable at end of year</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iE_pid_c20230101__20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember_zhsLQRREPlQj" title="Number of options, Exercisable" style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber" contextRef="AsOf2023-12-31_custom_EquityClassifiedAwardsMember" id="Fact001153" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">64,291</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice_iE_pid_c20230101__20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember_zbPeqU8F5BGi" title="Weighted average exercise price, Exercisable" style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice" contextRef="AsOf2023-12-31_custom_EquityClassifiedAwardsMember" id="Fact001155" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">9.15</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: right"><span id="xdx_905_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1_dtY_c20230101__20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember_zc7lwHnDWiEb" title="Weighted average remaining contractual life, Exercisable"><ix:nonNumeric contextRef="From2023-01-012023-12-31_custom_EquityClassifiedAwardsMember" format="ixt-sec:duryear" id="Fact001157" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1">8.2</ix:nonNumeric></span></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: right"><span id="xdx_90F_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1_iE_c20230101__20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember_zIitsVqL012j" title="Aggregate Intrinsic Value, Exercisable"><span style="-sec-ix-hidden: xdx2ixbrl1159">-</span></span></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td></tr>
  </table>

</ix:nonNumeric><p id="xdx_8AF_zU8L1ZqLX1wd" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
weighted-average grant-date fair value of equity awards granted during the year was $<span id="xdx_90C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_pid_c20230101__20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember_zftqIoZsWxNj" title="Weighted average grant date fair value"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue" contextRef="From2023-01-012023-12-31_custom_EquityClassifiedAwardsMember" id="Fact001161" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">1.73</ix:nonFraction></span>.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<ix:nonNumeric contextRef="From2023-01-01to2023-12-31" escape="true" id="Fact001163" name="us-gaap:ScheduleOfShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeTextBlock"><p id="xdx_899_eus-gaap--ScheduleOfShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeTextBlock_zkv2tZBZrrJf" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following is information regarding exercise prices and remaining contractual lives of outstanding options at December 31, 2023:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8BC_zJu5kZYPxhBe" style="display: none">SCHEDULE OF EXERCISE PRICES AND REMAINING CONTRACTUAL LIVES OF OUTSTANDING OPTIONS</span>&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 93%; margin-left: 0.5in">
  <tr style="vertical-align: bottom">
    <td colspan="21" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td colspan="9" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Outstanding</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Exercisable</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Number of options outstanding</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Exercise price (USD)</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Weighted average remaining contractual life</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Number of options Exercisable</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Exercise price (USD)</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Weighted average remaining contractual life</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td id="xdx_98E_eus-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfOutstandingOptions_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceOneMember_zR2gbwgtkMea" title="Number of options outstanding" style="width: 14%; text-align: right"><ix:nonFraction name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfOutstandingOptions" contextRef="AsOf2023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceOneMember" id="Fact001165" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">49,400</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td id="xdx_981_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceBeginningBalance1_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceOneMember_zze1X31mr1v5" title="Exercise price" style="width: 13%; text-align: right"><ix:nonFraction name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceBeginningBalance1" contextRef="AsOf2023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceOneMember" id="Fact001167" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">3.32</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 13%; text-align: right"><span id="xdx_90A_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2_dtY_c20230101__20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceOneMember_zCoRUF9raaSk" title="Weighted average remaining contractual life"><ix:nonNumeric contextRef="From2023-01-012023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceOneMember" format="ixt-sec:duryear" id="Fact001169" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2">9.6</ix:nonNumeric></span></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td id="xdx_98D_eus-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfExercisableOptions_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceOneMember_zymHRvXFCGBl" title="Number of options Exercisable" style="width: 13%; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1171">-</span></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td id="xdx_983_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageExercisePrice1_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceOneMember_zdErIISRbLW1" title="Exercise price" style="width: 13%; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1173">-</span></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 13%; text-align: right">-</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td id="xdx_986_eus-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfOutstandingOptions_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceTwoMember_zYbvFyzVthc8" title="Number of options outstanding" style="text-align: right"><ix:nonFraction name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfOutstandingOptions" contextRef="AsOf2023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceTwoMember" id="Fact001175" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">39,782</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_985_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceBeginningBalance1_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceTwoMember_z7pYqIeTgs72" title="Exercise price" style="text-align: right"><ix:nonFraction name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceBeginningBalance1" contextRef="AsOf2023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceTwoMember" id="Fact001177" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">4.35</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span id="xdx_905_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2_dtY_c20230101__20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceTwoMember_zABsopVd2Aq8" title="Weighted average remaining contractual life"><ix:nonNumeric contextRef="From2023-01-012023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceTwoMember" format="ixt-sec:duryear" id="Fact001179" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2">9.2</ix:nonNumeric></span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_989_eus-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfExercisableOptions_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceTwoMember_zQm9SEdBHvug" title="Number of options Exercisable" style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1181">-</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_980_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageExercisePrice1_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceTwoMember_z2ptTS3u1c9c" title="Exercise price" style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1183">-</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td id="xdx_984_eus-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfOutstandingOptions_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceThreeMember_znGSFmwdZ68h" title="Number of options outstanding" style="text-align: right"><ix:nonFraction name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfOutstandingOptions" contextRef="AsOf2023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceThreeMember" id="Fact001185" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">9,618</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_982_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceBeginningBalance1_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceThreeMember_z8j6JY8b8NG3" title="Exercise price" style="text-align: right"><ix:nonFraction name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceBeginningBalance1" contextRef="AsOf2023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceThreeMember" id="Fact001187" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">4.80</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span id="xdx_90D_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2_dtY_c20230101__20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceThreeMember_zTqXLSNwizxe" title="Weighted average remaining contractual life"><ix:nonNumeric contextRef="From2023-01-012023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceThreeMember" format="ixt-sec:duryear" id="Fact001189" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2">8.9</ix:nonNumeric></span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_98A_eus-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfExercisableOptions_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceThreeMember_z3cAYMmspBC3" title="Number of options Exercisable" style="text-align: right"><ix:nonFraction name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfExercisableOptions" contextRef="AsOf2023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceThreeMember" id="Fact001191" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">2,077</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_983_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageExercisePrice1_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceThreeMember_zEWGuujpjfJ6" title="Exercise price" style="text-align: right"><ix:nonFraction name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageExercisePrice1" contextRef="AsOf2023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceThreeMember" id="Fact001193" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">4.80</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span id="xdx_903_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageRemainingContractualTerm2_dtY_c20230101__20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceThreeMember_zJma2ClGKwVc" title="Weighted average remaining contractual life"><ix:nonNumeric contextRef="From2023-01-012023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceThreeMember" format="ixt-sec:duryear" id="Fact001195" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageRemainingContractualTerm2">8.9</ix:nonNumeric></span></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td id="xdx_985_eus-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfOutstandingOptions_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceFourMember_z5NK2FjaR16g" title="Number of options outstanding" style="text-align: right"><ix:nonFraction name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfOutstandingOptions" contextRef="AsOf2023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceFourMember" id="Fact001197" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">13,115</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_985_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceBeginningBalance1_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceFourMember_zRbAVBbaqSx1" title="Exercise price" style="text-align: right"><ix:nonFraction name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceBeginningBalance1" contextRef="AsOf2023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceFourMember" id="Fact001199" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">4.92</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span id="xdx_904_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2_dtY_c20230101__20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceFourMember_zvYR0dJlocH2" title="Weighted average remaining contractual life"><ix:nonNumeric contextRef="From2023-01-012023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceFourMember" format="ixt-sec:duryear" id="Fact001201" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2">9.1</ix:nonNumeric></span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_986_eus-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfExercisableOptions_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceFourMember_zCbILA5lQLVh" title="Number of options Exercisable" style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1203">-</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_98E_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageExercisePrice1_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceFourMember_z4mbXIIS8cMc" title="Exercise price" style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1205">-</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td id="xdx_98C_eus-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfOutstandingOptions_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceFiveMember_zdBQQET6lpkf" title="Number of options outstanding" style="text-align: right"><ix:nonFraction name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfOutstandingOptions" contextRef="AsOf2023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceFiveMember" id="Fact001207" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">59,482</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_984_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceBeginningBalance1_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceFiveMember_ztLJf2xbgPZ8" title="Exercise price" style="text-align: right"><ix:nonFraction name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceBeginningBalance1" contextRef="AsOf2023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceFiveMember" id="Fact001209" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">5.95</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span id="xdx_90A_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2_dtY_c20230101__20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceFiveMember_zmyOZKTBEVw3" title="Weighted average remaining contractual life"><ix:nonNumeric contextRef="From2023-01-012023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceFiveMember" format="ixt-sec:duryear" id="Fact001211" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2">8.5</ix:nonNumeric></span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_981_eus-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfExercisableOptions_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceFiveMember_zaBn9i6wsEKg" title="Number of options Exercisable" style="text-align: right"><ix:nonFraction name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfExercisableOptions" contextRef="AsOf2023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceFiveMember" id="Fact001213" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">19,809</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_981_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageExercisePrice1_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceFiveMember_zmDZ8VXXk4F4" title="Exercise price" style="text-align: right"><ix:nonFraction name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageExercisePrice1" contextRef="AsOf2023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceFiveMember" id="Fact001215" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">5.95</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span id="xdx_905_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageRemainingContractualTerm2_dtY_c20230101__20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceFiveMember_zdX6bKrTW526" title="Weighted average remaining contractual life"><ix:nonNumeric contextRef="From2023-01-012023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceFiveMember" format="ixt-sec:duryear" id="Fact001217" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageRemainingContractualTerm2">8.5</ix:nonNumeric></span></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td id="xdx_987_eus-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfOutstandingOptions_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceSixMember_zsibOfWCiffk" title="Number of options outstanding" style="text-align: right"><ix:nonFraction name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfOutstandingOptions" contextRef="AsOf2023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceSixMember" id="Fact001219" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">96,177</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_981_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceBeginningBalance1_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceSixMember_zxBNsC44pjqi" title="Exercise price" style="text-align: right"><ix:nonFraction name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceBeginningBalance1" contextRef="AsOf2023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceSixMember" id="Fact001221" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">7.43</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span id="xdx_902_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2_dtY_c20230101__20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceSixMember_zSV621YyrSn" title="Weighted average remaining contractual life"><ix:nonNumeric contextRef="From2023-01-012023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceSixMember" format="ixt-sec:duryear" id="Fact001223" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2">8.7</ix:nonNumeric></span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_98F_eus-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfExercisableOptions_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceSixMember_zYXClGRvTVeh" title="Number of options Exercisable" style="text-align: right"><ix:nonFraction name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfExercisableOptions" contextRef="AsOf2023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceSixMember" id="Fact001225" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">28,416</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_983_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageExercisePrice1_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceSixMember_zuUHLvptCgob" title="Exercise price" style="text-align: right"><ix:nonFraction name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageExercisePrice1" contextRef="AsOf2023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceSixMember" id="Fact001227" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">7.43</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span id="xdx_90A_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageRemainingContractualTerm2_dtY_c20230101__20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceSixMember_zDIJnGcpGM1b" title="Weighted average remaining contractual life"><ix:nonNumeric contextRef="From2023-01-012023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceSixMember" format="ixt-sec:duryear" id="Fact001229" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageRemainingContractualTerm2">8.7</ix:nonNumeric></span></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td id="xdx_984_eus-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfOutstandingOptions_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceSevenMember_zZwtadQEx1Y9" title="Number of options outstanding" style="text-align: right"><ix:nonFraction name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfOutstandingOptions" contextRef="AsOf2023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceSevenMember" id="Fact001231" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">46,050</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_98E_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceBeginningBalance1_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceSevenMember_zyzVkQYI9JBl" title="Exercise price" style="text-align: right"><ix:nonFraction name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceBeginningBalance1" contextRef="AsOf2023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceSevenMember" id="Fact001233" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">7.89</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span id="xdx_90F_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2_dtY_c20230101__20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceSevenMember_zu2bU11eKeTk" title="Weighted average remaining contractual life"><ix:nonNumeric contextRef="From2023-01-012023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceSevenMember" format="ixt-sec:duryear" id="Fact001235" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2">9.3</ix:nonNumeric></span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_984_eus-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfExercisableOptions_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceSevenMember_znoLbdioA6Bf" title="Number of options Exercisable" style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1237">-</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_98B_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageExercisePrice1_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceSevenMember_zuEPnNDYnIV1" title="Exercise price" style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1239">-</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td id="xdx_98A_eus-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfOutstandingOptions_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceEightMember_zzxuQFY5lQk9" title="Number of options outstanding" style="text-align: right"><ix:nonFraction name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfOutstandingOptions" contextRef="AsOf2023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceEightMember" id="Fact001241" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">46,050</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_98D_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceBeginningBalance1_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceEightMember_zDD3cIeHjjW1" title="Exercise price" style="text-align: right"><ix:nonFraction name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceBeginningBalance1" contextRef="AsOf2023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceEightMember" id="Fact001243" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">9.04</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span id="xdx_902_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2_dtY_c20230101__20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceEightMember_zqz4c2qXPwSl" title="Weighted average remaining contractual life"><ix:nonNumeric contextRef="From2023-01-012023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceEightMember" format="ixt-sec:duryear" id="Fact001245" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2">9.3</ix:nonNumeric></span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_988_eus-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfExercisableOptions_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceEightMember_zWtJxsikgIoi" title="Number of options Exercisable" style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1247">-</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_980_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageExercisePrice1_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceEightMember_zI6alhXtJAF9" title="Exercise price" style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1249">-</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td id="xdx_98D_eus-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfOutstandingOptions_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceNineMember_zvQxKixTsCzj" title="Number of options outstanding" style="text-align: right"><ix:nonFraction name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfOutstandingOptions" contextRef="AsOf2023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceNineMember" id="Fact001251" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">46,050</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_98A_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceBeginningBalance1_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceNineMember_zsFl3GcG7RA9" title="Exercise price" style="text-align: right"><ix:nonFraction name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceBeginningBalance1" contextRef="AsOf2023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceNineMember" id="Fact001253" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">11.78</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span id="xdx_90A_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2_dtY_c20230101__20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceNineMember_zWogr13T9Ttl" title="Weighted average remaining contractual life"><ix:nonNumeric contextRef="From2023-01-012023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceNineMember" format="ixt-sec:duryear" id="Fact001255" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2">9.3</ix:nonNumeric></span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_980_eus-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfExercisableOptions_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceNineMember_zzaxBnjbVPck" title="Number of options Exercisable" style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1257">-</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_988_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageExercisePrice1_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceNineMember_zLhUS9apVYx7" title="Exercise price" style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1259">-</span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td id="xdx_98C_eus-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfOutstandingOptions_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceTenMember_zTqiYyDL9Srj" title="Number of options outstanding" style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfOutstandingOptions" contextRef="AsOf2023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceTenMember" id="Fact001261" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">22,733</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td id="xdx_98E_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceBeginningBalance1_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceTenMember_zY5sGnDLcGe2" title="Exercise price" style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceBeginningBalance1" contextRef="AsOf2023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceTenMember" id="Fact001263" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">18.07</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span id="xdx_905_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2_dtY_c20230101__20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceTenMember_zJ4B0pOA2h1k" title="Weighted average remaining contractual life"><ix:nonNumeric contextRef="From2023-01-012023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceTenMember" format="ixt-sec:duryear" id="Fact001265" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2">7.8</ix:nonNumeric></span></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td id="xdx_987_eus-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfExercisableOptions_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceTenMember_z2N229VV5y15" title="Number of options Exercisable" style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfExercisableOptions" contextRef="AsOf2023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceTenMember" id="Fact001267" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">13,989</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td id="xdx_982_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageExercisePrice1_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceTenMember_z7DxhxnKMpW9" title="Exercise price" style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageExercisePrice1" contextRef="AsOf2023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceTenMember" id="Fact001269" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">18.07</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span id="xdx_905_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageRemainingContractualTerm2_dtY_c20230101__20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceTenMember_zrup4i7Umlxc" title="Weighted average remaining contractual life"><ix:nonNumeric contextRef="From2023-01-012023-12-31_custom_EquityClassifiedAwardsMember_custom_ExercisePriceTenMember" format="ixt-sec:duryear" id="Fact001271" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageRemainingContractualTerm2">7.8</ix:nonNumeric></span></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td id="xdx_987_eus-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfOutstandingOptions_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember_zOYwrdVwqqz9" title="Number of options outstanding" style="text-align: right"><ix:nonFraction name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfOutstandingOptions" contextRef="AsOf2023-12-31_custom_EquityClassifiedAwardsMember" id="Fact001273" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">428,457</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_98C_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceBeginningBalance1_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember_zH5KXxx57OYb" title="Exercise price" style="text-align: right"><ix:nonFraction name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceBeginningBalance1" contextRef="AsOf2023-12-31_custom_EquityClassifiedAwardsMember" id="Fact001275" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">7.55</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span id="xdx_904_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2_dtY_c20230101__20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember_zzhz2NVaSQ4d" title="Weighted average remaining contractual life"><ix:nonNumeric contextRef="From2023-01-012023-12-31_custom_EquityClassifiedAwardsMember" format="ixt-sec:duryear" id="Fact001277" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2">8.9</ix:nonNumeric></span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_987_eus-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfExercisableOptions_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember_zuaSYxAfBh6" title="Number of options Exercisable" style="text-align: right"><ix:nonFraction name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfExercisableOptions" contextRef="AsOf2023-12-31_custom_EquityClassifiedAwardsMember" id="Fact001279" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">64,291</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_98E_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageExercisePrice1_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember_zZtdqh0XC2bc" title="Exercise price" style="text-align: right"><ix:nonFraction name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageExercisePrice1" contextRef="AsOf2023-12-31_custom_EquityClassifiedAwardsMember" id="Fact001281" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">9.15</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span id="xdx_900_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageRemainingContractualTerm2_dtY_c20230101__20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember_zLgcyiNCFXkj" title="Weighted average remaining contractual life"><ix:nonNumeric contextRef="From2023-01-012023-12-31_custom_EquityClassifiedAwardsMember" format="ixt-sec:duryear" id="Fact001283" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageRemainingContractualTerm2">8.2</ix:nonNumeric></span></td><td style="text-align: left">&#160;</td></tr>
  </table>

</ix:nonNumeric><p id="xdx_8A6_zQ7pdEM1Lwe7" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
of December 31, 2023, there is an unrecognized share-based compensation expense of $<span id="xdx_903_eus-gaap--EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognized_iI_pn3n3_c20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember_zIlf4fWm00ib" title="Unrecognized share-based compensation expense"><ix:nonFraction name="us-gaap:EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognized" contextRef="AsOf2023-12-31_custom_EquityClassifiedAwardsMember" id="Fact001285" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">441</ix:nonFraction></span> thousand to be recognized over the average remaining
vesting period of <span id="xdx_906_eus-gaap--EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedPeriodForRecognition1_dtY_c20230101__20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember_z9NXy1LSZ2wf" title="Recognized average remaining vesting period"><ix:nonNumeric contextRef="From2023-01-012023-12-31_custom_EquityClassifiedAwardsMember" format="ixt-sec:duryear" id="Fact001287" name="us-gaap:EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedPeriodForRecognition1">2.5</ix:nonNumeric></span> years.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify">&#160;</p>


<ix:exclude><!-- Field: Page; Sequence: 156; Value: 1 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->27<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page --></ix:exclude>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>ZOOZ
POWER LTD.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Liability
classified awards</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
options were classified as liabilities in accordance with ASC 718, as the exercise price is denominated in USD, that is not the Company&#8217;s
functional currency and not the employees&#8217; salary currency or the currency in which the Company is traded. Accordingly, the options
are measured at fair value each reporting period, and changes in their fair value are recognized in the statements of operations. The
fair value of the options as of December 31, 2023, was evaluated using the Black-Scholes Option Pricing Model. For the various scenarios
modeled, volatility is based on companies in the industry by statistical analysis of a daily share pricing model. The risk-free interest
rate assumption is based on observed interest rates appropriate for the period until the options expiration date. Following the merger
in April 2024, as detailed in note 1, given that the currency of the market in which the Company&#8217;s equity securities are traded,
these awards will be reclassified to equity.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<ix:nonNumeric contextRef="From2023-01-01to2023-12-31" escape="true" id="Fact001289" name="ZOOZ:ScheduleOfChangesInFairValueOfOptionsTableTextBlock"><p id="xdx_894_ecustom--ScheduleOfChangesInFairValueOfOptionsTableTextBlock_z5e684uL3P6d" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
table below sets forth a summary of changes in the fair value of the options:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8BF_zqQCCl4oOth5" style="display: none">SCHEDULE OF CHANGES IN FAIR VALUE OF OPTIONS</span>&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 93%; margin-left: 0.5in">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Number of options measured at fair value</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Fair value (U.S. Dollars in thousands)</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 60%">Balance at January 1, 2021</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_pid_c20210101__20211231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_zPIG72m5cgia" title="Number of options, Outstanding" style="width: 16%; text-align: right"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber" contextRef="AsOf2020-12-31_custom_LiabilityClassifiedAwardsMember" id="Fact001291" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">446,703</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td id="xdx_980_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingValue_iS_c20210101__20211231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_zDmnWX7hZacg" title="Fair value, Outstanding" style="width: 16%; text-align: right"><ix:nonFraction name="ZOOZ:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingValue" contextRef="AsOf2020-12-31_custom_LiabilityClassifiedAwardsMember" id="Fact001293" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">4,769</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: left">Effect of change in exchange rate</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_984_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsEffectOfChangeInExchangeRateValue_c20210101__20211231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_zm1KpR4J6Km4" title="Fair value, Effect of change in exchange rate" style="text-align: right"><ix:nonFraction name="ZOOZ:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsEffectOfChangeInExchangeRateValue" contextRef="From2021-01-012021-12-31_custom_LiabilityClassifiedAwardsMember" id="Fact001295" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">112</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt">Changes in fair value</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingPeriodIncreaseDecrease_pid_c20210101__20211231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_zOh3P1wlXoJ1" title="Number of options, Changes in fair value" style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1297">-</span></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td id="xdx_989_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsChangeInFairValue_c20210101__20211231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_zevgswCwSFk" title="Fair value, Changes in fair value" style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction name="ZOOZ:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsChangeInFairValue" contextRef="From2021-01-012021-12-31_custom_LiabilityClassifiedAwardsMember" id="Fact001299" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">1,276</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td>Balance at December 31, 2021</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_pid_c20220101__20221231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_z74rZet9FR29" title="Number of options, Outstanding" style="text-align: right"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber" contextRef="AsOf2021-12-31_custom_LiabilityClassifiedAwardsMember" id="Fact001301" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">446,703</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_98E_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingValue_iS_c20220101__20221231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_zzVj0Z5YDiM9" title="Fair value, Outstanding" style="text-align: right"><ix:nonFraction name="ZOOZ:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingValue" contextRef="AsOf2021-12-31_custom_LiabilityClassifiedAwardsMember" id="Fact001303" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">3,605</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Effect of change in exchange rate</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_98C_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsEffectOfChangeInExchangeRateValue_c20220101__20221231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_z9s9QnWFyrff" title="Fair value, Effect of change in exchange rate" style="text-align: right">(<ix:nonFraction name="ZOOZ:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsEffectOfChangeInExchangeRateValue" contextRef="From2022-01-012022-12-31_custom_LiabilityClassifiedAwardsMember" id="Fact001305" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">315</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: left; padding-bottom: 1.5pt">Changes in fair value</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingPeriodIncreaseDecrease_pid_c20220101__20221231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_zY2be3Jmvqwg" title="Number of options, Changes in fair value" style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1307">-</span></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td id="xdx_98D_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsChangeInFairValue_c20220101__20221231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_z8isqDGkylyb" title="Fair value, Changes in fair value" style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction name="ZOOZ:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsChangeInFairValue" contextRef="From2022-01-012022-12-31_custom_LiabilityClassifiedAwardsMember" id="Fact001309" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">2,294</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>Balance at December 31, 2022</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_pid_c20230101__20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_zlMGRRjmpJwe" title="Number of options, Outstanding" style="text-align: right"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber" contextRef="AsOf2022-12-31_custom_LiabilityClassifiedAwardsMember" id="Fact001311" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">440,045</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_985_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingValue_iS_c20230101__20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_zH6PQtzgHxKc" title="Fair value, Outstanding" style="text-align: right"><ix:nonFraction name="ZOOZ:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingValue" contextRef="AsOf2022-12-31_custom_LiabilityClassifiedAwardsMember" id="Fact001313" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">996</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: left">Effect of change in exchange rate</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_986_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsEffectOfChangeInExchangeRateValue_c20230101__20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_zobWaHBS4co3" title="Fair value, Effect of change in exchange rate" style="text-align: right">(<ix:nonFraction name="ZOOZ:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsEffectOfChangeInExchangeRateValue" contextRef="From2023-01-012023-12-31_custom_LiabilityClassifiedAwardsMember" id="Fact001315" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">30</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt">Changes in fair value</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingPeriodIncreaseDecrease_pid_c20230101__20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_zJkQ6ocueYC4" title="Number of options, Changes in fair value" style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1317">-</span></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td id="xdx_98C_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsChangeInFairValue_c20230101__20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_z0BFDw2R8wKj" title="Fair value, Changes in fair value" style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction name="ZOOZ:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsChangeInFairValue" contextRef="From2023-01-012023-12-31_custom_LiabilityClassifiedAwardsMember" id="Fact001319" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">734</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td style="padding-bottom: 2.5pt">Balance at December 31, 2023</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_pid_c20230101__20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_zc4mGVJmjyV5" title="Number of options, Outstanding" style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber" contextRef="AsOf2023-12-31_custom_LiabilityClassifiedAwardsMember" id="Fact001321" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">405,714</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td id="xdx_98C_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingValue_iE_c20230101__20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_zkSyUkXV7Kjh" title="Fair value, Outstanding" style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="ZOOZ:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingValue" contextRef="AsOf2023-12-31_custom_LiabilityClassifiedAwardsMember" id="Fact001323" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">232</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td></tr>
  </table>

</ix:nonNumeric><p id="xdx_8AA_z2ecyCn58919" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
of December 31, 2023, <span id="xdx_901_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingNumber_iI_pid_c20231231_zDH4UESZdvX9" title="Options vested"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingNumber" contextRef="AsOf2023-12-31" id="Fact001325" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">386,016</ix:nonFraction></span> options were fully vested.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<ix:nonNumeric contextRef="From2023-01-012023-12-31_custom_LiabilityClassifiedAwardsMember" escape="true" id="Fact001327" name="us-gaap:ScheduleOfShareBasedPaymentAwardStockOptionsValuationAssumptionsTableTextBlock"><p id="xdx_897_eus-gaap--ScheduleOfShareBasedPaymentAwardStockOptionsValuationAssumptionsTableTextBlock_hus-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_zRNqmf2LPRIa" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following table summarizes assumptions used as of December 31, 2023, 2022 and 2021:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8B9_zvDP3PEPHw76" style="display: none">SCHEDULE OF FAIR VALUE ASSUMPTIONS</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 93%; margin-left: 0.5in">
  <tr style="vertical-align: bottom">
    <td style="padding-bottom: 1.5pt; text-align: center">&#160;</td><td style="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">2023</td><td style="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&#160;</td><td style="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">2022</td><td style="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&#160;</td><td style="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">2021</td><td style="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 2.5pt; width: 46%; text-align: left">Expected dividend</td><td style="padding-bottom: 2.5pt; width: 2%">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; width: 14%; text-align: center"><span id="xdx_90C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_pid_dp_c20230101__20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_znrTh85TIsCi" title="Dividend yield"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate" contextRef="From2023-01-012023-12-31_custom_LiabilityClassifiedAwardsMember" id="Fact001329" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">0</ix:nonFraction>%</span></td><td style="padding-bottom: 2.5pt; width: 1%; text-align: left"/><td style="padding-bottom: 2.5pt; width: 2%">&#160;</td>
    <td style="padding-bottom: 2.5pt; width: 1%; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; width: 14%; text-align: center"><span id="xdx_901_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_pid_dp_c20220101__20221231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_zNAIrwbXZQgg" title="Dividend yield"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate" contextRef="From2022-01-012022-12-31_custom_LiabilityClassifiedAwardsMember" id="Fact001331" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">0</ix:nonFraction>%</span></td><td style="padding-bottom: 2.5pt; width: 1%; text-align: left"/><td style="padding-bottom: 2.5pt; width: 2%">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; width: 14%; text-align: center"><span id="xdx_901_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_pid_dp_c20210101__20211231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_zrxgLEHjiio2" title="Dividend yield"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate" contextRef="From2021-01-012021-12-31_custom_LiabilityClassifiedAwardsMember" id="Fact001333" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">0</ix:nonFraction>%</span></td><td style="padding-bottom: 2.5pt; width: 1%; text-align: left"/></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td style="padding-bottom: 2.5pt; text-align: left">Expected volatility*</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMinimum_pid_dp_c20230101__20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_zVLtY9L0zcu5" title="Expected volatility minimum"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMinimum" contextRef="From2023-01-012023-12-31_custom_LiabilityClassifiedAwardsMember" id="Fact001335" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">81.2</ix:nonFraction>%</span>-<span id="xdx_90C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMaximum_pid_dp_c20230101__20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_zhE8NA2OiGVf" title="Expected volatility maximum"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMaximum" contextRef="From2023-01-012023-12-31_custom_LiabilityClassifiedAwardsMember" id="Fact001337" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">90.9</ix:nonFraction>%</span></span></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_909_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMinimum_pid_dp_c20220101__20221231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_zs77z92C7q4a" title="Expected volatility minimum"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMinimum" contextRef="From2022-01-012022-12-31_custom_LiabilityClassifiedAwardsMember" id="Fact001339" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">79.6</ix:nonFraction>%</span>-<span id="xdx_905_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMaximum_pid_dp_c20220101__20221231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_zz0FrWhnOMH3" title="Expected volatility maximum"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMaximum" contextRef="From2022-01-012022-12-31_custom_LiabilityClassifiedAwardsMember" id="Fact001341" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">95.7</ix:nonFraction>%</span></span></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_900_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMinimum_pid_dp_c20210101__20211231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_zDxuBA8HGuga" title="Expected volatility minimum"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMinimum" contextRef="From2021-01-012021-12-31_custom_LiabilityClassifiedAwardsMember" id="Fact001343" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">86.9</ix:nonFraction>%</span>-<span id="xdx_90D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMaximum_pid_dp_c20210101__20211231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_z9ExB0CMfgci" title="Expected volatility maximum"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMaximum" contextRef="From2021-01-012021-12-31_custom_LiabilityClassifiedAwardsMember" id="Fact001345" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">95</ix:nonFraction>%</span></span></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 2.5pt; text-align: left">Risk-free interest rate</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_909_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMinimum_pid_dp_c20230101__20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_zxSGPN2lFgSi" title="Risk-free interest rate minimum"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMinimum" contextRef="From2023-01-012023-12-31_custom_LiabilityClassifiedAwardsMember" id="Fact001347" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">4.97</ix:nonFraction>%</span>-<span id="xdx_900_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMaximum_pid_dp_c20230101__20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_zaqcUTU3lwgc" title="Risk-free interest rate maximum"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMaximum" contextRef="From2023-01-012023-12-31_custom_LiabilityClassifiedAwardsMember" id="Fact001349" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">5.35</ix:nonFraction>%</span></span></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_908_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMinimum_pid_dp_c20220101__20221231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_zVyasytLrzEh" title="Risk-free interest rate minimum"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMinimum" contextRef="From2022-01-012022-12-31_custom_LiabilityClassifiedAwardsMember" id="Fact001351" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">4.68</ix:nonFraction>%</span>-<span id="xdx_901_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMaximum_pid_dp_c20220101__20221231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_zXrG5nVU58Wi" title="Risk-free interest rate maximum"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMaximum" contextRef="From2022-01-012022-12-31_custom_LiabilityClassifiedAwardsMember" id="Fact001353" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">5.27</ix:nonFraction>%</span></span></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_903_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMinimum_pid_dp_c20210101__20211231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_z0jXigSd8Cwg" title="Risk-free interest rate minimum"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMinimum" contextRef="From2021-01-012021-12-31_custom_LiabilityClassifiedAwardsMember" id="Fact001355" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">1.18</ix:nonFraction>%</span>-<span id="xdx_903_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMaximum_pid_dp_c20210101__20211231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_zaPlnxyODoCj" title="Risk-free interest rate maximum"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMaximum" contextRef="From2021-01-012021-12-31_custom_LiabilityClassifiedAwardsMember" id="Fact001357" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">1.87</ix:nonFraction>%</span></span></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td style="padding-bottom: 2.5pt; text-align: left">Expected life</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: center">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_90C_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20230101__20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember__srt--RangeAxis__srt--MinimumMember_zvifPO9NrZdc" title="Expected term (years)"><ix:nonNumeric contextRef="From2023-01-012023-12-31_custom_LiabilityClassifiedAwardsMember_srt_MinimumMember" format="ixt-sec:duryear" id="Fact001359" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1">2</ix:nonNumeric></span>-<span id="xdx_90D_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20230101__20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember__srt--RangeAxis__srt--MaximumMember_zirreWC6PHg6" title="Expected term (years)"><ix:nonNumeric contextRef="From2023-01-012023-12-31_custom_LiabilityClassifiedAwardsMember_srt_MaximumMember" format="ixt-sec:duryear" id="Fact001361" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1">4</ix:nonNumeric></span></span></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_904_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20220101__20221231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember__srt--RangeAxis__srt--MinimumMember_zam9ibBaJjWg" title="Expected term (years)"><ix:nonNumeric contextRef="From2022-01-012022-12-31_custom_LiabilityClassifiedAwardsMember_srt_MinimumMember" format="ixt-sec:duryear" id="Fact001363" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1">1.5</ix:nonNumeric></span>-<span id="xdx_90A_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20220101__20221231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember__srt--RangeAxis__srt--MaximumMember_zzBDpheqOhC6" title="Expected term (years)"><ix:nonNumeric contextRef="From2022-01-012022-12-31_custom_LiabilityClassifiedAwardsMember_srt_MaximumMember" format="ixt-sec:duryear" id="Fact001365" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1">5</ix:nonNumeric></span></span></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_901_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20210101__20211231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember__srt--RangeAxis__srt--MinimumMember_z9IYkhyI1s36" title="Expected term (years)"><ix:nonNumeric contextRef="From2021-01-012021-12-31_custom_LiabilityClassifiedAwardsMember_srt_MinimumMember" format="ixt-sec:duryear" id="Fact001367" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1">2</ix:nonNumeric></span>-<span id="xdx_90E_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20210101__20211231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember__srt--RangeAxis__srt--MaximumMember_zl5TRq5qOoF6" title="Expected term (years)"><ix:nonNumeric contextRef="From2021-01-012021-12-31_custom_LiabilityClassifiedAwardsMember_srt_MaximumMember" format="ixt-sec:duryear" id="Fact001369" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1">5.9</ix:nonNumeric></span></span></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 2.5pt">Exercise price (USD)</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_908_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iI_pid_dp_c20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember__srt--RangeAxis__srt--MinimumMember_zGrX4qxKUKx4" title="Exercise price (USD)"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice" contextRef="AsOf2023-12-31_custom_LiabilityClassifiedAwardsMember_srt_MinimumMember" id="Fact001371" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="USDPShares">4.57</ix:nonFraction></span>-<span id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iI_pid_dp_c20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember__srt--RangeAxis__srt--MaximumMember_zz1vzwGhrpzg" title="Exercise price (USD)"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice" contextRef="AsOf2023-12-31_custom_LiabilityClassifiedAwardsMember_srt_MaximumMember" id="Fact001373" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="USDPShares">15.67</ix:nonFraction></span></span></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_90C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iI_pid_dp_c20221231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember__srt--RangeAxis__srt--MinimumMember_zJRb2lhRdiH1" title="Exercise price (USD)"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice" contextRef="AsOf2022-12-31_custom_LiabilityClassifiedAwardsMember_srt_MinimumMember" id="Fact001375" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="USDPShares">4.57</ix:nonFraction></span>-<span id="xdx_90D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iI_pid_dp_c20221231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember__srt--RangeAxis__srt--MaximumMember_zTGC9UZvsAs6" title="Exercise price (USD)"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice" contextRef="AsOf2022-12-31_custom_LiabilityClassifiedAwardsMember_srt_MaximumMember" id="Fact001377" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="USDPShares">15.67</ix:nonFraction></span></span></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_904_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iI_pid_dp_c20211231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember__srt--RangeAxis__srt--MinimumMember_zCTUOwHoJRJl" title="Exercise price (USD)"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice" contextRef="AsOf2021-12-31_custom_LiabilityClassifiedAwardsMember_srt_MinimumMember" id="Fact001379" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="USDPShares">4.57</ix:nonFraction></span>-<span id="xdx_901_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iI_pid_dp_c20211231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember__srt--RangeAxis__srt--MaximumMember_z4hKn7qgXlYh" title="Exercise price (USD)"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice" contextRef="AsOf2021-12-31_custom_LiabilityClassifiedAwardsMember_srt_MaximumMember" id="Fact001381" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="USDPShares">15.67</ix:nonFraction></span></span></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td></tr>
  </table>

</ix:nonNumeric><p id="xdx_8A5_zkS4ugEudCl9" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<ix:exclude><!-- Field: Page; Sequence: 157; Value: 1 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->28<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page --></ix:exclude>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>ZOOZ
POWER LTD.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<ix:nonNumeric contextRef="From2023-01-012023-12-31_custom_LiabilityClassifiedAwardsMember" escape="true" id="Fact001383" name="us-gaap:ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock"><p id="xdx_895_eus-gaap--ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock_hus-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_zsQJQ8kvPCL7" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following is summary information about liability classified options in 2023:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8BE_zR5MNxICLcY4" style="display: none">SCHEDULE OF STOCK OPTIONS ACTIVITY</span></span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 93%; margin-left: 0.5in">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="14" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Year ended December 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Weighted<br/>
 average<br/>
 exercise<br/>
 price</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Weighted<br/>
 average<br/>
 remaining<br/>
 contractual<br/>
 life</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Aggregate<br/>
 Intrinsic</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Number</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">USD</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">years</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Value</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 40%; text-align: left">Outstanding at beginning of year</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_pid_c20230101__20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_zs7I4iqWnct5" title="Number of options, Outstanding" style="width: 11%; text-align: right"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber" contextRef="AsOf2022-12-31_custom_LiabilityClassifiedAwardsMember" id="Fact001385" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">440,045</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_pid_c20230101__20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_zM75EHqhNN0h" title="Weighted average exercise price, Outstanding" style="width: 11%; text-align: right"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice" contextRef="AsOf2022-12-31_custom_LiabilityClassifiedAwardsMember" id="Fact001387" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">8.46</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 11%; text-align: right"><span id="xdx_904_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20220101__20221231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_zyjIDKjMyHc1" title="Weighted average remaining contractual life, Outstanding"><ix:nonNumeric contextRef="From2022-01-012022-12-31_custom_LiabilityClassifiedAwardsMember" format="ixt-sec:duryear" id="Fact001389" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2">6.3</ix:nonNumeric></span></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 11%; text-align: right"><span id="xdx_908_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iS_c20230101__20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_zfJLI8D6z54c" title="Aggregate Intrinsic Value, Outstanding"><span style="-sec-ix-hidden: xdx2ixbrl1391">-</span></span></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td>Expired</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExpirationsInPeriod_iN_pid_di_c20230101__20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_z3mcB1czvQMd" title="Number of options, Expired" style="text-align: right">(<ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExpirationsInPeriod" contextRef="From2023-01-012023-12-31_custom_LiabilityClassifiedAwardsMember" id="Fact001393" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">34,331</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExpirationsInPeriodWeightedAverageExercisePrice_pid_c20230101__20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_zItxkxEkaF9f" title="Weighted average exercise price, Expired" style="text-align: right"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExpirationsInPeriodWeightedAverageExercisePrice" contextRef="From2023-01-012023-12-31_custom_LiabilityClassifiedAwardsMember" id="Fact001395" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">7.66</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">-</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 2.5pt">Outstanding at end of year</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_pid_c20230101__20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_ztdQH6QWAfL2" title="Number of options, Outstanding" style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber" contextRef="AsOf2023-12-31_custom_LiabilityClassifiedAwardsMember" id="Fact001397" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">405,714</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_pid_c20230101__20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_z9NeksiZ6WTa" title="Weighted average exercise price, Outstanding" style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice" contextRef="AsOf2023-12-31_custom_LiabilityClassifiedAwardsMember" id="Fact001399" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">9.72</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: right"><span id="xdx_907_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20230101__20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_zcp3cYT4qsS2" title="Weighted average remaining contractual life, Outstanding"><ix:nonNumeric contextRef="From2023-01-012023-12-31_custom_LiabilityClassifiedAwardsMember" format="ixt-sec:duryear" id="Fact001401" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2">6.2</ix:nonNumeric></span></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: right"><span id="xdx_90C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iE_c20230101__20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_zCWOp0ARvOdj" title="Aggregate Intrinsic Value, Outstanding"><span style="-sec-ix-hidden: xdx2ixbrl1403">-</span></span></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: left; padding-bottom: 2.5pt">Exercisable at end of year</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iE_pid_c20230101__20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_z1vYyrD50J91" title="Number of options, Exercisable" style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber" contextRef="AsOf2023-12-31_custom_LiabilityClassifiedAwardsMember" id="Fact001405" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">386,016</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice_iE_pid_c20230101__20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_zHFlY6csgCKl" title="Weighted average exercise price, Exercisable" style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice" contextRef="AsOf2023-12-31_custom_LiabilityClassifiedAwardsMember" id="Fact001407" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">10.52</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: right"><span id="xdx_90C_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1_dtY_c20230101__20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_zIytn4Su6Ln5" title="Weighted average remaining contractual life, Exercisable"><ix:nonNumeric contextRef="From2023-01-012023-12-31_custom_LiabilityClassifiedAwardsMember" format="ixt-sec:duryear" id="Fact001409" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1">6.1</ix:nonNumeric></span></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: right"><span id="xdx_902_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1_iE_c20230101__20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_zWdldJZWScwg" title="Aggregate Intrinsic Value, Exercisable"><span style="-sec-ix-hidden: xdx2ixbrl1411">-</span></span></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td></tr>
  </table>

</ix:nonNumeric><p id="xdx_8A2_zd1yGENCvcqk" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<ix:nonNumeric contextRef="From2023-01-012023-12-31_custom_LiabilityClassifiedAwardsMember" escape="true" id="Fact001413" name="us-gaap:ScheduleOfShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeTextBlock"><p id="xdx_898_eus-gaap--ScheduleOfShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeTextBlock_hus-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_zetEvtdge2h8" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following is information regarding exercise prices and remaining contractual lives of outstanding options at December 31, 2023:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8B9_za8io5sjW6jj" style="display: none">SCHEDULE OF EXERCISE PRICES AND REMAINING CONTRACTUAL LIVES OF OUTSTANDING OPTIONS</span></span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 93%; margin-left: 0.5in">
  <tr style="vertical-align: bottom">
    <td colspan="21" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2023</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td colspan="9" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">outstanding</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Exercisable</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Number of<br/>
 options<br/>
 outstanding</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Exercise price<br/>
 range (USD)</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Weighted<br/>
 average<br/>
 remaining<br/>
 contractual life</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Number of<br/>
 options<br/>
 Exercisable</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Exercise price<br/>
 range (USD)</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Weighted<br/>
 average<br/>
 remaining<br/>
 contractual life</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td id="xdx_98F_eus-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfOutstandingOptions_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceOneMember_ztHvdnVpiv4d" title="Number of options outstanding" style="width: 14%; text-align: right"><ix:nonFraction name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfOutstandingOptions" contextRef="AsOf2023-12-31_custom_LiabilityClassifiedAwardsMember_custom_ExercisePriceOneMember" id="Fact001415" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">78,110</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td id="xdx_983_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceBeginningBalance1_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceOneMember_zdYpRbM7OGgi" title="Exercise price" style="width: 13%; text-align: right"><ix:nonFraction name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceBeginningBalance1" contextRef="AsOf2023-12-31_custom_LiabilityClassifiedAwardsMember_custom_ExercisePriceOneMember" id="Fact001417" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">7.55</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 13%; text-align: right"><span id="xdx_905_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2_dtY_c20230101__20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceOneMember_z6kSMLFEp4jb" title="Weighted average remaining contractual life"><ix:nonNumeric contextRef="From2023-01-012023-12-31_custom_LiabilityClassifiedAwardsMember_custom_ExercisePriceOneMember" format="ixt-sec:duryear" id="Fact001419" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2">4.1</ix:nonNumeric></span></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td id="xdx_98B_eus-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfExercisableOptions_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceOneMember_zdYS8VLdLg93" title="Number of options outstanding" style="width: 13%; text-align: right"><ix:nonFraction name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfExercisableOptions" contextRef="AsOf2023-12-31_custom_LiabilityClassifiedAwardsMember_custom_ExercisePriceOneMember" id="Fact001421" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">78,110</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td id="xdx_986_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageExercisePrice1_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceOneMember_zuYIWUvmBxmi" title="Exercise price" style="width: 13%; text-align: right"><ix:nonFraction name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageExercisePrice1" contextRef="AsOf2023-12-31_custom_LiabilityClassifiedAwardsMember_custom_ExercisePriceOneMember" id="Fact001423" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">7.55</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 13%; text-align: right"><span id="xdx_900_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageRemainingContractualTerm2_dtY_c20230101__20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceOneMember_zX7TqiPmODSe" title="Weighted average remaining contractual life"><ix:nonNumeric contextRef="From2023-01-012023-12-31_custom_LiabilityClassifiedAwardsMember_custom_ExercisePriceOneMember" format="ixt-sec:duryear" id="Fact001425" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageRemainingContractualTerm2">4.1</ix:nonNumeric></span></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td id="xdx_98E_eus-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfOutstandingOptions_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceTwoMember_zIccvDwIPON2" title="Number of options outstanding" style="text-align: right"><ix:nonFraction name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfOutstandingOptions" contextRef="AsOf2023-12-31_custom_LiabilityClassifiedAwardsMember_custom_ExercisePriceTwoMember" id="Fact001427" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">239,009</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_989_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceBeginningBalance1_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceTwoMember_zSU4tBbJiyid" title="Exercise price" style="text-align: right"><ix:nonFraction name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceBeginningBalance1" contextRef="AsOf2023-12-31_custom_LiabilityClassifiedAwardsMember_custom_ExercisePriceTwoMember" id="Fact001429" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">7.78</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span id="xdx_905_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2_dtY_c20230101__20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceTwoMember_ziAUXzHGxuva" title="Weighted average remaining contractual life"><ix:nonNumeric contextRef="From2023-01-012023-12-31_custom_LiabilityClassifiedAwardsMember_custom_ExercisePriceTwoMember" format="ixt-sec:duryear" id="Fact001431" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2">6.8</ix:nonNumeric></span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_988_eus-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfExercisableOptions_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceTwoMember_zdtHEl0x2sy4" title="Number of options outstanding" style="text-align: right"><ix:nonFraction name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfExercisableOptions" contextRef="AsOf2023-12-31_custom_LiabilityClassifiedAwardsMember_custom_ExercisePriceTwoMember" id="Fact001433" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">239,009</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_984_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageExercisePrice1_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceTwoMember_zfIKZuVvREs9" title="Exercise price" style="text-align: right"><ix:nonFraction name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageExercisePrice1" contextRef="AsOf2023-12-31_custom_LiabilityClassifiedAwardsMember_custom_ExercisePriceTwoMember" id="Fact001435" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">7.78</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span id="xdx_903_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageRemainingContractualTerm2_dtY_c20230101__20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceTwoMember_zLkoLFICclEh" title="Weighted average remaining contractual life"><ix:nonNumeric contextRef="From2023-01-012023-12-31_custom_LiabilityClassifiedAwardsMember_custom_ExercisePriceTwoMember" format="ixt-sec:duryear" id="Fact001437" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageRemainingContractualTerm2">6.8</ix:nonNumeric></span></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td id="xdx_984_eus-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfOutstandingOptions_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceThreeMember_zW4n1gxryFKi" title="Number of options outstanding" style="text-align: right"><ix:nonFraction name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfOutstandingOptions" contextRef="AsOf2023-12-31_custom_LiabilityClassifiedAwardsMember_custom_ExercisePriceThreeMember" id="Fact001439" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">78,795</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_980_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceBeginningBalance1_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceThreeMember_z1fyLZQdhNV7" title="Exercise price" style="text-align: right"><ix:nonFraction name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceBeginningBalance1" contextRef="AsOf2023-12-31_custom_LiabilityClassifiedAwardsMember_custom_ExercisePriceThreeMember" id="Fact001441" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">15.67</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span id="xdx_906_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2_dtY_c20230101__20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceThreeMember_z6PaLi3OyvG" title="Weighted average remaining contractual life"><ix:nonNumeric contextRef="From2023-01-012023-12-31_custom_LiabilityClassifiedAwardsMember_custom_ExercisePriceThreeMember" format="ixt-sec:duryear" id="Fact001443" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2">6.9</ix:nonNumeric></span></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_983_eus-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfExercisableOptions_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceThreeMember_z7KFCR8yLuwi" title="Number of options outstanding" style="text-align: right"><ix:nonFraction name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfExercisableOptions" contextRef="AsOf2023-12-31_custom_LiabilityClassifiedAwardsMember_custom_ExercisePriceThreeMember" id="Fact001445" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">59,097</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_989_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageExercisePrice1_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceThreeMember_zP0ZvN0wvslc" title="Exercise price" style="text-align: right"><ix:nonFraction name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageExercisePrice1" contextRef="AsOf2023-12-31_custom_LiabilityClassifiedAwardsMember_custom_ExercisePriceThreeMember" id="Fact001447" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">15.67</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span id="xdx_90A_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageRemainingContractualTerm2_dtY_c20230101__20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceThreeMember_zkFa0P5WbnL7" title="Weighted average remaining contractual life"><ix:nonNumeric contextRef="From2023-01-012023-12-31_custom_LiabilityClassifiedAwardsMember_custom_ExercisePriceThreeMember" format="ixt-sec:duryear" id="Fact001449" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageRemainingContractualTerm2">6.9</ix:nonNumeric></span></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td id="xdx_98B_eus-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfOutstandingOptions_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceFourMember_zlhnYPTRF1zg" title="Number of options outstanding" style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfOutstandingOptions" contextRef="AsOf2023-12-31_custom_LiabilityClassifiedAwardsMember_custom_ExercisePriceFourMember" id="Fact001451" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">9,800</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td id="xdx_988_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceBeginningBalance1_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceFourMember_zz8FGaQYq6ie" title="Exercise price" style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceBeginningBalance1" contextRef="AsOf2023-12-31_custom_LiabilityClassifiedAwardsMember_custom_ExercisePriceFourMember" id="Fact001453" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">25.62</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: right"><span id="xdx_903_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2_dtY_c20230101__20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceFourMember_zOSCGIQND4sk" title="Weighted average remaining contractual life"><ix:nonNumeric contextRef="From2023-01-012023-12-31_custom_LiabilityClassifiedAwardsMember_custom_ExercisePriceFourMember" format="ixt-sec:duryear" id="Fact001455" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2">0.4</ix:nonNumeric></span></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td id="xdx_98D_eus-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfExercisableOptions_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceFourMember_z0lhnpyzMlBf" title="Number of options outstanding" style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfExercisableOptions" contextRef="AsOf2023-12-31_custom_LiabilityClassifiedAwardsMember_custom_ExercisePriceFourMember" id="Fact001457" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">78,110</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td id="xdx_98A_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageExercisePrice1_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceFourMember_zPb22OF6kqW6" title="Exercise price" style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageExercisePrice1" contextRef="AsOf2023-12-31_custom_LiabilityClassifiedAwardsMember_custom_ExercisePriceFourMember" id="Fact001459" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">25.62</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: right"><span id="xdx_908_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageRemainingContractualTerm2_dtY_c20230101__20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember__us-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis__custom--ExercisePriceFourMember_zhv9v4UufcGa" title="Weighted average remaining contractual life"><ix:nonNumeric contextRef="From2023-01-012023-12-31_custom_LiabilityClassifiedAwardsMember_custom_ExercisePriceFourMember" format="ixt-sec:duryear" id="Fact001461" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageRemainingContractualTerm2">0.4</ix:nonNumeric></span></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td id="xdx_987_eus-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfOutstandingOptions_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_z1xGgjU8pRH2" title="Number of options outstanding" style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfOutstandingOptions" contextRef="AsOf2023-12-31_custom_LiabilityClassifiedAwardsMember" id="Fact001463" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">405,714</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td id="xdx_988_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceBeginningBalance1_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_zSbJS4pWohYh" title="Exercise price" style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceBeginningBalance1" contextRef="AsOf2023-12-31_custom_LiabilityClassifiedAwardsMember" id="Fact001465" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">9.72</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: right"><span id="xdx_90C_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2_dtY_c20230101__20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_z1L5yjbxotJg" title="Weighted average remaining contractual life"><ix:nonNumeric contextRef="From2023-01-012023-12-31_custom_LiabilityClassifiedAwardsMember" format="ixt-sec:duryear" id="Fact001467" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2">6.2</ix:nonNumeric></span></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td id="xdx_98E_eus-gaap--ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfExercisableOptions_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_zwitrSKf7sSk" title="Number of options outstanding" style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfExercisableOptions" contextRef="AsOf2023-12-31_custom_LiabilityClassifiedAwardsMember" id="Fact001469" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">386,016</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td id="xdx_989_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageExercisePrice1_iI_pid_c20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_zO3Y19zN8Zv8" title="Exercise price" style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageExercisePrice1" contextRef="AsOf2023-12-31_custom_LiabilityClassifiedAwardsMember" id="Fact001471" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">10.52</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: right"><span id="xdx_900_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageRemainingContractualTerm2_dtY_c20230101__20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_zRdMu1JCwSie" title="Weighted average remaining contractual life"><ix:nonNumeric contextRef="From2023-01-012023-12-31_custom_LiabilityClassifiedAwardsMember" format="ixt-sec:duryear" id="Fact001473" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageRemainingContractualTerm2">6.1</ix:nonNumeric></span></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td></tr>
  </table>

</ix:nonNumeric><p id="xdx_8AB_zR7sZzPFRXbd" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
of December 31, 2023, there is an unrecognized share-based compensation expense of $<span id="xdx_904_eus-gaap--EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognized_iI_pn3n3_c20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_zgXuw5Q5lYxh" title="Unrecognized share-based compensation expense"><ix:nonFraction name="us-gaap:EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognized" contextRef="AsOf2023-12-31_custom_LiabilityClassifiedAwardsMember" id="Fact001475" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">1</ix:nonFraction></span> thousand to be recognized over the average remaining
vesting period of <span id="xdx_906_eus-gaap--EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedPeriodForRecognition1_dtY_c20230101__20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_zsS7IKqXEOr3" title="Recognized average remaining vesting period"><ix:nonNumeric contextRef="From2023-01-012023-12-31_custom_LiabilityClassifiedAwardsMember" format="ixt-sec:duryear" id="Fact001477" name="us-gaap:EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedPeriodForRecognition1">0.9</ix:nonNumeric></span> year.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<ix:nonNumeric contextRef="From2023-01-01to2023-12-31" escape="true" id="Fact001479" name="us-gaap:ScheduleOfEmployeeServiceShareBasedCompensationAllocationOfRecognizedPeriodCostsTextBlock"><p id="xdx_890_eus-gaap--ScheduleOfEmployeeServiceShareBasedCompensationAllocationOfRecognizedPeriodCostsTextBlock_zwHXc599UnR8" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
table below presents the expense (income) recognized in the financial statements of the Company in respect to share-based payment:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 42.5pt; text-indent: -42.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 42.5pt; text-indent: -42.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_8B2_zgaiBavmCeka" style="display: none">SCHEDULE
OF EXPENSE (INCOME) RECOGNIZED IN CONSOLIDATED FINANCIAL STATEMENTS</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 42.5pt; text-indent: -42.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 93%; margin-left: 0.5in">
  <tr style="vertical-align: bottom">
    <td style="padding-bottom: 1.5pt">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td>
    <td colspan="22" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Year ended December 31</td><td style="padding-bottom: 1.5pt">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="padding-bottom: 1.5pt">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td>
    <td colspan="11" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td>
    <td colspan="10" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">2021</td><td style="padding-bottom: 1.5pt">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="padding-bottom: 1.5pt; text-align: center">&#160;</td><td style="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Equity<br/>
 classified<br/>
 awards</td><td style="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&#160;</td><td style="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Liability<br/>
 classified<br/>
 awards</td><td style="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&#160;</td><td style="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Total<br/>
 expense</td><td style="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&#160;</td><td style="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Equity<br/>
 classified<br/>
 awards</td><td style="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&#160;</td><td style="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Liability<br/>
 classified<br/>
 awards</td><td style="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&#160;</td><td style="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Total<br/>
 expense</td><td style="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 40%; text-align: left">Research and development expenses (income)</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td id="xdx_987_eus-gaap--AllocatedShareBasedCompensationExpense_c20220101__20221231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--IncomeStatementLocationAxis__us-gaap--ResearchAndDevelopmentExpenseMember_zbLzMv6g7Z2a" title="Share-based payment arrangement, expense" style="width: 6%; text-align: right"><ix:nonFraction name="us-gaap:AllocatedShareBasedCompensationExpense" contextRef="From2022-01-012022-12-31_custom_EquityClassifiedAwardsMember_us-gaap_ResearchAndDevelopmentExpenseMember" id="Fact001481" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">206</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td id="xdx_980_eus-gaap--AllocatedShareBasedCompensationExpense_c20220101__20221231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember__us-gaap--IncomeStatementLocationAxis__us-gaap--ResearchAndDevelopmentExpenseMember_zjhOD8fC4eV5" title="Share-based payment arrangement, expense" style="width: 6%; text-align: right">(<ix:nonFraction name="us-gaap:AllocatedShareBasedCompensationExpense" contextRef="From2022-01-012022-12-31_custom_LiabilityClassifiedAwardsMember_us-gaap_ResearchAndDevelopmentExpenseMember" id="Fact001483" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">1,426</ix:nonFraction></td><td style="width: 1%; text-align: left">)</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td id="xdx_98B_eus-gaap--AllocatedShareBasedCompensationExpense_c20220101__20221231__us-gaap--IncomeStatementLocationAxis__us-gaap--ResearchAndDevelopmentExpenseMember_zmDNJA0kzr8b" title="Share-based payment arrangement, expense" style="width: 6%; text-align: right">(<ix:nonFraction name="us-gaap:AllocatedShareBasedCompensationExpense" contextRef="From2022-01-012022-12-31_us-gaap_ResearchAndDevelopmentExpenseMember" id="Fact001485" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">1,220</ix:nonFraction></td><td style="width: 1%; text-align: left">)</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td id="xdx_989_eus-gaap--AllocatedShareBasedCompensationExpense_c20210101__20211231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--IncomeStatementLocationAxis__us-gaap--ResearchAndDevelopmentExpenseMember_ztpSmOFmVR38" title="Share-based payment arrangement, expense" style="width: 6%; text-align: right"><ix:nonFraction name="us-gaap:AllocatedShareBasedCompensationExpense" contextRef="From2021-01-012021-12-31_custom_EquityClassifiedAwardsMember_us-gaap_ResearchAndDevelopmentExpenseMember" id="Fact001487" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">7</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td id="xdx_98C_eus-gaap--AllocatedShareBasedCompensationExpense_c20210101__20211231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember__us-gaap--IncomeStatementLocationAxis__us-gaap--ResearchAndDevelopmentExpenseMember_zXJ1mhzPnhFj" title="Share-based payment arrangement, expense" style="width: 6%; text-align: right">(<ix:nonFraction name="us-gaap:AllocatedShareBasedCompensationExpense" contextRef="From2021-01-012021-12-31_custom_LiabilityClassifiedAwardsMember_us-gaap_ResearchAndDevelopmentExpenseMember" id="Fact001489" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">1,297</ix:nonFraction></td><td style="width: 1%; text-align: left">)</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td id="xdx_98C_eus-gaap--AllocatedShareBasedCompensationExpense_c20210101__20211231__us-gaap--IncomeStatementLocationAxis__us-gaap--ResearchAndDevelopmentExpenseMember_zZIZGTGF3KVg" title="Share-based payment arrangement, expense" style="width: 6%; text-align: right">(<ix:nonFraction name="us-gaap:AllocatedShareBasedCompensationExpense" contextRef="From2021-01-012021-12-31_us-gaap_ResearchAndDevelopmentExpenseMember" id="Fact001491" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">1,290</ix:nonFraction></td><td style="width: 1%; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: left">Sales and marketing expenses (income)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_98C_eus-gaap--AllocatedShareBasedCompensationExpense_c20220101__20221231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--IncomeStatementLocationAxis__us-gaap--SellingAndMarketingExpenseMember_zjQcJrN3WE6j" title="Share-based payment arrangement, expense" style="text-align: right"><ix:nonFraction name="us-gaap:AllocatedShareBasedCompensationExpense" contextRef="From2022-01-012022-12-31_custom_EquityClassifiedAwardsMember_us-gaap_SellingAndMarketingExpenseMember" id="Fact001493" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">59</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_98D_eus-gaap--AllocatedShareBasedCompensationExpense_c20220101__20221231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember__us-gaap--IncomeStatementLocationAxis__us-gaap--SellingAndMarketingExpenseMember_zybRKV2UMDLc" title="Share-based payment arrangement, expense" style="text-align: right">(<ix:nonFraction name="us-gaap:AllocatedShareBasedCompensationExpense" contextRef="From2022-01-012022-12-31_custom_LiabilityClassifiedAwardsMember_us-gaap_SellingAndMarketingExpenseMember" id="Fact001495" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">546</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_987_eus-gaap--AllocatedShareBasedCompensationExpense_c20220101__20221231__us-gaap--IncomeStatementLocationAxis__us-gaap--SellingAndMarketingExpenseMember_zF7uJyGbIQ58" title="Share-based payment arrangement, expense" style="text-align: right">(<ix:nonFraction name="us-gaap:AllocatedShareBasedCompensationExpense" contextRef="From2022-01-012022-12-31_us-gaap_SellingAndMarketingExpenseMember" id="Fact001497" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">487</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_988_eus-gaap--AllocatedShareBasedCompensationExpense_c20210101__20211231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--IncomeStatementLocationAxis__us-gaap--SellingAndMarketingExpenseMember_zXQ1wnuGCd0e" title="Share-based payment arrangement, expense" style="text-align: right"><ix:nonFraction name="us-gaap:AllocatedShareBasedCompensationExpense" contextRef="From2021-01-012021-12-31_custom_EquityClassifiedAwardsMember_us-gaap_SellingAndMarketingExpenseMember" id="Fact001499" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">269</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_980_eus-gaap--AllocatedShareBasedCompensationExpense_c20210101__20211231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember__us-gaap--IncomeStatementLocationAxis__us-gaap--SellingAndMarketingExpenseMember_zK196i8FYiPe" title="Share-based payment arrangement, expense" style="text-align: right">(<ix:nonFraction name="us-gaap:AllocatedShareBasedCompensationExpense" contextRef="From2021-01-012021-12-31_custom_LiabilityClassifiedAwardsMember_us-gaap_SellingAndMarketingExpenseMember" id="Fact001501" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">459</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_98C_eus-gaap--AllocatedShareBasedCompensationExpense_c20210101__20211231__us-gaap--IncomeStatementLocationAxis__us-gaap--SellingAndMarketingExpenseMember_z8hQXT6jIXpf" title="Share-based payment arrangement, expense" style="text-align: right">(<ix:nonFraction name="us-gaap:AllocatedShareBasedCompensationExpense" contextRef="From2021-01-012021-12-31_us-gaap_SellingAndMarketingExpenseMember" id="Fact001503" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">190</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 2.5pt; text-align: left">General and Administrative expenses (income)</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td id="xdx_98E_eus-gaap--AllocatedShareBasedCompensationExpense_c20220101__20221231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--IncomeStatementLocationAxis__us-gaap--GeneralAndAdministrativeExpenseMember_zGnu4ucpygFe" title="Share-based payment arrangement, expense" style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:AllocatedShareBasedCompensationExpense" contextRef="From2022-01-012022-12-31_custom_EquityClassifiedAwardsMember_us-gaap_GeneralAndAdministrativeExpenseMember" id="Fact001505" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">278</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td id="xdx_98D_eus-gaap--AllocatedShareBasedCompensationExpense_c20220101__20221231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember__us-gaap--IncomeStatementLocationAxis__us-gaap--GeneralAndAdministrativeExpenseMember_znOjTVGDCEP3" title="Share-based payment arrangement, expense" style="border-bottom: Black 2.5pt double; text-align: right">(<ix:nonFraction name="us-gaap:AllocatedShareBasedCompensationExpense" contextRef="From2022-01-012022-12-31_custom_LiabilityClassifiedAwardsMember_us-gaap_GeneralAndAdministrativeExpenseMember" id="Fact001507" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">322</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td id="xdx_989_eus-gaap--AllocatedShareBasedCompensationExpense_c20220101__20221231__us-gaap--IncomeStatementLocationAxis__us-gaap--GeneralAndAdministrativeExpenseMember_ziFaLesIW1J2" title="Share-based payment arrangement, expense" style="border-bottom: Black 2.5pt double; text-align: right">(<ix:nonFraction name="us-gaap:AllocatedShareBasedCompensationExpense" contextRef="From2022-01-012022-12-31_us-gaap_GeneralAndAdministrativeExpenseMember" id="Fact001509" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">44</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td id="xdx_98E_eus-gaap--AllocatedShareBasedCompensationExpense_c20210101__20211231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--IncomeStatementLocationAxis__us-gaap--GeneralAndAdministrativeExpenseMember_zMiGPjza1Ahh" title="Share-based payment arrangement, expense" style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:AllocatedShareBasedCompensationExpense" contextRef="From2021-01-012021-12-31_custom_EquityClassifiedAwardsMember_us-gaap_GeneralAndAdministrativeExpenseMember" id="Fact001511" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">70</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td id="xdx_985_eus-gaap--AllocatedShareBasedCompensationExpense_c20210101__20211231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember__us-gaap--IncomeStatementLocationAxis__us-gaap--GeneralAndAdministrativeExpenseMember_zkTHdqdUGsb9" title="Share-based payment arrangement, expense" style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:AllocatedShareBasedCompensationExpense" contextRef="From2021-01-012021-12-31_custom_LiabilityClassifiedAwardsMember_us-gaap_GeneralAndAdministrativeExpenseMember" id="Fact001513" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">95</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td id="xdx_988_eus-gaap--AllocatedShareBasedCompensationExpense_c20210101__20211231__us-gaap--IncomeStatementLocationAxis__us-gaap--GeneralAndAdministrativeExpenseMember_z9gFEWQYE4Ol" title="Share-based payment arrangement, expense" style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:AllocatedShareBasedCompensationExpense" contextRef="From2021-01-012021-12-31_us-gaap_GeneralAndAdministrativeExpenseMember" id="Fact001515" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">165</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td style="padding-bottom: 2.5pt">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td id="xdx_981_eus-gaap--AllocatedShareBasedCompensationExpense_c20220101__20221231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember_z62gNx3a2n29" title="Share-based payment arrangement, expense" style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:AllocatedShareBasedCompensationExpense" contextRef="From2022-01-012022-12-31_custom_EquityClassifiedAwardsMember" id="Fact001517" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">543</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td id="xdx_98B_eus-gaap--AllocatedShareBasedCompensationExpense_c20220101__20221231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_zxWaepEqCW7c" title="Share-based payment arrangement, expense" style="border-bottom: Black 2.5pt double; text-align: right">(<ix:nonFraction name="us-gaap:AllocatedShareBasedCompensationExpense" contextRef="From2022-01-012022-12-31_custom_LiabilityClassifiedAwardsMember" id="Fact001519" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">2,294</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td id="xdx_98A_eus-gaap--AllocatedShareBasedCompensationExpense_c20220101__20221231_z9qpTgg47zUc" title="Share-based payment arrangement, expense" style="border-bottom: Black 2.5pt double; text-align: right">(<ix:nonFraction name="us-gaap:AllocatedShareBasedCompensationExpense" contextRef="From2022-01-012022-12-31" id="Fact001521" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">1,751</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td id="xdx_981_eus-gaap--AllocatedShareBasedCompensationExpense_c20210101__20211231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember_zNrYqVL9GnMh" title="Share-based payment arrangement, expense" style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:AllocatedShareBasedCompensationExpense" contextRef="From2021-01-012021-12-31_custom_EquityClassifiedAwardsMember" id="Fact001523" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">346</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td id="xdx_984_eus-gaap--AllocatedShareBasedCompensationExpense_c20210101__20211231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_zbJd5aVXsjgf" title="Share-based payment arrangement, expense" style="border-bottom: Black 2.5pt double; text-align: right">(<ix:nonFraction name="us-gaap:AllocatedShareBasedCompensationExpense" contextRef="From2021-01-012021-12-31_custom_LiabilityClassifiedAwardsMember" id="Fact001525" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">1,661</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td id="xdx_983_eus-gaap--AllocatedShareBasedCompensationExpense_c20210101__20211231_zav8djaCvQd9" title="Share-based payment arrangement, expense" style="border-bottom: Black 2.5pt double; text-align: right">(<ix:nonFraction name="us-gaap:AllocatedShareBasedCompensationExpense" contextRef="From2021-01-012021-12-31" id="Fact001527" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">1,315</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr>
  </table>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 42.5pt; text-indent: -42.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<ix:exclude><!-- Field: Page; Sequence: 158; Value: 1 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->29<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page --></ix:exclude>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>ZOOZ
POWER LTD.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 93%; margin-left: 0.5in">
  <tr style="vertical-align: bottom">
    <td style="padding-bottom: 1.5pt">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td>
    <td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Year ended December 31</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="10" style="font-weight: bold; text-align: center">2023</td><td style="font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="padding-bottom: 1.5pt; text-align: center">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Equity classified<br/>
 awards</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Liability<br/>
 classified awards</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Total<br/>
expense</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 46%; text-align: left">Research and development expenses (income)</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td id="xdx_98A_eus-gaap--AllocatedShareBasedCompensationExpense_c20230101__20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--IncomeStatementLocationAxis__us-gaap--ResearchAndDevelopmentExpenseMember_zAMec6T8axWi" title="Share-based payment arrangement, expense" style="width: 14%; text-align: right"><ix:nonFraction name="us-gaap:AllocatedShareBasedCompensationExpense" contextRef="From2023-01-012023-12-31_custom_EquityClassifiedAwardsMember_us-gaap_ResearchAndDevelopmentExpenseMember" id="Fact001529" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">98</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td id="xdx_98F_eus-gaap--AllocatedShareBasedCompensationExpense_c20230101__20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember__us-gaap--IncomeStatementLocationAxis__us-gaap--ResearchAndDevelopmentExpenseMember_ze2mk5M4wDEh" title="Share-based payment arrangement, expense" style="width: 14%; text-align: right">(<ix:nonFraction name="us-gaap:AllocatedShareBasedCompensationExpense" contextRef="From2023-01-012023-12-31_custom_LiabilityClassifiedAwardsMember_us-gaap_ResearchAndDevelopmentExpenseMember" id="Fact001531" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">440</ix:nonFraction></td><td style="width: 1%; text-align: left">)</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td id="xdx_982_eus-gaap--AllocatedShareBasedCompensationExpense_c20230101__20231231__us-gaap--IncomeStatementLocationAxis__us-gaap--ResearchAndDevelopmentExpenseMember_zyUJKJasxFo1" title="Share-based payment arrangement, expense" style="width: 14%; text-align: right">(<ix:nonFraction name="us-gaap:AllocatedShareBasedCompensationExpense" contextRef="From2023-01-012023-12-31_us-gaap_ResearchAndDevelopmentExpenseMember" id="Fact001533" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">342</ix:nonFraction></td><td style="width: 1%; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: left">Sales and marketing expenses (income)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_98E_eus-gaap--AllocatedShareBasedCompensationExpense_c20230101__20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--IncomeStatementLocationAxis__us-gaap--SellingAndMarketingExpenseMember_zibxzwfaRP2g" title="Share-based payment arrangement, expense" style="text-align: right"><ix:nonFraction name="us-gaap:AllocatedShareBasedCompensationExpense" contextRef="From2023-01-012023-12-31_custom_EquityClassifiedAwardsMember_us-gaap_SellingAndMarketingExpenseMember" id="Fact001535" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">111</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_98F_eus-gaap--AllocatedShareBasedCompensationExpense_c20230101__20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember__us-gaap--IncomeStatementLocationAxis__us-gaap--SellingAndMarketingExpenseMember_zP9r4U2vfz9j" title="Share-based payment arrangement, expense" style="text-align: right">(<ix:nonFraction name="us-gaap:AllocatedShareBasedCompensationExpense" contextRef="From2023-01-012023-12-31_custom_LiabilityClassifiedAwardsMember_us-gaap_SellingAndMarketingExpenseMember" id="Fact001537" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">171</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_987_eus-gaap--AllocatedShareBasedCompensationExpense_c20230101__20231231__us-gaap--IncomeStatementLocationAxis__us-gaap--SellingAndMarketingExpenseMember_zj34D26726A8" title="Share-based payment arrangement, expense" style="text-align: right">(<ix:nonFraction name="us-gaap:AllocatedShareBasedCompensationExpense" contextRef="From2023-01-012023-12-31_us-gaap_SellingAndMarketingExpenseMember" id="Fact001539" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">60</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 2.5pt; text-align: left">General and Administrative expenses (income)</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td id="xdx_985_eus-gaap--AllocatedShareBasedCompensationExpense_c20230101__20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember__us-gaap--IncomeStatementLocationAxis__us-gaap--GeneralAndAdministrativeExpenseMember_zcunh9RnrR2" title="Share-based payment arrangement, expense" style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:AllocatedShareBasedCompensationExpense" contextRef="From2023-01-012023-12-31_custom_EquityClassifiedAwardsMember_us-gaap_GeneralAndAdministrativeExpenseMember" id="Fact001541" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">294</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td id="xdx_989_eus-gaap--AllocatedShareBasedCompensationExpense_c20230101__20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember__us-gaap--IncomeStatementLocationAxis__us-gaap--GeneralAndAdministrativeExpenseMember_z9KUjT3i6qfi" title="Share-based payment arrangement, expense" style="border-bottom: Black 2.5pt double; text-align: right">(<ix:nonFraction name="us-gaap:AllocatedShareBasedCompensationExpense" contextRef="From2023-01-012023-12-31_custom_LiabilityClassifiedAwardsMember_us-gaap_GeneralAndAdministrativeExpenseMember" id="Fact001543" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">111</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td id="xdx_985_eus-gaap--AllocatedShareBasedCompensationExpense_c20230101__20231231__us-gaap--IncomeStatementLocationAxis__us-gaap--GeneralAndAdministrativeExpenseMember_zuK8F6JBgTP4" title="Share-based payment arrangement, expense" style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:AllocatedShareBasedCompensationExpense" contextRef="From2023-01-012023-12-31_us-gaap_GeneralAndAdministrativeExpenseMember" id="Fact001545" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">183</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td style="padding-bottom: 2.5pt">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td id="xdx_985_eus-gaap--AllocatedShareBasedCompensationExpense_c20230101__20231231__us-gaap--AwardTypeAxis__custom--EquityClassifiedAwardsMember_zPzyPBwU642h" title="Share-based payment arrangement, expense" style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:AllocatedShareBasedCompensationExpense" contextRef="From2023-01-012023-12-31_custom_EquityClassifiedAwardsMember" id="Fact001547" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">503</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td id="xdx_98D_eus-gaap--AllocatedShareBasedCompensationExpense_c20230101__20231231__us-gaap--AwardTypeAxis__custom--LiabilityClassifiedAwardsMember_zmA0wjk1n97c" title="Share-based payment arrangement, expense" style="border-bottom: Black 2.5pt double; text-align: right">(<ix:nonFraction name="us-gaap:AllocatedShareBasedCompensationExpense" contextRef="From2023-01-012023-12-31_custom_LiabilityClassifiedAwardsMember" id="Fact001549" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">722</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td id="xdx_985_eus-gaap--AllocatedShareBasedCompensationExpense_c20230101__20231231_zISJB4ZqDEyi" title="Share-based payment arrangement, expense" style="border-bottom: Black 2.5pt double; text-align: right">(<ix:nonFraction name="us-gaap:AllocatedShareBasedCompensationExpense" contextRef="From2023-01-01to2023-12-31" id="Fact001551" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">219</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr>
  </table>
<!-- Field: Split-Segment; Name: 002 -->
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

</ix:nonNumeric></ix:nonNumeric><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" escape="true" id="Fact001553" name="us-gaap:IncomeTaxDisclosureTextBlock"><p id="xdx_802_eus-gaap--IncomeTaxDisclosureTextBlock_zGU2PKmTzCyc" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase"><b>Note
13 &#8211; <span id="xdx_828_zkVTLWRzOc41">TAXES ON INCOME </span>:</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Tax
rates</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company is taxed under the laws of the State of Israel at a corporate tax rate of <span id="xdx_905_eus-gaap--EffectiveIncomeTaxRateReconciliationChangeInEnactedTaxRate_pid_dp_uPure_c20230101__20231231__srt--StatementGeographicalAxis__country--IL_zWeDoibYtNC" title="Corporate tax rate"><ix:nonFraction name="us-gaap:EffectiveIncomeTaxRateReconciliationChangeInEnactedTaxRate" contextRef="From2023-01-012023-12-31_country_IL" id="Fact001555" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">23</ix:nonFraction></span>%. Capital gains of the Company are subject to the
normal corporate tax rate beginning in the tax year.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Deferred
Tax Assets</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<ix:nonNumeric contextRef="From2023-01-01to2023-12-31" escape="true" id="Fact001557" name="us-gaap:ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock"><p id="xdx_892_eus-gaap--ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock_zmnrEx0ANFUf" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company&#8217;s deferred tax assets are as follows:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;<span id="xdx_8B8_z6Ovsa7CjCpa" style="display: none">SCHEDULE
OF DEFERRED TAX ASSETS</span></span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 93%; margin-left: 0.5in">
  <tr style="display: none; vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" id="xdx_498_20231231_z0LgSXctffDl" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" id="xdx_495_20221231_zvyssCkeank2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
<tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">U.S. dollars in thousands</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-decoration: underline; text-align: left">Deferred Tax assets:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_409_eus-gaap--DeferredTaxAssetsOperatingLossCarryforwards_iI_pn3n3_maDTANzYwk_maDTAGzDQz_zRgh0Lbwdwb3" style="vertical-align: bottom; background-color: White">
    <td style="width: 60%; text-align: left">Net operating losses carryforward</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 16%; text-align: right"><ix:nonFraction name="us-gaap:DeferredTaxAssetsOperatingLossCarryforwards" contextRef="AsOf2023-12-31" id="Fact001559" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">8,053</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 16%; text-align: right"><ix:nonFraction name="us-gaap:DeferredTaxAssetsOperatingLossCarryforwards" contextRef="AsOf2022-12-31" id="Fact001560" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">5,882</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr id="xdx_40F_ecustom--DeferredTaxAssetsOperatingLeaseLiabilities_iI_pn3n3_maDTAGzDQz_zfZcI41KfYjd" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Operating lease liabilities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="ZOOZ:DeferredTaxAssetsOperatingLeaseLiabilities" contextRef="AsOf2023-12-31" id="Fact001562" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">309</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="ZOOZ:DeferredTaxAssetsOperatingLeaseLiabilities" contextRef="AsOf2022-12-31" id="Fact001563" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">362</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_405_eus-gaap--DeferredTaxAssetsTaxDeferredExpenseCompensationAndBenefitsEmployeeBenefits_iI_pn3n3_maDTAGzDQz_zJNbXI25FsK4" style="vertical-align: bottom; background-color: White">
    <td style="text-align: left">Employee benefits</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:DeferredTaxAssetsTaxDeferredExpenseCompensationAndBenefitsEmployeeBenefits" contextRef="AsOf2023-12-31" id="Fact001565" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">70</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:DeferredTaxAssetsTaxDeferredExpenseCompensationAndBenefitsEmployeeBenefits" contextRef="AsOf2022-12-31" id="Fact001566" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">60</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_40B_eus-gaap--DeferredTaxAssetsInventory_iI_pn3n3_maDTAGzDQz_zHn1Tt9nAB93" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Inventory write off</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:DeferredTaxAssetsInventory" contextRef="AsOf2023-12-31" id="Fact001568" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">291</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1569">-</span></td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_40A_eus-gaap--DeferredTaxAssetsInProcessResearchAndDevelopment_iI_pn3n3_maDTAGzDQz_zBN9V5CEm3Kh" style="vertical-align: bottom; background-color: White">
    <td style="text-align: left">Research and development expenses</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:DeferredTaxAssetsInProcessResearchAndDevelopment" contextRef="AsOf2023-12-31" id="Fact001571" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">1,250</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1572">-</span></td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_40D_eus-gaap--DeferredTaxAssetsOther_iI_pn3n3_maDTAGzDQz_zXi9bXWSFcdj" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt">Issuance costs</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:DeferredTaxAssetsOther" contextRef="AsOf2023-12-31" id="Fact001574" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">120</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:DeferredTaxAssetsOther" contextRef="AsOf2022-12-31" id="Fact001575" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">290</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr id="xdx_405_eus-gaap--DeferredTaxAssetsGross_iTI_pn3n3_mtDTAGzDQz_maDTANzdZ2_zlGsjdkqzoe8" style="vertical-align: bottom; background-color: White">
    <td style="text-align: left">Total deferred tax assets</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:DeferredTaxAssetsGross" contextRef="AsOf2023-12-31" id="Fact001577" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">10,093</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:DeferredTaxAssetsGross" contextRef="AsOf2022-12-31" id="Fact001578" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">6,594</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_400_ecustom--DeferredTaxLiabilitiesRelatedToRightOfUseAssets_iNI_pn3n3_di_msDTANzdZ2_zXww83Opltgf" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt">Less deferred tax liabilities (related to right of use assets)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction name="ZOOZ:DeferredTaxLiabilitiesRelatedToRightOfUseAssets" contextRef="AsOf2023-12-31" id="Fact001580" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">301</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction name="ZOOZ:DeferredTaxLiabilitiesRelatedToRightOfUseAssets" contextRef="AsOf2022-12-31" id="Fact001581" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">336</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr id="xdx_401_eus-gaap--DeferredTaxAssetsNet_iTI_pn3n3_mtDTANzdZ2_maDTALNzleA_zGi2ggoa3Kbf" style="vertical-align: bottom; background-color: White">
    <td style="text-align: left; padding-bottom: 1.5pt">Deferred tax assets, net</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:DeferredTaxAssetsNet" contextRef="AsOf2023-12-31" id="Fact001583" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">9,792</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:DeferredTaxAssetsNet" contextRef="AsOf2022-12-31" id="Fact001584" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">6,258</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr id="xdx_407_ecustom--ValuationAllowanceForDeferredTaxAssets_iI_pn3n3_msDTALNzleA_zb25XT1qwzf" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt">Less valuation allowance for deferred tax assets</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction name="ZOOZ:ValuationAllowanceForDeferredTaxAssets" contextRef="AsOf2023-12-31" id="Fact001586" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">9,792</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction name="ZOOZ:ValuationAllowanceForDeferredTaxAssets" contextRef="AsOf2022-12-31" id="Fact001587" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">6,258</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr id="xdx_40C_eus-gaap--DeferredTaxAssetsLiabilitiesNet_iTI_pn3n3_mtDTALNzleA_zaEzchexpfvc" style="vertical-align: bottom; background-color: White">
    <td style="text-align: left; padding-bottom: 1.5pt">Deferred tax assets</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1589">-</span></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1590">-</span></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  </table>


<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 93%; margin-left: 0.5in">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">U.S. dollars in thousands</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 60%; text-align: left">Valuation allowance at beginning of year</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td id="xdx_98D_eus-gaap--DeferredTaxAssetsValuationAllowance_iNS_pn3n3_di_c20230101__20231231_z9HlLczxWPC8" title="Valuation allowance at beginning of year" style="width: 16%; text-align: right">(<ix:nonFraction name="us-gaap:DeferredTaxAssetsValuationAllowance" contextRef="AsOf2022-12-31" id="Fact001592" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">6,258</ix:nonFraction></td><td style="width: 1%; text-align: left">)</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td id="xdx_98F_eus-gaap--DeferredTaxAssetsValuationAllowance_iNS_pn3n3_di_c20220101__20221231_z9YfzWQoecAi" title="Valuation allowance at beginning of year" style="width: 16%; text-align: right">(<ix:nonFraction name="us-gaap:DeferredTaxAssetsValuationAllowance" contextRef="AsOf2021-12-31" id="Fact001594" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">4,739</ix:nonFraction></td><td style="width: 1%; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td style="text-align: left; padding-bottom: 1.5pt">Changes in valuation allowance</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td id="xdx_989_eus-gaap--ValuationAllowanceDeferredTaxAssetChangeInAmount_iN_pn3n3_di_c20230101__20231231_zzF3dul5LUF4" title="Changes in valuation allowance" style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction name="us-gaap:ValuationAllowanceDeferredTaxAssetChangeInAmount" contextRef="From2023-01-01to2023-12-31" id="Fact001596" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">3,534</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td id="xdx_981_eus-gaap--ValuationAllowanceDeferredTaxAssetChangeInAmount_iN_pn3n3_di_c20220101__20221231_zak0r1TyZltc" title="Changes in valuation allowance" style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction name="us-gaap:ValuationAllowanceDeferredTaxAssetChangeInAmount" contextRef="From2022-01-012022-12-31" id="Fact001598" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">1,519</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt">Valuation allowance at end of year</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td id="xdx_983_eus-gaap--DeferredTaxAssetsValuationAllowance_iNE_pn3n3_di_c20230101__20231231_zanjyQy4n9l1" title="Valuation allowance at end of year" style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction name="us-gaap:DeferredTaxAssetsValuationAllowance" contextRef="AsOf2023-12-31" id="Fact001600" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">9,792</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td id="xdx_983_eus-gaap--DeferredTaxAssetsValuationAllowance_iNE_pn3n3_di_c20220101__20221231_zsY9SpMBGUmi" title="Valuation allowance at end of year" style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction name="us-gaap:DeferredTaxAssetsValuationAllowance" contextRef="AsOf2022-12-31" id="Fact001602" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">6,258</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  </table>

</ix:nonNumeric><p id="xdx_8AD_zCMlyyEDJtI8" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Deferred
taxes were calculated using <span id="xdx_90C_eus-gaap--EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate_pid_dp_uPure_c20230101__20231231_z6fqQnHUhZK8" title="Deferred tax rate"><ix:nonFraction name="us-gaap:EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate" contextRef="From2023-01-01to2023-12-31" id="Fact001604" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">23</ix:nonFraction></span>% tax rate as this represents the applicable corporate tax rate for the Company.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify">&#160;</p>


<ix:exclude><!-- Field: Page; Sequence: 159; Value: 1 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->30<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page --></ix:exclude>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>ZOOZ
POWER LTD.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Significant
judgment is required in determining any valuation allowance recorded against deferred tax assets. In assessing the need for a valuation
allowance, the Company considered all available evidence, including past operating results, the most recent projections for taxable income,
and prudent and feasible tax planning strategies. The Company reassess its valuation allowance periodically and if future evidence allows
for a partial or full release of the valuation allowance, a tax benefit will be recorded accordingly.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Management
currently believes that since the Company has a history of losses, it is more likely than not that the deferred tax assets regarding
the loss carry-forward will not be realized in the foreseeable future and as a result the Company recorded a full valuation allowance.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Carryforward
losses</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Carryforward
losses for tax purposes are NIS <span id="xdx_904_eus-gaap--TaxCreditCarryforwardAmount_iI_pn6n6_uILS_c20231231_z2EzfSP5s12j" title="Carryforward losses"><ix:nonFraction name="us-gaap:TaxCreditCarryforwardAmount" contextRef="AsOf2023-12-31" id="Fact001606" format="ixt:numdotdecimal" decimals="-6" scale="6" unitRef="ILS">127</ix:nonFraction></span> million ($<span id="xdx_903_eus-gaap--TaxCreditCarryforwardAmount_iI_pn6n6_c20231231_zfemplz8CXh1" title="Carryforward losses"><ix:nonFraction name="us-gaap:TaxCreditCarryforwardAmount" contextRef="AsOf2023-12-31" id="Fact001608" format="ixt:numdotdecimal" decimals="-6" scale="6" unitRef="USD">35</ix:nonFraction></span> million) and NIS <span id="xdx_905_eus-gaap--TaxCreditCarryforwardAmount_iI_pn6n6_uILS_c20221231_zHPUy8vhwEZ5" title="Carryforward losses"><ix:nonFraction name="us-gaap:TaxCreditCarryforwardAmount" contextRef="AsOf2022-12-31" id="Fact001610" format="ixt:numdotdecimal" decimals="-6" scale="6" unitRef="ILS">90</ix:nonFraction></span> million ($<span id="xdx_904_eus-gaap--TaxCreditCarryforwardAmount_iI_pn6n6_c20221231_zUsSEWHs0yt1" title="Carryforward losses"><ix:nonFraction name="us-gaap:TaxCreditCarryforwardAmount" contextRef="AsOf2022-12-31" id="Fact001612" format="ixt:numdotdecimal" decimals="-6" scale="6" unitRef="USD">26</ix:nonFraction></span> million) as of December 31, 2023 and 2022, respectively.
Such carryforward losses have no expiration date.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Tax
assessments</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
prescribed by law, the statute of limitations on taxpayer self-assessments is four years after the end of the tax year in which the assessment
is filed. Accordingly, self-assessments filed by the Company until and including 2018 are considered final.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" escape="true" id="Fact001614" name="us-gaap:RelatedPartyTransactionsDisclosureTextBlock"><p id="xdx_805_eus-gaap--RelatedPartyTransactionsDisclosureTextBlock_zyqhJkNLGR86" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase"><b>Note
14 - <span id="xdx_827_zlwZzPu1CEck">RELATED PARTIES TRANSACTIONS</span>:</b></span></p>

<ix:nonNumeric contextRef="From2023-01-01to2023-12-31" escape="true" id="Fact001616" name="us-gaap:ScheduleOfRelatedPartyTransactionsTableTextBlock"><p id="xdx_891_eus-gaap--ScheduleOfRelatedPartyTransactionsTableTextBlock_zPoz7HN6zC75" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;<span id="xdx_8BF_zhOpMXNrzWx8" style="display: none">SCHEDULE
OF RELATED PARTIES TRANSACTIONS</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 93%; margin-left: 0.5in">
  <tr style="font: 10pt Times New Roman, Times, Serif; display: none; vertical-align: bottom">
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" id="xdx_497_20230101__20231231_zDbkn56I9s71" style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>2023</b></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" id="xdx_498_20220101__20221231_znHSGMSXxFDc" style="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2022</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" id="xdx_499_20210101__20211231_zoaxHN7LaUP8" style="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2021</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
<tr style="vertical-align: bottom">
    <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="10" style="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Year
    ended December 31</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom">
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>2023</b></span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2022</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2021</span></td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom">
    <td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td colspan="10" style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>U.S.
    dollars in thousands</b></span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_91E_eus-gaap--ShareBasedCompensation_z5svVzGpVXki">Share based
    compensation expenses</span>:</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font: 10pt Times New Roman, Times, Serif"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
  <tr id="xdx_403_eus-gaap--ShareBasedCompensation_pn3n3_hus-gaap--IncomeStatementLocationAxis__us-gaap--ResearchAndDevelopmentExpenseMember_zLR8YulKxBd8" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; width: 46%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Research and development
    income, net</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; width: 2%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; width: 14%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction name="us-gaap:ShareBasedCompensation" contextRef="From2023-01-012023-12-31_us-gaap_ResearchAndDevelopmentExpenseMember" id="Fact001619" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">163</ix:nonFraction></span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; width: 2%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; width: 14%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction name="us-gaap:ShareBasedCompensation" contextRef="From2022-01-012022-12-31_us-gaap_ResearchAndDevelopmentExpenseMember" id="Fact001620" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">529</ix:nonFraction></span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; width: 2%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; width: 14%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction name="us-gaap:ShareBasedCompensation" contextRef="From2021-01-012021-12-31_us-gaap_ResearchAndDevelopmentExpenseMember" id="Fact001621" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">459</ix:nonFraction></span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; width: 1%; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td></tr>
  <tr id="xdx_40A_eus-gaap--ShareBasedCompensation_pn3n3_di_hus-gaap--IncomeStatementLocationAxis__us-gaap--GeneralAndAdministrativeExpenseMember_zjLjJNO1hIH1" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">General and administrative
    expenses</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction name="us-gaap:ShareBasedCompensation" contextRef="From2023-01-012023-12-31_us-gaap_GeneralAndAdministrativeExpenseMember" id="Fact001623" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">76</ix:nonFraction></span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction name="us-gaap:ShareBasedCompensation" contextRef="From2022-01-012022-12-31_us-gaap_GeneralAndAdministrativeExpenseMember" id="Fact001624" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">19</ix:nonFraction></span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td>
    <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction name="us-gaap:ShareBasedCompensation" contextRef="From2021-01-012021-12-31_us-gaap_GeneralAndAdministrativeExpenseMember" id="Fact001625" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">399</ix:nonFraction></span></td><td style="padding-bottom: 2.5pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></td></tr>
</table>

</ix:nonNumeric><p id="xdx_8AE_zQWqDDV5C42l" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" escape="true" id="Fact001627" name="us-gaap:ResearchDevelopmentAndComputerSoftwareDisclosureTextBlock"><p id="xdx_802_eus-gaap--ResearchDevelopmentAndComputerSoftwareDisclosureTextBlock_zsMGyAEe9FGc" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase"><b>NOTE
15 - <span id="xdx_828_zvxMuCkAJkN5">RESEARCH AND DEVELOPMENT EXPENSES, NET</span>:</b></span></p>

<ix:nonNumeric contextRef="From2023-01-01to2023-12-31" escape="true" id="Fact001629" name="us-gaap:ResearchAndDevelopmentArrangementContractToPerformForOthersTextBlock"><p id="xdx_899_eus-gaap--ResearchAndDevelopmentArrangementContractToPerformForOthersTextBlock_zX9Xkqf7IDmg" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;<span id="xdx_8B8_ziXMJPDyWuCb" style="display: none">SCHEDULE
OF RESEARCH AND DEVELOPMENT EXPENSES NET</span></span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 93%; margin-left: 0.5in">
  <tr style="display: none; vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" id="xdx_494_20230101__20231231__us-gaap--IncomeStatementLocationAxis__us-gaap--ResearchAndDevelopmentExpenseMember_zT8QJXlb0ENb" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" id="xdx_492_20220101__20221231__us-gaap--IncomeStatementLocationAxis__us-gaap--ResearchAndDevelopmentExpenseMember_zRTWwxcjV87a" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" id="xdx_491_20210101__20211231__us-gaap--IncomeStatementLocationAxis__us-gaap--ResearchAndDevelopmentExpenseMember_zIaKENWpIrTb" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
<tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Year ended December 31</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="10" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">U.S. dollars in thousands</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr id="xdx_405_ecustom--PayrollAndRelatedExpenses_pn3n3_maRADEGz5d9_zJqZ06thYNWh" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 46%; text-align: left">Payroll and related expenses</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 14%; text-align: right"><ix:nonFraction name="ZOOZ:PayrollAndRelatedExpenses" contextRef="From2023-01-012023-12-31_us-gaap_ResearchAndDevelopmentExpenseMember" id="Fact001631" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">3,308</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 14%; text-align: right"><ix:nonFraction name="ZOOZ:PayrollAndRelatedExpenses" contextRef="From2022-01-012022-12-31_us-gaap_ResearchAndDevelopmentExpenseMember" id="Fact001632" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">1,824</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 14%; text-align: right"><ix:nonFraction name="ZOOZ:PayrollAndRelatedExpenses" contextRef="From2021-01-012021-12-31_us-gaap_ResearchAndDevelopmentExpenseMember" id="Fact001633" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">507</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr id="xdx_402_ecustom--Subcontractors_pn3n3_maRADEGz5d9_zCcGu0hSeAhd" style="vertical-align: bottom; background-color: White">
    <td>Subcontractors</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="ZOOZ:Subcontractors" contextRef="From2023-01-012023-12-31_us-gaap_ResearchAndDevelopmentExpenseMember" id="Fact001635" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">697</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="ZOOZ:Subcontractors" contextRef="From2022-01-012022-12-31_us-gaap_ResearchAndDevelopmentExpenseMember" id="Fact001636" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">1,212</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="ZOOZ:Subcontractors" contextRef="From2021-01-012021-12-31_us-gaap_ResearchAndDevelopmentExpenseMember" id="Fact001637" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">625</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_401_ecustom--Materials_pn3n3_maRADEGz5d9_zwBIlEAztlQj" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>Materials</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="ZOOZ:Materials" contextRef="From2023-01-012023-12-31_us-gaap_ResearchAndDevelopmentExpenseMember" id="Fact001639" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">388</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="ZOOZ:Materials" contextRef="From2022-01-012022-12-31_us-gaap_ResearchAndDevelopmentExpenseMember" id="Fact001640" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">945</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="ZOOZ:Materials" contextRef="From2021-01-012021-12-31_us-gaap_ResearchAndDevelopmentExpenseMember" id="Fact001641" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">301</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_409_eus-gaap--OperatingLeaseExpense_pn3n3_maRADEGz5d9_zOFDFfzmeX08" style="vertical-align: bottom; background-color: White">
    <td style="text-align: left">Operating lease expenses</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:OperatingLeaseExpense" contextRef="From2023-01-012023-12-31_us-gaap_ResearchAndDevelopmentExpenseMember" id="Fact001643" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">208</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:OperatingLeaseExpense" contextRef="From2022-01-012022-12-31_us-gaap_ResearchAndDevelopmentExpenseMember" id="Fact001644" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">189</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:OperatingLeaseExpense" contextRef="From2021-01-012021-12-31_us-gaap_ResearchAndDevelopmentExpenseMember" id="Fact001645" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">47</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_405_eus-gaap--Depreciation_pn3n3_maRADEGz5d9_zpJ87bR0FQ9j" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>Depreciation</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:Depreciation" contextRef="From2023-01-012023-12-31_us-gaap_ResearchAndDevelopmentExpenseMember" id="Fact001647" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">211</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:Depreciation" contextRef="From2022-01-012022-12-31_us-gaap_ResearchAndDevelopmentExpenseMember" id="Fact001648" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">130</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:Depreciation" contextRef="From2021-01-012021-12-31_us-gaap_ResearchAndDevelopmentExpenseMember" id="Fact001649" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">44</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_40F_eus-gaap--CostMaintenance_pn3n3_maRADEGz5d9_z8LHKp1ytiq3" style="vertical-align: bottom; background-color: White">
    <td>Maintenance</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:CostMaintenance" contextRef="From2023-01-012023-12-31_us-gaap_ResearchAndDevelopmentExpenseMember" id="Fact001651" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">223</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:CostMaintenance" contextRef="From2022-01-012022-12-31_us-gaap_ResearchAndDevelopmentExpenseMember" id="Fact001652" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">136</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:CostMaintenance" contextRef="From2021-01-012021-12-31_us-gaap_ResearchAndDevelopmentExpenseMember" id="Fact001653" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">174</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr id="xdx_405_eus-gaap--OtherResearchAndDevelopmentExpense_pn3n3_maRADEGz5d9_z2iK85XYll7b" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 1.5pt">Other</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:OtherResearchAndDevelopmentExpense" contextRef="From2023-01-012023-12-31_us-gaap_ResearchAndDevelopmentExpenseMember" id="Fact001655" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">298</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:OtherResearchAndDevelopmentExpense" contextRef="From2022-01-012022-12-31_us-gaap_ResearchAndDevelopmentExpenseMember" id="Fact001656" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">86</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="us-gaap:OtherResearchAndDevelopmentExpense" contextRef="From2021-01-012021-12-31_us-gaap_ResearchAndDevelopmentExpenseMember" id="Fact001657" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">14</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr id="xdx_405_ecustom--ResearchAndDevelopmentExpensesGross_iT_pn3n3_mtRADEGz5d9_maRADEzSbJ_z2MNl7IzweY6" style="vertical-align: bottom; background-color: White">
    <td style="padding-bottom: 1.5pt"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt">Research and development
    expenses gross</span></td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="ZOOZ:ResearchAndDevelopmentExpensesGross" contextRef="From2023-01-012023-12-31_us-gaap_ResearchAndDevelopmentExpenseMember" id="Fact001659" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">5,333</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="ZOOZ:ResearchAndDevelopmentExpensesGross" contextRef="From2022-01-012022-12-31_us-gaap_ResearchAndDevelopmentExpenseMember" id="Fact001660" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">4,522</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction name="ZOOZ:ResearchAndDevelopmentExpensesGross" contextRef="From2021-01-012021-12-31_us-gaap_ResearchAndDevelopmentExpenseMember" id="Fact001661" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">1,712</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr id="xdx_40E_ecustom--GrantsFromGovernmentsAndOthers_iN_pn3n3_di_msRADEzSbJ_zLsEwZZYrZn3" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt">Less &#8211; grants from governments and others</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction name="ZOOZ:GrantsFromGovernmentsAndOthers" contextRef="From2023-01-012023-12-31_us-gaap_ResearchAndDevelopmentExpenseMember" id="Fact001663" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">118</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction name="ZOOZ:GrantsFromGovernmentsAndOthers" contextRef="From2022-01-012022-12-31_us-gaap_ResearchAndDevelopmentExpenseMember" id="Fact001664" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">359</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction name="ZOOZ:GrantsFromGovernmentsAndOthers" contextRef="From2021-01-012021-12-31_us-gaap_ResearchAndDevelopmentExpenseMember" id="Fact001665" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">189</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr id="xdx_409_eus-gaap--ResearchAndDevelopmentExpense_iT_pn3n3_mtRADEzSbJ_zTtF53QAl4C9" style="vertical-align: bottom; background-color: White">
    <td style="padding-bottom: 2.5pt"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt">Research and development
    expenses, net</span></td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:ResearchAndDevelopmentExpense" contextRef="From2023-01-012023-12-31_us-gaap_ResearchAndDevelopmentExpenseMember" id="Fact001667" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">5,215</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:ResearchAndDevelopmentExpense" contextRef="From2022-01-012022-12-31_us-gaap_ResearchAndDevelopmentExpenseMember" id="Fact001668" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">4,163</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:ResearchAndDevelopmentExpense" contextRef="From2021-01-012021-12-31_us-gaap_ResearchAndDevelopmentExpenseMember" id="Fact001669" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">1,523</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td></tr>
  </table>

</ix:nonNumeric><p id="xdx_8A4_zAfIOjPlbZZg" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase">&#160;</span></p>


<ix:exclude><!-- Field: Page; Sequence: 160; Value: 1 -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->31<!-- Field: /Sequence --></td></tr></table></div>
    <div style="break-before: page; margin-top: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="width: 100%">&#160;</td></tr></table></div>
    <!-- Field: /Page --></ix:exclude>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>ZOOZ
POWER LTD.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase">&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" escape="true" id="Fact001671" name="us-gaap:InterestAndOtherIncomeTextBlock"><p id="xdx_80A_eus-gaap--InterestAndOtherIncomeTextBlock_zMR17cctkVW8" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase"><b>NOTE
16 &#8211; <span id="xdx_82C_zWBmZujx5Hda">FINANCE INCOME EXPENSES (EXPENSE), NET</span>:</b></span></p>

<ix:nonNumeric contextRef="From2023-01-01to2023-12-31" escape="true" id="Fact001673" name="us-gaap:InterestAndOtherIncomeTableTextBlock"><p id="xdx_89C_eus-gaap--InterestAndOtherIncomeTableTextBlock_z6dWomF0Gw3d" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;<span id="xdx_8B3_zuhQrflpYOJg" style="display: none">SCHEDULE
OF FINANCE INCOME EXPENSES NET</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 93%; margin-left: 0.5in">
  <tr style="display: none; vertical-align: bottom">
    <td style="padding-bottom: 1.5pt; text-align: center">&#160;</td><td style="padding-bottom: 1.5pt; text-align: center">&#160;</td>
    <td colspan="2" id="xdx_497_20230101__20231231_zYGVH56kweEh" style="border-bottom: Black 1.5pt solid; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;<b>2023</b></span></td><td style="padding-bottom: 1.5pt; text-align: center">&#160;</td><td style="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&#160;</td>
    <td colspan="2" id="xdx_49C_20220101__20221231_ziGP2y94Ued7" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">2022</td><td style="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&#160;</td><td style="padding-bottom: 1.5pt; text-align: center">&#160;</td>
    <td colspan="2" id="xdx_49B_20210101__20211231_zCfT7g6ulBN9" style="border-bottom: Black 1.5pt solid; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;<b>2021</b></span></td><td style="padding-bottom: 1.5pt; text-align: center">&#160;</td></tr>
<tr style="vertical-align: bottom">
    <td style="padding-bottom: 1.5pt">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td colspan="10" style="border-bottom: Black 1.5pt solid; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Year ended December 31</b></span></td><td style="padding-bottom: 1.5pt">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="padding-bottom: 1.5pt; text-align: center">&#160;</td><td style="padding-bottom: 1.5pt; text-align: center">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;<b>2023</b></span></td><td style="padding-bottom: 1.5pt; text-align: center">&#160;</td><td style="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">2022</td><td style="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&#160;</td><td style="padding-bottom: 1.5pt; text-align: center">&#160;</td>
    <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;<b>2021</b></span></td><td style="padding-bottom: 1.5pt; text-align: center">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="padding-bottom: 1.5pt">&#160;</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td>
    <td colspan="10" style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">U.S. dollars in thousands</td><td style="padding-bottom: 1.5pt">&#160;</td></tr>
  <tr id="xdx_40F_eus-gaap--InterestIncomeDomesticDeposits_pn3n3_maIIENzfEv_z71br2mgM6nf" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 46%; text-align: left">Interest on deposits</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 14%; text-align: right"><ix:nonFraction name="us-gaap:InterestIncomeDomesticDeposits" contextRef="From2023-01-01to2023-12-31" id="Fact001675" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">265</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 14%; text-align: right"><ix:nonFraction name="us-gaap:InterestIncomeDomesticDeposits" contextRef="From2022-01-012022-12-31" id="Fact001676" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">108</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 2%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 14%; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl1677">-</span></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr id="xdx_401_eus-gaap--ForeignCurrencyTransactionGainLossAfterTax_pn3n3_maIIENzfEv_zjVtGwkJQjLc" style="vertical-align: bottom; background-color: White">
    <td style="text-align: left">Foreign exchange losses (gain), net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:ForeignCurrencyTransactionGainLossAfterTax" contextRef="From2023-01-01to2023-12-31" id="Fact001679" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">206</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction name="us-gaap:ForeignCurrencyTransactionGainLossAfterTax" contextRef="From2022-01-012022-12-31" id="Fact001680" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">279</ix:nonFraction></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction name="us-gaap:ForeignCurrencyTransactionGainLossAfterTax" contextRef="From2021-01-012021-12-31" id="Fact001681" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">34</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr id="xdx_405_eus-gaap--LegalFees_iN_pn3n3_di_msIIENzfEv_zhSNwFndPLXl" style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 1.5pt; text-align: left">Bank fees</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction name="us-gaap:LegalFees" contextRef="From2023-01-01to2023-12-31" id="Fact001683" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">15</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction name="us-gaap:LegalFees" contextRef="From2022-01-012022-12-31" id="Fact001684" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">10</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction name="us-gaap:LegalFees" contextRef="From2021-01-012021-12-31" id="Fact001685" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">9</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr id="xdx_400_eus-gaap--InterestIncomeExpenseNet_iT_pn3n3_mtIIENzfEv_zlFizBeWAge5" style="vertical-align: bottom; background-color: White">
    <td style="padding-bottom: 2.5pt"><span style="display: none; font-family: Times New Roman, Times, Serif; font-size: 10pt">Finance income (expenses),
    net</span></td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:InterestIncomeExpenseNet" contextRef="From2023-01-01to2023-12-31" id="Fact001687" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">456</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:InterestIncomeExpenseNet" contextRef="From2022-01-012022-12-31" id="Fact001688" format="ixt:numdotdecimal" decimals="-3" scale="3" unitRef="USD">377</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td><td style="border-bottom: Black 2.5pt double; text-align: right">(<ix:nonFraction name="us-gaap:InterestIncomeExpenseNet" contextRef="From2021-01-012021-12-31" id="Fact001689" format="ixt:numdotdecimal" decimals="-3" scale="3" sign="-" unitRef="USD">43</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr>
  </table>

</ix:nonNumeric><p id="xdx_8AB_zjSv7cknSiw9" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2023-01-01to2023-12-31" escape="true" id="Fact001691" name="us-gaap:SubsequentEventsTextBlock"><p id="xdx_805_eus-gaap--SubsequentEventsTextBlock_zF5yNAfZl9K8" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase"><b>NOTE
17 &#8211; <span id="xdx_822_zDhDIAWk1Yz6">SUBSEQUENT EVENTS</span>:</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">1.</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
                                            March 2024, the Company signed with Dor-Alon a binding memorandum of understanding, according
                                            to which the companies will cooperate within a project (the &#8220;Project&#8221;) to upgrade
                                            the ultra-fast charging infrastructure of the ON network, at Dor-Alon stations on Route 6,
                                            using the company&#8217;s solution, which is based on the ZOOZTER&#8482;-100 Power Booster
                                            (the &#8220;System&#8221;) and the Company&#8217;s charging management software. The purpose
                                            of the project is to enable the addition of ultra-fast charging ports, despite the limitation
                                            of the electricity grid, at the charging sites at the Dor-Alon stations on Route 6, as described
                                            below.</span></td></tr></table>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
part of the project, in cooperation with Dor Alon and Afcon Electric Transportation, the charging infrastructure will be upgraded at
two Dor Alon stations, on Route 6 - Magal station (east side) and Naan station (west side) - while installing two ZOOZTER&#8482;-100
systems (one system at each station), and adding charging ports based on ultra-fast chargers, which allow charging with a power of up
to 150 kilowatts. The upgrade of the charging infrastructure is expected to enable a significant improvement in the experience of EV
drivers, who travel on Route 6 (being a major transportation corridor in Israel) and look for charging services at these sites.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
the first months of operation, of the ZOOZTER&#8482;-100 systems at the Route 6 sites, will be used to test their ability to allow the
addition of charging ports while managing charging at a large number of charging ports (this is different from the outline of the pilot
carried out during 2023 at the Dor-Alon station &#8220;Mall-Zikhron&#8221;). To the extent that the company&#8217;s solution is proven
to allow the addition of the aforementioned charging ports, the systems will be purchased by Dor-Alon, under conditions agreed upon between
the parties.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"/><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.</span></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
                                            for the completion of the Merger transaction see Note 1</span></td></tr></table>

</ix:nonNumeric><p id="xdx_813_z6DZo7ZoAljj" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>


<!-- Field: Page; Sequence: 161; Options: Last -->
    <div style="border-bottom: Black 1.5pt solid; margin-bottom: 6pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font-size: 10pt"><tr style="vertical-align: top; text-align: left"><td style="text-align: center; width: 100%">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->32<!-- Field: /Sequence --></td></tr></table></div>
    <!-- Field: /Page -->
<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify"></p>


<p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>
</body>
</html>
[{"type": "20-F", "sequence": "1", "filename": "form20-f.htm", "secsgml_size_bytes": 2725527}]
{"company-data": {"conformed-name": "ZOOZ Power Ltd.", "cik": "0001992818", "assigned-sic": "3590", "organization-name": "06 Technology", "irs-number": "000000000", "state-of-incorporation": "L3", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "20-F", "act": "34", "file-number": "001-42005", "film-number": "24898628"}, "business-address": {"street1": "4B HAMELACHA STR.", "city": "LOD", "state": "L3", "zip": "7152008", "phone": "972-8-6425029"}, "mail-address": {"street1": "4B HAMELACHA STR.", "city": "LOD", "state": "L3", "zip": "7152008"}}
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
DC 20549
FORM
20-F
(Mark
One)
☐
REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934
OR
☒
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For
the fiscal year ended
December 31
,
2023
OR
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For
the transition period from ________ to ________
OR
☐
SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date
of event requiring this shell company report ___________
Commission
file number
001-42005
ZOOZ
Power Ltd.
(Exact
name of Registrant as specified in its charter)
Israel
(Jurisdiction
of incorporation or organization)
4B
Hamelacha St.
Lod
7152008
Israel
(Address
of principal executive offices)
Boaz
Weizer
, Telephone:
(972)
(8) 6805566
, Facsimile:
(972) (8) 6425032
, E-mail:
boaz.weizer@zoozpower.com
4B
Hamelacha St.
Lod
7152008
Israel
(Name,
Telephone, E-Mail and/or Facsimile number and Address of Company Contact Person)
Securities
registered or to be registered pursuant to Section 12(b) of the Act:
Title
    of each class
Trading
    Symbol(s)
Name
    of each exchange on which registered
Ordinary
    Shares, nominal value NIS 0.00286 per share
ZOOZ
Nasdaq
Capital Market
Warrants
    to purchase ordinary shares
ZOOZW
Nasdaq
Capital Market
Securities
registered or to be registered pursuant to Section 12(g) of the Act: None
Securities
for which there is a reporting obligation pursuant to Section 15(d) of the Act: None
Indicate
the number of outstanding shares of each of the issuer's classes of capital or common stock as of the close of the period covered
by the annual report:
5,912,223
ordinary shares, par value NIS 0.00286 per share as of December 31, 2023.
Indicate
by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
☐ Yes
☒
No
If
this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section
13 or 15(d) of the Securities Exchange Act of 1934.
☐ Yes
☒
No
Indicate
by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days.
☒
Yes
☐ No
Indicate
by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule
405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required
to submit such files).
☒
Yes
☐ No
Indicate
by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growth
company. See definition of "large accelerated filer," "accelerated filer," and "emerging growth company"
in Rule 12b-2 of the Exchange Act.
☐ Large Accelerated Filer
☐ Accelerated Filer
☒
Non-Accelerated
Filer
☒
Emerging growth company
If
an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant
has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant
to Section 13(a) of the Exchange Act.
☐
Indicate
by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness
of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered
public accounting firm that prepared or issued its audit report.
☐
If
securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant
included in the filing reflect the correction of an error to previously issued financial statements.
☐
Indicate
by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation
received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐
Indicate
by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:
U.S. GAAP
☒
International
Financial Reporting Standards as issued by the International Accounting Standards Board ☐
Other
☐
If
"Other" has been checked in response to the previous question, indicate by check mark which financial statement item the
registrant has elected to follow
.
Item 17 [_] Item 18 [_]
If
this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange
Act). ☐ Yes
☒
No
TABLE
OF CONTENTS
PAGE
PART I
Item
    1.
Identity of Directors, Senior Management and Advisers.
4
Item
    2.
Offer Statistics and Expected Timetable.
4
Item
    3.
Key Information.
4
Item
    4.
Information on the Company.
39
Item
    4A.
Unresolved Staff Comments
71
Item
    5.
Operating and Financial Review and Prospects.
71
Item
    6.
Directors, Senior Management and Employees
86
Item
    7.
Major Shareholders and Related Party Transactions.
105
Item
    8.
Financial Information.
106
Item
    9.
The Offer and Listing.
107
Item
    10.
Additional Information.
107
Item
    11.
Quantitative and Qualitative Disclosures about Market Risk
121
Item
    12.
Description of Securities Other than Equity Securities.
122
PART II
122
Item
    13.
Defaults, Dividend Arrearages and Delinquencies.
122
Item
    14.
Material Modifications to the Rights of Security Holders and Use of Proceeds.
122
Item
    15.
Controls and Procedures.
123
Item
    16A.
Audit Committee Financial Expert.
124
Item
    16B.
Code of Ethics.
124
Item
    16C.
Principal Accountant Fees and Services
124
Item
    16D.
Exemption From the Listing Standards for Audit Committees
125
Item
    16E.
Purchases of Equity Securities By the Issuer and Affiliated Purchasers
125
Item
    16F.
Change in Registrant's Certifying Accountant
125
Item
    16G.
Corporate Governance
125
Item
    16H.
Mine Safety Disclosure
125
Item
    16I.
Disclosure Regarding Foreign Jurisdictions that Prevent Inspections
125
Item
    16J.
Insider Trading Policies
125
Item
    16K.
Cybersecurity
125
PART III
126
Item
    17.
Financial Statements.
126
Item
    18.
Financial Statements.
126
Item
    19.
Exhibits.
127
2
INTRODUCTION
Definitions
In
this Annual Report, unless the context otherwise requires:
●
references
                                            to "
ZOOZ Power
," "
ZOOZ
", the "
Company
,"
                                            "
us
," "
we
", "
our
" and the "
Registrant
"
                                            refer to ZOOZ Power Ltd., an Israeli company, and its subsidiary (unless otherwise indicated);
●
references
                                            to "
ordinary shares
," "
our shares
" and similar expressions
                                            refer to the Registrant's ordinary shares, NIS 0.00286 nominal (par) value per share;
●
references
                                            to "
public warrants
" refer to the warrants to acquire our shares, listed
                                            on the Nasdaq under the symbol "ZOOZW";
●
references
                                            to "
dollars
," "
U.S. Dollars
", "
USD
"
                                            and "
$
" are to United States Dollars;
●
references
                                            to "
shekels
" and "
NIS
" are to New Israeli Shekels,
                                            the Israeli currency;
●
references
                                            to the "
Companies Law
" are to the Israeli Companies Law, 5759-1999;
●
references
                                            to the "
Securities Law
" are to the Israeli Securities Law, 5728-1968;
●
references
                                            to the "
SEC
" are to the United States Securities and Exchange Commission;
                                            and
●
references
                                            to the "
Nasdaq Rules
" are to rules of the Nasdaq Capital Market.
BASIS
OF PRESENTATION
Our
consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United
States ("
U.S. GAAP
"). We present our consolidated financial statements in U.S. dollars.
Our
fiscal year ends on December 31 of each year.
Certain
monetary amounts, percentages and other figures included elsewhere in this Annual Report have been subject to rounding adjustments. Accordingly,
figures shown as totals in certain tables or charts may not be the arithmetic aggregation of the figures that precede them, and figures
expressed as percentages in the text may not total 100% or, as applicable, when aggregated may not be the arithmetic aggregation of the
percentages that precede them.
Share
and share-based information is presented in this Annual Report after taking into account the Recapitalization, which was performed as
part of the Business Combination. For additional details regarding the Business Combination and the Recapitalization, please see "
Item
4.B. – Business Overview – Additional Agreements
."
CERTAIN
INFORMATION
Industry
and Market Data
In
this Annual Report, we present industry data, information and statistics regarding the markets in which we compete as well as publicly
available information, industry and general publications and research and studies conducted by third parties. This information is supplemented
where necessary with our own internal estimates, taking into account publicly available information about other industry participants
and our management's judgment where information is not publicly available. This information appears in "
Management's
Discussion and Analysis of Financial Condition and Results of Operation,
" "
Business
" and other sections
of this Annual Report.
Industry
publications, research, studies and forecasts generally state that the information they contain has been obtained from sources believed
to be reliable, but that the accuracy and completeness of such information is not guaranteed. Forecasts and other forward-looking information
obtained from these sources are subject to the same qualifications and uncertainties as the other forward-looking statements in this
Annual Report. These forecasts and forward-looking information are subject to uncertainty and risk due to a variety of factors, including
those described under "
Risk Factors.
" These and other factors could cause results to differ materially from those
expressed in any forecasts or estimates.
3
CAUTIONARY
STATEMENT REGARDING
FORWARD-LOOKING
STATEMENTS
This
Annual Report on Form 20-F, or the Annual Report, includes "forward-looking statements" within the meaning of the Securities
Act of 1933 (the "
Securities Act
"), as amended, the Securities Exchange Act of 1934 (the "
Exchange Act
"),
as amended, or the Exchange Act, and the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking
statements are based on our current beliefs, expectations and assumptions. Forward-looking statements can be identified by the use of
terminology such as "will," "may," "assume," "expect," "anticipate," "could,"
"project," "estimate," "possible," "potential," "believe," "suggest,"
and "intend," and similar expressions that are intended to identify forward-looking statements, although not all forward-looking
statements contain these identifying words. These forward-looking statements involve known and unknown risks and uncertainties that may
cause our actual results, performance or achievements to be materially different from any future results, performance or achievements
expressed or implied by such forward-looking statements. Factors that could cause our actual results to differ materially from those
projected in the forward-looking statements include, without limitation, the risk factors set forth under "Item 3. Key Information
- D. Risk Factors," the information about us set forth under "Item 4. Information on the Company" and information related
to our financial condition under "Item 5. Operating and Financial Review and Prospects." Any forward-looking statements represent
our views only as of the date hereof and should not be relied upon as representing its views as of any subsequent date. We do not assume
any obligation to update any forward-looking statements unless required by law.
PART
I.
ITEM 1.
IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS
Not
applicable.
ITEM 2.
OFFER STATISTICS AND EXPECTED TIMETABLE
Not
applicable.
ITEM 3.
KEY INFORMATION
A.
[RESERVED]
B.
CAPITALIZATION AND INDEBTEDNESS
Not
applicable.
C.
REASONS FOR THE OFFER AND USE OF PROCEEDS
Not
applicable.
D.
RISK FACTORS
An
investment in our ordinary shares and/or public warrants involves a high degree of risk and many factors could affect our results, financial
condition, cash flows and results of operations. You should carefully consider the following risk factors, as well as the other information
in this Annual Report. If we do not, or cannot, successfully address the risks to which we are subject, we could experience a material
adverse effect on our business, results of operations and financial condition, which could include the need to limit or even discontinue
our business operations, and accordingly our share price may decline,
and you could lose all or
part of your investment
. We can give no assurance that we will successfully address any of these risks. The principal risks we
face are described below. These risks and uncertainties are not the only ones that we face.
Summary
Risk Factors
Our
business is subject to a number of risks of which you should be aware of before making an investment decision. These risks are discussed
more fully under the caption "Item 3. Key Information - D. Risk Factors" section of this Annual Report. These risks include,
but are not limited to, the following:
●
Our
                                            limited operating history and evolving business model make it difficult for you to evaluate
                                            our business and future prospects.
●
We
                                            have identified material weaknesses in our internal control over financial reporting and
                                            if we are unable to remediate these material weaknesses, or identify additional material
                                            weaknesses in the future or otherwise fail to maintain an effective system of internal control
                                            over financial reporting, this may impair our ability to produce timely and accurate financial
                                            statements or comply with applicable laws and regulations.
4
●
Our
                                            management has determined that substantial doubt exists about the continued existence of
                                            ZOOZ as a "going concern". The report of ZOOZ's independent registered
                                            public accounting firm includes a going concern qualification.
●
Changes
                                            to fuel economy standards or changes to governments' regulations and policies in relation
                                            to environment or the success of alternative fuels may negatively impact the electric cars
                                            ("
EVs
" or "
electric vehicles
") market and thus the
                                            demand for our products.
●
Delays
                                            in deployment of public ultra-fast charging infrastructure may limit the need and urgency
                                            for our products.
●
Market
                                            education regarding the concept and value of power boosters is still in process and may not
                                            materialize as anticipated by us, or at all.
●
Our
                                            market penetration is partially related to government and other public incentive plans supporting
                                            charging infrastructure, changes or reductions on those, which are in turn subject to political,
                                            economic, and environmental factors which are beyond our control.
●
We
                                            have gained limited experience in a small number of territories, which include Israel, Germany,
                                            the U.K. and the U.S. If we fail to expand our geographic footprint and to build scalable and
                                            robust processes, our prospects for growth and profitability could be harmed, and we may
                                            never successfully do so or achieve or sustain profitability.
●
We
                                            face risks related to the growth rate and the global expansion of our business, including
                                            worldwide or regional economic conditions, exchange rate fluctuations, adverse changes in
                                            EV and/or power booster market conditions and the competitiveness of the market.
●
We
                                            may experience difficulties in managing our growth and expanding our operations, as we need
                                            to continue to improve our operational, financial and management controls, compliance programs
                                            and reporting systems, including our compliance programs, privacy, cybersecurity and anti-corruption
                                            and financial controls, and we may not be successful in doing so.
●
We
                                            currently face competition from a number of companies, mainly specialized platform providers
                                            for residential or commercial and industrial applications, and expect to face significant
                                            competition in the future as the market for the EV high power charging infrastructure further
                                            develops.
●
We
                                            rely on a limited number of suppliers and manufacturers for our products, some of which provide
                                            us with custom-designed components and sub-systems. A loss of any of these key suppliers
                                            and manufacturers could negatively affect our business.
●
Increases
                                            in costs, disruption of supply, or shortage of materials, have harmed and could harm our
                                            business again in the future.
●
Our
                                            business is subject to risks associated with permitting, construction, cost overruns and
                                            delays, and other contingencies that may arise in the course of completing installations,
                                            and such risks may increase in the future.
●
Expanding
                                            our operations internationally is likely to expose us to additional tax, compliance, market
                                            and other risks.
●
The
                                            EV and energy storage market currently benefits from the availability of rebates, tax credits
                                            and other financial incentives from governments, utilities and others to offset the purchase
                                            or operating cost of EVs, EV charging stations and flywheel-based storage systems. The reduction,
                                            modification, or elimination of such benefits, or any delay in payment could cause reduced
                                            demand for our products or delay their purchase or production, which would adversely affect
                                            our financial results.
●
We
                                            are dependent on several key employees; the loss of their services and our failure to hire
                                            additional qualified key personnel could harm our business.
●
Failures,
                                            or perceived failures, to comply with privacy, data protection, and information security
                                            requirements in the variety of jurisdictions in which we operate may adversely impact our
                                            business, and such legal requirements are evolving, uncertain and may require improvements
                                            in, or changes to, our policies and operations.
●
We
                                            may not be able to adequately protect or enforce our intellectual property rights or prevent
                                            unauthorized parties from copying or reverse engineering our technology or products. Our
                                            efforts to protect and enforce our intellectual property rights and prevent third parties
                                            from violating our rights may be costly.
5
●
In
                                            addition to patented technology, we rely on our unpatented proprietary technology, trade
                                            secrets, processes and know-how, which we may not be able to protect.
●
Technology
                                            failures or cyberattacks on our technology systems or our ineffective response to technology
                                            failures or cyberattacks could disrupt our operations and negatively impact our reputation,
                                            business, financial condition, or results of operations.
●
Interruption,
                                            interference with or failure of our information technology and communications systems could
                                            hurt our ability to effectively offer our products, which could damage our reputation and
                                            harm our operating results.
●
We
                                            may be exposed to liability if we fail to comply with the provisions of the U.S. Foreign
                                            Corrupt Practices Act and other U.S. and foreign anti-corruption, anti-money laundering,
                                            privacy, export control, sanctions, and other trade laws and regulations.
●
Geo-political
                                            conditions in the Middle East and in Israel, including the current conflicts in Gaza and
                                            in the Northern part of Israel that started in the fourth quarter of 2023, may adversely
                                            affect our operations.
●
If
                                            U.S. securities or industry analysts do not publish or cease publishing research or reports
                                            about ZOOZ, its business, or its market, or if they change their recommendations regarding
                                            the ZOOZ ordinary shares adversely, then the price and trading volume of the ZOOZ ordinary
                                            shares on the Nasdaq could decline.
●
The
                                            U.S. market price for the ZOOZ ordinary shares may be depressed by the terms of any financing
                                            which is likely to result in significant dilution or by our failure to obtain necessary financing.
●
The
                                            future exercise of registration rights and sale by our shareholders of their ZOOZ ordinary
                                            shares, including shares by shareholders subject to lock-ups upon expiration of their lock-ups,
                                            may adversely affect the market price of ZOOZ ordinary shares on the Nasdaq.
Risks
Related to ZOOZ's Business and Industry
ZOOZ
is an early-stage company with a history of losses. ZOOZ's ability to continue as a going concern will depend on its ability to
generate sufficient revenue and/or depend on ZOOZ's ability to raise capital that will allow it to continue operating until it
generates sufficient revenue.
ZOOZ
incurred a net loss of $7.8 million and $11.7 million for the year ended December 31, 2022, and for the year ended December 31, 2023,
respectively.
ZOOZ
had an accumulated deficit of approximately $35.4 million and $47.2 million as of December 31, 2022 and December 31, 2023, respectively.
ZOOZ believes it will continue to incur operating and comprehensive losses for the near-term. ZOOZ does not expect that it will improve
its cash flow generation and operating result significantly through 2024 and 2025 as ZOOZ is in the early stage of market penetration
and product introduction. ZOOZ's ability to continue as a going concern will depend on its ability to generate sufficient revenue
and/or its ability to raise capital.
ZOOZ's
potential profitability of the revenue stream from its product ZOOZTER™-100 is particularly dependent upon customer's awareness
of product value, its proven readiness reliability and business justification, ZOOZ's ability to build substantial backlog of orders
which will allow cost reduction over increased volume of production, and ZOOZ's ability to reduce product manufacturing costs on
a timely basis, which may not occur.
The
report of ZOOZ's independent registered public accounting firm contains an explanatory paragraph that expresses substantial doubt
about ZOOZ's ability to continue as a going concern.
ZOOZ
management has determined, and the report of ZOOZ's independent registered public accounting firm with respect to ZOOZ's
audited consolidated financial statements as of December 31, 2023 indicates, that there is substantial doubt about ZOOZ's
ability to continue as a going concern. The report states that, ZOOZ has accumulated net losses in the amount of approximately $47.2
million as well as a negative cash flow from operating activities in the amount of approximately $12.2 million, for a period of 12
months that ended on that date. These factors raise substantial doubt about the continued existence of ZOOZ as a "going
concern." Based on the plans of ZOOZ's management, ZOOZ's cash balance as of December 31, 2023, and as of the date
of approval of the audited consolidated financial statements, may be insufficient to continue ZOOZ's operations for more than
12 months following the date of approval of the audited consolidated financial statements. In order to continue ZOOZ's
operations, ZOOZ is looking to secure financing from various sources, such as additional investment funding. According to the report
of ZOOZ's independent registered public accounting firm with respect to ZOOZ's audited consolidated financial statements
for the year ended December 31, 2023, the dependency on these planned objectives raises substantial doubt of ZOOZ's ability to
continue as a going concern and that ZOOZ may be unable to realize its assets and discharge its liabilities in the normal course of
business. These audited consolidated financial statements did not include any adjustments regarding the values of the assets and
liabilities and their classification that might be needed if ZOOZ could not continue to operate as a "going
concern."
6
ZOOZ
has identified material weaknesses in its internal control over financial reporting. If ZOOZ is unable to remediate these material weaknesses,
or if ZOOZ identifies additional material weaknesses in the future or otherwise fails to maintain an effective system of internal control
over financial reporting, this may impair ZOOZ's ability to produce timely and accurate financial statements or comply with applicable
laws and regulations.
In
connection with the preparation and audit of ZOOZ's audited consolidated financial statements for the years ended December 31,
2023 and 2022, material weaknesses were identified in ZOOZ's internal control over financial reporting. A material weakness is
a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility
that a material misstatement of ZOOZ's audited consolidated annual financial statements will not be prevented or detected on a
timely basis.
The
material weaknesses referenced above are described below:
●
Segregation
                                            of duties has not been sufficiently established across the key business and financial processes.
                                            Given the size, nature of the organization, and the current structure of the finance function,
                                            a lack of segregation of duties applied to the key business and financial processes across
                                            the organization has been identified. A consequence of the lack of segregation of duties
                                            is the heightened risk of fraud or material misstatement when no appropriate mitigating controls
                                            are in place.
●
Lack
                                            of personnel with appropriate knowledge and experience relating to U.S. GAAP and SEC reporting
                                            requirements to enable the entity to design and maintain an effective financial reporting
                                            process. A lack of knowledge and experience in these areas may lead to ZOOZ being in breach
                                            of SEC financial reporting and other related requirements, especially given that the current
                                            finance function has not been designed to include sufficient accounting and financial reporting
                                            personnel with (i) the requisite knowledge and experience in the application of SEC financial
                                            reporting rules and regulations; and (ii) the appropriate expertise in the relevant U.S.
                                            accounting standards.
Remediation
activities and Plans
●
ZOOZ
                                            has begun implementation of a plan to remediate these material weaknesses, including implementation
                                            of an ERP system, for, among other things, improving its appropriately designed, implemented
                                            and documented controls in inventory process, in respect of separation of operation costs
                                            from research and development costs.
These
remediation measures are ongoing and may include hiring additional accounting and financial reporting personnel and implementing additional
policies, procedures and controls.
In
order to maintain and improve the effectiveness of ZOOZ's internal control over financial reporting, ZOOZ has expended, and anticipate
that it will continue to expend, significant resources, including accounting-related costs and significant management oversight.
ZOOZ
cannot assure you the measures it is taking to remediate the material weaknesses will be sufficient or that they will prevent future
material weaknesses. Additional material weaknesses or failure to maintain effective internal control over financial reporting could
cause the combined company to fail to meet its reporting obligations as a public company listed for trading on the Nasdaq.
ZOOZ's
management is not required to report on the effectiveness of its internal control over financial reporting until after ZOOZ is no longer
a "newly public company" listed for trading on the Nasdaq (i.e. in connection with the filing of its second annual report
following consummation of the business combination between Keyarch and ZOOZ Power Cayman, a Cayman Islands exempted company and a direct,
wholly owned subsidiary of ZOOZ (the "
Merger Sub
") (the "
Business Combination
")). At such time,
to the extent that the above-described material weaknesses continue to exist or new material weaknesses are identified, ZOOZ's
management may be unable to conclude that its internal control over financial reporting is operating effectively. In addition, ZOOZ's
independent registered public accounting firm is not required to attest to the effectiveness of its internal control over financial reporting
until after ZOOZ is no longer an "emerging growth company" as defined in the Jumpstart Our Business Startups Act of 2012
(the "
JOBS Act
"). At such time, ZOOZ's independent registered public accounting firm may issue a report that
is adverse in the event its internal controls over financial reporting do not operate effectively. If ZOOZ is not able to complete its
initial assessment of its internal controls and otherwise implement the requirements of Section 404 of the Sarbanes-Oxley Act of 2002
(the "
Sarbanes-Oxley Act
") in a timely manner or with adequate compliance, its independent registered public accounting
firm may not be able to attest to the effectiveness of its internal controls over financial reporting. Any failure to implement and maintain
effective internal control over financial reporting also could adversely affect the results of periodic management evaluations and annual
independent registered public accounting firm attestation reports regarding the effectiveness of our internal control over financial
reporting that ZOOZ will eventually be required to include in its periodic reports that are filed with the SEC. If ZOOZ is unable to
remediate its existing material weaknesses or identifies additional material weaknesses and is unable to comply with the requirements
of Section 404 in a timely manner or assert that its internal control over financial reporting is effective, or if the ZOOZ's independent
registered public accounting firm is unable to express an opinion as to the effectiveness of ZOOZ's internal control over financial
reporting once it is no longer an emerging growth company, investors may lose confidence in the accuracy and completeness of the audited
consolidated financial reports and the market price of the ZOOZ ordinary shares could be negatively affected, and it could become subject
to investigations by Nasdaq, the SEC or other regulatory authorities, which could require additional financial and management resources.
7
In
addition, any failure to maintain effective disclosure controls and procedures and internal control over financial reporting could adversely
affect ZOOZ's business and operating results and could cause a decline in the price of the ZOOZ ordinary shares. These material
weaknesses will not be considered remediated until the mitigating controls have operated for the required period of time and until the
operating effectiveness of the controls has been validated, through testing, by ZOOZ's management.
Failure
to expand ZOOZ's geographic footprint and to build scalable and robust processes could harm ZOOZ's prospects for growth and
profitability, and it may never successfully do so or achieve or sustain profitability.
ZOOZ's
ability to achieve significant revenue growth and profitability in the future will depend, in large part, on ZOOZ's success in
expanding its product portfolio and business both within its existing markets and to additional markets and geographies and building
scalable and robust processes to manage its business and operations. As of the date of this Annual Report, ZOOZ has gained limited experience
in a small number of territories, which include Israel, Germany, the U.K., and the U.S. and ZOOZ has several deployments in Israel, Germany,
the U.K. and the U.S., and expects to complete several additional deployments in these territories in the coming months. If prospective customers
and business partners in such existing and new markets and geographies do not perceive ZOOZ's product offerings to be of value
to them, or the ZOOZ products are not favorably received by them in such markets, ZOOZ may not be able to attract and retain such customer
or business partners and will not be successful in expanding its business and operations in its existing markets and to new markets and
geographies.
ZOOZ's
supply chain is in early stage of development, and ZOOZ is in the process of outsourcing the manufacturing of the product – failure
in this process will not allow ZOOZ to scale-up its manufacturing capacity, which in turn could have an adverse effect on ZOOZ's
ability to meet market demand.
In
addition, if ZOOZ is not able to build scalable and robust processes and resources to manage its existing business operations and prospective
growth and expansion, ZOOZ may fail to satisfy and retain its existing customers and business partners and may not be able to attract
new customers and business partners in additional markets and, as a result, ZOOZ's ability to maintain and/or grow the business
and achieve or sustain profitability will be adversely affected.
ZOOZ
may enter into agreements to operate projects at a financial loss in order to penetrate certain markets.
In
order to penetrate certain markets or demonstrate our technological capabilities, and as part of its business strategy, ZOOZ may enter
into agreements to operate projects at a financial loss to it. Such agreements may materially affect its business, financial condition,
and results of operations.
ZOOZ
currently faces competition from a number of companies and expects to face significant competition in the future as the market for the
EV high power charger develops
.
The
EV charging market is relatively new and competition is still developing. There are numerous factors that may affect the competition
in the market of power boosters for EV charging, which include product costs, footprint and electrical energy capacity. In the market
of power boosters for EV charging, ZOOZ primarily competes with providers of battery-based power boosters and energy storage systems
and ZOOZ expects competition by other equipment providers who will offer flywheel-based power boosters, once such products reaching maturity
and available to the market.
Competition
may include various technologies for energy storage, such as hydrogen-based energy storage, supercapacitors-based energy storage etc.
Further
for EV charging and commercial battery storage system market, ZOOZ's current or potential competitors may be acquired by third
parties with greater available resources. As a result, competitors may be able to respond more quickly and effectively than ZOOZ to new
or changing opportunities, technologies, standards or customer requirements and may have the ability to initiate or withstand substantial
price competition. In addition, competitors may in the future establish cooperative relationships with vendors of complementary products,
technologies or services to increase the availability of their solutions in the marketplace. This competition may also materialize in
the form of costly intellectual property disputes or litigation.
8
New
competitors or alliances may emerge in the future that have greater market share, more widely adopted proprietary technologies, greater
marketing expertise and greater financial resources, which could put ZOOZ at a competitive disadvantage. Future competitors could also
be better positioned to serve certain segments of ZOOZ's current or future target markets, which could create price pressure. In
light of these factors, even if ZOOZ's offerings are more effective and higher quality than those of its competitors, current or
potential customers may accept ZOOZ's competitors' solutions instead of ZOOZ's solutions. If ZOOZ fails to adapt to
changing market conditions or continue to compete successfully with current charging platform providers or new competitors, ZOOZ's
growth will be limited which would adversely affect its business and results of operations.
The
market for EV high power charging may not develop to be as significant as anticipated.
There
are other means for charging EVs, which could affect the level of demand for ultra-fast charging capabilities. For example, wireless
charging capabilities as part of the road infrastructure and widespread availability of slow chargers, at home or in public sites, may
limit the needs for ultra-fast charging. If the future market trend will be to adopt these solutions widely, this may have an adverse
effect on ZOOZ's business.
ZOOZ
faces risks related to natural disaster and health pandemics, including the coronavirus ("COVID-19") pandemic, which could
have a material adverse effect on its business and results of operations.
Health
pandemics such as COVID-19 can impact changes in consumer and business behavior. Pandemic fears and market downturns, and restrictions
on business and individual activities, may create significant volatility in the global economy. The spread of COVID-19 has created a
disruption in the manufacturing, delivery and overall supply chain of vehicle and photovoltaic manufacturers and suppliers around the
world. Any sustained downturn in the demand for EVs or photovoltaic or battery storage system would harm ZOOZ's business.
ZOOZ
relies on a limited number of suppliers and manufacturers for its products. Some of ZOOZ's suppliers and manufacturers provide
ZOOZ with custom-designed components and sub-systems. A loss of any of these key suppliers and manufacturers could negatively affect
ZOOZ's business.
ZOOZ
relies on a limited number of suppliers to manufacture its products, including in some cases, only a single supplier for some products
and components. Some of ZOOZ's suppliers and manufacturers provide it with custom-designed components and sub-systems. While any
of such key suppliers and manufacturers could be replaced, this reliance on a limited number of manufacturers increases its risks, since
any change in its key suppliers or manufacturers will lead ZOOZ to incur material additional costs and substantial delays. If ZOOZ experiences
a significant increase in demand for its products, or if ZOOZ needs to replace an existing supplier, it may not be possible to supplement
or replace them on acceptable terms or expected time, which may undermine ZOOZ's ability to deliver products to customers in a
timely manner. For example, it may take a significant amount of time to identify a manufacturer that has the capability and resources
to provide ZOOZ with certain custom-designed components or sub-systems. Identifying suitable suppliers and manufacturers could be an
extensive process that requires ZOOZ to become satisfied with their product performance, and their quality control, technical capabilities,
responsiveness and service, financial stability, regulatory compliance, and labor and other ethical practices. In addition, the process
of replacing suppliers of certain components and subsystems may require ZOOZ to invest additional resources and time in additional testing,
validation and certification processes. Accordingly, a loss of any of ZOOZ's key suppliers or manufacturers could have an adverse
effect on its business, financial condition and operating results.
Increases
in costs, disruption of supply, or shortage of materials, have harmed and could harm ZOOZ's business again in the future.
ZOOZ
has experienced and may in the future experience increases in the cost or a sustained interruption in the supply or shortage of materials
necessary for the production of its products. Any such increase in cost, supply interruption, or materials shortage in the future could
again adversely impact ZOOZ's business, prospects, financial condition, and operating results. ZOOZ's suppliers use various
materials. The prices and supply of these materials may fluctuate, depending on market conditions and global demand for these materials.
ZOOZ
is still in the process of product cost reduction. In case ZOOZ will not be successful to reach its cost reduction targets during the
next couple of years, this may prejudice ZOOZ's profitability and market penetration.
Substantial
increases in the prices for ZOOZ's materials could reduce its margins if ZOOZ cannot recoup the increased costs through increased
sale prices on its products. Furthermore, fluctuations in fuel costs, or other economic conditions, may cause ZOOZ to experience significant
increases in freight charges and material costs. Moreover, any attempts to increase prices in response to increased material costs could
increase the difficulty of selling at attractive prices to customers and lead to losing opportunities and cancellations of customer orders.
If ZOOZ is unable to effectively manage its supply chain and respond to disruptions to its supply chain in a cost-efficient manner, ZOOZ
may fail to achieve the financial results it expects or that financial analysts and investors expect, and ZOOZ's business, prospects,
financial condition, and operating results may be adversely affected.
9
In
addition, ZOOZ supply chain, and especially materials and components which are sourced in the east (China, India and others) is subject
to delays and increased cost due to the geo-political situation and the conflict with the Houthis regime in Yemen, preventing sea transportation
of good to Israel through the red sea.
ZOOZ's
business is subject to risks associated with construction, cost overruns and delays, and other contingencies that may arise in the course
of completing installations, and such risks may increase in the future.
The
installation of ZOOZ's products at a particular site is generally subject to oversight and regulation in accordance with state
and local laws and ordinances relating to safety, environmental protection and related matters, and typically requires various local
and other governmental approvals and permits that may vary by jurisdiction. Meaningful delays or cost overruns may impact ZOOZ's
recognition of revenue in certain cases and/or impact customer relationships, either of which could impact ZOOZ's business and
profitability.
Furthermore,
ZOOZ may install its products at customer sites as part of offering a turnkey solution. Working with contractors may require ZOOZ to
obtain licenses or require it or its customers to comply with additional rules, working conditions and other union requirements, which
can add costs and complexity to an installation project. In addition, if these contractors are unable to provide timely, thorough and
quality installation-related services, customers could fall behind their construction schedules leading to liability to ZOOZ or cause
customers to become dissatisfied with the solutions it offers.
ZOOZ
has a limited operating history.
ZOOZ
began operations in 2013 and operates in the EV charging infrastructure market, which is rapidly evolving. As a result, there is limited
information about the market which puts at risk plans and/or projections of ZOOZ to achieve its goals. In addition, ZOOZ also does not
yet have enough information to validate the value of its solution to customers, and its ability to support them along the lifetime of
the charging infrastructure. If the assumptions ZOOZ uses to plan and operate its business are incorrect or change, ZOOZ's results
of operations could differ materially from its expectations and its business, financial condition and results of operations could be
materially adversely affected.
The
EV charging infrastructure market is at an early stage, which requires additional development and market acceptance.
The
EV charging infrastructure market is at an early stage, which causes lack of evidence / history that market trends will progress as expected.
As a result, the market is still in learning phase, which results in a few numbers of players and customers to adequately comprehend
the problem that ZOOZ is intending to solve (and ZOOZ cannot guarantee that it will be comprehended as ZOOZ anticipates in the future).
In addition, in light of the early stage at which ZOOZ's market is positioned, ZOOZ believes that the market players (potential
customers and partners) are not yet able to evaluate the technological solutions available (ZOOZ's and those of its competitors)
and make a knowledgeable decision.
If
ZOOZ is unable to attract, retain, and motivate key employees and hire qualified management, technical, engineering and sales personnel,
ZOOZ's ability to compete and successfully grow its business would be harmed and could diminish anticipated benefits.
ZOOZ's
success depends, in part, on its continuing ability to identify, hire, attract, motivate, train, develop and retain highly qualified
personnel critical to the business and operations of ZOOZ. The inability to do so effectively would adversely affect ZOOZ's business.
The success of ZOOZ will depend in part on the attraction, retention and motivation of executive personnel. Executives and key employees
may experience uncertainty about their future roles with ZOOZ. In addition, competitors may recruit its management and / or key personnel.
If ZOOZ is unable to attract, retain and motivate executive and key personnel that are critical to successful operations, it could face
disruptions in operations and strategic relationships, loss of key information, loss expertise or know-how and unanticipated recruitment
and onboarding costs and may harm ZOOZ's ability to reach its business, technological and operational goals.
ZOOZ
is expanding operations internationally, which will expose us to additional risks of tax, compliance, market and other risks.
Currently,
ZOOZ's primary operations are in Israel, Germany, the U.K. and the U.S. In addition, ZOOZ is continuing to invest to increase its
presence in its target markets. Managing this expansion requires additional resources and controls, and could subject ZOOZ to risks associated
with international operations, including:
●
difficulties
                                            in staffing and managing foreign operations in an environment of diverse culture, laws, and
                                            customers, and the increased travel, infrastructure, legal and compliance costs associated
                                            with international operations;
●
Products'
                                            deliveries and installation challenges, including those associated with local licensing and
                                            permitting requirements;
10
●
compliance
                                            with multiple, potentially conflicting and changing governmental laws, regulations, certifications,
                                            and permitting processes including environmental, banking, employment and tax laws and regulations;
●
compliance
                                            with U.S. and foreign anti-bribery laws including the Foreign Corrupt Practices Act ("
FCPA
");
●
conforming
                                            products to various international regulatory and safety requirements;
●
difficulty
                                            in establishing, staffing and managing foreign operations;
●
difficulties
                                            in collecting payments in foreign currencies and associated foreign currency exposure;
●
restrictions
                                            on repatriation of earnings;
●
local
                                            or regional economic and political conditions.
In
addition, any continued expansion is likely to involve the incurrence of significant upfront capital expenditures. Furthermore, such
efforts to expand to new territories, which require significant resource allocation, may cause defocus of the penetration efforts into
territories where ZOOZ is already active and jeopardize the success of ZOOZ in those territories. As a result of these risks, ZOOZ's
current expansion efforts and any potential future international expansion efforts may not be successful.
ZOOZ
may be adversely affected by inflationary or market fluctuations, including impact of tariffs, in the cost of products consumed in providing
its services.
The
prices ZOOZ pays for the principal items it consumes in performing its services are dependent primarily on current market prices.
Storage
solutions and charging systems for EVs are impacted by commodity pricing factors, including the impact of tariffs, which in many cases
are unpredictable and outside of ZOOZ's control. ZOOZ will seek to pass on to customers such increased costs but sometimes it will
not be able to do so.
The
EV charging market and energy storage market currently benefit from the availability of rebates, tax credits and other financial incentives
from governments, utilities and others to offset the purchase or operating cost of EVs, EV charging stations and energy storage systems.
The reduction, modification, or elimination of such benefits, or any delay in payment could cause reduced demand for ZOOZ's products
or delay their purchase or production, which would adversely affect its financial results.
State
and local governments provide rebates, tax credits, and other financial incentives to end users, purchasers and in some cases to manufacturers
of EVs, charging stations, and/or energy storage systems. The EV and energy storage markets rely on governmental rebates, tax credits
and other financial incentives to significantly reduce the effective price to customers and/or create incentives to manufacturers. Incentives
may, however, expire on a certain date, run out when funding is exhausted, or be reduced or terminated as a matter of regulatory or legislative
policy. In addition, there may be delays in the payment of rebates, or in the recognition of tax credits, which could affect the timing
of purchases by customers and also result in a delay or reduction in the production cycle. In addition, some of those incentives are
conditioned with manufacturing of related equipment (such as energy storage systems) locally and as long as ZOOZ is not manufacturing
locally its products, it may not be eligible to such financial incentives. All of these events could result in an adverse effect on ZOOZ's
financial results.
Changes
to fuel economy standards or changes to governments' regulations and policies in relation to environment or the success of alternative
fuels may negatively impact the EV market and thus the demand for ZOOZ's products and services.
As
regulatory initiatives have required an increase in the mileage capabilities of cars, consumption of renewable transportation fuels,
such as ethanol and biodiesel, and consumer acceptance of EVs and other alternative vehicles has been increasing. If fuel efficiency
of non-electric vehicles continues to rise, whether as the result of regulations or otherwise, and affordability of vehicles using renewable
transportation fuels improves, or other factors (such as batteries prices) will increase the cost and /or reduce the attractiveness of
EVs, the demand for EVs could diminish. In addition, the EV fueling model is different than gas or other fuel models, requiring behavior
change and education of influencers, consumers and others such as regulatory bodies. Developments in alternative technologies, such as
advanced diesel, ethanol, fuel cells or compressed natural gas, or improvements in the fuel economy of the internal combustion engine,
may materially and adversely affect demand for EVs and EV charging stations. Regulatory bodies may also adopt rules that substantially
favor certain alternatives to petroleum-based propulsion over others, which may not necessarily be EVs. This may impose additional obstacles
to the purchase of EVs or the development of a more ubiquitous EV market.
11
If
any of the above cause or contribute to consumers or businesses to no longer purchase EVs or purchase them at a lower rate or limit their
availability and presence in the market, it would materially and adversely affect ZOOZ's business, operating results, financial
condition and prospects.
ZOOZ's
future growth and success is partly correlated with and thus dependent upon the continuing rapid adoption of EVs for passenger and fleet
applications, and the need for widespread ultra-fast charging infrastructure to support the accelerated transition to electrical vehicles.
ZOOZ
is highly dependent on businesses and consumers adopting EVs in the upcoming years. With rapid changes in technology, competitive pricing,
and competitive factors, the market for electric vehicles is still rapidly evolving. Consumer demands and behaviors are changing, as
are levels of concern about environmental issues and government initiatives and incentives related to climate change and the environment
as a whole. The demand for EVs has grown in recent years, but there is no guarantee that this will continue in the future. ZOOZ's
business, prospects, financial condition and operating results would be adversely affected if EV demand decreases or the market for EVs
develops more slowly than expected. Numerous factors could influence the EV market, including (but not limited to):
●
EV
                                            features, quality, safety, performance, and cost perceptions;
●
perceptions
                                            about the limited driving range of EVs on a single charge;
●
Competition
                                            from alternative fuel vehicles, plug-in hybrid electric vehicles, and fuel-efficient internal
                                            combustion engines;
●
volatility
                                            in the cost of oil and gasoline;
●
concerns
                                            regarding the stability of the electrical grid;
●
The
                                            deterioration of an EV battery's capacity over time;
●
availability
                                            of service for EVs;
●
EV
                                            charging convenience and costs as perceived by consumers;
●
increases
                                            in fuel efficiency;
●
Government
                                            regulations and economic incentives, including changes in, or expiration of, favorable tax
                                            incentives for EVs, EV charging stations, and decarbonization in general;
●
relieving
                                            government mandates or quotas related to electric vehicle sales;
●
concerns
                                            about the future viability of EV manufacturers.
In
addition, the automotive industry can be cyclical, which may affect the acceptance of EVs. It is uncertain how macroeconomic factors
will affect demand for EVs, especially since they can be more expensive than traditional gasoline-powered vehicles, while the automotive
industry has been experiencing a recent decline in sales. Furthermore, since fleet operators often make large purchases of EVs, this
cyclicality and volatility in the automotive industry may be more pronounced with commercial purchasers, and any significant decline
in demand from these customers may reduce demand for EV charging and ZOOZ's products and services in particular.
The
demand for electric vehicles may also be affected by factors directly affecting automobile prices or operating costs, including sales
and financing incentives, raw material prices, part prices, fuel prices, and government regulations, such as tariffs, import regulations,
and taxes. Volatility in demand could result in lower vehicle unit sales, resulting in lower demand for EV charging solutions and adversely
affecting ZOOZ's business, financial condition, and operating results.
Delays
in deployment of fast charging infrastructure may limit the need and urgency for ZOOZ's product.
ZOOZ's
success is closely tied to the widespread adoption of EVs and the development of a robust fast charging infrastructure. The timely deployment
of fast charging infrastructure is crucial to meet the increasing demand for EVs and to encourage consumers to transition to electric
transportation. However, various factors, including but not limited to regulatory hurdles, permitting delays, budget constraints, and
other unforeseen obstacles, could potentially cause significant delays in the construction and expansion of public ultra-fast charging
infrastructure. These delays could be influenced by governmental policies, local community resistance, or technical challenges that arise
during the planning and implementation phases. In addition, these delays can be related to the learning phase for ZOOZ's customers,
to better understand the challenges to adopt electrical vehicles, to deploy fast charging infrastructure, to evaluate various technological
solutions, etc. All these factors may delay potential customers and partners in their evaluation of ZOOZ's solutions and may delay
or cancel their decision to choose ZOOZ's products.
12
If
the deployment of fast charging infrastructure lags the anticipated growth of the EV market, it may hinder consumer confidence and convenience
in owning an EV. As a result, potential EV buyers might be deterred from purchasing electric vehicles, leading to reduced demand for
ZOOZ's products. Delays in fast charging infrastructure deployment could further lead to extended sales cycles for our products.
This might impact ZOOZ's revenue growth estimates, making it challenging to achieve financial targets and meet shareholders'
and investors' expectations. Delays in the fast-charging infrastructure could provide a window of opportunity for competitors to
enter the market with innovative solutions or alternative technologies. Increased competition might erode ZOOZ's market share and
reduce ZOOZ's competitive advantage.
Regulation
and costs related to grid upgrades and demand charge tariffs may limit the number of sites that need ZOOZ's product or reduce the
value of ZOOZ's product offering to the customer.
Changes
in electricity tariffs may make the charging of EVs, and in particular fast charging, less economical for the EV owners, thus limiting
EVs adoption.
As
the adoption of EVs is likely to continue to rise, the anticipated increased demand for charging infrastructure is likely to put additional
strain on existing electrical grids. To accommodate the anticipated growing number of EVs, utilities and governments may impose stringent
regulations that require grid upgrades. In addition, they may impose demand charge tariffs on charging station operators. Fast charging
stations require significant electrical power. As a result, governments may mandate utilities / DSO to accelerate upgrades to the electrical
grid infrastructure to support these high-power charging stations. In addition, such costly upgrades may be financed by taxpayers and
cause objections to building such ultra-fast charging infrastructure. Delays or challenges in obtaining the necessary permits or completing
grid upgrades could disrupt ZOOZ's products' deployment. This could lead to revenue loss and market share reduction.
Many
utilities apply demand charges to commercial customers based on their peak electricity usage during specific time periods. For EV charging
station operators, these demand charges can substantially increase operational expenses, especially during peak charging periods when
numerous EVs are simultaneously charging. Such tariffs could discourage potential customers from adopting ZOOZ's products, reducing
its product value proposition. On the other hand, while power boosters can decrease demand charges costs, some utilities are proposing
"demand charge holidays" trying to help the adoption of EVs and ease the build of the charging infrastructure. Such demand
charge holidays can lower the value ZOOZ's customers see in its products. Regulations and tariffs related to grid upgrades and
demand charges vary by region and are subject to government policy changes. ZOOZ operates in multiple jurisdictions, and changes in regulations
or tariffs could impact the viability of specific markets, leading to non-uniform customer demand across different locations.
Market
education regarding the concept and value of Power Boosters is still in process.
The
success of ZOOZ's products depends on widespread market awareness and education regarding the concept and value they bring to EV
charging and in particular the challenges and value related to fast charging infrastructure. The concept of power boosters and their
benefits may still be relatively new to potential customers, industry stakeholders, and the general public. As a result, there might
be limited understanding and awareness of the value proposition its solutions offer. This could hinder adoption rates and slow down its
product's market penetration. Failure to adequately convey the benefits of ZOOZ's product could lead to misperceptions or
skepticism about the technology. This could impact its company's ability to attract customers and generate demand.
ZOOZ's
market penetration is partially related to government and other public incentive plans supporting charging infrastructure, changes or
reductions on those.
ZOOZ's
growth and market penetration are influenced, in part, by government and other public incentive plans that support the development and
expansion of EV charging infrastructure. These incentives may include subsidies, grants, tax credits, or regulatory mandates that encourage
the deployment of charging stations. They may also promote the adoption of electric vehicles.
Government
and public incentive plans are subject to political, economic, and environmental factors. Changes in governmental priorities, budget
allocations, or shifts in regulatory policies could lead to alterations or reductions in support for charging infrastructure projects.
Such policy changes may impact infrastructure development and demand for ZOOZ's charging solutions. Incentive plans and their impact
on market demand may vary significantly across regions and jurisdictions. ZOOZ operates in multiple markets, each with its unique set
of incentives and regulations. Fluctuations in these regional policies could create uneven demand for its products.
Further,
the availability of government incentives might attract other EV infrastructure providers and competitors seeking to capitalize on these
programs. Increased competition for limited incentives could potentially compress profit margins or make it more challenging to secure
favorable projects. Government incentive plans have defined timeframes, expiration dates, or diminishing subsidy levels. The temporary
nature of these incentives introduces uncertainty into ZOOZ's long-term business expectations and growth strategies. In addition,
some of those incentives are conditioned with manufacturing of related equipment (such as energy storage systems) locally and as long
as ZOOZ is not manufacturing locally its products, it may not be eligible to such financial incentives.
13
ZOOZ
is subject to changing laws and regulations regarding regulatory matters, corporate governance and public disclosure that have increased,
and are likely to continue to increase, both its costs and the risk of non-compliance.
ZOOZ
is subject to rules and regulations by various governing bodies, including, for example, the SEC, which are charged with the protection
of investors and the oversight of companies whose securities are publicly traded, and to new and evolving regulatory measures under applicable
law, including the laws of Israel and the various countries, territories and cities in which it operates. ZOOZ's efforts to comply
with new and changing laws and regulations in the jurisdictions in which it operates have resulted in and are likely to continue to result
in, increased general and administrative expenses and a diversion of management time and attention from company's technology development,
operations' effectiveness, business-growth and revenue-generating activities to compliance activities.
Moreover,
because these laws, regulations and standards are subject to varying interpretations and changes due to the emerging nature of the markets
in which ZOOZ operates, their application in practice may evolve over time as new guidance becomes available. This evolution may result
in continuing uncertainty regarding compliance matters and additional costs necessitated by ongoing revisions to ZOOZ's disclosure
and governance practices. If ZOOZ fails to address and comply with these regulations and any subsequent changes, they may be subject
to penalty and the business may be harmed.
ZOOZ
may become involved in legal and regulatory proceedings and commercial or contractual disputes, which could have an adverse effect on
its profitability and financial position.
ZOOZ
may be, from time to time, involved in litigation, regulatory proceedings and commercial or contractual disputes that may be significant.
These matters may include, without limitation, disputes with ZOOZ's potential suppliers and strategic partners and its potential
customers base, intellectual property claims, shareholder litigation, government investigations, class action lawsuits, personal injury
claims, environmental issues, customs and VAT disputes and employment and tax issues. In addition, ZOOZ could face in the future a variety
of labor and employment claims against it, which could include but is not limited to general discrimination, wage and hour, privacy,
ERISA or disability claims. In such matters, government agencies or private parties may seek to recover from ZOOZ very large, indeterminate
amounts in penalties or monetary damages (including, in some cases, treble or punitive damages) or seek to limit ZOOZ's operations
in some way. Furthermore, due to the complex nature of some of ZOOZ's contracts, in particular regarding projects for creation
of systems and software solutions, there is legal exposure from customers bringing legal action against ZOOZ. These types of lawsuits
could require significant management time and attention or could involve substantial legal liability, adverse regulatory outcomes, and/or
substantial expenses to defend. Often these cases raise complex factual and legal issues and create risks and uncertainties. ZOOZ is
acting and shall act to reduce these risk factors, including by obtaining general liability and professional liability insurance, and
by strict management of its projects. However, no assurances can be given that any proceedings and claims will not have a material adverse
impact on ZOOZ's operating results and financial position or that its established reserves or its available insurance will mitigate
this impact.
ZOOZ's
management team has limited experience managing a U.S. listed public company.
ZOOZ's
management team has limited experience in managing a U.S. publicly traded company, interacting with U.S. public company investors and
complying with the increasingly complex laws pertaining to U.S. listed public companies. ZOOZ's management team may not efficiently
manage their responsibilities following ZOOZ's transition to being a U.S. listed public company subject to significant regulatory
oversight and reporting obligations under the federal securities laws and the continuous scrutiny of securities analysts and investors.
These new obligations and constituents require significant attention from ZOOZ's senior management and could divert their attention
away from the day-to-day management of ZOOZ's business, which could adversely affect ZOOZ's business, financial condition
and operating results.
ZOOZ
is dependent on the services of its key executive and employees.
ZOOZ
is dependent upon retaining employment and support of key executives and employees, for achieving expected business results and advancing
its technology. The leave or unavailability of any of these key members of its management team and key employees for any significant
period of time, or the inability of these individuals to manage or delegate their responsibilities successfully as ZOOZ's business
grows, could adversely affect its business, financial condition and results of operations.
14
ZOOZ
may not be able to obtain financing for its growth or to fund its future capital expenditures, which could negatively impact ZOOZ's
results of operations and financial condition.
In
order to fund future growth of its operations, increased working capital levels or capital expenditures, ZOOZ will be required to use
cash from operations, incur borrowings or raise capital through the sale of debt or additional equity securities. ZOOZ's ability
to obtain additional bank financing or to access the capital markets for any future offerings may be limited by ZOOZ's financial
condition at the time of any such financing or offering, as well as by adverse market conditions resulting from, among other things,
general economic conditions and contingencies and uncertainties that are beyond ZOOZ's control or influence. Any failure to obtain
the funds for its growing needs or capital expenditures could impact ZOOZ's results of operations, financial condition and ZOOZ's
ability to pay dividends.
ZOOZ
may need additional capital in the future to support its operations and, if such additional financing is not available to it, on reasonable
terms or at all, ZOOZ's liquidity and results of operations will be materially and adversely impacted.
Unanticipated
developments in the short term, such as the entry into agreements which require large expenditures or the acquisition of businesses with
negative cash flows, may necessitate additional financing. ZOOZ may seek to raise additional capital through public or private debt or
equity financings in order to:
●
fund
                                            the additional operations and capital expenditures;
●
take
                                            advantage of favorable business opportunities, including geographic expansion or acquisitions
                                            of complementary businesses or technologies;
●
develop
                                            and upgrade ZOOZ's technology infrastructure beyond current plans;
●
develop
                                            new product and service offerings;
●
take
                                            advantage of favorable conditions in capital markets; or
●
respond
                                            to competitive pressures.
The
capital markets, and in particular the public equity market for equipment vendors and for companies related to EV-charging market, have
historically been volatile. It is difficult to predict when, if at all, it will be possible for such companies to raise capital through
these markets. ZOOZ cannot assure you that the additional financing will be available on terms favorable to it, or at all. If ZOOZ issues
additional equity or convertible debt securities, its existing shareholders may experience substantial dilution.
ZOOZ
expects to incur research and development costs and devote significant resources to developing new products, which could significantly
reduce ZOOZ's profitability and may never result in revenue to ZOOZ.
ZOOZ's
future growth depends on penetrating new markets, adapting existing products to new applications and customer requirements, and introducing
new products that achieve market acceptance. ZOOZ anticipates that it will incur significant research and development costs in the future
as part of its efforts to design, develop, manufacture and introduce new products and enhance existing products. ZOOZ's research
and development expenses were $4.2 million and $4.9 million during the fiscal years ended December 31, 2022, and 2023, respectively,
and are likely to grow in the future. Further, ZOOZ's research and development efforts may not produce successful results, and
ZOOZ's new products may not achieve market acceptance, may not create additional revenue or may not become profitable.
If
ZOOZ becomes subject to material amount of tax in the jurisdictions in which it operates, its net income and cash flow would decrease.
ZOOZ's
business is affected by taxes imposed on the purchase and sale of the components of ZOOZ's systems and the sale of its products
in various jurisdictions in which it operates from time to time. These taxes include sales, excise, goods and services taxes, value-added
taxes, and other taxes. ZOOZ does not currently pay a material amount of tax in any jurisdiction in which ZOOZ operates. As a result
of changes in tax laws or the application by tax authorities of these laws or its failure to comply with tax laws or otherwise, ZOOZ
may become liable for an increased amount of tax in any jurisdiction. An increased liability for taxes would decrease ZOOZ's net
income and cash flow.
Risks
Related to Intellectual Property, Information Technology, Data Privacy and Cybersecurity
ZOOZ's
business may be adversely affected if ZOOZ is unable to protect its technology and intellectual property from unauthorized use by third
parties.
ZOOZ's
success depends, in part, on its ability to protect its core technology and intellectual property. To accomplish this, ZOOZ relies on,
and plans to continue relying on, a combination of patents, trade secrets (including know-how), employee and third-party nondisclosure
agreements, copyright, trademarks, intellectual property licenses and other contractual rights to retain ownership of, and protect, its
technology. Failure to adequately protect ZOOZ's technology and intellectual property could result in competitors offering similar
products, potentially resulting in the loss of some of ZOOZ's competitive advantage and a decrease in revenue which would adversely
affect ZOOZ's business, prospects, financial condition and operating results.
15
Although
ZOOZ's patent applications were approved in certain jurisdictions, third parties may challenge their validity, enforceability,
or scope, which may result in such patents being narrowed, found unenforceable, or invalidated. Furthermore, even if they are unchallenged,
ZOOZ's patents may not adequately protect its intellectual property or products and provide exclusivity for ZOOZ's new products
or prevent others from designing around ZOOZ's claims. Furthermore, there is no guarantee that third parties will not infringe
or misappropriate ZOOZ's patents or similar proprietary rights. In addition, there can be no assurance that ZOOZ will not have
to pursue litigation against other parties to assert its rights.
Intellectual
property rights of third parties could adversely affect ZOOZ's ability to commercialize its products, and ZOOZ might be required
to litigate or obtain licenses from third parties in order to develop or market its product candidates. Such litigation or licenses could
be costly or not available on commercially reasonable terms and may prevent or delay ZOOZ's development and commercialization efforts.
It
is inherently difficult to conclusively assess ZOOZ's freedom to operate without infringing on third-party rights. ZOOZ's
competitive position may be adversely affected if existing patents or patents resulting from patent applications issued to third parties
or other third-party intellectual property rights are held to cover ZOOZ's products or elements thereof, or ZOOZ's manufacturing
or uses relevant to its development plans. In such cases, ZOOZ may not be able to develop or commercialize products or services or its
product candidates (and any relevant services) unless it successfully pursues litigation to nullify or invalidate the third-party intellectual
property right concerned or enter into a license agreement with the intellectual property right holder, if available on commercially
reasonable terms.
There
may also be pending patent applications that if they result in issued patents, could be alleged to be infringed by ZOOZ's products.
If such an infringement claim should be brought and be successful, ZOOZ may be required to pay substantial damages, be forced to abandon
its new products, or seek a license from any patent holders.
In
the event of a successful claim of infringement against ZOOZ, ZOOZ may have to pay substantial damages, including treble damages and
attorneys' fees for willful infringement, pay royalties, redesign its infringing products or services, or obtain one or more licenses
from third parties, which may be impossible or require substantial time and monetary expenditure. Thus, ZOOZ cannot guarantee that it
will be able to successfully settle or otherwise resolve such infringement claims. If ZOOZ is unable to successfully settle future claims
on terms acceptable to it, ZOOZ may be required to engage in or continue costly, unpredictable, and time-consuming litigation and may
be prevented from or experience substantial delays in pursuing the development of and/or marketing its new products or services. If ZOOZ
fails in any such dispute, in addition to being forced to pay damages, it may be temporarily or permanently prohibited from commercializing
new products or services that are held to be infringing. ZOOZ might, if possible, also be forced to redesign new products so that it
no longer infringes third-party intellectual property rights. Any of these events, even if ZOOZ were ultimately to prevail, could require
ZOOZ to divert substantial financial and management resources that it would otherwise be able to devote to its business.
In
addition to patented technology, ZOOZ relies on unpatented proprietary technology, trade secrets, designs, experiences, work flows, data,
processes, software and know-how.
ZOOZ
relies on proprietary information (such as trade secrets, designs, experiences, work flows, data, know-how and confidential information)
to protect intellectual property that may not be patentable or subject to copyright, trademark, trade dress or service mark protection,
or that ZOOZ believes is best protected by means that do not require public disclosure. ZOOZ generally seeks to protect this proprietary
information by entering into confidentiality agreements, or consulting, services or employment agreements that contain non-disclosure
provisions with its employees, consultants, customers, contractors and third parties. However, ZOOZ may fail to enter into the necessary
agreements, and even if entered into, such agreements may be breached or may otherwise fail to prevent disclosure, third-party infringement
or misappropriation of ZOOZ's proprietary information, may be limited as to their term and may not provide adequate remedies in
the event of unauthorized disclosure or use of proprietary information. ZOOZ has limited control over the protection of trade secrets
used by its current or future manufacturing counterparties and suppliers and could lose future trade secret protection if any unauthorized
disclosure of such information occurs. In addition, ZOOZ's proprietary information may otherwise become known or be independently
developed by its competitors or other third parties. To the extent that ZOOZ's employees, consultants, customers, contractors,
advisors and other third parties use intellectual property owned by others in their work for it, disputes may arise as to the rights
in related or resulting know-how and inventions. Costly and time-consuming litigation could be necessary to enforce and determine the
scope of ZOOZ's proprietary rights, and failure to obtain or maintain protection for ZOOZ's proprietary information could
adversely affect its competitive business position. Furthermore, laws regarding trade secret rights in certain markets where ZOOZ operates
may afford little or no protection to its trade secrets.
16
ZOOZ's
technology has had, and in the future could have, undetected defects, design or manufacturing errors or bugs in hardware or software,
which could negatively affect the functionality and reliability of ZOOZ's product, including the product's safety, which
could ultimately have an adverse effect on the market adoption of ZOOZ's product, damage ZOOZ's reputation with current or
prospective customers, and/or expose ZOOZ to product liability and other claims that could materially and adversely affect ZOOZ's
business.
ZOOZ's
technology has had, and in the future could have, undetected defects, design or manufacturing errors, long-term fatigue effects, and/or
errors or bugs in hardware or software, which could negatively affect ZOOZ's device functionality, reliability and safety, in a
manner that, in extreme situations, could potentially lead to bodily or property damage. Such extreme failures may include mechanical
failure of a high-velocity rotating heavy-mass (contained within the product's integrated flywheels), as well as electrification,
due to insulation failure of the product being a high-voltage, high-power electrical device and other failures due to the complexity
of such highly integrated device. Such failures could have an adverse effect on the market adoption of ZOOZ's product, harm the
reliability thereof, damage ZOOZ's reputation with current or prospective customers, and/or expose ZOOZ to product liability and
other claims that could materially and adversely affect ZOOZ's business.
Any
insurance that ZOOZ carries may not be sufficient or it may not apply to all situations. Similarly, to the extent that such malfunctions
are related to components obtained from third-party vendors, such vendors may not assume responsibility for such malfunctions.
Any
insurance coverage or indemnification obligations of suppliers may not adequately cover all such claims or cover only a portion of such
claims. A successful product liability, warranty, or other similar claim could have an adverse effect on ZOOZ's business, operating
results and financial condition. In addition, even claims that ultimately are unsuccessful could result in expenditure of funds in litigation,
divert management's time and other resources and cause reputational harm.
ZOOZ
expects to grant some of its customers a warranty for the kinetic storage system and in particular a long-term warranty for the flywheels.
ZOOZ is examining the robustness of the design, the quality of the raw materials and the manufacturing processes of the flywheels, and
their effect on reliability and safety of the flywheels throughout the expected life of the product. ZOOZ's product readiness reliability
is still to be proven; the product may be subject to risks relating to the relatively early stage of the product's use in the market.
If ZOOZ will have to bear the costs of repairing or replacing some of the storage systems at considerable costs exceeding ZOOZ's
existing insurance amounts, ZOOZ may incur substantial expenses.
ZOOZ's
use of open-source software under license terms that interfere with its proprietary rights could disrupt its business.
ZOOZ's
technology solution includes some software, known as open-source software, which has source code or material that is available to the
public, or open source. Although ZOOZ monitors its use of open-source software, the terms of many open-source licenses to which it is
subject have not been interpreted by U.S. or foreign courts, and there is a risk that such licenses could be construed in a manner that
imposes unanticipated conditions or restrictions on ZOOZ's ability to provide its products to its clients. While ZOOZ monitors
its use of open-source software and tries to ensure that none is used in a manner that would require it to disclose its source code or
that would otherwise breach the terms of an open-source agreement, such use could inadvertently occur. In the future, ZOOZ could be required
to seek licenses from third parties in order to continue offering its products, which licenses may not be available on terms that are
acceptable to ZOOZ, or at all. Alternatively, ZOOZ may need to re-engineer its products or discontinue use of portions of the functionality
provided by its products. In addition, the terms of open-source software licenses may require ZOOZ to provide software that it develops
using such software to others on unfavorable license terms. ZOOZ may be required to release its proprietary source code, pay damages
for breach of contract, discontinue sales in the event re-engineering cannot be accomplished on a timely basis or take other remedial
action that may divert resources away from its development efforts. ZOOZ's inability to use third party software could result in
disruptions to its business, or delays in the development of future offerings or enhancements of existing offerings, which could impair
ZOOZ's business.
If
ZOOZ fails to maintain adequate security and supporting infrastructure as ZOOZ scales the deployment of its products, ZOOZ may experience
outages and disruptions of its services which could harm ZOOZ's brand and reputation and negatively impact ZOOZ's revenue
and results of operations.
As
ZOOZ is operating to grow its business, ZOOZ expects to continue investing in technology services, hardware and software, including data
centers, network services, storage and database technologies. Creating the appropriate support for ZOOZ's solution, including ZOOZ's
computational infrastructure, is expensive and complex, and ZOOZ's execution could result in inefficiencies or operational failures
and increased vulnerability to cyber-attacks, which, in turn, could diminish the quality of ZOOZ's services and performance for
advertisers. The steps that ZOOZ may take to increase the reliability, integrity and security of its systems as they scale may be expensive
and may not prevent system failures or unintended vulnerabilities resulting from the increasing number of persons with access to its
systems, complex interactions within ZOOZ's solution and the increasing number of connections with third party partners and vendors'
technology. Operational errors or failures or successful cyber-attacks could damage ZOOZ's reputation and result in loss of current
and new advertisers and other business partners, which could harm ZOOZ's business.
17
ZOOZ's
business practices with respect to data could give rise to liabilities or reputational harm as a result of governmental regulation, legal
requirements or industry standards relating to consumer privacy and data protection.
In
the course of providing ZOOZ's services, ZOOZ transmits and stores information related to ZOOZ's clients and their use of
its products, although ZOOZ does not generally store individual personal identifying information. Federal, State and international laws
and regulations can govern the collection, use, retention, sharing and security of data that ZOOZ collects across its systems. ZOOZ strives
to comply with all applicable laws, regulations, policies and legal obligations relating to privacy and data protection. However, it
is possible that these requirements may be interpreted and applied in a manner that is inconsistent from one jurisdiction to another
and may conflict with other rules or ZOOZ's practices. Any failure, or perceived failure, by ZOOZ to comply with U.S. federal,
state, or international laws, including laws and regulations regulating privacy, data security, or consumer protection, could result
in proceedings or actions against ZOOZ by governmental entities or others. ZOOZ may also be contractually liable to indemnify and hold
harmless ZOOZ's clients from the costs or consequences of inadvertent or unauthorized disclosure of data that ZOOZ stores or handles
as part of providing ZOOZ's services.
As
ZOOZ is working to expand its operations globally, compliance with regulations that differ from country to country may also impose substantial
burdens on ZOOZ's business. In particular, the European Union has traditionally taken a broader view as to what is considered personal
information and has imposed greater obligations under data privacy regulations. In addition, individual EU member countries have had
discretion with respect to their interpretation and implementation of the regulations, which has resulted in variation of privacy standards
from country to country. Complying with any new regulatory requirements could force ZOOZ to incur substantial costs or require ZOOZ to
change ZOOZ's business practices in a manner that could compromise its ability to effectively pursue ZOOZ's growth strategy.
ZOOZ
is subject to complex and evolving laws, regulations, rules, standards and contractual obligations regarding data privacy and cybersecurity,
which can increase the cost of doing business, compliance risks and potential liability.
In
the ordinary course of ZOOZ's business, ZOOZ collects, uses, transfers, stores, maintains and otherwise processes certain sensitive
and other personal information regarding ZOOZ's employees, and contact information of ZOOZ's customers and service providers,
that is subject to complex and evolving laws, regulations, rules, standards and contractual obligations regarding data privacy and cybersecurity.
Ensuring that ZOOZ's collection, use, transfer, storage, maintenance and other processing of personal information complies with
applicable laws, regulations, rules, standards and contractual obligations regarding data privacy and cybersecurity in relevant jurisdictions
can increase operating costs, impact the development of new systems, and reduce operational efficiency. Global legislation, enforcement,
and policy activity in this area is rapidly expanding and creating a complex regulatory compliance environment. Any actual or perceived
mishandling or misuse of the personal information by ZOOZ or by a third party with which ZOOZ is affiliated, including payrolls providers
and other service providers that have access to sensitive and other personal information, could result in litigation, regulatory fines,
penalties or other sanctions, damage to ZOOZ's reputation, disruption of ZOOZ's business activities, and significantly increased
business and cybersecurity costs or costs related to defending legal claims.
In
the United States, numerous federal, state, and local laws and regulations, including federal health information privacy laws, state
data breach notification laws, and federal and state consumer protection laws, that govern the collection, use, disclosure and protection
of personal data may apply to our operations. For example, the Controlling the Assault of Non-Solicited Pornography and Marketing Act
of 2003 ("
CAN-SPAM
") imposes specific requirements on ZOOZ's correspondence with subscribers for email communication.
Additionally, laws in all 50 states require businesses to provide notice to parties whose personally identifiable information has been
disclosed as a result of a data breach. The laws are not consistent, and compliance in the event of a widespread data breach is costly.
Furthermore,
California enacted the California Consumer Privacy Act (the "
CCPA
"), which provides for civil penalties for violations,
as well as a private right of action for data breaches. The CCPA, as amended requires businesses to provide specific disclosures in privacy
notices and honor requests of California residents (including consumers, business representatives, and employees) to exercise certain
privacy rights. The CCPA provides for fines of up to $7,500 per intentional violation and allows private litigants affected by certain
data breaches to recover significant statutory damages. Although the CCPA exempts some data processed in the context of clinical trials,
the CCPA increases compliance costs and potential liability with respect to other personal data that ZOOZ may maintain about California
residents. Other states, such as Virginia and Colorado, have also passed comprehensive privacy laws, and similar laws are being considered
in several other states, as well as at the federal and local levels. These developments further complicate compliance efforts, and increase
legal risk and compliance costs for ZOOZ.
18
Additionally,
an increasing number of foreign data protection laws may also apply to personal data obtained from individuals outside of the United
States. For example, the European Union's General Data Protection Regulation (the "
GDPR
") introduced new data
protection requirements in the EU, as well as potential fines for noncompliant companies of up to the greater of €20 million or
4% of annual global revenue, temporary or definitive bans on data processing, and other corrective actions. Additionally, private litigation
related to processing of personal data can be brought under the GDPR by classes of data subjects or consumer protection organizations
authorized at law to represent their interests.
In
addition, ZOOZ is also subject to the Israeli Privacy Protection Law 5741-1981 and the regulations promulgated thereunder (the "
PPL
"),
including the Israeli Privacy Protection Regulations (Data Security) 2017, imposing obligations with respect to the manner personal data
is processed, maintained, transferred, disclosed, accessed and secured, as well as the guidelines of the Israeli Privacy Protection Authority.
In this respect, the PPL may require ZOOZ to adjust certain data protection and data security practices, information security measures,
certain organizational procedures, applicable positions and other technical and organizational security measures. Failure to comply with
the PPL and with guidelines issued by the Israeli Privacy Protection Authority, may expose ZOOZ to administrative fines, civil claims
(including class actions) and in certain cases criminal liability.
Furthermore,
Europe and other jurisdictions have enacted data localization laws and cross-border personal data transfer laws, which could make it
more difficult to transfer information across jurisdictions (such as transferring or receiving personal data that originates in the European
Economic Area). In particular, the European Economic Area (EEA) and the United Kingdom (U.K.) have significantly restricted the transfer
of personal data to the United States and other countries whose privacy laws it generally believes are inadequate. Although there are
currently various mechanisms that may be used to transfer personal data from the EEA and U.K. to the United States in compliance with law,
such as the EEA standard contractual clauses, the U.K.'s International Data Transfer Agreement / Addendum, and the EU-U.S. Data Privacy
Framework and the U.K. extension thereto (which allows for transfers to relevant U.S.-based organizations who self-certify compliance and
participate in the Framework), existing mechanisms that may facilitate cross-border personal data transfers may change, be challenged
or be invalidated, and there is no assurance that ZOOZ can satisfy or rely on these measures to lawfully transfer personal data to the
United States. If ZOOZ cannot implement a valid compliance mechanism for cross-border data transfers, it could experience material adverse
effects.
Further,
while ZOOZ strives to publish and prominently display privacy policies that are accurate, comprehensive, and compliant with applicable
laws, regulations, rules and industry standards, ZOOZ cannot ensure that its privacy policies and other statements regarding ZOOZ's
practices will be sufficient to protect ZOOZ from claims, proceedings, liability or adverse publicity relating to data privacy or cybersecurity.
Although ZOOZ endeavors to comply with its privacy policies, ZOOZ may at times fail to do so or be alleged to have failed to do so. The
publication of ZOOZ's privacy policies and other documentation that provide promises and assurances about privacy and cybersecurity
can subject ZOOZ to potential federal or state action if they are found to be deceptive, unfair, or misrepresentative of ZOOZ's
actual practices.
Any
failure or perceived or inadvertent failure by ZOOZ to comply with ZOOZ's privacy policies, or existing or new laws, regulations,
rules, standards or contractual obligations, or any compromise of security that results in unauthorized access to, or unauthorized loss,
destruction, use, modification, acquisition, disclosure, release or transfer of personal information, may result in substantial costs,
time and other resources, orders to stop or modify the alleged non-compliant activity, proceedings or actions against ZOOZ by governmental
entities or others, legal liability, audits, regulatory inquiries, governmental investigations, enforcement actions, claims, fines, judgments,
awards, penalties, sanctions and costly litigation (including class actions). Any of the foregoing could harm ZOOZ's reputation,
distract ZOOZ's management and technical personnel, increase ZOOZ's costs of doing business, adversely affect the demand
for ZOOZ's systems, and ultimately result in the imposition of liability, any of which could have a material adverse effect on
ZOOZ's business, financial condition and results of operations.
Commercial
security risks, including security breaches, identity theft, service disrupting attacks and viruses, could harm ZOOZ's reputation
and the conduct of ZOOZ's business, which could have a material adverse effect on ZOOZ's financial results.
A
fundamental requirement for online-connected commerce and communications is the secure storage and transmission of confidential information
over public networks. Although ZOOZ has developed and uses systems and processes that are designed to protect customer information and
prevent fraudulent credit card transactions and other security breaches, ZOOZ's security measures may not prevent security breaches
or identity theft that could harm ZOOZ's reputation and business. ZOOZ relies on encryption and authentication technology to provide
the security and authentication to effect secure transmission of confidential information, including customer credit card numbers. Advances
in computer capabilities, new discoveries in the field of cryptography or other developments may result in a compromise or breach of
the technology used by ZOOZ to protect transaction data. In addition, any party who can illicitly obtain a user's password could
access the user's transaction data. An increasing number of websites have reported breaches of their security. Any compromise of
ZOOZ's security could damage ZOOZ's reputation and expose ZOOZ to a risk of litigation and possible liability. The coverage
limits of ZOOZ insurance policies may not be adequate to reimburse ZOOZ for losses caused by security breaches.
19
Additionally,
ZOOZ's servers are vulnerable to computer viruses, physical or electronic break-ins, and similar disruptions, and ZOOZ may experience
"denial-of-service" type attacks on ZOOZ's system that may make all or portions of its websites unavailable for periods
of time. ZOOZ may need to expend significant resources to protect against security breaches or to address problems caused by breaches.
Disruptions in ZOOZ's services and damage caused by viruses and other attacks could cause a loss of user confidence in ZOOZ systems
and services, which could lead to reduced usage of ZOOZ's products and services and materially adversely affect ZOOZ's business
and financial results.
Defects,
errors or other performance problems in ZOOZ's software or hardware, or the third-party software or hardware on which ZOOZ rely,
could harm ZOOZ's reputation, result in significant costs to ZOOZ, impair ZOOZ's ability to sell ZOOZ's systems and
subject ZOOZ to substantial liability.
ZOOZ's
software and hardware, and those of third parties on which ZOOZ rely, is complex and may contain defects or errors when implemented or
when new functionality is released, as ZOOZ may modify, enhance, upgrade and implement new systems, procedures and controls to reflect
changes in ZOOZ's business, technological advancements and changing industry trends. Despite ZOOZ's testing, from time-to-time
ZOOZ has discovered, and may in the future discover, defects or errors in its software and hardware. Any performance problems or defects
in ZOOZ's software or hardware, or those of third parties on which ZOOZ rely, could materially and adversely affect ZOOZ's
business, financial condition and results of operations. Defects, errors or other similar performance problems or disruptions, whether
in connection with day-to-day operations or otherwise, could be costly for ZOOZ, damage ZOOZ's customers' businesses, harm
ZOOZ's reputation and result in reduced sales or a loss of, or delay in, the market acceptance of ZOOZ's systems. In addition,
if ZOOZ has any such errors, defects or other performance problems, ZOOZ's clients could seek to terminate their contracts, delay
or withhold payment or make claims against ZOOZ. Any of these actions could result in liability, lost business, increased insurance costs,
difficulty in collecting accounts receivable, costly litigation or adverse publicity, which could materially and adversely affect ZOOZ's
business, financial condition and results of operations.
ZOOZ
relies on its information systems to conduct its business, and failure to protect these systems against security breaches could adversely
affect ZOOZ's business and results of operations. Additionally, if these systems fail or become unavailable for any significant
period, ZOOZ's business could be harmed.
ZOOZ
relies on its computer systems and network infrastructure across its operations. The safety and security and efficient operation of ZOOZ's
business, including processing, transmitting and storing electronic and financial information, are dependent on computer hardware and
software systems, which are increasingly vulnerable to security breaches and other disruptions. Any significant interruption or failure
of ZOOZ's information systems or any significant breach of security could adversely affect ZOOZ's business and results of
operations.
ZOOZ
relies on industry accepted security measures and technology to securely maintain confidential and proprietary information maintained
on ZOOZ's information systems. However, these measures and technology may not adequately prevent security breaches. The technology
and other controls and processes designed to secure ZOOZ's confidential and proprietary information, detect and remedy any unauthorized
access to that information were designed to obtain reasonable, but not absolute, assurance that such information is secure and that any
unauthorized access is identified and addressed appropriately. Such controls may in the future fail to prevent or detect, unauthorized
access to ZOOZ's confidential and proprietary information. In addition, the foregoing events could result in violations of applicable
privacy and other laws. If confidential information is inappropriately accessed and used by a third party or an employee for illegal
purposes, ZOOZ may be responsible to the affected individuals for any losses they may have incurred as a result of misappropriation.
In such an instance, ZOOZ may also be subject to regulatory action, investigation or liable to a governmental authority for fines or
penalties associated with a lapse in the integrity and security of ZOOZ's information systems.
ZOOZ's
operations and business administration could be targeted by individuals or groups seeking to sabotage or disrupt such systems and networks,
or to steal data, and these systems may be damaged, shutdown or cease to function properly (whether by planned upgrades, force majeure,
telecommunications failures, hardware or software break-ins or viruses, other cyber-security incidents or otherwise. The threats to ZOOZ's
information systems are constantly evolving and have become increasingly complex and sophisticated. Furthermore, such threats change
frequently and are often not recognized or detected until after they have been launched, and therefore, ZOOZ may be unable to anticipate
these threats and may not become aware in a timely manner of such a security breach, which could exacerbate any damage ZOOZ experiences.
20
ZOOZ
may be required to expend significant capital and other resources to protect against and remedy any potential security breaches and their
consequences. A cyber-attack could result in significant expenses to investigate and repair security breaches or system damages and could
lead to litigation, fines, other remedial action, heightened regulatory scrutiny and diminished customer confidence. In addition, ZOOZ's
remediation efforts may not be successful and ZOOZ may not have adequate insurance to cover these losses.
The
unavailability of the information systems or the failure of these systems to perform as anticipated for any reason could disrupt ZOOZ's
business and could have a material adverse effect on ZOOZ's business, results of operations, cash flows and financial condition.
Risks
Related to Customers
Failure
to effectively expand ZOOZ's sales and marketing capabilities could harm ZOOZ's ability to increase ZOOZ's customer
base and achieve broader market acceptance of ZOOZ's products.
ZOOZ's
ability to effectively expand ZOOZ's sales and marketing operations and activities will likely have a significant impact on ZOOZ's
ability to expand ZOOZ's customer base, gain broader market acceptance, grow revenue, and achieve and sustain profitability. Sales
and marketing expenses represent a significant percentage of ZOOZ's total revenue, and ZOOZ's operating results will likely
suffer if sales and marketing expenditures do not contribute significantly to increasing revenue.
ZOOZ
is substantially dependent on ZOOZ's direct sales force to obtain new customers. ZOOZ plans to continue to expand ZOOZ's
direct sales force both domestically and internationally, but ZOOZ may not be able to recruit and hire a sufficient number of sales personnel,
which may adversely affect ZOOZ's ability to expand ZOOZ's sales capabilities. Especially in new sales territories, new hires
require extensive training and time before achieving full productivity. Recent hires and planned hires may not become as productive as
quickly as anticipated, and ZOOZ may be unable to hire or retain sufficient numbers of qualified individuals. It is also costly and time-consuming
to hire sales personnel in new countries, requiring additional set up and upfront costs that may be disproportionate to the initial revenue
expected. There is significant competition for direct sales personnel with the strong sales skills and technical knowledge which may
increase the risk of not being able to retain the sales personnel ZOOZ recruit and train.
ZOOZ's
ability to achieve significant revenue growth in the future will depend, in large part, on ZOOZ's success in recruiting, training,
incentivizing and retaining a sufficient number of qualified direct sales personnel, and that they attain desired productivity levels
within a reasonable period of time. ZOOZ's business will be harmed if continuing investment in ZOOZ's sales and marketing
capabilities does not generate a significant increase in revenue.
Failure
to expand ZOOZ's customer base would have a material adverse effect on ZOOZ's results of operations and financial condition.
While
ZOOZ expects to significantly diversify ZOOZ's customer base in the near future, historically ZOOZ had a small customer base comprising
a significant portion of ZOOZ commercial open orders. If ZOOZ is unable to sufficiently diversify ZOOZ's customer base, ZOOZ will
remain subject to significant risks associated with a highly concentrated customer base.
This
concentration exposes ZOOZ's business, financial condition and operating results to a number of risks, including the following:
●
In
                                            a highly concentrated business environment, ZOOZ may not be able to find other sources of
                                            revenue if particular customers do not place an order, delay or cancel an order.
●
As
                                            a result of this concentrated customer base, single customers represent a greater portion
                                            of ZOOZ's sales and, consequently, have greater commercial negotiation leverage. Occasionally,
                                            customers may request and receive pricing, payment, intellectual property-related or other
                                            commercial terms that negatively affect ZOOZ's business due to their aggressive policies
                                            regarding engaging alternative, second-source suppliers for the products ZOOZ offers. Any
                                            of these changes could negatively impact ZOOZ's prices, customer orders, revenues,
                                            and gross margins.
●
The
                                            highly concentrated business environment also increases ZOOZ's exposure to risks related
                                            to ZOOZ's customers' financial condition. If ZOOZ's customers experience
                                            liquidity issues in the future, ZOOZ may be required to incur additional credit losses on
                                            receivables owed by them. In addition, customers with liquidity issues may be forced to reduce
                                            purchases of ZOOZ's equipment, delay deliveries of ZOOZ's products, discontinue
                                            operations or may be acquired by one of ZOOZ's customers, and in either case such events
                                            would have the effect of further consolidating ZOOZ's customer base.
Any
of these factors could have a material adverse effect on ZOOZ's business, financial condition and operating results.
21
Customer
relationships with early-stage companies may present more risks than with established companies.
A
significant portion of ZOOZ's current and potential customer and partner base is comprised of early-stage companies. Customer relationships
with early-stage companies are particularly risky since these companies lack extensive operating experience. As a result, there is less
demonstration of market acceptance of their services, making it harder for us to anticipate needs and requirements than with established
customers. In addition, funding for such companies may be more difficult to obtain and these customer relationships may not continue
or materialize to the extent ZOOZ plans or previously experienced. Further, supply chain risks arising from COVID-19 policies or geopolitical
turmoil may have a more significant impact on early-stage customers than with established customers. This may result in additional credit
risk, including but not limited to the collection of trade accounts receivables and payment for their inventory.
Customer
relationships with a company without a local presence in the customer territory may present more risks than with companies with a local
presence.
ZOOZ
may seek to establish customer relationships and expand its business in regions where ZOOZ does not have a local physical presence or
operational footprint. Despite providing opportunities for growth, such expansion comes with inherent risks and challenges associated
with operating remotely in new markets.
Without
a local presence, providing prompt and effective customer service may be more challenging. Time zone differences, language barriers,
and delays in response times may lead to dissatisfaction among customers, potentially affecting ZOOZ's reputation and future business
prospects. Each region has unique market characteristics, preferences, and regulations. In the absence of a physical presence in the
customer territory, ZOOZ may be unable to fully understand and cater to their specific needs. Operating in different jurisdictions often
requires adherence to local regulations and compliance standards. Lack of local presence might lead to inadvertent non-compliance, legal
issues, or challenges navigating complex regulatory environments.
In
addition, companies with a local presence often have an advantage in building stronger relationships with customers, conducting face-to-face
meetings, and offering tailored solutions. This competitive disadvantage could impact ZOOZ's ability to secure contracts and compete
effectively with local competitors.
Risks
Related to Laws and Regulations
ZOOZ's
global business requires ZOOZ to comply with laws and regulations in countries across the world and exposes ZOOZ to international business
risks that could adversely affect ZOOZ's business.
ZOOZ
is subject to environmental, labor, health, safety and other laws and regulations in Israel, the United States and other jurisdictions
in which ZOOZ operates. ZOOZ is also required to obtain environmental permits and other authorizations or licenses from governmental
authorities for certain of ZOOZ's operations and have to protect ZOOZ's intellectual property worldwide. In the jurisdictions
where ZOOZ operates, ZOOZ needs to comply with differing standards and varying practices of regulatory, tax, judicial and administrative
bodies. ZOOZ's field is developing and, accordingly, so is its regulatory scheme. It is likely that the regulatory schemes in which
ZOOZ operates will continue to change and develop, which may affect ZOOZ's operations. ZOOZ may face significant costs related
to new regulations regarding flywheels energy storage shipping, installation and usage.
The
business environment is also subject to many uncertainties, including the following international business risks:
●
negative
                                            economic developments in economies around the world and the instability of governments, currently
                                            for example the sovereign debt situation in certain European countries;
●
Social
                                            and political instability in a number of countries around the world, including the recent
                                            developments in the Middle East, and also including the threat of war, terrorist attacks
                                            in the United States or in Europe, the Middle East and Africa, epidemics or civil unrest;
●
pandemics
                                            or national and international environmental, nuclear or other disasters, which may adversely
                                            affect ZOOZ's workforce, as well as its local suppliers and customers;
●
adverse
                                            changes in governmental policies, especially those affecting trade and investment;
●
foreign
                                            currency exchange, in particular with respect to the U.S. dollar, and transfer restrictions;
                                            and
●
threats
                                            that ZOOZ's operations or property could be subject to nationalization and expropriation.
No
assurance can be given that ZOOZ has been or will be at all times in complete compliance with the laws and regulations to which ZOOZ
is subject or that ZOOZ has obtained or will obtain the permits and other authorizations or licenses that ZOOZ needs. If ZOOZ violates
or fails to comply with laws, regulations, permits and other authorizations or licenses, ZOOZ could be fined or otherwise sanctioned
by regulators. In addition, if any of the international business risks were to materialize or become worse, they could also have a material
adverse effect on ZOOZ's business, financial condition and results of operations.
22
ZOOZ
may be subject to securities litigation, which is expensive and could divert management attention.
In
the past, companies that have experienced volatility in the market price of their shares have been subject to securities class action
litigation. ZOOZ may be the target of this type of litigation in the future. Litigation of this type could result in substantial costs
and diversion of management's attention and resources, which could seriously hurt ZOOZ's business. Any adverse determination
in litigation could also subject ZOOZ to significant liabilities.
Failure
to comply with the Foreign Corrupt Practices Act, other applicable anti-corruption and anti-bribery laws, and applicable trade control
laws could subject ZOOZ to penalties and other adverse consequences.
ZOOZ
has international operations and a substantial portion of ZOOZ's business, particular with respect to ZOOZ's manufacturing
processes, is conducted outside of the United States. ZOOZ's operations are subject to the U.S. Foreign Corrupt Practices Act (the
"
FCPA
"), as well as the anti-corruption and anti-bribery laws in Israel and in the countries where ZOOZ does business.
The FCPA prohibits covered parties from offering, promising, authorizing or giving anything of value, directly or indirectly, to a "foreign
government official" with the intent of improperly influencing the official's act or decision, inducing the official to act
or refrain from acting in violation of lawful duty, or obtaining or retaining an improper business advantage. The FCPA also requires
publicly traded companies to maintain records that accurately and fairly represent their transactions, and to have an adequate system
of internal accounting controls. In addition, other applicable anti-corruption laws prohibit bribery of domestic government officials,
and some laws that may apply to ZOOZ's operations prohibit commercial bribery, including giving or receiving improper payments
to or from non-government parties, as well as so-called "facilitation" payments. In addition, ZOOZ is subject to U.S. and
other applicable trade control regulations that restrict with whom ZOOZ may transact business, including the trade sanctions enforced
by the U.S. Treasury, Office of Foreign Assets Control.
Though
ZOOZ maintains policies, internal controls and other measures reasonably designed to promote compliance with applicable anticorruption
and anti-bribery laws and regulations, and certain safeguards designed to ensure compliance with U.S. trade control laws, its employees
or agents may nevertheless engage in improper conduct for which ZOOZ might be held responsible. Any violations of these anti-corruption
or trade controls laws, or even allegations of such violations, can lead to an investigation and/or enforcement action, which could disrupt
ZOOZ's operations, involve significant management distraction, and lead to significant costs and expenses, including legal fees.
If ZOOZ, or ZOOZ's employees or agents acting on ZOOZ's behalf, are found to have engaged in practices that violate these
laws and regulations, ZOOZ could suffer fines and penalties, profit disgorgement, injunctions on future conduct, securities litigation,
bans on transacting government business, delisting from securities exchanges and other consequences that may have a material adverse
effect ZOOZ's business, financial condition and results of operations. In addition, ZOOZ's reputation, its net sales or its
share price could be adversely affected if ZOOZ becomes subject of any negative publicity related to actual or potential violations of
anti-corruption, anti-bribery or trade control laws and regulations.
Environmental
and safety laws and regulations may expose us to liability, and such liability and compliance with these laws and regulations may adversely
affect ZOOZ's business.
ZOOZ's
industry is subject to a variety of international, federal, state, local and non-U.S. laws and regulations governing pollution, environmental
protection and occupational health and safety, including those relating to the release, storage, use, discharge, handling, generation,
transportation, disposal, and labeling of, and human exposure to, hazardous and toxic materials, product composition, and the investigation
and cleanup of contaminated sites, including sites ZOOZ currently or formerly owned or operated, due to the release of hazardous materials,
regardless of whether ZOOZ caused such release. ZOOZ is also required to obtain environmental permits from governmental authorities for
certain of its operations. ZOOZ cannot assure you that it has been or will be at all times in complete compliance with such laws, regulations
and permits. Failure to comply with such laws and regulations could subject ZOOZ to civil or criminal costs, obligations, sanctions or
property damage or personal injury claims, or suspension of its facilities' operating permits. In addition, ZOOZ may be strictly
liable for joint and several costs associated with investigation and remediation of sites at which ZOOZ has arranged for the disposal
of hazardous wastes if such sites become contaminated, even if ZOOZ fully comply with applicable environmental laws and regulations.
Compliance with current or future environmental and occupational health and safety laws and regulations could restrict ZOOZ's ability
to expand ZOOZ's business or require us to modify processes or incur other substantial expenses which could harm ZOOZ's business.
In
the event of an incident involving hazardous materials, ZOOZ could be liable for damages and such liability could exceed the amount of
any liability insurance coverage and the resources of ZOOZ's business. In addition, in the event of the discovery of contaminants
or the imposition of clean up obligations for which ZOOZ is responsible, ZOOZ may be required to take remedial or other measures which
could have a material adverse effect on ZOOZ's business, financial condition and results of operations. In response to environmental
concerns, some customers and government agencies impose requirements for the elimination and/or labeling of hazardous substances, such
as lead, in electronic equipment, as well as requirements related to the take-back of products discarded by customers. Environmental
and occupational health and safety laws and regulations have tended to become more stringent over time, causing a need to redesign technologies,
imposing greater compliance costs and increasing risks and penalties associated with violations, which could seriously harm ZOOZ's
business.
23
Scientific
examination of, political attention to and rules and regulations on issues surrounding the existence and extent of climate change may
result in an increase in the cost of production due to increase in the prices of energy and introduction of an energy or carbon tax.
A variety of regulatory developments have been introduced that focus on restricting or managing the emission of carbon dioxide, methane
and other greenhouse gas. Enterprises may need to purchase at higher costs new equipment or raw materials with lower carbon footprints.
These developments and further legislation that is likely to be enacted could affect ZOOZ's operations negatively.
In
addition, there is an increasing focus on corporate environmental, social and governance ("
ESG
") responsibility in
the EV industry. A number of ZOOZ's customers have adopted, or may adopt, procurement policies that include ESG provisions or requirements
that their suppliers should comply with, or they may seek to include such provisions or requirements in their procurement terms and conditions.
An increasing number of investors are also requiring companies to disclose corporate ESG policies, practices and metrics. Legal and regulatory
requirements, as well as investor expectations, on corporate ESG practices and disclosure, can be unpredictable, and may be difficult
and expensive for ZOOZ to comply with, given the complexity of its supply chain and manufacturing. If ZOOZ is unable to comply or are
unable to cause its suppliers or contract manufacturers to comply, with such policies or provisions or meet the requirements of its customers
and its investors, a customer may stop purchasing products from ZOOZ or an investor may sell their shares, and may take legal action
against ZOOZ, which could harm its reputation, revenue and results of operations.
Changes
to tax laws or regulations in Israel, the United States and other jurisdictions expose ZOOZ to tax uncertainties and could adversely
affect ZOOZ's results of operations or financial condition.
As
a multinational business, operating in multiple jurisdiction such as Israel, the United States, and the EU, ZOOZ may be subject to taxation
in several jurisdictions around the world with increasingly complex tax laws, the application of which can be uncertain. Changes to tax
laws or regulations in the jurisdictions in which ZOOZ operates, or in the interpretation of such laws or regulations, could significantly
increase ZOOZ's effective tax rate and reduce its cash flow from operating activities, and otherwise have a material adverse effect
on ZOOZ's financial condition. Since a significant portion of its operations are located in Israel, changes in tax laws or regulations
in Israel could significantly affect ZOOZ's operating results. Further changes in the tax laws of foreign jurisdictions could arise,
in particular, as a result of different initiatives undertaken by the Organization for Economic Co-operation and Development (the "
OECD
").
Any changes in the OECD policy or recommendations, if adopted, could increase tax uncertainty and may adversely affect ZOOZ's provision
for income taxes and increase its tax liabilities. In addition, other factors or events, including business combinations and investment
transactions, changes in the valuation of ZOOZ's deferred tax assets and liabilities, adjustments to taxes upon finalization of
various tax returns or as a result of deficiencies asserted by taxing authorities, increases in expenses not deductible for tax purposes,
changes in available tax credits, changes in transfer pricing methodologies, other changes in the apportionment of its income and other
activities among tax jurisdictions, and changes in tax rates, could also increase ZOOZ's effective tax rate.
ZOOZ
is subject to regular review and audit by Israeli and other foreign tax authorities. Although ZOOZ believe ZOOZ's tax estimates
are reasonable, the authorities in these jurisdictions could review its tax returns and impose additional taxes, interest, linkage and
penalties, and the authorities could claim that various withholding requirements apply to ZOOZ or ZOOZ's subsidiaries or assert
that benefits of tax treaties are not available to ZOOZ or ZOOZ's subsidiaries, any of which could materially affect ZOOZ's
income tax provision, net income, or cash flows in the period or periods for which such determination and settlement is made. ZOOZ may
also be liable for taxes in connection with businesses ZOOZ acquires. ZOOZ's determinations are not binding on any taxing authorities,
and accordingly the final determination in an audit or other proceeding may be materially different than the treatment reflected in ZOOZ's
tax provisions, accruals and returns. An assessment of additional taxes because of an audit could have a material adverse effect on ZOOZ's
business, financial condition, results of operations and cash flows.
Transfer
pricing rules may adversely affect ZOOZ's corporate income tax expense
.
The
jurisdictions in which ZOOZ conducts business have detailed transfer pricing rules, which require contemporaneous documentation establishing
that all transactions with non-resident related parties be priced using arm's length pricing principles. The tax authorities in
these jurisdictions could challenge ZOOZ's related party transfer pricing policies and as a consequence the tax treatment of corresponding
expenses and income. International transfer pricing is an area of taxation that depends heavily on the underlying facts and circumstances
and generally involves a significant degree of judgment. If any of these tax authorities were to be successful in challenging ZOOZ's
transfer pricing policies, ZOOZ may be liable for additional corporate income tax, and penalties and interest related thereto, which
may have a significant impact on ZOOZ's results of operations and financial condition.
24
Proposed
changes to the U.S. tax system, if enacted, could have a material adverse effect on our ongoing liability for U.S. corporate income tax.
The
Biden administration has proposed a number of changes to the U.S. tax system. The proposals include changes to the U.S. corporate income
tax system that would increase U.S. corporate tax rates, impose a corporate minimum book tax, and double the tax rate on and make other
tax changes to GILTI earned by foreign subsidiaries. Additionally, the proposals include change to the anti-inversion rules that prevent
U.S. companies from inverting, including by strengthening the rules to treat a foreign acquiring corporation as a U.S. company based
on a reduced 50% continuing ownership threshold.
Many
aspects of these proposals are unclear or undeveloped. We are unable to predict which, if any, U.S. tax reform proposals will be enacted
into law, and what effects any enacted legislation might have on ZOOZ's liability for U.S. corporate income tax.
Changes
in government trade policies, including the imposition of tariffs and export restrictions, could limit ZOOZ's ability to sell ZOOZ's
products to certain customers or demand from certain customers, which may materially and adversely affect ZOOZ's sales and results
of operations.
The
U.S. government has in the past made public statements indicating possible significant changes in U.S. trade policy and have taken certain
actions that may impact U.S. trade policy, including imposing new or increased tariffs on certain goods imported into the United States.
Since ZOOZ's current products are manufactured outside the United States, such changes, if adopted, could have a disproportionate
impact on ZOOZ's business and make ZOOZ's products more expensive and less competitive in the U.S. market. Furthermore, changes
in U.S. trade policy could trigger retaliatory actions by affected countries, which could impose restrictions on ZOOZ's ability
to do business in or with affected countries or prohibit, reduce or discourage purchases of ZOOZ's products by foreign customers,
leading to increased costs of components contained in ZOOZ's products, increased costs of manufacturing ZOOZ's products,
and higher prices for ZOOZ's products in foreign markets. Changes in, and responses to, U.S. trade policy could reduce the competitiveness
of ZOOZ's products and cause ZOOZ's sales to decline, which could materially and adversely impact ZOOZ's business,
financial condition and results of operations. The U.S. or foreign governments may take administrative, legislative or regulatory action
that could materially interfere with ZOOZ's ability to sell products in certain countries and/or to certain customers, particularly
in China. ZOOZ cannot predict what actions may ultimately be taken with respect to tariffs or trade relations between the United States
and China or other countries, what products may be subject to such actions, or what actions may be taken by the other countries in retaliation.
The institution of trade tariffs both globally and between the United States and China specifically carries the risk of negatively impacting
China's overall economic condition, which could have negative repercussions for ZOOZ's business.
ZOOZ
will be subject to legal and regulatory consequences if ZOOZ does not comply with applicable export control laws and regulations.
Products
developed and manufactured in Israel and other locations are subject to export controls of the applicable nation. Obtaining export licenses
can be difficult, costly and time-consuming and ZOOZ may not always be successful in obtaining necessary export licenses, and ZOOZ's
failure to obtain required import or export approval for ZOOZ's products or limitations on ZOOZ's ability to export or sell
ZOOZ's products imposed by these laws may harm ZOOZ's international and domestic revenues. Noncompliance with these laws
could have negative consequences, including government investigations, penalties and reputational harm. The absence of comparable restrictions
on competitors in other countries may adversely affect ZOOZ's competitive position. Failure to obtain export licenses for ZOOZ's
products or having one or more of its customers be restricted from receiving exports from ZOOZ could significantly reduce ZOOZ's
net sales and materially and adversely affect ZOOZ's business, financial condition and results of operations.
Changing
foreign exchange rates may have an adverse effect on ZOOZ's financial results.
ZOOZ
has operations and assets in Israel and operations in Germany and the U.S. and expects to expand to additional jurisdictions as detailed
elsewhere in this Annual Report. ZOOZ prepares its financial statements in U.S. dollars, but a portion of ZOOZ's expenditures are
denominated in Israeli new shekels and other currencies. ZOOZ therefore must translate its assets, liabilities, revenue and expenses
into U.S. dollars at applicable exchange rates. Consequently, fluctuations in the value of Israeli new shekels and other foreign currencies
relative to the U.S. dollar may negatively or positively affect the value of these items in ZOOZ's financial statements. Additionally,
currency exchange rates have been especially volatile in the recent past, and these currency fluctuations may make it difficult for ZOOZ
to predict its results of operations. To the extent ZOOZ fails to manage ZOOZ's foreign currency exposure adequately, ZOOZ may
suffer losses in the value of ZOOZ's assets, and ZOOZ's business, financial condition, results of operations and cash flows
may be negatively affected.
25
ZOOZ
does not use derivative financial instruments, such as foreign exchange forward contracts, to mitigate the risk of changes in foreign
exchange rates on ZOOZ's balance sheet accounts and forecast cash flows. Moreover, derivative instruments are usually limited in
time and as a result, cannot mitigate currency risks for the longer term. The volatility in the foreign currency markets may make it
challenging to hedge ZOOZ's foreign currency exposures effectively.
The
Committee on Foreign Investment in the United States may delay, prevent, or impose conditions on future investment in ZOOZ.
The
Committee on Foreign Investment in the United States ("
CFIUS
") has authority to review certain direct or indirect
foreign investments in U.S. businesses. CFIUS requires certain foreign investors to make mandatory filings in regards to foreign direct
and indirect investments in the United States known as "covered transactions." Mandatory filing requirements apply to transactions
i) that result in the acquisition of a "substantial interest" of the "U.S. business" by a foreign person in which
the national or subnational governments of a single foreign state (other than an excepted foreign state) have a substantial interest
and the U.S. business collects or maintains "sensitive personal data" of at least one million U.S. citizens; performs certain
functions related to "critical infrastructure;" or produces, designs, tests, manufactures, fabricates, or develops one or
more "critical technologies;" or (ii) where the U.S. business produces, designs, tests, manufactures, fabricates, or develops
one or more critical technologies for which a U.S. export authorization would be required for the export, reexport, transfer (in-country),
or retransfer of such critical technology to the principal place of business (for entities) or the country of nationality (for individuals)
of a person obtaining certain thresholds of voting interest, control, or information rights regarding the U.S. business, all as defined
in the CFIUS regulations.
The
regulation also allows such the parties to voluntarily file a declaration or a longer voluntary CFIUS notice, either of which subject
the investment to a national security review by the U.S. government, in cases where the parties seek to obtain a safe harbor from later
CFIUS intervention or where it is unclear if such a review is otherwise mandatory per the regulation. With respect to transactions that
CFIUS considers presenting unresolved national security concerns, CFIUS has the power to initiate investigations, suspend transactions,
impose mitigation measures, and/or recommend that the President block pending transactions or order divestitures of completed transactions
when national security concerns cannot be mitigated. Where a foreign investment is made without a CFIUS review and a filing was required,
or if CFIUS independently learns of a national security concern related to the transaction, the parties may be subject to penalties,
as described below.
Whether
CFIUS has jurisdiction to review an acquisition or investment transaction depends on, among other factors, the nature and structure of
the transaction, whether the target company is a U.S. business engaged in activities with critical technologies, critical infrastructure
projects or collection or management of sensitive personal data, the level of beneficial ownership and voting interests acquired by foreign
persons, and the nature of any information, control or governance rights received by foreign persons. For example, any investment that
results in "control" of any U.S. business by a foreign person is within CFIUS' jurisdiction. CFIUS' expanded
jurisdiction under the Foreign Investment Risk Review Modernization Act of 2018 and implementing regulations further includes "covered
investments" that do not result in control of a U.S. business by a foreign person but that afford foreign persons certain information
or governance rights in a "TID U.S. Business," that is, a U.S. business that: (i) produces, designs, tests, manufactures,
fabricates, or develops "critical technologies"; (ii) owns or operates certain "critical infrastructure"; and/or
(iii) maintains or collects "sensitive personal data," all as defined in the CFIUS regulations.
As
ZOOZ is organized in the State of Israel with limited operations in the U.S., ZOOZ believes that it should not presently be considered
a U.S. business for CFIUS purposes, unless it were to subsequently engage in commercial business as an entity under U.S. federal and
state law which is a "Covered Transaction" or meets the definition of a TID U.S. Business. If a future particular proposed
investment by ZOOZ in a U.S. business falls within CFIUS' jurisdiction, ZOOZ may determine that it is required to make a mandatory
filing with CFIUS or that it will submit a filing to CFIUS on a voluntary basis or, if a filing is not mandatory, ZOOZ may determine
to proceed with such investment without submitting to CFIUS and risk CFIUS intervention, before or after closing such investment.
Risks
Related to Our Incorporation and Location in Israel
Conditions
in Israel could adversely affect ZOOZ's business
.
ZOOZ
is incorporated under the laws of the State of Israel, and many of ZOOZ's employees, including certain management members, operate
from its offices that are located in Israel. In addition, a substantial number of ZOOZ's officers and directors are residents of
Israel. Accordingly, political, economic, and geo-political conditions in Israel and the surrounding region may directly affect ZOOZ's
business and operations. In recent years, Israel has been engaged in sporadic armed conflicts with certain armed groups in the Gaza Strip,
an Islamist terrorist group that controls the Gaza Strip, with Hezbollah, an Islamist terrorist group that controls large portions of
southern Lebanon, and with Iranian-backed military forces in Syria, as well as direct conflict with Iran.
26
In
addition, Iran has threatened to attack Israel and has launched an air and missile strike on Israel in April, 2024, and may be developing
nuclear weapons. Some of these hostilities were accompanied by missiles being fired from the Gaza Strip against civilian targets in various
parts of Israel, including areas in which ZOOZ's employees are located, and negatively affected business conditions in Israel.
Any hostilities involving Israel, including the recent hostilities between Israel and certain armed groups in the Gaza Strip, Lebanon,
Syria, Yemen and others which has resulted in various attacks on Israel, such as large number of missiles being fired at Israel, including
major cities, such interruptions or curtailments of trade between Israel and its trading partners could adversely affect ZOOZ's
operations and results of operations. To the extent that key employees and potential employees are call up for active duty, ZOOZ's
ability to operate may be impaired.
On
October 7, 2023, the "Swords of Iron" war started between Israel and the terrorist organizations in the Gaza Strip led by
certain armed groups in the Gaza Strip, following a surprise attack on Israel led by certain armed groups in the Gaza Strip that included
massacres, terrorism and crimes against humanity. This war is concentrated in the Gaza Strip which is along the southern region of the
State of Israel, whereas the Hezbollah terrorist organization located in Lebanon and Syria, as well as the Houthis regime in Yemen has
also engaged in hostilities. Israel has responded to the attacks against it with airstrikes and extensive mobilization of reserves. ZOOZ's
factory is located in the city of Lod, which is more than 50 kilometers from the Gaza Strip. ZOOZ's facilities have not sustained
any damage or injury and in accordance with the instructions of the National Emergency Management Authority of Israel, there is no limitation
or denial of access or activity limitation in ZOOZ's facilities. None of ZOOZ's employees were directly harmed as a result
of the war. As of the date of this Annual Report, ZOOZ's operates continuously, although approximately 10% of ZOOZ's employees
were in reserve duty and a significant number of ZOOZ's employees may be recruited again to reserves duty at any time without ZOOZ's
control. ZOOZ has adjusted, and will continue to adjust to the extent necessary, to the security situation in accordance with the directives
of the National Emergency Management Authority. As of the date of this Annual Report, there is no known material impact on ZOOZ's
supply chain, although if the security situation continues, this may harm ZOOZ's production capacity, as well as marketing activities
outside of Israel. As of the date of this Annual Report, given the uncertainties associated with the current Swords of Iron war in Israel,
as well as the duration and scope of this conflict, ZOOZ has made and may be making additional adjustments to its human resources as
well as adopting other expense reduction measures. These adjustments are aimed to enable ZOOZ to continue to focus on its immediate business
goals while continually assessing the ongoing impact of the conflict on its business goals in the medium and long term. At this stage,
ZOOZ is unable to accurately assess the scope of the war's impact. In ZOOZ's estimation, the continuation of the fighting
may have a negative effect on its activities, however at this stage it is unable to anticipate the extent of the impact.
ZOOZ's
commercial insurance does not cover losses that may occur as a result of events associated with war and terrorism. Although the Israeli
government currently covers the reinstatement value of direct damages that are caused by terrorist attacks or acts of war, ZOOZ cannot
assure you that the Israeli government coverage will be maintained or that it will sufficiently cover ZOOZ's potential damages.
Any losses or damages incurred by ZOOZ could have a material adverse effect on its business. Any armed conflicts or political instability
in the region would likely negatively affect business conditions and could harm our results of operations.
Further,
in the past, the State of Israel and Israeli companies have been subject to economic boycotts. Several countries still restrict business
with the State of Israel and with Israeli companies. These restrictive laws and policies may have an adverse impact on ZOOZ's results
of operations, financial condition or the expansion of its business. A campaign of boycotts, divestment, and sanctions has been undertaken
against Israel, which could also adversely affect ZOOZ's business. Actual or perceived political instability in Israel or any negative
changes in the political environment, may individually or in the aggregate adversely affect the Israeli economy and, in turn, ZOOZ's
business, financial condition, results of operations, and prospects.
In
addition, many Israeli citizens are obligated to perform several weeks of annual military reserve duty each year until they reach the
age of 40 (or older, for reservists who are military officers or who have certain occupations) and, in the event of a military conflict,
may be called to active duty. In response to increases in terrorist activity, there have been periods of significant call-ups of military
reservists. It is possible that there will be military reserve duty call-ups in the future. ZOOZ's operations could be disrupted
by such call-ups, which may include the call-up of members of its management. Such disruption could materially adversely affect its business,
prospects, financial condition, and results of operations.
Another
risk for political, social and economic instability in Israel is associated with the extensive changes pursued in 2023 by the current
Israeli government with respect to Israel's judicial system. In response to such developments, individuals, organizations and financial
institutions, both within and outside of Israel, have voiced concerns that the proposed changes may negatively impact the business environment
in Israel including due to reluctance of foreign investors to invest or conduct business in Israel, as well as to increased currency
fluctuations, downgrades in credit rating, increased interest rates, increased volatility in securities markets, and other changes in
macroeconomic conditions. Such proposed changes may also adversely affect the labor market in Israel or lead to political instability
or civil unrest. To the extent that any of these negative developments do occur, or are not adequately handled by the Israeli government,
they may have an adverse effect on ZOOZ's business, ZOOZ's results of operations and ZOOZ's ability to raise additional
funds, if deemed necessary by ZOOZ's management and board of directors, and to attract or retain qualified and skilled "talents"
and personnel. ZOOZ can give no assurance that the political, economic and security situation in Israel will not have a material adverse
impact on ZOOZ's business in the future.
27
ZOOZ
may become subject to claims for remuneration or royalties for assigned service invention rights by its employees, which could result
in litigation and adversely affect its business.
A
significant portion of ZOOZ's intellectual property has been developed by its employees in the course of their employment by ZOOZ.
Under the Israeli Patent Law, 5727-1967 (the "
Patent Law
"), inventions conceived by an employee in the course and
as a result of or arising from his or her employment with a company are regarded as "service inventions", which belong to
the employer, absent a specific agreement between the employee and employer giving the employee service invention rights. The Patent
Law also provides that if there is no such agreement between an employer and an employee, the Israeli Compensation and Royalties Committee
(the "
Compensation and Royalties Committee
"), a body constituted under the Patent Law, will determine whether the
employee is entitled to remuneration for his or her inventions. Case law clarifies that the right to receive consideration for "service
inventions" can be waived by the employee and that in certain circumstances, such waiver does not necessarily have to be explicit.
The Compensation and Royalties Committee will examine, on a case-by-case basis, the general contractual framework between the parties,
using interpretation rules of the general Israeli contract laws. Further, the Compensation and Royalties Committee has not yet determined
one specific formula for calculating this remuneration, but rather uses the criteria specified in the Patent Law.
Although
ZOOZ generally enters into assignment-of-invention agreements with its employees pursuant to which such individuals assign to it all
rights to any inventions created in the scope of their employment or engagement with ZOOZ, ZOOZ may face claims demanding remuneration
in consideration for assigned inventions. As a consequence of such claims, ZOOZ could be required to pay additional remuneration or royalties
to its current and/or former employees, or be forced to litigate such claims, which could negatively affect its business.
Investors'
rights and responsibilities as ZOOZ's shareholders are governed by Israeli law, which differs in some respects from the rights
and responsibilities of shareholders of non-Israeli companies.
ZOOZ
is incorporated under Israeli law and the rights and responsibilities of ZOOZ's shareholders are governed by ZOOZ's amended
and restated articles of association (the "
Articles
"), as may be amended from time to time, and Israeli law. These
rights and responsibilities differ in some respects from the rights and responsibilities of shareholders of U.S. and other non-Israeli
corporations. In particular, a shareholder of an Israeli company has a duty to act in good faith and in a customary manner in exercising
its rights and performing its obligations towards the company and other shareholders and to refrain from abusing its power in the company,
including, among other things, in voting at the general meeting of shareholders on certain matters, such as an amendment to the company's
articles of association, an increase of the company's authorized share capital, a merger of the company and approval of related
party transactions that require shareholder approval. A shareholder also has a general duty to refrain from discriminating against other
shareholders. In addition, a controlling shareholder or a shareholder who knows that it possesses the power to determine the outcome
of a shareholders' vote or to appoint or prevent the appointment of an office holder in the company has a duty to act in fairness
towards the company. These provisions may be interpreted to impose additional obligations and liabilities on ZOOZ's shareholders
that are not typically imposed on shareholders of U.S. corporations.
Provisions
of Israeli law and the Articles may delay, prevent or make undesirable an acquisition of all or a significant portion of
ZOOZ's shares or assets.
Provisions
of Israeli law and the Articles could have the effect of delaying or preventing a change in control and may make it more
difficult for a third-party to acquire us or ZOOZ's shareholders to elect different individuals to ZOOZ's board of directors,
even if doing so would be considered to be beneficial by some of ZOOZ's shareholders, and may limit the price that investors may
be willing to pay in the future for ZOOZ's ordinary shares. Among other things:
●
Israeli
                                            corporate law regulates mergers, requires tender offers for acquisitions of shares above
                                            specified thresholds, requires special approvals for transactions involving directors, officers,
                                            or significant shareholders, and regulates other matters that may be relevant to such types
                                            of transactions. For example, a merger may not be consummated unless at least 50 days have
                                            passed from the date on which a merger proposal is filed by each merging company with the
                                            Israel Registrar of Companies and at least 30 days have passed from the date on which the
                                            shareholders of both merging companies have approved the merger. In addition, a majority
                                            of each class of securities of the target company must approve a merger. Moreover, a tender
                                            offer for all of a company's issued and outstanding shares can only be completed if
                                            the acquirer receives positive responses from the holders of at least 95% of the issued share
                                            capital. Completion of the tender offer also requires approval of a majority of the offerees
                                            that do not have a personal interest in the tender offer, unless, following consummation
                                            of the tender offer, the acquirer would hold at least 98% of the Company's outstanding
                                            shares. Furthermore, the shareholders, including those who indicated their acceptance of
                                            the tender offer, may, at any time within six months following the completion of the tender
                                            offer, claim that the consideration for the acquisition of the shares does not reflect their
                                            fair market value, and petition an Israeli court to alter the consideration for the acquisition
                                            accordingly, unless the acquirer stipulated in its tender offer that a shareholder that accepts
                                            the offer may not seek such appraisal rights, and the acquirer or the company published all
                                            required information with respect to the tender offer prior to the tender offer's response
                                            date;
28
●
Israeli
                                            corporate law requires special approvals for certain transactions involving directors, officers
                                            or significant shareholders and regulates other matters that may be relevant to these types
                                            of transactions;
●
Israeli
                                            corporate law does not provide for shareholder action by written consent for public companies,
                                            thereby requiring all shareholder actions to be taken at a general meeting of shareholders.
In
January 2021, ZOOZ received approval from the Israeli Ministry of Energy that in any case where there is a change in the control structure
of ZOOZ, in such a way that a new or additional "controlling shareholder" is created in the company ("control"
- as such term in defined in the Securities Law), the new controlling shareholder will be required to sign an appendix confirming
that he is aware of the terms of the investment agreement between the State of Israel and ZOOZ, the main of which is the obligation to
notify the Ministry of Energy of additional funding sources for ZOOZ, the Ministry of Energy's investment in the project and its
conditions, intellectual property rights, including the transfer of ownership of the knowledge product of the project or registration
in the name of a third party other than ZOOZ shall be done with the prior written approval of the Ministry of Energy.
Further,
Israeli tax considerations may make potential transactions undesirable to us or some of ZOOZ's shareholders whose country of residence
does not have a tax treaty with Israel granting tax relief to such shareholders from Israeli tax. For example, Israeli tax law does not
recognize tax-free share exchanges to the same extent as U.S. tax law. With respect to mergers, Israeli tax law allows for tax deferral
in certain circumstances but makes the deferral contingent on the fulfillment of numerous conditions, including, a holding period of
two years from the date of the transaction during which certain sales and dispositions of shares of the participating companies are restricted.
Moreover, with respect to certain share swap transactions, the tax deferral is limited in time, and when such time expires, the tax becomes
payable even if no disposition of the shares has occurred.
As
a corporation incorporated under the laws of the State of Israel, ZOOZ is also subject to the Israeli Economic Competition Law, 1988
and the regulations promulgated thereunder (formerly known as the Israeli Antitrust Law, 1988), under which ZOOZ may be required in certain
circumstances to obtain the approval of the Israel Competition Authority (formerly known as the Israel Antitrust Authority) in order
to consummate a merger or a sale of all or substantially all of ZOOZ's assets.
The Articles provide that unless ZOOZ consents to an alternate forum, the federal district courts of the United States shall
be the exclusive forum of resolution of any claims arising under the Securities Act or Exchange Act which may impose additional litigation
costs on ZOOZ or ZOOZ's shareholders and may discourage claims or limit the ability of shareholders to bring a claim in a forum
they find favorable.
The Articles provide that the federal district courts of the United States shall be the exclusive forum for the resolution
of any claims arising under the Securities Act or the Exchange Act (the "
Federal Forum Provision
"). While the Federal
Forum Provision does not restrict the ability of ZOOZ's shareholders to bring claims under the Securities Act or the Exchange Act,
nor does it affect the remedies available thereunder if such claims are successful, ZOOZ recognizes that it allows claims under the Securities
Act or Exchange Act in any federal court of competent jurisdiction in the United States, subject to determination by applicable courts
of competent jurisdiction. Further, Section 22 of the Securities Act creates concurrent jurisdiction for federal and state courts over
all claims brought to enforce any duty or liability created by the Securities Act or the rules and regulations thereunder. This exclusive
choice of forum provision (in federal district courts for claims under the Securities Act or Exchange Act and referenced state courts
in the U.S.) may lead to ZOOZ's shareholders incurring increased costs if they were to bring a claim against ZOOZ, and may limit
ZOOZ's shareholders' ability to bring a claim in a judicial forum they find favorable for disputes with ZOOZ or its directors,
officers, or other employees or agents, which may discourage claims against ZOOZ and its directors, officers and other employees and
agents. The enforceability of similar forum provisions (including exclusive federal forum provisions for actions, suits or proceedings
asserting a cause of action arising under the Securities Act) in other companies' organizational documents has been challenged
in legal proceedings and there is uncertainty as to whether courts would enforce the exclusive forum provisions in the Articles. If a court were to find the choice of forum provision contained in the Articles to be inapplicable or unenforceable
in an action, ZOOZ may incur additional costs associated with resolving such action in other jurisdictions, which could materially adversely
affect ZOOZ's business, financial condition and results of operations.
29
ZOOZ
has received Israeli government grants for certain research and development activities. The terms of those grants require ZOOZ to satisfy
specified conditions as stipulated under the Innovation Law.
ZOOZ
received Israeli government grants for certain of our research and development activities. When a company develops know-how, technology
or products using grants from the National Authority for Technological Innovation, or the Israel Innovation Authority (the "
IIA
"),
the terms of these grants and the Israeli Law for the Encouragement of Industrial Research and Development, 1984 and regulations promulgated
thereunder (the "
Innovation Law
"), inter alia, restrict such company's ability to perform or outsource manufacturing
outside of Israel, grant licenses for R&D purposes or otherwise transfer inside and outside of Israel the know-how resulting, directly
or indirectly, in whole or in part, in accordance with or as a result of, research and development activities made according to IIA programs,
as well as any rights associated with such know-how (including later developments, which derive from, are based on, or constitute improvements
or modifications of such know-how). The discretionary approval of an IIA committee would be required for any transfer or license for
R&D purposes to third parties inside or outside of Israel of know-how and/or for the transfer outside of Israel of manufacturing
or manufacturing rights with respect to IIA-funded products. ZOOZ may not receive those approvals in the future.
The
transfer or license for R&D purposes of IIA-supported know-how outside of Israel may require payment to the IIA of amounts which
are calculated in accordance with certain formulas included in the IIA's rules.
ZOOZ
has received research and development funding from the IIA. The total grants that ZOOZ received from the IIA until March 31, 2024, amount
to approximately $675 thousands (based on the US$/NIS representative exchange rate as reported by the Bank of Israel on March 28, 2024;
(the "
Exchange Rate
")).
The
IIA's restrictions and requirements for payment may impair ZOOZ's ability to sell, license or otherwise transfer our IIA
funded know-how assets outside of Israel or to outsource or transfer development or manufacturing activities with respect to any product
or technology which was developed using the IIA grants outside of Israel. Furthermore, ZOOZ remains subject to the restrictions and obligations
under the Innovation Law described above, and the net consideration available to our shareholders in certain transactions (such as a
merger or similar change of control transaction) involving the transfer outside of Israel of know-how developed with IIA funding, or
in transactions involving the licensing of IIA funded know-how for R&D purposes to a non-Israeli entity, may be reduced by any amounts
that ZOOZ may be required to pay to the IIA. If ZOOZ fails to satisfy certain conditions of the Innovation Law, ZOOZ may be required
to refund the amounts of the grants previously received, together with interest and penalties, and may become subject to criminal charges
and financial sanctions. The restrictions under the Innovation Law continue to apply even after payment of the full amount of royalties
payable pursuant to the grants. In addition, the government of the State of Israel may from time-to-time audit sales of products which
it claims incorporate IIA funded know-how and this may lead to additional royalties being payable on additional product candidates, and
may subject such products to the IIA's restrictions and obligations. It shall be noted that the government of the State of Israel
does not own intellectual property rights in technology developed using the IIA funding. For more information regarding such restrictions
please see "
ZOOZ's Business — Government Regulations— Other Regulations
."
ZOOZ
has received a grant from the Israeli Ministry of Energy that requires it to meet several specified conditions and may restrict ZOOZ's
ability to transfer the relevant know-how for a certain period.
ZOOZ
has received a grant from the government of Israeli Ministry of Energy (the "
MOE
"), governed by a grant agreement
with the MOE (the "
Grant Agreement
") under a certain research and development program approved by the MOE (the "
MOE
Approved Program
") in an aggregate amount of $171 thousands (based on the Exchange Rate). Below is a description of the main
obligations and restrictions imposed on ZOOZ under the Grant Agreement, with respect to ZOOZ's use of the know-how resulting from
the MOE Approved Program ("
MOE Funded Know How
"):
●
Royalty
                                            Payment Obligation
. Under the Grant Agreement, ZOOZ is required to pay royalties to the
                                            State of Israel at rate of 5% from any income derived from the commercialization of the MOE
                                            Funded Know-How and the IP resulting from MOE Approved Program, directly or indirectly, including
                                            related services, up to the grant amount linked to the consumer price index plus the accountant
                                            general's interest (whether such income is obtained by ZOOZ or by a corporation acting
                                            on its behalf, connected thereto or partnered therewith).
●
MOE
                                            Funded Know-How Exploitation.
Under the Grant Agreement, ZOOZ is required to take all
                                            reasonable measures to protect its rights in the MOE Funded Know-How and to act to an efficient
                                            exploitation thereof and will provide the MOE with details on the actions which it intends
                                            to take in this respect. The protection of the MOE Funded Know-How, its registration and
                                            grant of licenses with respect thereto shall be made in accordance with the Grant Agreement
                                            and in a manner which advances such know-how and enables its use for practical purposes,
                                            subject to the rights of the State of Israel and the MOE under the Grant Agreement
.
These
                                            obligations will survive for a period of five years following the completion of the project.
30
●
License
                                            for National Needs
. Under the Grant Agreement, the MOE is granted with a non-exclusive,
                                            non-transferable and irrevocable license (without bearing any consideration) to use the MOE
                                            Funded Know-How, directly or using a third party, for national purposes (certain Israeli
                                            ministers are authorized to determine whether a certain use is for national needs). ZOOZ
                                            is obligated to act for the fulfillment of the purposes and results of the MOE Approved Program
                                            and in case that, for any reason, ZOOZ shall fail to do so within reasonable time following
                                            the completion of the project, the MOE will be granted with a right to act for the fulfilment
                                            of such purposes and results, for national needs (as outlined above). For such purposes,
                                            ZOOZ will grant the State a license, under accepted commercial terms, to use all IP ZOOZ
                                            has accumulated outside the framework of the MOE Approved Program, which ZOOZ has used in
                                            the performance of such program. This obligation will survive for a period of five years
                                            following the completion of the project.
●
MOE'S
                                            Approval for Additional Funding/Investments
. Pursuant to the Grant Agreement, ZOOZ is
                                            required to inform the MOE of any additional funding/investment offered to it prior to the
                                            execution of the applicable investment/funding agreement, together with a certain notice
                                            issued by the relevant investor/funder under which it represents that it is aware of the
                                            MOE Agreement and the MOE's rights under such agreement. The MOE will consider granting
                                            such approval if such approval would not, in the MOE's opinion, adversely affect the
                                            rights of the State of Israel. The MOE will have sole discretion with respect to whether
                                            to approve the additional funding or to enter into negotiations with the potential investor,
                                            as the MOE finds suitable. The Company received an approval from the MOE in connection with
                                            its initial public offering on the Tel Aviv Stock Exchange (the "
TASE
"),
                                            according to this approval in the event of a change of control in the Company by virtue of
                                            which the Company has a new or additional "controlling shareholder" (as defined
                                            in the Securities Law) such controlling shareholder will be required to execute an
                                            undertaking towards the MOE under which they agree to adhere to the terms of the Grant Agreement.
●
MOE
                                            Funded Know-How Transfer Limitation
. Under the Grant Agreement, transferring the ownership
                                            of the IIA Funded Know and registering it under the name of a third party will require prior
                                            written approval of the MOE. The MOE may reject such request if in the MOE's opinion
                                            there is a concern that such approval could adversely affect the rights of the State of Israel
                                            under the Grant Agreement, including the repayment of the grant amount and the exploitation
                                            of the MOE Approved Program's accomplishments in favor of the Israeli market and the
                                            State of Israel. This obligation will survive for a period of five years following the completion
                                            of the project.
●
MOE
                                            Funded Know-How Licensing Conditions
. Under the Grant Agreement, ZOOZ are required to
                                            inform the MOE of any grant of license to a third party to use the MOE Funded Know-How, and
                                            several conditions should be incorporated under such a license, such as with respect to payment
                                            of the applicable royalties to the MOE and the MOE's right to revoke such license in
                                            certain circumstances. ZOOZ are also obligated to will make best efforts to act for the benefit
                                            of the Israeli public interest in fulfilling the purposes and the results of the MOE Approved
                                            Program, considering the relevant market, when deciding on the scope of the license and level
                                            of exclusiveness. These obligations will survive for a period of five years following the
                                            completion of the project.
If
ZOOZ or any of its subsidiaries are characterized as a passive foreign investment company ("PFIC") for U.S. federal income
tax purposes, U.S. investors may suffer adverse tax consequences.
A
non-U.S. corporation generally will be treated as a PFIC for U.S. federal income tax purposes, in any taxable year if either (1) at least
75% of its gross income for such year is passive income or (2) at least 50% of the value of its assets (generally based on an average
of the quarterly values of the assets) during such year is attributable to assets that produce or are held for the production of passive
income (including cash). For purposes of the above calculations, a non-U.S. corporation that directly or indirectly owns at least 25%
by value of the shares of another corporation is treated as if it held its proportionate share of the assets of the other corporation
and received directly its proportionate share of the income of the other corporation. Passive income generally includes dividends, interest,
rents, royalties and capital gains. Based on the current and anticipated composition of the income, assets and operations of ZOOZ and
its subsidiaries, there is a substantial risk that ZOOZ may be treated as a PFIC for U.S. federal income tax purposes for 2024.
Nevertheless,
whether ZOOZ or any of its subsidiaries are a PFIC for any taxable year is a factual determination that depends on, among other things,
the composition of ZOOZ's income and assets, and the value of its and its subsidiaries' shares and assets. Changes in the
composition of the income or assets of ZOOZ and its subsidiaries may cause ZOOZ to be or become a PFIC for the current or subsequent
taxable years. Whether ZOOZ is treated as a PFIC for U.S. federal income tax purposes is a factual determination that must be made annually
at the close of each taxable year and, thus, is subject to significant uncertainty.
31
If
ZOOZ is a PFIC for any taxable year, a U.S. investor who owns ZOOZ ordinary shares may be subject to adverse tax consequences and may
incur certain information reporting obligations. For a further discussion, see "
Material U.S. Federal Income Tax Considerations—U.S.
Holders—Passive Foreign Investment Company Rules
." U.S. investors who own ZOOZ ordinary shares and/or ZOOZ warrants are
strongly encouraged to consult their own advisors regarding the potential application of these rules to ZOOZ and the ownership of ZOOZ
ordinary shares and/or ZOOZ warrants.
If
a U.S. investor is treated for U.S. federal income tax purposes as owning at least 10% of the ZOOZ ordinary shares, such U.S. investor
may be subject to adverse U.S. federal income tax consequences.
For
U.S. federal income tax purposes, if a U.S. investor is treated as owning (directly, indirectly or constructively) at least 10% of the
value or voting power of the ZOOZ ordinary shares, such U.S. investor may be treated as a "United States shareholder" with
respect to ZOOZ, or any of its non-U.S. subsidiaries, if ZOOZ or such subsidiary is a "controlled foreign corporation." A
non-U.S. corporation is considered a controlled foreign corporation if more than 50% of (1) the total combined voting power of all classes
of stock of such corporation entitled to vote, or (2) the total value of the stock of such corporation is owned by, or is considered
as owned by applying certain constructive ownership rules by, United States shareholders on any day during the taxable year of such non-U.S.
corporation. If ZOOZ has one or more U.S. subsidiaries, certain of ZOOZ's non-U.S. subsidiaries could be treated as a controlled
foreign corporation regardless of whether ZOOZ is treated as a controlled foreign corporation (although there are recently promulgated
final and currently proposed Treasury regulations that may limit the application of these rules in certain circumstances).
Certain
United States shareholders of a controlled foreign corporation may be required to report annually and include in their U.S. federal taxable
income their pro rata share of the controlled foreign corporation's "Subpart F income" and, in computing their "global
intangible low-taxed income," "tested income" and a pro rata share of the amount of certain U.S. property (including
certain stock in U.S. corporations and certain tangible assets located in the United States) held by the controlled foreign corporation
regardless of whether such controlled foreign corporation makes any distributions. The amount includable by a United States shareholder
under these rules is based on a number of factors, including potentially, but not limited to, the controlled foreign corporation's
current earnings and profits (if any), tax basis in the controlled foreign corporation's assets, and foreign taxes paid by the
controlled foreign corporation on its underlying income. Failure to comply with these reporting obligations (or related tax payment obligations)
may subject such United States shareholder to significant monetary penalties and may extend the statute of limitations with respect to
such United States shareholder's U.S. federal income tax return for the year for which reporting (or payment of tax) was due. ZOOZ
cannot provide any assurances that it will assist U.S. investors in determining whether ZOOZ or any of its non-U.S. subsidiaries are
treated as a controlled foreign corporation for U.S. federal income tax purposes or whether any U.S. investor is treated as a United
States shareholder with respect to any of such controlled foreign corporations or furnish to any holder information that may be necessary
to comply with reporting and tax paying obligations if ZOOZ, or any of its non-U.S. subsidiaries, is treated as a controlled foreign
corporation for U.S. federal income tax purposes. U.S. investors who hold 10% or more of the combined voting power or value of ZOOZ ordinary
shares are strongly encouraged to consult their own advisors regarding the U.S. tax consequences of owning or disposing of ZOOZ ordinary
shares.
It
may be difficult to enforce a U.S. judgment against ZOOZ, its officers and directors in Israel or the United States, or to assert U.S.
securities laws claims in Israel or serve process on ZOOZ's officers and directors.
Most
of ZOOZ's directors or officers are not residents of the United States and most of their and ZOOZ's assets are located outside
the United States. Service of process upon ZOOZ or its non-U.S. resident directors and officers and enforcement of judgments obtained
in the United States against ZOOZ or its non-U.S. directors and executive officers may be difficult to obtain within the United States,
although the Articles to be effective upon the closing of the Business Combination provide that unless ZOOZ consents to
an alternate forum, the federal district courts of the United States shall be the exclusive forum of resolution of any claims arising
under the Securities Act or the Exchange Act. Israeli courts may refuse to hear a claim based on a violation of U.S. securities laws
against ZOOZ or its non-U.S. officers and directors because Israel may not be the most appropriate forum to bring such a claim. In addition,
even if an Israeli court agrees to hear a claim, it may determine that Israeli law and not U.S. law is applicable to the claim. If U.S.
law is found to be applicable, the content of applicable U.S. law must be proved as a fact, which can be a time-consuming and costly
process. Certain matters of procedure will also be governed by Israeli law. There is little binding case law in Israel addressing the
matters described above. Israeli courts might not enforce judgments rendered outside Israel, which may make it difficult to collect on
judgments rendered against ZOOZ or its non-U.S. officers and directors.
Moreover,
among other reasons, including but not limited to, fraud or absence of due process, or the existence of a judgment which is at variance
with another judgment that was given in the same matter if a suit in the same matter between the same parties was pending before a court
or tribunal in Israel, an Israeli court will not enforce a non-Israeli judgment if it was given in a state whose laws do not provide
for the enforcement of judgments of Israeli courts (subject to exceptional cases) or if its enforcement is likely to prejudice the sovereignty
or security of the State of Israel. For more information, see "
It may be difficult to enforce a U.S. judgment against ZOOZ,
its officers and directors in Israel or the United States, or to assert U.S. securities laws claims in Israel or serve process on ZOOZ's
officers and directors
."
32
Risks
Related to Ownership of the ZOOZ Ordinary Shares and Warrants
ZOOZ's
failure to meet the continued listing requirements of the Nasdaq could result in a delisting of its securities from the Nasdaq.
If
ZOOZ fails to satisfy the continued listing requirements of the Nasdaq such as the corporate governance requirements or the minimum closing
bid price requirement, the Nasdaq may take steps to delist its securities. Such a delisting would likely have a negative effect on the
price of the securities and would impair your ability to sell or purchase the securities when you wish to do so. In the event of a delisting,
ZOOZ can provide no assurance that any action taken by it to restore compliance with listing requirements would allow its securities
to become listed again, stabilize the market price or improve the liquidity of its securities, prevent its securities from dropping below
the Nasdaq minimum bid price requirement or prevent future non-compliance with the Nasdaq's listing requirements. Additionally,
if ZOOZ's securities are not listed on, or become delisted from, the Nasdaq for any reason, and are quoted on the OTC Bulletin
Board, an inter-dealer automated quotation system for equity securities that is not a national securities exchange, the liquidity and
price of ZOOZ's securities may be more limited than if it were quoted or listed on the Nasdaq or another national securities exchange.
You may be unable to sell your securities unless a market can be established or sustained.
ZOOZ
will qualify as an emerging growth company within the meaning of the Securities Act, and if ZOOZ takes advantage of certain exemptions
from disclosure requirements available to emerging growth companies, this could make ZOOZ's securities less attractive to investors
and may make it more difficult to compare ZOOZ's performance with other public companies.
ZOOZ
is eligible to be treated as an emerging growth company, as defined in Section 2(a) of the Securities Act, as modified by the JOBS Act.
Under the JOBS Act, emerging growth companies can delay adopting new or revised financial accounting standards until such time as those
standards apply to private companies. ZOOZ intends to take advantage of this extended transition period under the JOBS Act for adopting
new or revised financial accounting standards.
For
as long as ZOOZ continues to be an emerging growth company, it may also take advantage of certain exemptions from various reporting requirements
that are applicable to other public companies that are not emerging growth companies, including not being required to comply with the
auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act. As a result, its shareholders may not have access to certain
information that they may deem important. ZOOZ could be an emerging growth company for up to five years, although circumstances could
cause it to lose that status earlier, including if its total annual gross revenue exceeds $1.235 billion, if it issues more than $1.0
billion in non-convertible debt securities during any three-year period, or if before that time it is a "large accelerated filer"
under U.S. securities laws.
ZOOZ
cannot predict if investors will find ZOOZ ordinary shares less attractive because it may rely on these exemptions. If some investors
find ZOOZ ordinary shares less attractive as a result, there may be a less active trading market for ZOOZ ordinary shares and ZOOZ's
share price may be more volatile. Further, there is no guarantee that the exemptions available to ZOOZ under the JOBS Act will result
in significant savings. To the extent that ZOOZ chooses not to use exemptions from various reporting requirements under the JOBS Act,
it will incur additional compliance costs, which may impact ZOOZ's financial condition.
The
ZOOZ ordinary shares may not continue to be listed on the TASE in the future, which could limit investors' ability to make transactions
in that market in such securities and subject ZOOZ to additional trading restrictions.
While
ZOOZ ordinary shares are currently listed on the TASE, there is no guarantee as to how long such listing will be maintained. ZOOZ plans
to continuously examine the advisability of maintaining its listing on the TASE. ZOOZ may in the future voluntarily delist its securities
from the TASE, provided it furnishes advance notices thereof as required under applicable laws and regulations, and in coordination,
to the extent required, with the Israel Securities Authority (the "
ISA
"). If ZOOZ ordinary shares are delisted, some
holders of ZOOZ ordinary shares that are traded on the TASE may be required or will choose to sell their shares, which could result in
a decrease in the trading price of ZOOZ ordinary shares, and such delisting may further limit investors' ability to make transactions
in the Israeli market in such securities.
The
ZOOZ ordinary shares are traded on more than one market and this may result in price variations.
In
addition to
being traded on The Nasdaq Capital Market, the ZOOZ
ordinary shares are traded
on the TASE. Trading in the ZOOZ ordinary shares on these markets takes place in different currencies (U.S. Dollars on Nasdaq and NIS
on TASE) and at different times (resulting from different time zones, trading days and public holidays in the United States and Israel).
The trading prices of the ZOOZ ordinary shares on these two markets may materially differ due to these and other factors. Any decrease
in the price of the ZOOZ ordinary shares on one market could cause a decrease in the trading price of the ZOOZ ordinary shares on the
other market.
33
The
future exercise of registration rights may adversely affect the market price of ZOOZ ordinary shares.
ZOOZ
ordinary shares are subject to several registration rights agreements and undertakings. Pursuant to the amendment to the registration
rights agreement, dated as of January 24, 2022, by and among Keyarch Acquisition Corporation ("
Keyarch
" or the "
SPAC
")
and the "Investor" parties thereto (the "
Registration Rights Agreement
", and as amended, the "
Registration
Rights Agreement Amendment
"), Keyarch Global Sponsor Limited (the "
Sponsor
") or EarlyBirdCapital, Inc. ("
EBC
")
are entitled to make a demand that ZOOZ register the resale of the Founder Shares (The "Founder Shares" mean the 2,875,000
Keyarch Class B ordinary shares, par value $0.0001 per share, held by the Sponsor and Keyarch Initial Shareholders (i.e., the shareholders
of Keyarch in addition to the Sponsor who subscribed for the Founders Shares in connection with the Keyarch initial public offering (the
"
Keyarch IPO
")), which were acquired for an aggregate purchase price of $25,000 prior to the Keyarch IPO). Additionally,
the Sponsor and EBC have certain registration rights under certain
promissory notes issued by the
Sponsor and ZOOZ
at closing of the Business Combination in connection with the
Business
Combination Marketing Agreement Amendment (together with the exhibits attached thereto), dated April 4, 2024
. The presence of
these additional ZOOZ ordinary shares trading in the public market may have an adverse effect on the market price of ZOOZ's securities.
The
share price and trading volume of the ZOOZ ordinary shares have been volatile on the TASE, may be volatile on the Nasdaq and may be volatile
in the future on either market and that could limit investors' ability to sell ZOOZ ordinary shares and/or public warrants at a
profit and could limit ZOOZ's ability to successfully raise funds.
The
stock markets, including the TASE and Nasdaq, have from time-to-time experienced significant price and volume fluctuations. Even if an
active, liquid and orderly trading market develops and is sustained for the ZOOZ ordinary shares and ZOOZ public warrants, the market
price of the ZOOZ ordinary shares and ZOOZ public warrants may be volatile and could decline significantly. In addition, the trading
volume in the ZOOZ ordinary shares and ZOOZ public warrants may fluctuate and cause significant price variations to occur. Substantial
sales of ZOOZ ordinary shares on the Nasdaq and TASE may cause the market price of ZOOZ ordinary shares to decline. Sales by ZOOZ's
shareholders of substantial amounts of ZOOZ ordinary shares, or the perception that these sales may occur in the future, could cause
a reduction in the market price of ZOOZ ordinary shares. If the market price of the ZOOZ ordinary shares and ZOOZ public warrants declines
significantly, you may be unable to resell your shares or public warrants at or above the market price of the ZOOZ ordinary shares and
ZOOZ public warrants. ZOOZ cannot assure you that the market price of the ZOOZ ordinary shares and ZOOZ public warrants will not fluctuate
widely or decline significantly in the future in response to a number of factors, including, among others, the following:
●
the
                                            realization of any of the risk factors presented in this Annual Report;
●
actual
                                            or anticipated differences in ZOOZ's estimates, or in the estimates of analysts, for
                                            ZOOZ's revenues, earnings, results of operations, level of indebtedness, liquidity
                                            or financial condition;
●
additions
                                            and departures of key personnel;
●
failure
                                            to comply with the continuing listing requirements of the Nasdaq;
●
failure
                                            to comply with the continuing listing requirements of the TASE;
●
failure
                                            to comply with the Sarbanes-Oxley Act or other laws or regulations;
●
future
                                            issuances, sales, resales or repurchases or anticipated issuances, sales, resales or repurchases,
                                            of ZOOZ's securities including due to the expiration of contractual lock-up agreements;
●
publication
                                            of research reports about ZOOZ;
●
the
                                            performance and market valuations of other similar companies;
●
failure
                                            of securities analysts to initiate or maintain coverage of ZOOZ, changes in financial estimates
                                            by any securities analysts who follow ZOOZ or ZOOZ's failure to meet these estimates
                                            or the expectations of investors;
●
new
                                            laws, regulations, subsidies, or credits or new interpretations of existing laws applicable
                                            to ZOOZ;
●
commencement
                                            of, or involvement in, litigation involving ZOOZ;
●
broad
                                            disruptions in the financial markets, including sudden disruptions in the credit markets;
34
●
speculation
                                            in the press or investment community;
●
actual,
                                            potential or perceived control, accounting or reporting problems; and
●
other
                                            events or factors, including those resulting from infectious diseases, health epidemics and
                                            pandemics, natural disasters, war, acts of terrorism or responses to these events.
In
the past, securities class-action litigation has often been instituted against companies following periods of volatility in the market
price of their shares. This type of litigation could result in substantial costs and divert ZOOZ's management's attention
and resources, which could have a material adverse effect on us.
If
securities or industry analysts do not publish or cease publishing research or reports about ZOOZ, its business, or its market, or if
they change their recommendations regarding the ZOOZ ordinary shares adversely, then the price and trading volume of the ZOOZ ordinary
shares could decline.
The
trading market for the ZOOZ ordinary shares may be influenced by the research and reports that industry or financial analysts publish
about its business. ZOOZ does not control these analysts, or the content and opinions included in their reports. As a new public company
on Nasdaq, ZOOZ may be slow to attract research coverage and the analysts who publish information about the ZOOZ ordinary shares will
have relatively little experience with ZOOZ, which could affect their ability to accurately forecast ZOOZ's results and make it
more likely that ZOOZ fails to meet their estimates. In the event ZOOZ obtains industry or financial analyst coverage, if any of the
analysts who cover ZOOZ issues an inaccurate or unfavorable opinion regarding it, ZOOZ's share price would likely decline. In addition,
the share prices of many companies in the technology industry have declined significantly after those companies have failed to meet,
or significantly exceed, the financial guidance publicly announced by the companies or the expectations of analysts. If ZOOZ's
financial results fail to meet, or significantly exceed, its announced guidance or the expectations of analysts or public investors,
analysts could downgrade the ZOOZ ordinary shares or publish unfavorable research about it. If one or more of these analysts cease coverage
of ZOOZ or fail to publish reports on it regularly, ZOOZ's visibility in the financial markets could decrease, which in turn could
cause its share price or trading volume to decline.
ZOOZ
has never paid cash dividends on ZOOZ's share capital, and ZOOZ does not anticipate paying any cash dividends in the foreseeable
future.
In
the years ended December 31, 2022 and 2023, ZOOZ has incurred net losses of $19.6 million in the aggregate, which has resulted in ZOOZ's
inability to distribute dividends. ZOOZ has never declared or paid cash dividends, and ZOOZ does not anticipate paying cash dividends
in the foreseeable future. Therefore, you should not rely on an investment in the ordinary shares as a source for any future dividend
income. ZOOZ's board of directors has complete discretion as to whether to distribute dividends. Even if ZOOZ's board of
directors decides to declare and pay dividends, the timing, amount, and form of future dividends, if any, will depend on ZOOZ's
future results of operations and cash flow, ZOOZ's capital requirements and surplus, the amount of distributions, if any, received
by ZOOZ from ZOOZ's subsidiaries, ZOOZ's financial condition, contractual restrictions, and other factors deemed relevant
by ZOOZ's board of directors. In addition, the Companies Law imposes restrictions on ZOOZ's ability to declare and pay dividends.
ZOOZ
is a foreign private issuer and, as a result, is not subject to U.S. proxy rules but is subject to Exchange Act reporting obligations
that, to some extent, are more lenient and less frequent than those of a U.S. issuer.
Because
ZOOZ qualifies as a foreign private issuer under the Exchange Act and although ZOOZ follows Israeli laws and regulations with regard
to such matters, ZOOZ is exempted from certain provisions of the Exchange Act that are applicable to U.S. public companies, including:
(i) the sections of the Exchange Act regulating the solicitation of proxies, consents or authorizations in respect of a security registered
under the Exchange Act (ii) the sections of the Exchange Act requiring insiders to file public reports of their stock ownership and trading
activities and liability for insiders who profit from trades made in a short period of time and (iii) the rules under the Exchange Act
requiring the filing with the SEC of quarterly reports on Form 10-Q containing unaudited financial and other specified information, or
current reports on Form 8-K, upon the occurrence of specified significant events. In addition, foreign private issuers will be required
to file their annual report on Form 20-F by 120 days after the end of each fiscal year, while U.S. domestic issuers that are accelerated
filers are required to file their annual report on Form 10-K within 75 days after the end of each fiscal year. Foreign private issuers
are also exempt from the Regulation Fair Disclosure, aimed at preventing issuers from making selective disclosures of material information.
As a result of the above, even though ZOOZ is contractually obligated and intends to make interim reports available to ZOOZ's shareholders,
copies of which ZOOZ is required to furnish to the SEC on a Form 6-K, and even though ZOOZ is required to file reports on Form 6-K disclosing
whatever information ZOOZ has made or is required to make public pursuant to Israeli law or distribute to ZOOZ's shareholders and
that is material to ZOOZ, you may not have the same protections afforded to shareholders of companies that are United Sates domestic
issuers.
35
ZOOZ
may lose its foreign private issuer status in the future, which could result in significant additional costs and expenses.
As
discussed above, ZOOZ is a foreign private issuer, and therefore, ZOOZ is not required to comply with all of the periodic disclosure
and current reporting requirements of the Exchange Act. The determination of foreign private issuer status is made annually on the last
business day of an issuer's most recently completed second fiscal quarter, and, accordingly, the next determination will be made
with respect to us on June 30, 2024. In the future, ZOOZ would lose its foreign private issuer status if (1) more than 50% of our outstanding
voting securities are owned by U.S. residents and (2) a majority of our directors or executive officers are U.S. citizens or residents,
or ZOOZ fails to meet additional requirements necessary to avoid loss of foreign private issuer status. If ZOOZ loses its foreign private
issuer status, ZOOZ will be required to file with the SEC periodic reports and registration statements on U.S. domestic issuer forms,
which are more detailed and extensive than the forms available to a foreign private issuer. ZOOZ will also have to mandatorily comply
with U.S. federal proxy requirements, and ZOOZ's officers, directors and principal shareholders will become subject to the short-swing
profit disclosure and recovery provisions of Section 16 of the Exchange Act. In addition, ZOOZ will lose its ability to rely upon exemptions
from certain corporate governance requirements under the listing rules of the Nasdaq. As a U.S. listed public company that is not a foreign
private issuer, ZOOZ will incur significant additional legal, accounting and other expenses that ZOOZ will not incur as a foreign private
issuer.
As
ZOOZ is a "foreign private issuer" and follows certain home country corporate governance practices, ZOOZ's shareholders
may not have the same protections afforded to shareholders of companies that are subject to all Nasdaq corporate governance requirements.
As
a foreign private issuer, ZOOZ has the option to follow certain home country corporate governance practices rather than those of the
Nasdaq, provided that ZOOZ discloses the requirements ZOOZ is not following and describe the home country practices ZOOZ is following.
In addition, ZOOZ is permitted to follow certain home country corporate governance practices and law instead of those rules and practices
otherwise required by Nasdaq for domestic issuers. Following ZOOZ's home country corporate governance practices, as opposed to
the requirements that would otherwise apply to a U.S. company listed on Nasdaq, may provide less protection to investors than is afforded
under the Nasdaq Rules applicable to domestic issuers.
ZOOZ
otherwise intends to comply with the rules generally applicable to U.S. domestic companies listed on the Nasdaq. ZOOZ may, however, in
the future decide to rely upon the "foreign private issuer exemption" for purposes of opting out of some or all of the other
corporate governance rules. ZOOZ may in the future elect to follow home country practices with regard to other matters. As a result,
ZOOZ's shareholders may not have the same protections afforded to shareholders of companies that are subject to all NASDAQ corporate
governance requirements.
ZOOZ's
business and share price may suffer as a result of its lack of U.S. public company operating experience.
Prior
to the completion of the Business Combination, ZOOZ was a public company listed for trading on the TASE only. ZOOZ's lack of U.S.
public company operating experience may make it difficult to forecast and evaluate its future prospects. If ZOOZ is unable to execute
its business strategy, either as a result of its inability to manage effectively its business in a U.S. public company environment or
for any other reason, ZOOZ's business, prospects, financial condition and operating results may be harmed.
The
exercise of ZOOZ warrants and options for ZOOZ ordinary shares could increase the number of ZOOZ shares eligible for future resale in
the public market and result in additional dilution to ZOOZ's shareholders.
As
of the closing of the Business Combination, ZOOZ had warrants and options to purchase an aggregate of 9,983,420 ZOOZ ordinary shares
(after applying certain adjustments to the number of shares underlying outstanding warrants and options following the issuance of the
Earnout Rights, in accordance with the respective terms of the warrants and options), without taking into account the "
Earnout
Shares
" (i.e., up to 4 million ZOOZ ordinary shares that ZOOZ's shareholders as of immediately prior to the closing of
the Business Combination (the "
Closing
") are entitled to as additional contingent consideration) and the "
Sponsor
Earnout Shares
" (i.e., 1,120,000 Keyarch Class A ordinary shares, which were converted in the Business Combination into 1,120,000
ZOOZ ordinary shares), which include ZOOZ public warrants, ZOOZ private warrants, ZOOZ warrants (Series 3) (the "
Series 3 Warrants
")
and outstanding options to purchase ZOOZ ordinary shares under our 2015 Incentive Compensation Plan (the "
2015 Plan
").
To
the extent the ZOOZ warrants and/or options are exercised, additional ZOOZ ordinary shares will be issued, which will result in dilution
to the holders of ZOOZ ordinary shares and increase the number of shares eligible for resale in the public market. Sales of substantial
numbers of shares issued upon the exercise of warrants or options in the public market or the potential that such warrants or options
may be exercised could also adversely affect the market price of ZOOZ ordinary shares.
36
ZOOZ
may issue additional ZOOZ ordinary shares or other equity securities without seeking approval of the ZOOZ shareholders, which would dilute
your ownership interests and may depress the market price of the ZOOZ ordinary shares.
As
of the Closing of the Business Combination, ZOOZ had warrants outstanding to purchase up to an aggregate of 8,939,018 ZOOZ ordinary shares
(after applying certain adjustments to the number of shares underlying outstanding warrants and options following the issuance of the
Earnout Rights, in accordance with the respective terms of the warrants and options), which include ZOOZ public warrants, ZOOZ private
warrants ZOOZ warrants (Series 3) and warrants issued to a service provider. Further, ZOOZ may choose to seek third party financing to
provide additional working capital for the ZOOZ business, in which event ZOOZ may issue additional equity securities. ZOOZ may also issue
additional ZOOZ ordinary shares or other equity securities of equal or senior rank in the future for any reason or in connection with,
among other things, future acquisitions, the redemption of outstanding warrants or repayment of outstanding indebtedness, without shareholder
approval, in a number of circumstances.
The
issuance of additional ZOOZ ordinary shares or other equity securities of equal or senior rank would have the following effects:
●
ZOOZ's
                                            existing shareholders' proportionate ownership interest in ZOOZ will decrease;
●
the
                                            amount of cash available per share, including for payment of dividends in the future, may
                                            decrease;
●
the
                                            relative voting strength of each previously outstanding ZOOZ ordinary share may be diminished;
                                            and
●
the
                                            market price of the ZOOZ ordinary shares may decline.
There
is no guarantee that the ZOOZ public warrants, private warrants and series 3 warrants will ever be in the money, and they may expire
worthless.
The
exercise price for the ZOOZ public warrants and private warrants is $11.50 per whole ordinary share, with each such ZOOZ warrant exercisable
for one ZOOZ ordinary share. The ZOOZ public warrants and private warrants will become exercisable thirty days after the completion of
the Business Combination. The ZOOZ public warrants and private warrants will expire at 5:00 p.m., New York City time, five years after
the completion of the Business Combination or earlier upon redemption or liquidation. There is no guarantee that the ZOOZ public warrants
and private warrants, as well as the Series 3 Warrants will ever be in the money prior to their expiration, and as such, the warrants
may expire worthless.
The
terms of the ZOOZ public warrants and private warrants may be amended.
Amending
the Public Warrant Agreement, dated as of January 24, 2022, by and between SPAC and Continental Stock Transfer & Trust Company (the
"
Warrant Agent
" and the "
Public Warrant Agreement
") would require the affirmative vote of the holders
of at least 65% of the then-outstanding ZOOZ public warrants and amending the Private Warrant Agreement, dated as of January 24, 2022,
by and between SPAC and the Warrant Agent (the "
Private Warrant Agreement
") would require the affirmative vote of
the holders of at least 65% of the then-outstanding ZOOZ private warrants (ZOOZ private warrants mean one whole warrant entitling the
holder thereof to purchase one ZOOZ ordinary share at a purchase price of $11.50 per share, which warrant will be issued by ZOOZ in the
merger as part of the Business Combination in exchange for each outstanding Keyarch private warrant pursuant to the Assignment, Assumption
and Amendment to Warrant Agreement by and among ZOOZ, Keyarch, and the Warrant Agent (the "
Assignment, Assumption and Amendment
to Warrant Agreement
"). Notwithstanding the foregoing, ZOOZ may lower the exercise price or extend the duration of the exercise
period of the warrants in certain circumstances without the consent of the warrant holders.
ZOOZ
may redeem the ZOOZ public warrants and ZOOZ private warrants if the reported last sale price of the ZOOZ ordinary shares equals or exceeds
$18.00 per share (as adjusted for share subdivisions, share dividends, rights issuances, reorganizations, recapitalizations and the like)
for any 20 trading days within a 30-trading day period commencing once the warrants become exercisable.
Once
the ZOOZ public warrants and private warrants become exercisable, ZOOZ may redeem not less than all of them at a price of $0.01 per warrant
upon not less than 30 days' prior written notice of redemption (such period, the "
30-day Redemption Period
")
to each warrant holder if, and only if, the reported last sale price of the ZOOZ ordinary shares equals or exceeds $18.00 per share (as
adjusted for share subdivisions, share dividends, rights issuances, reorganizations, recapitalizations and the like) for any 20 trading
days within a 30-trading day period commencing once the warrants become exercisable and ending three business days before ZOOZ sends
the notice of redemption to the warrant holders. The trading price for the ZOOZ ordinary shares has never equaled or exceeded $18.00
per share.
37
If
and when the ZOOZ public warrants and private warrants become redeemable, ZOOZ may exercise ZOOZ's redemption right if there is
a current registration statement in effect with respect to the ZOOZ ordinary shares underlying such warrants. Redemption of the outstanding
ZOOZ public warrants and/or private warrants could force the holders thereof to: (i) exercise their warrants and pay the related exercise
price at a time when it may be disadvantageous for them to do so; (ii) sell their warrants at the then-current market price when they
might otherwise wish to hold their warrants; or (iii) accept the nominal redemption price, which, at the time the outstanding warrants
are called for redemption, is likely to be substantially less than the market value of their warrants. In these circumstances, and a
holder of such warrants chooses option (i) to exercise the ZOOZ public warrants and/or private warrants, the value received upon exercise
of such warrants (1) may be less than the value warrant holders would have received if they had exercised their ZOOZ public warrants
at a later time where the underlying share price is higher and (2) may not compensate the holders for the value of such ZOOZ warrants.
If holders of such warrants choose to sell under option (ii) there is no guarantee the sale price will be high enough to compensate warrant
holders for the value of such ZOOZ warrants.
ZOOZ
will not redeem the ZOOZ public warrants and/or private warrants as described above unless a registration statement under the Securities
Act covering the issuance of the ZOOZ ordinary shares issuable upon exercise of the warrants is then effective and a current prospectus
relating to those ZOOZ ordinary shares is available throughout the 30-day Redemption Period, except if the warrants may be exercised
on a cashless basis and such cashless exercise is exempt from registration under the Securities Act.
If
ZOOZ calls the ZOOZ public warrants and/or private warrants for redemption as described above, its management will have the option to
require all holders that wish to exercise the warrants to do so on a "cashless basis." In determining whether to require
all holders to exercise their warrants on a "cashless basis," ZOOZ's management will consider, among other factors,
ZOOZ's cash position, the number of warrants that are outstanding and the dilutive effect on ZOOZ's shareholders of issuing
the maximum number of ZOOZ ordinary shares issuable upon the exercise of the ZOOZ warrants. In such event, each holder would pay the
exercise price by surrendering the warrants for that number of ZOOZ ordinary shares equal to the quotient obtained by dividing (i) the
product of the number of ZOOZ ordinary shares underlying the warrants, multiplied by the difference between the exercise price of the
warrants and the "fair market value" (defined below) by (ii) the fair market value. The "fair market value" for
this purpose shall mean the average reported last sale price of the ZOOZ ordinary shares for the five trading days ending on the third
trading day prior to the date on which ZOOZ sends the notice of redemption to the holders of the ZOOZ C public warrants and/or private
warrants.
As
ZOOZ has no obligation to net cash settle the ZOOZ public warrants and private warrants, such warrants may expire worthless.
In
no event will ZOOZ have any obligation to net cash settle the ZOOZ public warrants and/or private warrants. Furthermore, there are no
contractual penalties for failure to deliver securities to the holders of ZOOZ public warrants and private warrants upon exercise of
the warrants. Accordingly, such warrants may expire worthless.
ZOOZ,
as the entity listed for trading on the Nasdaq upon completion of the Business Combination, may be a target of securities class action
and derivative lawsuits which could result in substantial costs.
Securities
class action lawsuits and derivative lawsuits are often brought against companies that have entered into and/or consummated business
combination agreements or similar agreements. Even if the lawsuits are without merit, defending against these claims can result in substantial
costs and divert management time and resources. An adverse judgment could result in monetary damages, which could have a negative impact
on ZOOZ's liquidity and financial condition. Currently, ZOOZ is not aware of any securities class action lawsuits or derivative
lawsuits being filed in connection with the Business Combination.
Shareholder
activism can negatively affect our business.
In
recent years, shareholder activists have become involved in numerous public companies. Shareholder activists could propose to involve
themselves in the governance, strategic direction and operations of a company. Shareholder activism, including potential proxy contests,
if will occur, could divert ZOOZ's management's and board of directors' attention and resources from its business,
could give rise to perceived uncertainties as to its future direction and could result in the loss of potential business opportunities
and make it more difficult to attract and retain qualified personnel for positions in both management and on the board level and to raise
funds. If nominees advanced by activist shareholders are elected or appointed to ZOOZ's board of directors with a specific agenda,
it may adversely affect its ability to effectively and timely implement its strategic plans or to realize long-term value from its assets.
Also, ZOOZ may be required to incur significant expenses including legal fees related to activist shareholder matters. Further, ZOOZ's
share price could be subject to significant fluctuations or otherwise be adversely affected by the events, risks and uncertainties of
any shareholder activism. While ZOOZ has not experienced shareholder activism to date, there can be no certainty that it will not be
subject to shareholder activism in the future.
38
General
Risks
Unfavorable
global or domestic political or economic conditions could adversely affect ZOOZ's business, financial condition or results of operations.
The
global economy continues to experience significant volatility, and the economic environment may continue to be, or become, less favorable
than that of past years. Higher costs for goods and services, inflation, deflation, the imposition of tariffs or other measures that
create barriers to or increase the costs associated with international trade, overall economic slowdown or recession and other economic
factors in Israel, the U.S. or in any other markets in which ZOOZ operates could adversely affect ZOOZ's operations and operating
results. Among other matters, the continued risk of a debt default by one or more European countries, related financial restructuring
efforts in Europe, and/or evolving deficit and spending reduction programs instituted by the U.S. and other governments could negatively
impact the global economy and/or EV industry.
In
addition, recent political and civil actions in Israel which commenced in the beginning of 2023, resulting from, among other things,
proposed changes to certain Israeli constitutional legislation, may have an adverse effect on the Israeli social, economic and political
landscape and in turn, on ZOOZ. However, it is difficult to predict at this time what the effect of such actions will be, if any. Furthermore,
although to date ZOOZ has not been directly impacted by the current military conflict between Russia and Ukraine, this conflict, or any
expansion thereof, could disrupt or otherwise adversely impact ZOOZ's operations and those of third parties upon which ZOOZ relies.
Related sanctions, export controls or other actions have been or may in the future be initiated by nations including the United States,
the European Union or Russia (e.g., potential cyberattacks, disruption of energy flows, etc.), which could adversely affect ZOOZ's
business and/or supply chain and third parties with whom ZOOZ conducts business. Any of the foregoing could harm ZOOZ's business
and it cannot anticipate all of the ways in which the current economic climate and financial market conditions could adversely impact
ZOOZ's business.
Environmental,
social and governance matters may impact ZOOZ's business and reputation.
In
addition to the importance of their financial performance, companies are being increasingly judged by their performance on a variety
of environmental, social and governance, or ESG, matters, which are considered to contribute to the long-term sustainability of companies'
performance.
A
variety of organizations measure the performance of companies on such ESG topics, and the results of these assessments are widely publicized.
In addition, investment in funds that specialize in companies that perform well in such assessments are increasingly popular, and major
institutional investors have publicly emphasized the importance of such ESG measures to their investment decisions. Topics taken into
account in such assessments include, among others, the company's efforts and impacts on climate change and human rights, ethics
and compliance with the law, and the role of the company's board of directors in supervising various sustainability issues.
In
light of investors' increased focus on ESG matters, there can be no certainty that ZOOZ will manage such issues successfully, or
that it will successfully meet society's expectations as to its proper role. ZOOZ's actual or perceived failure to meet investors,
partners or employees' expectations on ESG matters could adversely affect ZOOZ's brand and reputation, its employees'
engagement and reputation, and the willingness of its partners to do business with it.
Climate
change, or legal or regulatory measures to address climate change, may negatively affect ZOOZ.
Climate
change resulting from increased concentrations of carbon dioxide and other greenhouse gases in the atmosphere could present risks to
ZOOZ's operations. Changes in climate patterns leading to extreme heat waves or unusual cold weather at some of ZOOZ's locations
can lead to increased energy usage and costs, or otherwise adversely impact ZOOZ's facilities and operations and disrupt its supply
chains. Concern over climate change can also result in new or additional legal or regulatory requirements designed to reduce greenhouse
gas emissions or mitigate the effects of climate change on the environment. Any such new or additional legal or regulatory requirements
may increase the costs associated with, or disrupt, sourcing, manufacturing and distribution of ZOOZ's products, which may adversely
affect ZOOZ's business and financial results. In addition, any failure to adequately address stakeholder expectations with respect
to ESG matters may result in the loss of business, adverse reputational impacts, diluted market valuations and challenges in attracting
and retaining customers and talented employees. In addition, ZOOZ's adoption of certain standards or mandated compliance to certain
requirements could necessitate additional investments that could impact ZOOZ's cash position and expected cash runway.
ITEM
4. INFORMATION ON THE COMPANY
A.
HISTORY AND DEVELOPMENT OF THE COMPANY
History
Our
legal and commercial name is ZOOZ Power Ltd. We were incorporated in the State of Israel on February 5, 2013, as an Israeli corporation
and operate under the Companies Law. Our principal offices are located at 4B Hamelacha St., Lod 7152008, Israel and our telephone number
is +972 8-6805566. Our website is
https://www.zoozpower.com
. Information contained on, or that can be accessed through, our website
or any other website is expressly not incorporated by reference into and is not a part of this Annual Report. The SEC maintains an internet
site, http://www.sec.gov that contains reports, proxy and information statements, and other information regarding issuers that file electronically
with the SEC. Neither such internet addresses are a part of this Annual Report.
39
Our
agent for service of process in the United States is Puglisi & Associates.
Principal
Capital Expenditures
In
the years ended December 31, 2023, 2022 and 2021, our capital expenditures were $1.4 million, $0.5 million and $0.3 million, respectively.
As of December 31, 2023, we had no significant commitments for capital expenditures.
B.
BUSINESS OVERVIEW
ZOOZ's
Mission
ZOOZ
is committed to accelerating the electrical vehicles revolution and supporting the mass adoption of electric vehicles (EVs) around the
world, by enabling and empowering a widespread deployment of ultra-fast charging infrastructure.
ZOOZ's
power-boosting products and solutions are built with longevity and the environment in mind, helping ZOOZ's customers to overcome,
sustainably and economically, the limitations of the existing electricity grid. By that, ZOOZ aims to help its customers and partners
in building, faster and everywhere, a robust, long-lasting, and cost-effective EV ultra-fast charging infrastructure.
ZOOZ
(previously called Chakratec) was founded in 2013 as an incubator private company
1
under the Capital Nature Ltd. incubator
("
Capital Nature
"), under the framework of the directives of the CEO of the IIA and focused on developing a new concept
of flywheel.
ZOOZ
develops, produces, markets and sells energy storage systems based on storing kinetic energy in flywheels for ultra-fast charging of
EVs. ZOOZ has developed proprietary flywheel technology for storing kinetic energy and as of the date of this Annual Report, has introduced
two generations of Kinetic Storage Systems – the KPB50, which was ZOOZ's first-generation product and was introduced in 2018
as proof-of-concept and for market introduction, and the ZOOZTER™-100, ZOOZ's second-generation product, which was introduced
in 2022 and is geared towards high-volume production and deployment.
As
of the date of this Annual Report, ZOOZ operates in the market of charging infrastructure for EVs and primarily in the field of ultra-fast
charging for EVs. Based on its technology, ZOOZ develops systems comprised of an array of flywheels and supporting sub-systems, which
get charged from the electricity grid. This energy, when discharged, is added to the power from the grid, which together constitute power
levels that are twice to three times the power that is supplied from the grid, thus enabling high-power charging of the EV even in areas
where the electricity grid has limited power. ZOOZ refers to these systems as power boosters.
Use
of ZOOZ's technology enables a power booster which is both reliable and delivers high quality repeatable performance over time,
for over 100,000 charge-discharge cycles. This is in contrast with the chemical battery-based solution, the use of which is limited to
hundreds or just a few thousands of cycles, as further detailed below.
Furthermore,
the kinetic storage system is a "green system." It is environmentally friendly, as opposed to battery-based energy storage
solutions, which are comprised of polluting chemicals, the use of which requires complicated, expensive recycling processes and involves
other restrictions relating to transport, storage and/or use inside buildings, etc.
In
2018, ZOOZ introduced its first-generation / pilot product, the KPB50, by installing the KPB50 in the Viena airport. In 2020, the KPB50
was also sold to a hotel in Germany. ZOOZ's KPB50 product served as proof of the advantages of ZOOZ's technology and solution
and for marketing demonstrations to customers in Europe. The KPB50 is a discontinued product, and ZOOZ's offering are focused on
the new 2
nd
generation product, the ZOOZTER™-100.
In
March 2021, ZOOZ consummated its initial public offering on the TASE (the "
Israeli IPO
"), pursuant to which ZOOZ offered
securities to certain Israeli institutional investors and to the Israeli public (i.e., to non-institutional Israeli investors). As part
of the Israeli IPO, ZOOZ issued (A) to the Israeli institutional investors: (i) a total of 2,506,800 ZOOZ ordinary shares par value NIS
0.00286 each, at a price of NIS 92.9 per each ZOOZ ordinary share, and (ii) a total of 164,384ZOOZ option warrants (Series 1) and 54,794
ZOOZ option warrants (Series 2) without consideration, all for a total consideration of NIS 20,380,284 (gross). The unexercised ZOOZ
option warrants (Series 1) expired in March 2022 and the unexercised ZOOZ option warrants (Series 2) expired in March, 2023; and (B)
to the Israeli public: (i) a total of 75,945 ZOOZ ordinary shares par value NIS 0.00286 each, at a price of NIS 92.98per each ZOOZ ordinary
shares, (ii) and a total of 56,958 option warrants (Series 1) and 18,986 option warrants (Series 2) without consideration, all for a
total consideration of NIS 7,061,718 gross. The total gross proceeds from the Israeli IPO were approximately NIS 27.4 million. All information
presented above reflects the Recapitalization.
1
An incubator company is a project company that operates
under a technological incubator and is partly financed by the IIA.
40
In
March 2022, ZOOZ completed a financing round through a private placement and a public offering in Israel. As part of such public offering,
ZOOZ issued a total of 30,801 units, each comprised of 100 ZOOZ ordinary shares and 65 ZOOZ warrants (Series 3). The ZOOZ warrants (Series
3) will vest over a period of three years, with an exercise price of $9.1 (NIS 32.0), based on the NIS/US$ representative exchange rate
as published by the Bank of Israel as of December 31, 2022) for one year period and $1 (NIS 3.6, based on the NIS/US$ representative
exchange rate as published by the Bank of Israel as of December 31, 2022) for additional two-year period. In the private placement mentioned
above, ZOOZ issued a total of 3,736 units, each comprised of 100 ZOOZ ordinary shares and 85 ZOOZ warrants (Series 3), as well as 1,419
units, each comprised of 100 ZOOZ ordinary shares and 65 ZOOZ warrants (Series 3), for gross proceeds of $29 million (NIS 96 million,
based on the NIS/US$ representative exchange rate as published by the Bank of Israel as of December 31, 2022). All information presented
above reflects the Recapitalization.
In
May 2022, ZOOZ rebranded and changed its name from Chakratec Ltd. to ZOOZ Power Ltd.
In
the second half of 2022, ZOOZ introduced its second-generation product, the ZOOZTER™-100. The ZOOZTER™-100 was first introduced
to the market and installed in a pilot site in Zikhron Yaakov, Israel. Later, in 2023 the ZOOZTER™-100 was also installed in several
sites in Germany, as initial sales of this product., as further detailed below.
The
ZOOZTER™-100 system is geared to solve some of the challenges facing current-generation EV ultra-fast charging infrastructure,
by providing a system that supports (power-boosts) the grid and enables ultra-fast charging for EVs, especially in locations where the
grid is power-limited. This solution is aimed to be more sustainable and safer and allow better total cost of ownership compared to the
market alternatives, which are based on chemical (Li-Ion) batteries.
Starting
2023, ZOOZ initiated market penetration efforts with deliveries of the ZOOZTER™-100 to its customers and partners in Israel, Europe
and the U.S.:
(a)
In January, 2023, a first site in Israel, which is supported by the ZOOZTER™-100, has commenced commercial operation. This site
was established as a Pilot site, in collaboration with Afcon e-mobility and Dor-Alon gas stations (the operators of "ON" charging network, which is the biggest
fast charging network in Israel), and with the support of the IIA and the Israeli Ministry of Energy. In March 2024, ZOOZ announced that
based on the successful pilot with Afcon and Dor-Alon, it was agreed with Dor-Alon that two ZOOZTER™-100 systems will be installed
at two of Dor-Alon's gas stations along Highway 6 (one of Israel's main transportation corridors), aiming to enable additional
ultra-fast chargers in these sites, despite the grid's limitations. These sites are expected to be upgraded during the second quarter
of 2024. The ability of the ZOOZTER™-100 systems to support these multi-charger sites will be evaluated for a period of several
months and upon successful completion of this assessment, the ZOOZTER™-100 systems will be purchased by Dor-Alon (pursuant to terms
agreed by the parties);
(b)
During the second quarter of 2023, two charging sites, located in Herrenberg Germany, were built (in cooperation with Mer), with fast-chargers supported by
the ZOOZTER™-100 systems, finalized commissioning and started commercial operation;
(c)
During the fourth quarter of 2023, two additional ZOOZTER™-100 systems were installed and commissioned (in cooperation with
Parkstorm GmbH) in two additional charging sites in Germany (in Reiskirchen and Weiterstadt, located in Greater Frankfurt). These
sites are expected to start commercial operation during the second quarter of 2024;
(d)
During the third quarter of 2023, the first site in the U.S., at Scotchman Gas Station in Rock Hill, South Carolina, was built, and
finalized commissioning and in October 2023, started commercial operation. This site was established as part of a joint pilot with
ARKO Corp (a major U.S. convenience stores network);
(e)
During the third quarter of 2023, a ZOOZTER™-100 system was delivered
to the U.S. and placed at the La-Guardia airport in NYC, in preparation to a joint pilot with a major car rental company. The work in
this site was delayed until receipt of the required permits by the La-Guardia Port Authority, which was received in the first quarter
of 2024, after which the construction work commenced. The site is expected to become operational during the third quarter of 2024; and
(f)
An additional ZOOZTER™-100 system was delivered to the U.S. and installed at La-Guardia airport in NYC, in preparation to a joint
Pilot with a major car rental company. The work in this site was delayed due to wait till the La-Guardia Port Authority will provide
the needed permit. Such permit was given in the first quarter of 2024, and construction work commenced. The site is expected to become
operational in the third quarter 2024;
(g) In January 2024, a ZOOZTER™-100 system was delivered to the U.K.,
for a first site which was built in collaboration with Osprey, one of the leading charging operators in the U.K. The construction of this
site was finalized during the first quarter of 2024 and is expected to start commercial operation during the second quarter of 2024. Osprey
and ZOOZ have agreed that the ZOOZTER™-100 system will be evaluated during the first 6 months, and if such evaluation is successfully
completed, the ZOOZTER™-100 system will be purchased by Osprey (pursuant to terms agreed by the parties);
(h)
In March 2024, ZOOZ announced that based on the successful pilot with Afcon & Dor-Alon (see above), it was agreed with Dor-Alon
that two ZOOZTER™-100 will be installed in Dor-Alon's gas stations along Highway 6 (one of Israel's main
transportation corridors), aiming to enable additional ultra-fast chargers in these sites, despite the grid's limitations.
These sites are expected to be upgraded during the second quarter of 2024. The ZOOZTER™-100 ability to support these
multi-chargers sites will be evaluated for a period of several months and upon successful completion of this period, the
ZOOZTER™-100 systems will be purchased by Dor-Alon (at terms already agreed by the parties).
41
On
April 4, 2024 (the "
Closing Date
"), Keyarch and ZOOZ consummated their previously announced Business Combination,
pursuant to that certain Business Combination Agreement, dated as of July 30, 2023 (as amended on February 9, 2024, March 8, 2024 and
March 15, 2024, the "
Business Combination Agreement
"), by and among Keyarch, ZOOZ, Merger Sub, the Sponsor, in the
capacity as representative of specified shareholders of Keyarch after the Effective Time, and, by a joinder agreement, Dan Weintraub
in the capacity as representative of the pre-Closing shareholders of ZOOZ after the effective time of the Business Combination. Pursuant
to the Closing, Keyarch became a direct, wholly-owned subsidiary of ZOOZ.
In connection with the
Closing, certain additional agreements were entered into between ZOOZ, Keyarch and other third parties as detailed under "
Item
4 – Material Agreements - The Business Combination Agreement and Related Agreements
".
In connection to the Closing
of the Business Combination, ZOOZ's ordinary shares and public warrants began trading on the Nasdaq Capital Market under the ticker
symbols "ZOOZ" and "ZOOZW", respectively, on April 5, 2024.
Market
Outlook
The
EV revolution
According
to the IEA Global EV Outlook 2023 published by the International Energy Association (the "
IEA Report
")
2
,
the global EV market has witnessed rapid growth in recent years, and this momentum is expected to continue as we move toward 2030. EVs
are anticipated to constitute a substantial portion of new vehicle sales, with estimates ranging from 30% to 60% penetration by 2030,
according to the IEA Report. The total fleet of EVs are expected to exceed 240 million by 2030 with 45 million EV sales in 2030 according
to the Announced Pledges Scenario of IEA as mentioned in the IEA Report. Various factors, including advancements in battery technology,
increased environmental consciousness, and the availability of a broader range of EV models across different vehicle segments, drive
this anticipated surge in EV adoption, according to the IEA Report.
China,
Europe, and the United States, which currently constitute the three major markets for EVs according to IEA Report, together accounted
for approximately 95% of global sales of EVs in 2022. According to IEA, in 2030, China is expected to account for one-third of the EV
market, Europe and the U.S. will have an additional 35%-40% share, and the rest will be divided between the rest of the world.
The
substantial EV market shares of the European Union (EU) and the U.S. are also supported by governmental incentives adopted by the EU
and U.S. administrations to support and incentivize the transition to electric mobility. For example, the EU has established a strategy
for transitioning to green energy and reducing the use of polluting energy by 2050. Recently, a decision was adopted by the European
Parliament, according to which, by 2035, the sale of fossil fuel-powered vehicles will be almost entirely phased out. Similarly, the
U.S. administration has taken significant steps to foster the EV revolution. The Biden administration has outlined an ambitious plan
to decarbonize the transportation sector and achieve net-zero emissions by 2050. The American Jobs Plan includes substantial funding
for expanding EV charging infrastructure. In 2021, the Biden administration passed a law providing anticipated funding for EV infrastructure,
known as the National Electric Vehicle Infrastructure (NEVI) program.
2
IEA
Report 2023.
https://www.iea.org/reports/global-ev-outlook-2023.
42
The
EV charging needs (from the automaker and EV drivers' perspective)
The
rapid development of ultra-fast EV charging technology has addressed several challenges, such as range anxiety, by striking a balance
between range, performance and price. With these challenges taken into account, players within the EV industry are seeking the balance
in terms of range-performance-weight-price trade-offs, in order to enable EVs to meet consumer needs while remaining affordable and efficient.
Today,
passenger EVs typically feature battery capacities ranging from 60 kilowatt hour ("
kWh
") to 80 kWh, which allow for
a range of approximately 400-500 kilometers per each full charge of the battery. Typically, we assume that this range satisfies most
private users' average daily driving requirements and alleviates concerns about running out of charge during daily usage.
Nonetheless,
currently, one of the main challenges in the EV market is charging time. Ultra-fast charging solutions aim to address this challenge
by significantly reducing charging times compared to traditional charging methods.
As
stated above, the
EV market has witnessed rapid growth
in recent years and EVs are expected to constitute a substantial portion of new vehicle sales in the coming years. Such
increase
in the number of EVs in the overall vehicle population, requires increasingly quick, reliable, and comfortable charging solutions. Consumers
expect at least a comparable convenience and freedom of mobility they are used to with internal combustion engine (ICE) vehicles today.
Charging within hours might be acceptable if the car is not needed (for example, at night or at the workplace), however with an upcoming
mobility mass-market, ZOOZ expects that EV owners will not want to rely on charging solutions that require hours to recharge their EVs,
but will want to recharge their EVs to gain meaningful additional range quickly not only during long-distance travel, but also within
the local area in which they are situated. ZOOZ expects that sudden events, spontaneous rides and unexpected travel will need to be covered
for most, if not all, customers, who will want such options to be available for their EVs. Hence, ultra-fast chargers will need to be
widely available in a wide-area network, including residential areas and not only on highways. ZOOZ's systems, which allow the
driver to add additional milage of range in minutes (and not hours) of charging (if the car allows sufficient power input), address this
need of ultra-fast charging.
By
leveraging high-power charging infrastructure, such as DC (direct current) fast chargers with power outputs of 150 kW and above, EVs
are expected to be capable of re-charge their batteries much faster compared to AC (alternating current) chargers, which are currently
the common type of chargers, enabling the drivers to have the needed flexibility and availability of the EV, for long-range commute as
well as unplanned needs. Nonetheless, in order to allow such fast charging, the infrastructure needs to support such capabilities.
Efforts
are underway to improve EVs' ability to accept higher charging power and to develop even faster charging technologies, such as
ultra-high-power chargers capable of delivering 350 kW or more. These advancements will further minimize charging times, making EVs even
more practical for long-distance travel and reducing downtime for commercial fleet operators.
The
need to build public charging infrastructure for electric vehicles
The
rapid penetration of EVs is revolutionizing the charging landscape, bringing significant transformations in how EVs are charged. This
paradigm shift encompasses multiple dimensions, including transitioning from slow alternating current (AC) charging (mainly at home or
in the workplace) to fast and ultra-fast direct current (DC) charging available to the public (in public areas). As EVs become more prevalent,
the need for efficient charging solutions is intensified, necessitating the development of high-power DC fast charging networks that
enable shorter charging times and greater availability and convenience for EV owners.
Furthermore,
the evolution of EV charging extends beyond private charging infrastructure. With the growing demand for public charging options, the
focus has shifted from centralized approach where many vehicles are charging in a charging station with multiple chargers (like many
ICE cars are being fueled today in big gas stations, to decentralized networks, where public charging is no longer limited to specific
locations, but is becoming an amenity that caters to charging needs on the go and at various destinations. This shift enables EV owners
to charge their vehicles anywhere, as part of their common errands and daily commute, whether it be at shopping centers, parking lots,
or other public spaces, thereby increasing accessibility and reducing range anxiety.
The
ultra-fast charging opportunity
Charging
infrastructure acts as the backbone for EVs, providing users with the flexibility and confidence to operate their vehicles just like
they would operate a traditional ICE car. In many urban and suburban settings, private home charging is not always feasible in housing
types like apartments or condos, due to infrastructure limitations. The public EV charging infrastructure aims to serve EV drivers on-the-go
and on public locations and is expected to be based mainly on high power DC chargers of 150kW and above (compared to residential AC charging
with 6-22 kW chargers) and to account for approximately 10% of the overall EV charging market by 2030, according to the IEA Report. Nonetheless,
the anticipated widespread deployment of EVs requires a broad distribution of public EV charging stations to address the challenge of
range anxiety and the insufficient availability of chargers at home or workplace of EV owners. Therefore, it is anticipated that the
EV public charging infrastructure, which relies on fast and ultra-fast chargers, will provide approximately 40% of the total EV charging
capacity by 2030, according to the IEA Report. As the adoption of EVs is expected to continue to rise globally, the need for a widespread,
easily accessible public charging infrastructure is becoming critical. Furthermore, for long-distance travelers or those needing a quick
recharge, charging duration needs to be sufficiently short to avoid significant delays. This has led to a growing demand for ultra-fast
charging stations that can recharge an EV's battery substantially in just minutes, aiming to get closer to the time it takes to
refuel an ICE vehicle at a petrol station. This technology is integral in making EVs a convenient choice for all potential users and
is key to accelerating the shift towards sustainable transportation.
43
As
indicated, Automakers are already pursuing ways to enable the EVs' batteries to be charged at ultra-fast rate. As more EV models
are available with such charging capabilities, governments and other policymakers are expected to incentivize initiatives designed to
enable public charging infrastructure to have matching capabilities. For example, in February 2022, the Biden administration published
a call for a vast rollout of fast EV charges under the National EV Infrastructure (NEVI) project. According to the NEVI guidelines, there
should be a charging station every 50 miles on the main highways crossing the U.S. (the fuel alternative corridors), each containing
at least 4 ultra-fast chargers of minimum 150kW. Such ultra-fast EV charges are intended to charge a single vehicle within approximately
15 minutes, providing an added range of approximately 150 miles allowing the EV driver to commute to the destination (or the next stop
with high-power charger) with minimal delays and sufficient flexibility. Such call is expected to incentivize the rollout of such charges
and assist in making them more available and easily accessible in cities, along highways, short-term parking areas, and various businesses.
A similar approach and trend are also seen in Europe, where the E.U. has set the goal of having ultra-fast chargers available every 60
kilometers on highways
3
.
In
addition, efforts are underway to improve EVs' ability to accept higher charging power and to develop even faster charging technologies,
such as ultra-high-power chargers capable of delivering 350 kW or more. These advancements will further minimize charging times, making
EVs even more practical for long-distance travel and reducing downtime for commercial fleet operators, but will increase the strain on
the grid, with higher power to be required for this short charging.
The
challenges in deployment of public ultra-fast charging infrastructure
The
EV industry faces several challenges that need to be addressed when considering the public ultra-fast charging infrastructure aiming
for widespread adoption and successful transition to EVs. These challenges include:
●
The
Chicken and Egg problem
: – Charging Point Operators (CPOs) face the dilemma of investing in charging infrastructure when the
number of EVs on the road is still limited (though growing) and the fact that it would take time for that number to constitute a significant
portion of the cars on the road. Simultaneously, potential EV owners hesitate to switch to electric vehicles due to concerns about the
availability and accessibility of charging stations, causing them the known phenomena of "Range Anxiety" which limits the
pace of EV adoption. This challenge requires a coordinated effort between CPOs, automakers, OEM manufacturers and policymakers to ensure
a balanced and mutually reinforcing EV adoption and charging infrastructure growth.
●
Grid
limitations
: The rapid growth of EV charging infrastructure strains the electrical grid. Insufficient grid infrastructure is a significant
challenge in deploying ultra-fast charging stations. Upgrading the grid to support higher power demands can be costly and time-consuming,
hindering the rapid deployment of charging infrastructure. This challenge is even further intensified, with the growing demand for ultra-fast
charging, which requires high-power peaks for very short durations, resulting in need of upgrading transformer and switchgear, although
average electricity consumption is growing in much slower pace. Utilities may face challenges in upgrading their infrastructure with
significantly growing pace which they may not be able to accommodate, resulting in a long wait time for necessary grid enhancements to
support the growing number of charging stations.
●
Demand
charges
: Many commercial charging stations face demand charges imposed by utilities. These charges are based on the peak power demand
during a billing cycle, rather than the total energy consumed. This can result in higher operational costs for charging station operators,
especially while utilization is still low, and potentially discourage the deployment of charging infrastructure. This challenge is intensified
where ultra-fast charging (requiring a high-power peak for a short time) is available, and even more so when utilization is still low,
as in this case the revenues from electricity sold to EV owners is still limited, while the cost of electricity is high due to limited
number of demand peaks during ultra-fast charging sessions.
3
https://www.europarl.europa.eu/news/en/press-room/20230707IPR02419/meps-adopt-new-rules-for-more-charging-stations-and-greener-maritime-fuels
44
●
Energy
Management System (EMS) limitations
: Some charging sites have more than one charging port, thus allowing multiple EVs to charge simultaneously.
Such charging sites have Energy Management Systems (EMS), which allocate the maximal power levels to each port. Such allocation reduces
the power that each port can supply to the EV. Limitations in power allocation granularity (mostly due to power electronic system design)
lead to inefficient power allocation, which can lead to longer charging sessions and longer queues. Therefore, inefficient power allocation
can result in congestion at charging stations, causing frustration and inconvenience for EV users, and result in less utilization and
smaller revenues for the CPO and the business adjacent to the chargers (e.g., convenience store).
●
Location
challenges
: The rapid deployment of ultra-fast charging stations has led to a "land-grabbing" war among Charging Point
Operators (CPOs) and asset owners. Securing suitable locations for charging stations becomes increasingly competitive, requiring efficient
planning and cooperation between stakeholders.
●
Fleet
challenges
: Fleet electrification poses additional challenges, as the charging demands of large-scale commercial fleets can strain
the grid infrastructure. Simultaneously, fleet operators must ensure sufficient charging capacity to meet operational needs in specific
locations with many EVs on site, without impacting the overall grid stability and smooth fleet operations.
The
demanding profile of high-peak power consumption by an ultra-fast charging station
The
typical charging profile of each EV model is different. Still, it typically starts at a short high demand of power which later is reduced
by the car battery management system to protect the battery. A combination of multiple EVs charging for an extended period creates a
chain-saw-like charging profile with many short high-peak surges of consumption from the grid. Therefore, efficient grid utilization
involves designing the infrastructure to accommodate the average power demand during the day rather than catering solely to the peak
demand.
During
a full day of charging, the effect of different charging parameters (e.g. time of the EV starting the charging, profile of charging per
each vehicle, duration of charging, etc.) in conjunction with high utilization, which is significantly varying though the hours of the
day, can lead to a low average power demand but with several very high peaks of demand.
An
example of the high peak demands created by multiple EV charging (in parallel, but with different charging profile and timing per each
vehicle) is illustrated in the following graphs
4
:
The
graph above illustrates that each one of the EVs has a different charging profile. Since not all EVs are charging at the same time and
not with the same energy charged to each EV, the combined demand creates a chain-saw-like charging profile with many high but short peak
demands while the total demand is not reaching the maximum expected from 4 cars charging simultaneously.
4
The graphs were prepared by ZOOZ and are for illustration purposes only.
45
An
example of full-day power demand in high utilization charging station is illustrated in the below graph
5
:
The
illustration presented above shows an example of the average demand of 260kW with several peaks reaching 600kW. Upgrading the grid to
accommodate 600kW will be inefficient (as the average power is much below the peak and the grid utilization will be very low) and costly
(as the cost for upgrade the grid is related to various parameters and the demand charges during the on-going operation of the site is
related to the peak demand).
Technology
background
●
Flywheels
– A flywheel is a kinetic energy storage device, in which the energy is stored in a rotating dreidel (which is called a rotor).
The amount of energy stored is proportional to the square of the rotation speed. The main advantages of flywheels are their robustness,
resilience to multiple high-power charge/discharge cycles while conserving the performance, resulting in long calendar lifespan.
The
following is an illustration of ZOOZ's flywheel module:
Efficient
flywheels usually rotate at high speeds. However, the rotor speed is limited by the centrifugal forces that operate on the rotor. Excessive
centrifugal forces may lead to damage to the rotor. The right balance between the rotation speed and centrifugal forces is key for an
economically efficient and safe flywheel.
To
mitigate safety concerns, previous-generation flywheels were installed underground. ZOOZ's flywheel is constructed from laminated
steel, so even in unforeseeable damage to the rotor that will lead to disintegration, all the parts will be contained in the steel housing.
This design, together with the extensive testing and certification, mitigates safety concerns allowing above ground installation in crowded
areas.
The
laminated steel design, apart from its superior safety, also enjoys a cost advantage over other construction methods (like forged steel
or carbon fiber). This material is widely used in the automotive industry and is manufactured by multiple vendors worldwide.
5
The graphs were prepared by ZOOZ and are for illustration purposes only.
46
To
minimize operation losses, the flywheel rotates in a vacuum eliminating aerodynamic drag effects and is floating on a magnetic bearing.
The magnetic bearing is a frictionless bearing that can operate in vacuum, it has no wear and unlimited lifetime.
The
flywheel motor has several differences compared to standard motors:
● Vacuum
operation, which make cooling the motor challenging.
● In
order to reduce the losses when the wheel is running at maximal speed of 17,000 RPM and waiting for a car to come, motor losses are minimized
by a special design, in standard motors this feature is less important because when the motor is at idle it's not rotating and
therefore there are no losses.
The
motor driver (sometimes referred to as inverter) which is the power electronics controlling the motor is based on state-of-the-art Silicon
carbide transistors to minimize losses.
●
Batteries
– batteries are chemical-based storage devices. Lithium-ion batteries are currently the most wide-spread type of batteries
on the market, based on their high energy density and relatively low-cost. There are several chemistries in use: NCA, NMC and LFP. The
typical lifetime of a battery is between 1,000 to 5,000 charging cycles. One of the risks of using Lithium-ion batteries is the thermal
runaway that can cause explosion and fire of the battery.
The
main differences between flywheels and batteries
While
both flywheel-based and battery-based power boosters provide a solution for ultra-fast charging when the power grid is limited, the main
differences between these two types of boosters are significant in multi-cycle, high-power applications like in the case of ultra-fast
charging:
●
Concept
of operation
– a battery stores / discharge energy using chemical reactions, while flywheel-based energy storage relies on
accelerating and decelerating a heavy mass and by that storing / discharging kinetic energy.
●
Charging
cycles
– the charging cycles of batteries (usually defined as reaching 70%-80% of their initial capacity) is limited to approximately
1,000-5,000 charging / discharging cycles due to performance degradation, which is related to the fact that the energy storage is based
on chemical reactions, according to a report issued by the ELB Energy Group
6
. In contrast to that, flywheels, being based
on more efficient physical storage mechanism, maintain performance and reliability during hundreds of thousands of cycles, allowing a
lifespan which is typically over 15 years (see more details regarding lifespan below).
●
C-Rate
– the C-Rate refers to the power-to-energy ratio, denoting the duration necessary for discharging. A higher C-Rate facilitates
expeditious response times and swift recovery for prompt readiness in subsequent sessions. While batteries conventionally exhibit C-Rates
of 1 or lower and their lifespan is shortened (performance degradation intensified) with higher C-rates, in flywheel-based systems the
capacity of the flywheel is determined by the size of the rotor while the output power is determined by the size of the motor, therefore
the capacity is decoupled from the power output and the C-Rate is a design parameter and is not intrinsic to the technology. Typically,
due to economic reasons, flywheels operate at C-Rates of four or more.
●
Lifespan
– the lifespan of batteries is usually up to 10 years. In demanding applications like power boosters and in cases when they
operate at high C-rate, multiple / continuous high-power charge & discharge cycling and/or in harsh environment conditions, the battery
lifespan is much shorter (can be reduced to a few years), while the lifespan of flywheels is longer and most flywheels are specified
for a lifespan of 15-30 years.
●
Environmental
impact
– because of batteries' composition of rare metals and toxic materials, they are difficult to recycle and their
recycling process is polluting by itself. In contrast to that, ZOOZ's flywheels are made from steel which is easily recyclable
and is considered to be a more environmentally friendly metal. In addition, steel is a common raw material with long lifespan and in
many cases is reused (which by itself reduces the polluting effect of the metal).
●
Safety
– batteries are composed of several potentially harmful substances. The primary concern with battery technology revolves around
the toxicity and flammability of the chemicals used in their construction. Lithium-ion batteries, for instance, use a flammable content
that can potentially ignite under certain circumstances, such as when the battery is damaged or improperly handled. In some countries
the installation and usage of batteries-based ESS is limited or prohibited in certain locations due to the flammability and fire hazard
of those batteries. Moreover, the production of batteries involves complex chemical processes that can lead to the release of toxic substances
into the environment. This could cause harm to the ecosystem and human health. Similarly, when batteries have reached the end of their
life cycle, their disposal poses another significant environmental challenge. In contrast to that, Flywheels' key advantage from
a safety perspective is that flywheels do not involve hazardous chemicals, which minimizes the risk of fires or chemical leaks. In general,
flywheel systems store kinetic energy via a rotating mass. The primary safety concern is the potential for this mass to rupture, releasing
energy suddenly and causing damage or injury. Failures can arise from material defects or imbalances. Although modern designs include
containment and monitoring and are tested and certified by the regulators.
6
https://www.ecolithiumbattery.com/lifepo4-battery-vs-lithium-ion-batteries/
47
Energy
storage compared to power boosters
Regular
energy storage is used when energy is drawn directly from the power grid (or alternative energy source) during off-peak/less expensive
times and then accessed during peak times when the source of energy is insufficient to provide the required demand.
The
primary purpose of energy storage is to increase the available energy capacity, by complementing available energy source (e.g. electricity
grid).
Currently,
most applications use battery energy storage systems (BESS) using Lithium-ion batteries due to their relatively high-capacity density,
maturity, and cost.
A
power booster is a type of energy storage system, which is aimed to support high-power repetitive peak surges of demand. Instead of storing
energy for later use (as for example is the case when BESS is storing solar energy to be used during dark hours), a power booster aims
to make the existing infrastructure more powerful by providing surges of high energy in short times at the highest possible speed. The
power booster charges itself from the available electric grid and then, when there is a short high-peak demand, it "flashes"
out and delivers the stored energy at a high rate (i.e. high output power).
The
picture above illustrates the usage of the ZOOZTER™-100 as a power booster in a charging station. The system is connected between
the grid and the ultra-fast EV charger and when EVs are connected to the charger, the ZOOZTER™-100 is flashing the stored energy
and adding power to the existing power grid, enabling fast charging even if the grid capacity is not enough.
The
following image show the usage of a ZOOZTER™-100 as a power booster, installed in a customer site in Germany and connected to an
ultra-fast EV charger.
48
Considering
the chain-saw-like profile of the energy consumption of an EV ultra-fast charging station, a power booster can support the grid as a
"peak-shaving" storage, providing the response to the high-peak short surges of energy, while the consumption from the grid
is stabilized. In that sense a power booster can defer or avoid a grid upgrade, because grid available power can be sufficient to provide
the average consumption, while the power booster is the source for the peak-demand beyond grid's power capacity.
As
a result of using a power booster in an EV ultra-fast charging site, the charging session can be shortened, and utilization can be increased,
because the grid infrastructure is utilized in a more efficient way, and additional chargers can be installed per given grid power capacity.
ZOOZ's
technology and products
The
KPB-50
In
2018, ZOOZ introduced its first-generation / pilot product, the KPB50, by installing the KPB50 in the Viena airport, which was announced
as successful and is operated till the end of 2023. ZOOZ's KPB50 product served mostly as proof of the advantages of ZOOZ's
technology and solution and for marketing demonstrations for customers in Europe. One system was sold to a Premier Inn hotel in Germany
and is operational at the parking lot of the hotel since 2020.
The
KPB-50 is not offered anymore to customers and all of ZOOZ's sales and marketing efforts currently focus on the newer model of
the ZOOZTER™-100.
The
ZOOZTER™-100
In
late 2022, ZOOZ introduced its second-generation product, the ZOOZTER™-100, initially in a pilot site in Zikhron Yaakov, Israel.
In late 2022, ZOOZ completed the first installation of the system in Israel at a fast-charging station, which was built at the Dor Alon
"Or Zikhron" station, in Zikhron Yaakov, Israel, as part of a joint pilot with Afcon Electric Transportation Ltd. and Dor
Alon, supported by the Israeli Ministry of Energy and the IIA. In addition, ZOOZ has started supplying ZOOZTER™-100 systems under
an agreement with its customers in Germany.
The
ZOOZTER™-100 is a first-of-its-kind kinetic power booster based on a proprietary flywheel technology designed to enable sustainable
and cost-effective rollout of ultra-fast EV charging stations in areas where the grid is power-limited. In order to do so, the ZOOZTER™-100
is designed to provide 100kW of power for a period of 15 minutes in addition to the power provided by the grid (50kW or more), thus enabling
an EV to be charged with a power greater than 150kW (ultra-fast charging).
49
The
ZOOZTER™-100 contains eight flywheels' modules and the equipment required to operate them. The ZOOZTER™-100 is connected
to the available grid, using a standard 3-phase connection to source the energy and convert it, by the flywheel modules, to kinetic energy.
Each flywheel module contains a half-a-ton mass levitated by a proprietary "frictionless" magnetic bearing and balanced,
to rotate around its axis, in a vacuum-sealed housing. A proprietary motor accelerates the heavy flywheel rotor to a speed of approximately
17,000 rounds per minute.
Below
is an illustration of the ZOOZTER™-100 and its internal structure:
As
illustrated in the above graphics, the key elements of the ZOOZTER™-100 include flywheel modules, which store the kinetic energy.
Additional integral parts include the power electronics, which orchestrate the operations of the flywheel, along with inverters that
are responsible for the bi-directional conversion between AC (Alternating Current) electricity from the power grid and DC (Direct Current).
Once
an EV is plugged into the ultra-fast charger, the ZOOZTER™-100 can rapidly "flush" the stored kinetic energy, by decelerating
the flywheels and converting the kinetic energy back into electrical energy. By that, the ZOOZTER™-100 is designed to increase
available grid power by up to additional 100 KW and provide the boost necessary for ultra-fast charging in approximately 15 minutes.
Based
on the advantages of flywheels detailed above, ZOOZ believes that flywheels are currently a more suitable technology than batteries for
high-power, multiple cycles-per-day applications, such as EV ultra-fast charging.
Efficient
flywheels usually rotate at high speeds. However, the rotor speed is limited by the centrifugal forces that operate on the rotor. Excessive
centrifugal forces may lead to damage to the rotor. The right balance between the rotation speed and centrifugal forces is key for an
economically efficient and safe flywheel.
To
mitigate safety concerns, previous-generation flywheels were installed underground. ZOOZ's flywheel is constructed from laminated
steel, so even in unforeseeable damage to the rotor that will lead to disintegration, all the parts will be contained in the steel housing.
This design, together with the extensive testing and certification, mitigates safety concerns allowing above ground installation in crowded
areas.
The
laminated steel design, apart from its superior safety, also enjoys a cost advantage over other construction methods (like forged steel
or carbon fiber). This material is widely used in the automotive industry and is manufactured by multiple vendors worldwide.
50
To
minimize operation losses, the flywheel rotates in a vacuum eliminating aerodynamic drag effects and is floating on a magnetic bearing.
The magnetic bearing is a frictionless bearing that can operate in vacuum, it has no wear and unlimited lifetime.
The
flywheel motor has several differences compared to standard motors:
● Vacuum
operation, which make cooling the motor challenging.
● In
order to reduce the losses when the wheel is running at maximal speed of 17,000 RPM and waiting for a car to come, motor losses are minimized
by a special design, in standard motors this feature is less important because when the motor is at idle it's not rotating and
therefore there are no losses.
● The
motor driver (sometimes referred to as inverter) which is the power electronics controlling the motor is based on state-of-the-art Silicon
carbide transistors to minimize losses.
The
following picture is summarizing the ZOOZTER™-100 flywheel design and advantages:
In
addition, the ZOOZTER™-100 embedded Energy Management System (EMS) is a software designed to control the energy load on the charging
site, interfacing seamlessly with any charging vendor and power source. This accelerates the roll-out of the charging infrastructure,
avoiding costly grid upgrades and saving the demand charges, as illustrated in the following image:
51
ZOOZ
has also developed a remote monitoring system, complemented by ZOOZ's in-depth expertise. This system proactively identifies and
analyzes potential issues, often prior to any operational impact at the charging site, ensuring optimum system availability. Critical
data from the ZOOZTER™-100 is seamlessly transmitted via a cellular network to cloud-based platforms. There, a data visualization
and analysis software oversees the system, facilitating preemptive maintenance actions.
The
ZOOZTER™-100 has two versions, one for the EU market certified according to the following standards: EN ISO 12100:20120, EN 602204-1:2018,
and that have a grid inverter conforming to European grid standards and a U.S.-certified version according to UL9540 with inverter that
conforms to the U.S. grid standards.
Market
Opportunity and Customers
ZOOZ
is committed to accelerating the mass adoption of EVs by enabling and empowering a widespread deployment of ultra-fast charging infrastructure.
As
the EV revolution is progressing, there is also a significant disruption in the ecosystem of services to vehicles. While all Internal
Combustion Engine ("
ICE
") vehicles are fueling in a well-established gas station network, there is a new value-chain
and ecosystem being built to provide a charging infrastructure which will be used to charge EVs. This eco-system includes not only these
who owned and operated the traditional gas stations, but also new parties who wish to build, own and operate such charging infrastructure.
At
the current early stage of this market, many of these who are active in this charging infrastructure market are new to the challenges
associated in building such infrastructure, and in particular, to the challenge of insufficient grid power to support ultra-fast charging.
With
its unique flywheel-based kinetic power-boosting products and solutions ZOOZ aims to help its customers and partners in building, faster
and everywhere, a robust, long-lasting, and cost-effective EV ultra-fast charging infrastructure, while overcoming power limitations
of the electricity grid.
ZOOZ
aims to collaborate with the following types of target customers and partners:
●
Charging
Point Operators (CPOs)
:
CPOs
are responsible for operating the charging infrastructure (in some cases they also build and/or own the charging sites) as part of a
widespread network of charging services (at multiple sites). They seek reliable and scalable ultra-fast charging solutions to capture
relevant locations ("land-grabbing") with potential of high EV traffic, expand their network (as quickly as possible and
with highest possible availability of chargers) in order to attract EV drivers to be part of those being registered with their network,
and by that maximize revenue generation out of charging services provided in their charging locations. In order to do so, they need to
land-grab attractive sites, build and operate efficiently the charging stations, optimize utilization, minimize operational costs, and
integrate billing and payment systems.
●
Fleet
Operators
:
Fleet
operators manage large-scale commercial vehicle fleets, such as rental car companies, last mile logistics and delivery companies, or
taxi services.
52
According
to a report published by McKinsey
7
, assuming widespread EV adoption, commercial and passenger fleets in the United States
are expected to include as many as eight million EVs by 2030 which would amount to between 10 and 15 percent of all fleet vehicles. As
such, fleet operators are considering the transition of the fleet to EVs, the primary concerns are the fleet's operational efficiency,
considering the EV range limitations, the charging process duration and the need to minimize vehicle downtime. As for charging capabilities,
fleet operators are aware of, and concerned by, the limited availability of public fast-chargers, and on the other hand when they consider
building their own charging infrastructure, they learn, in many cases, that the grid power, at their parking/depot sites, is limited.
Slow chargers installed on these depot/parking sites can provide a partial solution, mainly for over-night charging, but due to the long
charging duration (several hours) provided by these chargers, this is not considered as a solution, since it puts at risk the efficient
usage of the EV fleet. Combining ultra-fast charging infrastructure at the fleets' depot / parking sites, can provide the needed
flexibility and a solution to enable quick and convenient charging, and will allow an efficient operation of the fleet for various planned
and unplanned tasks.
●
Business
operators and real-estate asset owners
:
With
the increasing adoption of EVs, business operators (such as retail stores, convenience stores, shopping centers, restaurants, and others)
see in charging services at their locations and amenity that may attract EV drivers to shop, dine, or have other services in their business,
while they charge their vehicles. By that, not only that they can make profit out of the charging services, but they can also increase
their revenues and profits thanks to the increased traffic of customers visiting their business (and they may be losing business to competitors
who were faster in offering charging services as an additional amenity at their sites). Similarly, real-estate asset owners (such as
parking lots, rest areas, businesses as detailed above, etc.) see in fast-charging services at their location as an opportunity to enhance
their property value by offering EV charging services, especially if it is an attractive location to EV drivers to stop by on-the-go
to their destination or close to such destination. As a result, business operators and real-estate asset owners realize the opportunity
in ultra-fast charging solutions to attract EV drivers and provide a competitive advantage, as the EV owners may prefer using these chargers
to save time on-the-go to their destination and/or efficiently use the time of charging for other businesses they have in or around that
location. However, in many cases these locations of businesses and assets have power-limited grid and face challenges related to charging
infrastructure deployment and may be subject to delays and high costs of charging infrastructure construction and high operating costs
due to high demand charges.
●
Engineering,
Procurement, and Construction (EPC) Firms
:
In
many cases the new players in this market, as detailed above, lack the technical and engineering capabilities and expertise, needed to
build the charging infrastructure. Those parties are relying on EPC firms to take responsibility for designing and implementing charging
infrastructure projects. These EPC companies require versatile, robust and scalable solutions that can be efficiently deployed and integrated
into various locations where an ultra-fast charging infrastructure is built. EPC firms face challenges such as ensuring compatibility
with local regulations, coordinating with utilities for grid connection, managing project timelines and budgets, and delivering high-quality
installations.
●
Utilities
(also referred as DSO / DNO)
:
Utilities
play a critical role in supporting the integration of ultra-fast charging infrastructure with the electrical grid. They need solutions
that can balance the increasing demand for electricity from charging infrastructure while maintaining grid stability and reliability.
Utilities face challenges related to grid upgrades, load management, demand response systems, and implementing tariff structures that
encourage off-peak charging to optimize energy consumption and grid utilization.
In
some cases, utilities take the role of CPOs, becoming active in building charging infrastructure and providing charging services as part
of their offering to their customers. In other cases, utilities act as service providers that supports the other players in this market
(as detailed above), as they take responsibility for upgrading the grid in order to provide the power required to build the ultra-fast
charging infrastructure on site. With the increasing demand for grid upgrades (also caused by the needs to build EV charging infrastructure,
but also related to other needs), utilities face a significant challenge in providing these services at the needs pace, and in some counties
/ territories, the utilities' customers are experiencing significant delays as the queues for these services is increasing. In
addition, upgrading the grid while utilization by EV charging is still low, is a huge investment that in many cases can be deferred or
avoided. Using power booster, as part of their toolkit, can help them to provide a better service to their customers, prioritize better
their resources, save costs and defer investments.
7
https://www.mckinsey.com/capabilities/sustainability/our-insights/charging-electric-vehicle-fleets-how-to-seize-the-emerging-opportunity
53
Understanding
the unique characteristics, pains, and needs of these customer types is essential for developing tailored ultra-fast charging solutions
that address their specific requirements and contribute to the overall growth and success of the EV charging ecosystem.
Product
– Market Fit
The
customer needs
Each
of ZOOZ's target customers sectors face distinct challenges and has unique requirements.
ZOOZ
believes that businesses operators and real-estate asset owners are searching for reliable and scalable ultra-fast charging solutions
to attract EV drivers to their locations, maximize revenue generation (from EV charging services, as well as from the increased traffic
in these businesses) and staying competitive with their competitors who already started offering charging services as amenities. Since
they are facing power-limitations of the grid on their locations, their main concerns predominantly focus on reducing the time-to-market
and initiation of charging services, while minimizing the investment, then managing charging stations efficiently, and optimizing utilization,
while reducing operational costs (in particular demand charges which are substantial as long as chargers' utilization is still
low).
ZOOZ
believes that in the current market phase, CPOs are mostly focusing on the rapid expansion of their networks while attempting to secure
as many locations as possible which may be attractive for EV drivers to stop by for charging ("land-grabbing"). This must
be achieved cost-effectively, limiting capital expenditure and the ongoing costs of running their businesses. In order to allow them
to expand the network as soon as possible, they require solutions that will allow them to "grab" an attractive location and
start providing there with charging services, without delaying that due to waiting in the queue for grid upgrade. As EV drivers are joining
the network and utilization of the network's sites increase, CPOs need to add more charging ports in their sites, while using in
the most optimal way the available grid power on site. Power boosters can help them to accommodate the chain-saw-like charging profile,
as they add more charging ports on site, while reducing operational costs due to demand charges.
Given
that not all locations possess sufficient grid power to support ultra-fast charging and that grid upgrades are costly and time-consuming,
CPOs must identify creative solutions to bypass these constraints. Moreover, demand charges represent a significant obstacle, particularly
when the utilization rate of the station remains low.
ZOOZ
believes that similarly, fleet operators' foremost priority is streamlining the charging process to reduce vehicle downtime and
enhance fleet productivity. They require ultra-fast charging infrastructure that enables swift and effortless charging, accommodates
high-power demands, and facilitates fleet management integration to supervise charging activities. Furthermore, they require scalable
solutions that can cope with increasing fleet sizes.
Fleet
operators also face the challenge of inadequate grid power to support ultra-fast charging at many of their parking / depot locations.
Considering the considerable expense and time investment associated with grid upgrades, these operators, too, must implement various
solutions to circumvent these limitations and prevent excessive operational costs, while they advance in the transition of their fleets
to EVs. Power boosters can enable to expedite the installation of ultra-fast chargers, accommodate high-power demands, and enable a more
efficient fleet management. In addition, power booster can support the fleet operator with the needed scalability and flexibility to
gradually grow their EV fleet sizes and to initiate the transition of the fleet to EVs in additional parking / depot sites.
Main
Advantages of the ZOOZTER™-100
Given
the described challenges for Charge Point Operator (CPOs), asset owners, and fleet operators, the implementation of the ZOOZTER™-100,
a flywheel-based power booster, can offer several substantial benefits:
●
Fast
installation
: the ZOOZTER™-100 can be installed quickly, thus reducing time-to-market and facilitating swift charging infrastructure
rollout.
●
Charger
agnostic
: the ZOOZTER™-100 is compatible with different types of chargers, offering versatility and allowing operators to avoid
being locked into one specific charger type.
●
Flexibility
:
with the ability to be redeployed, the ZOOZTER™-100 acts as a long-term asset that can accelerate network rollouts and flexibly
adapt to evolving needs.
●
Low
maintenance
: the ZOOZTER™-100 requires minimal maintenance, freeing resources for other critical business operations.
●
Lower
total cost of ownership
: due to its high number of charging cycles, compared to traditional battery systems, the ZOOZTER™100's
flywheel-based system can significantly reduce the total cost of ownership, making it a cost-effective solution for power boosting.
54
●
Longevity
:
with an expected lifespan of approximately 15 years, the ZOOZTER™-100 offers a robust and durable solution, increasing chargers'
availability and quality of charging services, while minimizing maintenance and the need for frequent batteries replacements and further
contributing to operational cost savings.
●
Sustainability
:
the ZOOZTER™-100 stands as a "greener" alternative to traditional batteries, contributing to the sustainability goals
of businesses in the EV charging sector.
●
Safety
:
the ZOOZTER™-100 is designed to offer enhanced safety, as it poses no fire hazardous materials – a prevalent risk associated
with battery systems.
The
ZOOZTER™-100 offers a valuable solution to help CPOs, businesses operators, asset owners, and Fleet Operators overcome key challenges,
while offering cost-effective, sustainable, safe, and flexible benefits that make it a viable long-term asset.
Competition
As
of the date of this Annual Report, ZOOZ competes with companies that offer three main types of solutions:
● Flywheel-based
power boosters;
● Standalone
battery-based energy storage systems used as power booster; and
● Ultra-fast
chargers with integrated battery-based energy storage (as a power booster).
Competition
with flywheel-based power boosters
The
first category of competitors includes those utilizing flywheel technology, with similar concept as ZOOZ. While the overarching concept
may appear analogous, the primary differentiating factors amongst these companies lie in the design of the flywheel, the materials employed
in its construction, the production processes, and the maturity of their respective solutions.
There
are 3 main categories of flywheel rotor materials: carbon fiber, solid steel and laminated steel. Although carbon fiber has very high
mechanical properties, economically, its cost is too high for ZOOZ's target markets and ZOOZ believes that it has a better fit
for defense and aerospace applications.
Due
to their safety issues, solid steel flywheels are typically installed underground and therefore have a better fit for grid regulation
applications.
Laminated
rotors, similar to ZOOZ's technology, enjoy the low cost of steel without the safety issues of the Solid Steel flywheel and can
be installed above ground.
Presently,
to ZOOZ's knowledge, ZOOZ's competitors who employ flywheel technology, and target the EV charging market with relevant products,
are in early stage. To ZOOZ's knowledge, ZOOZ is the first company on the market to introduce and market a mature system which
is already in serial production.
In
this category of competition, ZOOZ's competitors include Teraloop, Adaptive Balancing Power, Levistor, and Revterra.
Competition
with standalone battery-based energy storage systems used as power booster
The
second category of competition refers to standalone battery-based energy storage systems, which are being used as Power Boosters. Such
system is built from modules of battery packs (different sizes and type gives different capacity and power) with system electronics and
SW that control the overall performance. In many cases these systems were originally designed for energy storage applications, such as
Solar farms and therefore may not be well optimized to the unique (high-power, short-peaks) profile of usage relevant for a Power Booster
supporting the grid in an ultra-fast charging station.
Key
advantages of these systems include a substantial storage capacity and relatively low upfront costs (CAPEX). However, these solutions
come with a few notable drawbacks. Firstly, they exhibit a slow response time and low C-Rate, which implies prolonged charge-discharge
periods (not suitable for the needs of an ultra-fast charging station). Secondly, they offer limited charging cycles, resulting in shorten
lifetime, driving the need to replace the batteries (in some cases multiple of times) along the years a charging site is expected to
operate. Consequently, these factors contribute to a high Total Cost of Ownership over the charging infrastructure's lifespan,
as well as a significant sustainability challenge, as those replaced batteries need to be recycled or properly buried.
Another
significant concern with these systems is the elevated fire risk associated with chemical batteries, which might be increased due to
the high-power rapid-cycling profile of operation while supporting the grid in an ultra-fast charging station.
55
In
this category of competition, ZOOZ's competitors include companies such as Alfen, Kreisel, and Tesvolt.
Competition
with ultra-fast chargers with integrated battery-based energy storage
The
third category of competition refer to ultra-fast chargers with integrated battery-based storage in order to enable an ultra-fast charging
although limited grid power. This solution shares the same advantages and disadvantages as standalone batteries-based storage but also
introduces certain unique features.
One
of the primary benefits of this integrated system is its inherent simplicity, combining all functions within a single unit. However,
this solution brings specific drawbacks that need to be factored in. Firstly, it binds the customer to a specific charger or vendor,
potentially limiting their choices. Secondly, each booster is restricted to function with a single charger, meaning that added value
of a booster is limited only to that charger (and is not supporting other chargers on the same site) and in addition any malfunctions
within the booster module could render the charger inoperative. In some cases, these products are limited by their ability to recharge
from the grid at high power, thus might be limited to support only chargers with low utilization, which may cause a long return on investment
for these chargers.
Furthermore,
the integrated design precludes the flexibility of redeploying the booster independently when there's an upgrade to the grid power.
Therefore, while chargers with integrated battery boosters can offer streamlined operations, customers must carefully consider the potentially
limited ROI and the potential challenges of vendor lock-in, service disruption, and reduced flexibility.
In
this category of competition, ZOOZ's competitors include FreeWire, ADS-Tec, L-Charge, X-Charge and Kreisel Electric.
Material
Agreements
Since
2017, ZOOZ has installed several units of its first-generation product, the KPB50 model, as proof-of concept and demonstration systems.
On a later stage, ZOOZ introduced its more advanced, production-ready, second-generation product – the ZOOZTER™-100 system
and entered into commercial sale agreements and cooperation agreements for establishing EV fast charging facilities, supported by the
ZOOZTER™-100, in the European market, the U.S. market, and Israel.
Cooperation
Agreement with the New York Power Authority
On
September 12, 2022, ZOOZ entered into a cooperation agreement with the New York Power Authority ("
NYPA
") (as amended,
the "
NYPA Cooperation Agreement
") for the development, installation, implementation and demonstration of ZOOZ's
technology and products at locations where the power grid is limited.
Pursuant
to the NYPA Cooperation Agreement, ZOOZ will establish and demonstrate an ultra-fast charging station, based on the ZOOZTER™-100
system, with financing in the amount of $0.97 million to be provided by NYPA in several milestone-based installments, of which ZOOZ has
received $0.52 million as of December 31, 2023.
Under
the terms of the NYPA Cooperation Agreement, ZOOZ will demonstrate the operation of the charging facility for a one-year period in a
variety of scenarios, which will be jointly defined by the parties. Under the NYPA Cooperation Agreement, ZOOZ shall be required to pay
NYPA royalties from revenues derived in the U.S. from the sale, licensing or usage of ZOOZ's product, in a total amount not to
exceed the total financing provided by NYPA pursuant to the agreement.
The
ZOOZTER™-100 system for this pilot shipped in April of 2024. The Pilot site is expected to be established during the second quarter
of 2024 and start the Pilot trials' period in the third quarter of 2024.
Distribution
Agreement with Blink Charging Co.
On
December 1, 2022, ZOOZ entered into a non-exclusive distribution agreement with Blink Charging Co. ("
Blink
"), a Nasdaq-listed
company which owns and operates EV charging equipment and services in the U.S. and other jurisdictions, for the marketing, distribution,
sale and deployment of the ZOOZTER™-100 in its American configuration in the U.S. (the "
Blink Distribution Agreement
").
Pursuant to the terms of the Blink Distribution Agreement, Blink shall be appointed as a distributor of ZOOZ's ZOOZTER™-100
for a period of five years (unless the agreement is earlier terminated) and ZOOZ granted Blink the right to purchase ZOOZTER™-100
system at preferential prices. Following the pilot installation which is planned in Ft. Lauderdale FL (at the time of this Annual Report
the parties are still waiting for the local authority permit), the parties agreed to establish a roadmap and forecast for the sales of
ZOOZ's products. The Blink Distribution Agreement may be extended for additional two-year periods.
56
Additional
Agreements
Cooperation
Agreements with EES GmbH, Mer, Parkstorm GmbH and an Investment Firm
On
December 6, 2021 and January 18, 2022, ZOOZ, EES GmbH, an engineering company headquartered in Germany ("
EES
") and
an unrelated third party investment firm headquartered in Germany and experienced and reputable in initiating profitable asset investments
in the energy sector for its clients (the "
Investment Firm
") entered into cooperation agreements for setting up five
EV fast charging stations in which the ZOOZTER™-100 systems will be integrated to overcome power limitation of the grid and support
ultra-fast charging of EVs (the "
EES Cooperation Agreement
").
Under
the EES Cooperation Agreements, the parties will lease real-property for setting up the stations, which will be located in several sites
in Germany, and the Investment Fund will finance the setting up of the stations by approximately EUR 0.5 million per station. Such stations
will be operated for a period of 15 years by EES (or a third party which will replace it), during which ZOOZ will be entitled to fees
for maintenance services for the ZOOZTER™-100 systems.
As
of the date of this Annual Report, two of the sites (which were built in cooperation with Mer) are commercially
operational with the ZOOZTER™-100 systems and two additional sites have been established (in cooperation with Parkstorm GmbH)
and are expected to become commercially operational during the second quarter of 2024.
Cooperation
Agreement with the Arko Corp.
On
February 18, 2021, ZOOZ entered into a binding memorandum of understanding with Arko Corp. (a U.S. public company listed for trading
on the Nasdaq, which operates in the field of convenience stores and gas stations in the U.S.) and/or companies under its control (the
"
Arko Group
"), for the distribution of ZOOZ's kinetic storage systems (as amended, the "
Arko Cooperation
Agreement
").
Pursuant
to the Arko Cooperation Agreement, ZOOZ and the Arko Group will set up a pilot site for the ZOOZTER™-100 system at an Arko
Group convenience store and gas station site (Scotchman Gas Station) in Rock Hill, South Carolina. The pilot site was installed
during the third quarter of 2023 and start commercial operation during the fourth quarter of 2023.
After
the lapse on a one-year period following the commencement of the pilot, the Arko Group will have the right to terminate the engagement
between the parties, or to expand the cooperation between the parties to additional sites of the Arko Group and order from ZOOZ additional
ZOOZTER™-100 systems. In the event that the Arko Group will extend the cooperation with ZOOZ, ZOOZ will grant the Arko Group an
exclusive right to distribute its systems in North America until the end of 2030 (subject to certain exceptions, including in cases where
the Arko Group decided not to sell such systems or pursuant to the Blink Agreement), all pursuant terms of a distribution agreement in
the form and substance to be agreed to between the parties. In case the Arko Group and ZOOZ will enter such distribution agreement, it
was agreed that Akro will buy several ZOOZTER™-100 systems to initiate deployment and will initiate needed efforts to meet sales
targets which were agreed by the parties.
As
part of the Arko Cooperation Agreement and the strategic engagement between the parties, ZOOZ granted to Arko Group options to purchase
up to 26,230 ZOOZ ordinary shares, exercisable until March 21, 2026, for an exercise price per share equal to 120% of the share price
of the ZOOZ ordinary shares in the Israeli IPO (in March 2021).
Until
the end of the pilot, the Arko Group has the right to terminate the Arko Cooperation Agreement at any time and for any reason, by providing
a 10-day prior notice to ZOOZ. In the event that the cooperation between the partiers shall be extended after the end of the pilot, the
Arko Group will have the right to terminate the Arko Cooperation Agreement at any time and for any reason, by providing ZOOZ with a 12-month
prior notice, and in addition, each party will have customary termination rights (subject, in some cases, to payment of termination fees).
In
addition, the Arko Cooperation Agreement includes customary indemnification provisions, limitations of liability, ownership of intellectual
property, confidentiality and best price (MFN) provisions, as customary in this type of engagements.
Cooperation
agreement with Afcon Electric Transportation Ltd.
On
July 22, 2022, ZOOZ entered into a cooperation agreement with Afcon Electric Transportation Ltd. (the "
Cooperation Agreement
"
and "
Afcon Electric
", respectively), for a joint pilot project (the "
Project
") designed to establish
a commercial ultra-fast charging infrastructure for electric vehicles, utilizing the ZOOZTER™-100 together with energy management
software (EMS) for power consumption control. The purpose of the Cooperation Agreement was to validate the ZOOZTER™-100's
capability, necessity and reliability at one of Afcon Electric's charging stations, as well as to serve as a demonstration site
for potential future projects involving both parties. As part of the cooperation, ZOOZ installed the ZOOZTER™-100 at a gas station
in Zikhron Yaakov, Israel. This charging station is first of its kind in Israel, capable of ultra-fast charging, overcoming the limited
power grid capacity available (the ZOOZTER™-100 on site allows ultra-fast charging at approximately 150 kWh, while the power grid
is limited to approximately 50 kWh.
57
In
connection with the Project, ZOOZ received a grant of approximately NIS 1.2 million (equivalent to $$330 thousands based on the Exchange
Rate) from the IIA, accounting for approximately 40% of the Project's budget. Accordingly, ZOOZ is subject to the rules and regulations
of the IIA and the Innovation Law with respect to such grant. See "
ZOOZ's Business — Government Regulations—
Other Regulations."
The
Cooperation Agreement was in effect until January 31, 2024, following which, Afcon Electric exercised its right to extend the term of
the agreement for an additional 12-month period with ZOOZ's prior approval till January 30,2025.
Under
the Cooperation Agreement, each party retains ownership of the intellectual property rights that it possesses at the time of signing
the agreement. Neither party is permitted to use the other party's intellectual property without obtaining the other party's
prior approval. In addition, the parties are subject to customary confidentiality obligations.
Binding
Memorandum of Understanding with Dor-Alon (a leading operator of Gas Stations network in Israel, and operates, jointly with Afcon Electric
Transportation, the "ON" charging network)
On
March 21, 2024, ZOOZ signed a binding memorandum of understanding with Dor-Alon, according to which, as part of a project, to be carried
out in cooperation between ZOOZ, Dor-Alon and Afcon (jointly operating the ON charging network, which is the largest fast-charging network
in Israel), the ultra-fast charging infrastructure at two Dor-Alon stations, on
Highway
6
– the Magal station (on the east side of the highway) and the Na'an station (on the
west side of the highway), will be upgraded, while installing two ZOOZTER™-100 systems (one at each station), and adding charging
stations based on ultra-fast chargers, which allow charging with a power of up to 150 kW. The upgrade of the charging infrastructure
is expected to enable a significant improvement in the experience of electric vehicle drivers who travel on Highway 6 as a major transportation
corridor in Israel and are looking for charging services at these sites. In the first months of operation of the ZOOZTER™-100 systems
at the Highway 6 sites, their ability to allow the addition of charging ports, and managing a large number of charging ports will be
tested (this is different from the outline of the pilot carried out during 2023 at the Dor-Alon station). Insofar as ZOOZ's solution
is proven to allow the addition of the aforementioned charging ports, the systems will be purchased by Dor-Alon, under conditions agreed
upon between the parties.
Cooperation
Agreement with a global leader in the car rental business
On
November 1, 2022, ZOOZ entered into a binding memorandum of understanding (the "
CRSP Cooperation Agreement
") to cooperate
with a global leader in the car rental business, which operates thousands of car rental offices in over 100 countries worldwide ("
CSRP
Sites
"). Pursuant to the terms of the CRSP Cooperation Agreement, the parties agreed to establish and operate a joint pilot
of charging station with ultra-fast charging infrastructure for EVs, designed to demonstrate and test ZOOZ's solution, and the
ZOOZTER™-100's ability to enable and support ultra-fast charging of EVs at CSRP Sites where the power grid is limited. The
parties agreed that the pilot site will be set up at the CSRP Site at the La-Guardia Airport in New York, USA.
The
ZOOZTER™-100 system was delivered to the site at La-Guardia Airport in August 2023. The required permit for establishment of the
charging site were received during 1
st
quarter of 2024 and this led the parties to initiate the site's construction
works. The charging site is expected to be operational during the third quarter of 2024.
On
November 26, 2023, ZOOZ announced receipt of a Purchase Order for a ZOOZTER™-100 system, which is ZOOZ's first entry into
the U.K. market, and initiates a collaboration with Osprey Charging Network, one of the top-3 leading CPOs in the U.K. The parties agreed
to collaborate and establish a first charging site in the U.K. where the limited grid will be supported by ZOOZ's innovative kinetic
Power Booster, the ZOOZTER™-100, enabling to upgrade the charging site with 150kW ultra-fast chargers, despite the power limitations
of the electric grid on site. The parties have installed the ZOOZTER™-100 and the ultra-fast chargers during February 2024 and
await final regulatory approval to initiate the commercial operation of the site, which as of the date of this Annual Report, is expected
during the second quarter of 2024. Following initiation of the site's commercial operation, the ZOOZTER™-100 will be evaluated
by Osprey for a period of 6 months, while the charging site is commercially operational. Upon completion of a successful evaluation,
the purchase of the ZOOZTER™-100 system will be completed, according to terms agreed by the parties. The U.K. market is one of the
leading territories in the global EV market, showing accelerated adoption of EVs and rapidly growing public fast-charging infrastructure,
and as such, the U.K. market was designated by ZOOZ as a strategic territory for the ZOOZTER™-100 market penetration and commercialization.
Therefore, ZOOZ considers this Purchase Order to be a major milestone with significant potential, as a first move into the U.K. market,
being realized while collaborating with Osprey, one of the leading CPOs in the U.K. ZOOZ plan to leverage this site for demonstrations
of the joint (with Osprey) innovative solution to other U.K. customers, to have this site as a show case of the technology's added
value, and to promote this solution for other sites and customers in the U.K.
58
In
addition to the above, ZOOZ is working to establish additional collaborations with additional customers and partners in the U.S., the
United Kingdom (U.K.) and the EU. There can be no assurance that ZOOZ's efforts to establish such additional collaborations will be successful.
The
Business Combination Agreement and Related Agreements
In
connection with the consummation of the Business Combination, on March 21, 2024, the extraordinary general meeting of ZOOZ's shareholders
approved a reverse share split of the ZOOZ ordinary Shares (the "
Recapitalization
"), effective as of March 25, 2024,
at a conversion ratio between 11.3 and 11.5, which shall be determined in accordance with the Business Combination Agreement, and a corresponding
amendment to ZOOZ's amended and restated articles of association then in effect. In addition, pursuant to the Recapitalization,
the outstanding all then-outstanding (i.e. outstanding as of January 31, 2024) ZOOZ warrants which by their terms are required to be
exercised, or whose holder elects to exercise such warrants, in connection with the Closing (the "
ZOOZ Continuing Warrants
")
and ZOOZ options which have not been previously exercised were adjusted to reflect the Recapitalization and all ZOOZ securities outstanding
prior to the consummation of the Merger, remained outstanding following the consummation of the Merger and were not affected by the Merger
(other than adjustments in connection with the Recapitalization).
Pursuant
to the Business Combination Agreement and the Recapitalization, at the Effective Time (a) all Keyarch Class A and Class B ordinary shares
outstanding immediately prior to the Effective Time (excluding treasury shares and "
Dissenting Keyarch Shares
" (i.e.,
the shares subject to appraisal or dissent rights ("
Dissent Rights
"), which shares are held by Keyarch shareholders
who properly exercise those Dissent Rights) (in each case as provided in the Business Combination Agreement), were exchange for the right
to receive ZOOZ ordinary shares on a 1:1 ratio, subject to adjustment described below, (b) each outstanding Keyarch public warrant and
Keyarch private warrant were converted into the right to receive one "
ZOOZ Closing Warrant
" (i.e., a warrant of ZOOZ
entitling the holder to purchase one ZOOZ ordinary share per warrant at a price of $11.50 per whole share, and preserving the existing
public or private nature of the applicable Keyarch Warrant (as defined below), exercisable for up to an aggregate of (including warrants
which were components of publicly traded units of Keyarch described below) 6,022,500 ZOOZ ordinary shares), which have the same terms
as the applicable "
Keyarch Warrant
" (i.e., each outstanding public and private warrant of Keyarch entitling the holder
to purchase one Keyarch Class A ordinary share per warrant at a price of $11.50 per whole share), and with the public or private nature
of the applicable Keyarch Warrant being preserved in the ZOOZ Closing Warrants (i.e., the Keyarch private warrants were converted into
ZOOZ private warrants and Keyarch public warrants were converted into ZOOZ public warrants), and (c) holders of each outstanding "
Keyarch
Right
" (i.e., a right to receive one tenth (1/10) of one Keyarch Class A ordinary share) were issued the number of full shares
of Keyarch Class A ordinary shares to which such holder of Keyarch Rights were eligible, and which were exchanged for the equivalent
number of ZOOZ ordinary shares.
Upon
the Effective Time, the outstanding publicly traded units of Keyarch were separated into their component securities, consisting of one
Keyarch Class A ordinary share, one-half (1/2) of one Keyarch Warrant, and one Keyarch Right (with such Keyarch Warrants and Keyarch
Rights being exchanged or converted at the Effective Time for ZOOZ Closing Warrants or ZOOZ ordinary shares in accordance with the foregoing
description). Subject to the adjustments set forth above in the Recapitalization, each ZOOZ Continuing Warrant and ZOOZ Continuing Option
at the Effective Time remained outstanding. In addition, ZOOZ Continuing Warrants which were listed for trading on the TASE (i.e. the
ZOOZ warrants (Series 3)) also remained traded on the TASE only.
In
addition, the ZOOZ shareholders who were ZOOZ shareholders as of immediately prior to the Closing (as of a record date determined by
ZOOZ) (the "
Pre-Closing ZOOZ Shareholders
") are entitled to the Earnout Shares as an additional contingent consideration
upon ZOOZ's achievement of the applicable earnout milestones (based on share price) as set forth in the Business Combination Agreement,
as amended, in the form of
non-tradable, non-assignable
rights (the "
Earnout Rights
"),
that were
issued by ZOOZ pro rata to the Pre-Closing ZOOZ Shareholders on April 4, 2024 pursuant
to a shelf offering report filed by ZOOZ in connection thereto. The Earnout Rights
may be converted into ZOOZ ordinary shares
within 5 years from the lapse of the first quarter following the Closing (the "
Earnout Period
"). The conversion of
the Earnout Rights (insofar as they are converted) into Earnout Shares and the issuance of the Earnout Shares will be subject to withholding
tax according to the relevant provision of the applicable law. Such withholding tax from the Earnout Shares will be conducted by any
TASE member.
The
Earnout Rights will be automatically (unless otherwise determined by ZOOZ) converted into ZOOZ ordinary share subject to the occurrence
of the milestone(s) listed below during the Earnout Period, as follows (the "
Earnout
"):
● First
milestone (25% of the Earnout Rights) (i.e., 1,000,000 ZOOZ ordinary shares in the aggregate, subject to adjustment in accordance with
the Business Combination Agreement): the volume-weighted average price of Zooz ordinary shares ("
VWAP
") of the ZOOZ
ordinary shares equals or exceeds $12 per ZOOZ ordinary share (as adjusted for share splits, share dividends, combinations or exchange
or readjustment of shares, reorganizations and recapitalizations, share sub-division (including share consolidation), split-up and the
like) for any 20 "
Trading Days
" (i.e., any day on which ZOOZ ordinary shares are actually traded on the principal
United States securities exchange or securities market on which the ZOOZ ordinary shares are then traded) within any 30 Trading Day period
during the Earnout Period;
59
● Second
milestone (35% of the Earnout Rights) (i.e., 1,400,000 ZOOZ ordinary shares in the aggregate, subject to adjustment in accordance with
the Business Combination Agreement): the VWAP of the ZOOZ ordinary shares equals or exceeds $16 per ZOOZ ordinary share
(as
adjusted for share splits, share dividends, combinations or exchange or readjustment of shares, reorganizations and recapitalizations,
share sub-division (including share consolidation), split-up and the like)
for any 20 Trading Days within any 30 Trading Day period
during the Earnout Period; and
● Third
milestone (40% of the Earnout Rights) (i.e., 1,600,000 ZOOZ ordinary shares in the aggregate, subject to adjustment in accordance with
the Business Combination Agreement): the VWAP of the ZOOZ ordinary shares equals or exceeds $23 per ZOOZ ordinary share
(as
adjusted for share splits, share dividends, combinations or exchange or readjustment of shares, reorganizations and recapitalizations,
share sub-division (including share consolidation), split-up and the like)
for any 20 Trading Days within any 30 Trading Day period
during the Earnout Period.
The
conversion of the Earnout Rights into Earnout Shares and the issuance of the Earnout Shares will be subject to withholding tax according
to the relevant provisions of applicable law. Such withholding tax from the Earnout Shares will be conducted by any TASE member. All
conversions of Earnout Rights by Pre-Closing Company Shareholders shall be made in accordance with the then-applicable rules of the TASE
and the "Nesher System" (to the extent that ZOOZ is listed for trading on the TASE at such time) and otherwise in accordance
with the rules of any stock exchange on which ZOOZ's shares are then traded (to the extent applicable).
Adjustments
to the Earnout Shares
Commencing
from the allocation date of the unregistered non-convertible Earnout Rights until the expiration of the Earnout Period, adjustments to
the unregistered non-convertible rights shall apply as follows:
A.
Adjustments
Following Consolidation or Split of the Share Capital
: If ZOOZ consolidates or splits its issued ordinary shares, the number of Earnout
Shares allocated following the conversion of unregistered rights will be adjusted, as applicable, after such action. Additionally, the
VWAP will be adjusted accordingly. In such case, a holder of an unregistered right will not be entitled to receive a fractional share,
and fractional shares resulting from such adjustment will be treated as determined by ZOOZ's board of directors.
B.
Adjustment
Following Bonus Share Distributio
n: In any case where there is a change in ZOOZ's issued share capital through a bonus share
distribution, the number of Earnout Shares held by those entitled to them upon exercise, at the time of exercise, will increase by such
number of shares to which the holder of unregistered rights was entitled had the unregistered rights been converted prior to the distribution
of the bonus shares. The VWAP will change accordingly. In such adjustment cases, the holder will not be entitled to receive a fractional
share, and fractional shares resulting from such adjustment will be treated as determined by the Company's board of directors.
C.
Adjustment
Following Rights Offerin
g: If during the Earnout Period, ZOOZ offers its shareholders securities by way of a rights offering, ZOOZ
will offer to the holders of the Earnout Rights the same securities by way of a rights offering on identical terms. The Earnout Rights
will be treated as if they were converted into Earnout Shares on the trading day before the ex-date.
D.
Adjustment
Following Dividend Distributio
n: In the event that ZOOZ declares a dividend distribution, as defined in the Companies Law, whose
record date precedes the expiration of the Earnout Period, the VWAP will be reduced by the gross amount of the dividend paid to the shareholders
of ZOOZ for each ZOOZ ordinary share.
In
addition, Keyarch's Sponsor agreed in the Sponsor Support Agreement to subject forty percent of all of its original holdings of
Keyarch Class B ordinary shares (which the Sponsor converted to Class A ordinary shares on August 14, 2023) to the same Earnout as of
the Effective Time, other than to the extent used, in whole or in part, in connection with payment of expenses of the Business Combination,
which comprise in aggregate 1,120,000 Keyarch Class A ordinary shares, which were converted in the Business Combination into 1,120,000
ZOOZ ordinary shares (the "
Sponsor Earnout Shares
").
Closing
and Effective Time of the Transactions
The
closing of the Merger and the Transactions ("
Closing
") took place on April 4, 2024. At the Effective Time, and upon
the terms and subject to the conditions of the Business Combination Agreement, and in accordance with the
Cayman
Islands Companies Act (as amended)
(the "
Cayman Act
"), Keyarch and Merger Sub
consummated the Merger, pursuant to which Merger Sub was merged with and into Keyarch, with Keyarch being the surviving company, following
which the separate corporate existence of Merger Sub ceased and Keyarch continued as the surviving company.
60
Upon
the terms and subject to the conditions set forth in the Business Combination Agreement and in accordance with the Cayman Act, on the
Closing Date, Keyarch and Merger Sub caused the Plan of Merger, along with all other documentation and declarations required under the
Cayman Act in connection with the Merger, to be duly executed and properly filed with the
Registrar
of Companies of the Cayman Islands
(the "
Registrar
"), in accordance with the
relevant provisions of the Cayman Act (together, the "
Merger Documents
"). The Merger became effective on the date
and time at which the Merger Documents were duly registered with the Registrar.
Agreements
Entered into in Connection with the Business Combination Agreement
This
section describes the material provisions of certain additional agreements entered into or to be entered into pursuant to the Business
Combination Agreement (the "
Ancillary Documents
") but does not purport to describe all of the terms thereof. The following
summary is qualified in its entirety by reference to the complete text of each of the Ancillary Documents, copies of which were filed
as exhibits to the Registration Statement.
Lock-Up
Agreements
On
July 30, 2023, ZOOZ officer holders each entered into a Lock-Up Agreement with ZOOZ and Keyarch (collectively, the "
Lock-Up
Agreements
"). Pursuant to the Lock-Up Agreements, each shareholder party thereto agreed not to, during the period
commencing from the Closing and ending on the earlier of (x) the date that is 180 days after the date of the Closing, (y) ZOOZ
consummates a liquidation, merger, share exchange, reorganization or other similar transaction that results in all of ZOOZ's
shareholders having the right to exchange their ZOOZ ordinary shares for cash, securities or other property): (i) lend, offer,
pledge, hypothecate, encumber, donate, assign, sell, contract to sell, sell any option or contract to purchase, purchase any option
or contract to sell, grant any option, right or warrant to purchase, establish or increase of a put equivalent position or
liquidation with respect to or decrease of a call equivalent position with respect to or decrease of a call equivalent position
within the meaning of Section 16 of the Exchange Act and the rules and regulations of the SEC promulgated thereunder or otherwise
transfer or dispose of, directly or indirectly, any restricted securities, (ii) enter into any swap or other arrangement that
transfers to another, in whole or in part, any of the economic consequences of ownership of the restricted securities, or (iii)
publicly disclose the intention to do any of the foregoing, whether any such transaction described in clauses (i), (ii) or (iii)
above is to be settled by delivery of restricted securities or other securities, in cash or otherwise (in each case, subject to
certain limited permitted transfers where the recipient takes the shares subject to the restrictions in the Lock-Up
Agreement).
Non-Competition
and Non-Solicitation Agreement
On
July 30, 2023, the directors and executive officers of ZOOZ directly or indirectly holding ZOOZ securities as of the date of the Business
Combination Agreement entered into non-competition and non-solicitation agreements (the "
Non-Competition and Non-Solicitation
Agreements
"), pursuant to which they agreed, during the one-year period following the Closing, not to compete with ZOOZ anywhere
in Israel, the continent of North America, the People's Republic of China, including Macao, Taiwan, and Hong Kong, the United Kingdom
and the European Union, in the business in which ZOOZ is engaged, and during such one-year restricted period, not to (i) solicit, hire
or engage employees or independent contractors of ZOOZ or (ii) solicit customers or clients of ZOOZ. The agreements also contain customary
non-disparagement and confidentiality provisions.
Assignment,
Assumption and Amendment to Warrant Agreements
In
connection with the Closing, ZOOZ, Keyarch and the Warrant Agent, entered into the Assignment, Assumption and Amendment to Public Warrant
Agreement (the "
Public Warrant Amendment
"), dated as of April 4, 2024, which amends that certain Public Warrant Agreement,
and filed with the SEC on January 27, 2022. Separately, ZOOZ, Keyarch, and the Warrant Agent entered into the Assignment, Assumption
and Amendment to Private Warrant Agreement (the "
Private Warrant Amendment
" and, together with the Public Warrant
Amendment, the "
Warrant Amendments
"), dated as of April 4, 2024, which amends that certain Private Warrant Agreement,
and filed with the SEC on January 27, 2022. Pursuant to the Warrant Amendments: (i) ZOOZ has assumed the obligations of Keyarch under
the original Public Warrant Agreement and Private Warrant Agreement, and, among other things, ZOOZ has been added as a party thereto,
and (ii) all references to Keyarch ordinary shares in the original Public Warrant Agreement and Private Warrant Agreement shall mean
ZOOZ ordinary shares and all references to "Shareholders" shall mean ZOOZ shareholders.
61
Sponsor
Letter Agreement and Business Combination Marketing Agreement
On
July 30, 2023, Keyarch, the Sponsor and ZOOZ entered into an agreement, as subsequently amended (the "
Sponsor Letter
Agreement
") pursuant to which the Sponsor agreed to make commercially reasonable efforts to utilize up to 40% (or
1,120,000 shares) of its ownership of Keyarch shares (the "
Subject Founder Shares
") to pay any portion of unpaid
Keyarch transaction expenses or incentivize investors or otherwise provider support in connection with transaction financing. Any
remaining Subject Founder Shares which were not transferred to such payees were placed in escrow at the Closing and, as converted to
ZOOZ ordinary shares, being the Sponsor Earnout Shares, will be released to the Sponsor if, during the Earnout Period, ZOOZ achieves
the milestones as described above (including with
respect to the percentage of such remaining Sponsor Earnout Shares to be
released upon the achievement of any targets). Any Sponsor Earnout Shares that are not released will be transferred to ZOOZ for no
consideration at the end of the Earnout Period, provided, however that at least 50% of the Sponsor Earnout Shares placed in escrow
will be released to the Sponsor at the end of the Earnout Period notwithstanding the failure of ZOOZ to achieve any earnout
milestones; and provided further that no Sponsor Earnout Shares will be released to the Sponsor under the Earnout until the EBC Note
(as defined below) is paid in full and, additionally, the Sponsor Note (as defined below) is paid in full (in that order).
In
addition, during 2023 and 2024, Keyarch issued certain promissory notes in favor of the Sponsor (the "
Pre-Closing Sponsor Notes
"),
which Pre-Closing Sponsor Notes were not repaid as of the Closing. On April 4, 2024, ZOOZ and Keyarch issued a promissory note in favor
of the Sponsor for the principal amount of $2,030,000 (the "
Sponsor Note
"), in satisfaction of the Pre-Closing Sponsor
Notes. The Sponsor Note matures on April 4, 2026, and accrues interest at an annual rate of 8%, which interest increases to 15% if the
Sponsor Note is not paid when due. In addition, ZOOZ is required to make mandatory cash prepayments on the Sponsor Note from time to
time in amounts equal to 25% of the gross proceeds less sales commissions received by ZOOZ from equity or equity-linked financings following
the issuance date and prior to maturity, provided that ZOOZ will not make any such prepayments until the EBC Note has been paid in full.
Further, at any time after the EBC Note has been paid in full, the Sponsor may elect to have any amount of outstanding principal and/or
accrued interest of the Sponsor Note satisfied by the transfer of Sponsor Earnout Shares then remaining in the Escrow Account (as defined
below) to the Sponsor, with the price per Sponsor Earnout Share for purposes of determining the amount of the obligations satisfied under
the Sponsor Note for such prepayment being equal to ninety percent (90%) of the volume weighted average price of an ordinary share of
ZOOZ on the principal U.S. securities exchange on which ZOOZ's ordinary shares then trade for the five trading day period ending
on the trading day immediately prior to ZOOZ's receipt of the applicable prepayment notice from the Sponsor. In addition, on the
maturity date of the Sponsor Note, provided that the EBC Note has been paid in full, all outstanding obligations will be satisfied by
the transfer of Sponsor Earnout Shares from the Escrow Account to the Sponsor using the same pricing terms as in the previous sentence,
with the five trading day period ending on the trading day immediately prior to such maturity date. Under the Sponsor Note, ZOOZ agreed
to file, within 30 days after the issuance date, a registration statement registering the resale by the Sponsor of the Sponsor Earnout
Shares.
Pursuant
to the "Business Combination Marketing Agreement," dated January 24, 2022, as subsequently amended on April 4, 2024, between
EBC, who, among other things, served as the representative of the underwriters in Keyarch's initial public offering, Keyarch and
(effective April 4, 2024) ZOOZ, Keyarch engaged EBC as an advisor in connection with a business combination. Under the Business Combination
Marketing Agreement, as compensation for EBC's services, EBC is entitled to a total fee of $1,500,000, of which a total of $660,000
was paid in cash to EBC at the Closing, and the remainder of which is reflected in a promissory note dated April 4, 2024, for the principal
amount of $840,000, made by ZOOZ and Keyarch in favor of EBC (the "
EBC Note
").
The
EBC Note matures on April 4, 2026, and accrues interest at an annual rate of 8%, which interest increases to 15% if the EBC Note is not
paid when due. In addition, ZOOZ is required to make mandatory cash prepayments on the EBC Note from time to time in amounts equal to
25% of the gross proceeds less sales commissions received by ZOOZ from equity or equity-linked financings following the issuance date
and prior to maturity. Further, at any time, EBC may elect to have any amount of outstanding principal and/or accrued interest of the
EBC Note prepaid by the Sponsor by the transfer of Sponsor Earnout Shares then remaining in the Escrow Account (as defined below) to
EBC, with the price per Sponsor Earnout Share for purposes of determining the amount of the obligations satisfied under the EBC Note
for such prepayment being equal to ninety percent (90%) of the volume weighted average price of an ordinary share of ZOOZ on the principal
U.S. securities exchange on which ZOOZ's ordinary shares then trade for the five trading day period ending on the trading day immediately
prior to the Sponsor's and ZOOZ's receipt of the applicable prepayment notice from EBC. In addition, on the maturity date
of the EBC Note, all outstanding obligations will be paid by the Sponsor by the transfer of Sponsor Earnout Shares from the Escrow Account
using the same pricing terms as in the previous sentence, with the five trading day period ending on the trading day immediately prior
to such maturity date. Under the EBC Note, ZOOZ agreed to file, within 30 days after the issuance date, a registration statement registering
the resale by EBC of the Sponsor Earnout Shares.
The
Sponsor Earnout Shares were deposited in an escrow account (the "
Escrow Account
") at the Closing pursuant to an escrow
agreement, dated April 4, 2024 (the "Escrow Agreement"), which Escrow Agreement governs the release of such Sponsor Earnout
Shares in accordance with the Sponsor Letter Agreement, Sponsor Note and EBC Note.
62
Third-Party
Transaction Expenses Arrangements
On
and prior to the Closing, ZOOZ, Keyarch and other parties, including certain third-party vendors and service providers ("
Vendors
"),
that provided services to Keyarch entered into certain agreements and transactions related to the Business Combination.
In
connection with and in addition to the foregoing, in connection with the Closing, ZOOZ and Keyarch entered into or assumed, as applicable,
certain other obligations to repay Business Combination transaction expenses otherwise due at Closing. These arrangements included fee
modification agreements with Vendors pursuant to which the outstanding obligations due to Vendors may be satisfied by issuance of newly
issued shares of ZOOZ issued at Closing.
Transaction
Financing Subscription Agreement
On
February 9, 2024, Keyarch and ZOOZ entered into subscription agreements (collectively, the "
Subscription Agreements
")
with certain investors (the "
PIPE Investors
"). Under the terms of the Subscription Agreements, the PIPE Investors
agreed to subscribe for and purchase, and Keyarch agreed to issue and sell to these Investors, prior to the Closing of the Business Combination,
an aggregate of 1,300,000 Keyarch Class A ordinary shares (the "
Subscription Shares
") for a purchase price of $10.00
per share, for gross proceeds of $13,000,000, on the terms and subject to the conditions set forth in the applicable Subscription Agreements.
Such transaction closed on April 4, 2024.
In
addition, pursuant to the Subscription Agreement, ZOOZ agreed to register the Subscription Shares and granted customary resale registration
rights to the PIPE Investors.
Research
and Development
ZOOZ
has an established data and technology-focused research and development organization centered in Israel. ZOOZ's research and development
team has deep expertise in development of flywheels and complex systems of power boosters (being energy storage systems based on proprietary
flywheel technology) which require high engineering capabilities of system engineering, mechanical engineering, electronics and electrical
engineering, software engineering and other.
ZOOZ's
research and development activities are carried out in Israel. ZOOZ has received grants from the IIA for approved programs, as well as
from BIRD, the Israeli Ministry of Energy and Infrastructure and the Israeli Ministry of Economy and Industry.
Grants
received from the IIA
Under
the Innovation Law, research and development projects which are approved by the Research Committee of the IIA are eligible for grants,
in exchange for payment of royalties from revenues generated by the sale of products (and related services) developed within the framework
of such approved project and subject to compliance with certain requirements and restrictions under the Innovation Law as detailed below,
which must generally continue to be complied with even following full repayment of all amounts payable to the IIA in royalties.
ZOOZ
received grants from the IIA for certain projects and may receive additional grants in the future. Under the terms of the grants received,
ZOOZ is required to pay royalties of 3% (which in some cases may be up to 5% pursuant the provisions of the Innovation Law) of the revenues
it generates from its products which incorporate IIA funded know-how, until 100% of the grant is repaid (plus Annual Interest for a File
(as such term is defined in the IIA's rules). As of March 31, 2024, ZOOZ had received grants from the IIA in the principal amount
of NIS 2,486 thousands (approximately $675 thousands, based on the Exchange Rate). Therefore, ZOOZ's contingent obligation for
royalties to the IIA, net of royalties already paid or accrued, is NIS 2,681 thousand (approximately $728 thousands based on the Exchange
Rate), including accumulated interest to such date.
Products
developed using the IIA grants must, as a general matter, be manufactured in Israel. The transfer of manufacturing capacity outside of
Israel in a manner that exceeds the manufacturing capacity that was declared in the recipient company's original IIA grant application
is subject to prior written approval from the IIA (except for the transfer of less than 10% of the manufacturing capacity in the aggregate,
which event requires only a notice to the IIA, which shall be provided in writing prior to the transfer of such manufacturing rights
abroad, while the IIA has a right to deny such transfer within 30 days following the receipt of such notice). In general, the transfer
of manufacturing capacity outside of Israel may be subject an increase in the royalties' cap (
inter alia
, depending on the
manufacturing volume that is performed outside of Israel), and such transfer will be subject to payment of royalties at an accelerated
rate. The Innovation Law also provides that IIA funded know-how and any right derived therefrom may not be transferred to third parties,
unless such transfer was approved in accordance with the Innovation Law. The Research Committee operating under the IIA may approve the
transfer of IIA funded know-how between Israeli entities, provided that the transferee undertakes all the obligations in connection with
the grant as prescribed under the Innovation Law. The income from such a transaction will generally be subject to the obligation to pay
royalties to the IIA. In certain cases, the research committee may also approve a transfer of the IIA funded know-how outside of Israel,
subject to the receipt of certain payments calculated according to a formula set forth in the Innovation Law (which cannot exceed six
(6) times the grants received from the IIA plus Annual Interest, as such term is defined under the IIA's rules). These approvals
are not required for the sale or export of any products resulting from such research and development activity or based on such IIA Funded
Know-How.
63
Funding
received from the BIRD Foundation
ZOOZ
has also received grants within the framework of a joint research and development project (together with Blink) partially financed
by the BIRD Foundation ("
BIRD
"). In April 2020, ZOOZ entered into a Cooperation and Project Financing Agreement with BIRD and Blink, for the
development of an energy storage system to increase EV charging (the "
BIRD-Funded Project
"), for a period ended
at the end of September 2023 (as amended, the "
BIRD Agreement
").
Pursuant
to the terms of the BIRD Agreement, BIRD undertook to bear 50% of the BIRD-Funded Project implementation expenses, up to a total amount
of $0.9 million (the "
BIRD Funding
"), upon achievement of several milestones. In consideration for the payment of
the BIRD Funding, ZOOZ and Blink are obligated to pay royalties equal to 5% of the sales of the American configuration of the ZOOZTER™-100
system (or 30% of the licensing of ZOOZTER™-100 systems, if such systems are licensed), until the repayment of an amount equal
to the BIRD Financing or up to 150% of the BIRD Financing.
The
Israeli and U.S. governments were granted non-exclusive, irrevocable licenses to use, for government purposes, the technology that will
be developed in the framework of the BIRD-Funded Project.
Pursuant
to the terms of the BIRD Agreement, ZOOZ may not sell or transfer to any third party any or all of the intellectual property rights and/or
ZOOZ's technology which was developed in the framework of the BIRD-Funded Project, until the full repayment of BIRD Funding, without
the prior written consent of BIRD.
As
of March 31, 2024, ZOOZ had received grants from the BIRD in the principal amount of NIS 1,353 thousands (approximately $368 thousands,
based on the Exchange Rate). Therefore, ZOOZ's contingent obligation for royalties to BIRD, net of royalties already paid or accrued,
is NIS 1,904 thousands (approximately $547 thousands million based on the Exchange Rate).
Grant
from the Israeli Ministry of Economy and Industry
ZOOZ
received a grant in the amount of NIS 186 thousands (approximately $51 thousands, based on the Exchange Rate) from the Israeli Ministry
of Economy and Industry, under an Israeli governmental program designed to assist early-stage companies with their initial international
marketing effectors (the "
Ministry of Economy and Industry Project
"). As of the date of this Annual Report, ZOOZ has
utilized the full amount of the grant and the project has ended.
ZOOZ
is required to pay royalties to the Israeli government from sales of its products in certain markets, at a rate of 3% per year, for a
period of up to 5 years, until the full repayment of the grant (linked to the Israeli Consumer Price Index).
Grant
from the Israeli Ministry of Energy and Infrastructure
In
December 2016, ZOOZ entered into a support and investment agreement with the Israeli Ministry of Energy and Infrastructure (the "
Ministry
of Energy Agreement
"), for a pilot and set up of demonstration facilities (the "
Ministry of Energy-Financed Project
").
Pursuant
to the terms of the Ministry of Energy Agreement, ZOOZ received a grant in the amount of NIS 631 thousands million (approximately $171
thousands million, based on the Exchange Rate). According to the terms of such grant, the Israeli Ministry of Energy and Infrastructure
is entitled to receive royalties at a rate of 5% from commercialization of intellectual property developed in the framework of the Ministry
of Energy-Financed Project, until the repayment of the grant (linked to the Israeli Consumer Price Index plus interest). Under the terms
of the Ministry of Energy-Financed Project, the Israeli government was granted a non-exclusive, irrevocable licenses to use, for government
purposes, the technology and intellectual property that will be developed in the framework of the Ministry of Energy-Financed Project.
Intellectual
Property
ZOOZ
relies primarily on patents, trademarks, domain names, copyright, know-how and trade secrets, confidentiality agreements and procedures,
and other contractual arrangements to protect its technology.
ZOOZ
owns 26 granted patents in the U.S., Europe, China and India. In addition, ZOOZ has filed 1 additional patent application in Canada,
which as of the date of this Annual Report is pending.
64
ZOOZ
relies on trade secret protection and confidentiality agreements to safeguard its interests with respect to proprietary know-how and
technology that is not patented or processes for which patents are difficult to enforce. ZOOZ believes that many elements of its technology
and processes involve proprietary know-how, technology or data that are not covered by patents or patent applications, including technical
processes, test equipment designs, algorithms, and procedures.
ZOOZ
typically requires its business partners to enter into confidentiality agreements before it discloses any sensitive aspects of its technology
or business plans. ZOOZ seeks to protect its trade secrets and confidential information through a variety of methods, including confidentiality
agreements with employees, third parties, and others who may have access to ZOOZ's proprietary information. ZOOZ also requires
key employees to sign invention assignment agreements with respect to inventions arising from their employment and restrict unauthorized
access to its' proprietary technology.
Notwithstanding
ZOOZ's efforts to protect its intellectual property, there can be no assurance the measures taken will be effective or that its
intellectual property will provide any competitive advantage. ZOOZ can provide no assurance that any patents will be issued from its
pending applications or any future applications or that any issued patents will adequately protect its proprietary technology. ZOOZ's
intellectual property rights may be invalidated, circumvented or challenged. Furthermore, the laws of certain countries do not protect
intellectual property and proprietary rights to the same extent as the laws of the United States and, as a result, ZOOZ may be unable
to protect its intellectual property and other proprietary rights in certain jurisdictions. In addition, while ZOOZ has confidence in
the measures it takes to protect and preserve its trade secrets, it cannot guarantee these measures will not be circumvented, or that
all applicable parties have executed confidentiality or invention assignment agreements. In addition, such agreements can be breached,
and may not have adequate remedies should any such breach occur. Accordingly, ZOOZ's trade secrets may otherwise become known or
be independently discovered by competitors.
Seasonality
ZOOZ
does not believe that demand for its products is seasonal. As an early-stage company, most of ZOOZ's revenue to date has been generated
as a result of direct marketing or sales to ZOOZ's customers. Accordingly, ZOOZ's revenue and results of operations may fluctuate
from period to period based on the number of customer or projects or the achievement of key milestones under its customer contracts.
Human
Capital and Employees
Overview
As
of March 31, 2024, ZOOZ had 38 employees, all of whom are based in Israel other than one employee (employed through a third-party
company) who is based in the U.K. Of ZOOZ's employees based in Israel, 17 employees comprise ZOOZ's research and
development team, 11 employees comprise ZOOZ's operations team, 6 employees comprise ZOOZ's sales and marketing team,
and 4 employees comprise ZOOZ's general and administrative team. In addition, ZOOZ engaged with 5 individuals under
contractor, outsourcing or professional service contracts, who are providing ZOOZ with various professional services, including
safety consultancy, controller services, IT services, IR services, etc. Given the uncertainties associated with the current
"Swords of Iron" war in Israel, as well as the duration and scope of this conflict, ZOOZ has made adjustments to its
human resources as well as adopting other expense reduction measures. These adjustments were aimed to enable ZOOZ to continue to
focus on its immediate business goals while continually assessing the ongoing impact of the conflict on its business goals in the
medium and long term.
ZOOZ
has entered into employment agreements with each of its employees, including executive officers. All of these agreements are at-will
and subject to termination after various notice periods, specify an employee's duties and contain customary provisions regarding
confidentiality, intellectual property assignment and non-solicitation provisions, as well as an undertaking not to compete with ZOOZ
or in ZOOZ's field of business.
Israeli
Law Considerations
ZOOZ's
employees are not represented by labor unions. Nevertheless, with respect to ZOOZ's employees in Israel, certain provisions of
the collective bargaining agreements between the Histadrut, or the General Federation of Labor in Israel, and the Coordination Bureau
of Economic Organizations (including the Industrialists' Association) may be applicable to ZOOZ's employees by virtue of
orders of the Israeli Ministry of Labor, Social Affairs and Social Services. These provisions concern mainly the length of the workday,
determination of severance pay and other conditions of employment.
While
ZOOZ's employment agreements are at-will, subject to providing certain prior notice, pursuant to Israeli law, ZOOZ is legally required
to pay severance benefits upon certain circumstances, including the death of an employee or the termination of employment of an employee
without due cause. ZOOZ complies with the approval issued by the Minister of Labor under Section 14 of the Israeli Severance Pay Law,
1963, pursuant to which ZOOZ's regular deposits with pension funds and/or insurance policies, for the benefit of its employees,
exempt ZOOZ from any additional liability towards the employees on account of severance in respect of which such deposits are made. Pursuant
to Israeli law, employers are required to conduct a hearing before making a decision on terminating an employee's employment, regardless
of the reason. The hearing requirement includes providing notice and reasons for the contemplated termination prior to making any decision
on termination. Israeli employers and employees are also required to pay predetermined amounts to the National Insurance Institute, which
is substantially similar to the United States Social Security Administration.
65
Properties
ZOOZ
is headquartered in Lod, Israel, where it leases office space from an unrelated third party, as well as an operational site (used for
research and development and initial production). The leased space includes ZOOZ's offices and research and development laboratories.
ZOOZ's lease agreement is in effect until October 30, 2024, and ZOOZ has an option to extend the lease term for an additional 3-year
period.
In
July 2022, ZOOZ entered into an addendum to its lease agreement, pursuant to which ZOOZ has leased additional office space in Lod, Israel
until November 3, 2024, and ZOOZ has an option to extend the lease until November 3, 2027.
Impact
of COVID-19
The
impact of COVID-19, including changes in consumer and business behavior, pandemic fears and market downturns, and restrictions on business
and individual activities, has created significant volatility in the global economy. The spread of COVID-19 has also created a disruption
in the manufacturing, delivery and overall supply chain of vehicle manufacturers and suppliers around the world. Any sustained downturn
in demand for EVs or for components needed for ZOOZ's product would harm our business.
We
may take certain actions as may be required by government authorities or that we determine are in the best interests of our employees,
customers, suppliers, vendors and business partners.
Specifically,
difficult macroeconomic conditions, such as decreases in per capita income and level of disposable income, increased and prolonged
unemployment or a decline in consumer confidence as a result of the COVID-19 pandemic, as well as reduced spending by businesses,
could each have a material adverse effect on the demand for our products and services. For additional discussion and information
regarding the effect of COVID-19 on ZOOZ's business, see the risk factor titled "
ZOOZ faces risks related to natural
disaster and health pandemics, including the coronavirus ("COVID-19") pandemic, which could have a material adverse
effect on its business and results of operations"
under the section titled "Risk Factors" in this Annual
Report, and the section titled "
COVID-19 Impacts
" under "Item 5. Operating and Financial Review and
Prospects."
Impact
of the Swords of Iron War
On
October 7, 2023, the "Swords of Iron" war started between Israel and the terrorist organizations in the Gaza Strip led
by certain armed groups in the Gaza Strip, following a surprise attack on Israel led by certain armed groups in the Gaza Strip that
included massacres, terrorism and crimes against humanity. This war is concentrated in the Gaza Strip which is along the southern
region of the State of Israel, whereas the Hezbollah terrorist organization located in Lebanon and Syria, as well as the Houthis
regime in Yemen has also engaged in hostilities. Israel has responded to the attacks against it with airstrikes and extensive
mobilization of reserves. ZOOZ's factory is located in the city of Lod, which is more than 50 kilometers from the Gaza Strip.
ZOOZ's facilities have not sustained any damage or injury and in accordance with the instructions of the National Emergency
Management Authority of Israel, there is no limitation or denial of access or activity limitation in ZOOZ's facilities. None
of ZOOZ's employees were directly harmed as a result of the war. As of the date of this Annual Report, ZOOZ's operates
continuously, although approximately 10% of ZOOZ's employees were in reserve duty and a significant number of ZOOZ's
employees may be recruited again to reserves duty at any time without ZOOZ's control. ZOOZ has adjusted, and will continue to
adjust to the extent necessary, to the security situation in accordance with the directives of the National Emergency Management
Authority. As of the date of this Annual Report, there is no known material impact on ZOOZ's supply chain, although if the
security situation continues, this may harm ZOOZ's production capacity, as well as marketing activities outside of Israel. As
of the date of this Annual Report, given the uncertainties associated with the current Swords of Iron war in Israel, as well as the
duration and scope of this conflict, ZOOZ has made adjustments, and may be making additional adjustments, to its human resources as
well as adopting other expense reduction measures, pursuant to which, ZOOZ's average total monthly expenditures in
2024 and until the date of this Annual Report has been approximately $700 thousands. These adjustments are aimed to enable ZOOZ to continue to focus on its immediate
business goals while continually assessing the ongoing impact of the conflict on its business goals in the medium and long term. At
this stage, ZOOZ is unable to accurately assess the scope of the war's impact. In ZOOZ's estimation, the continuation of
the fighting may have a negative effect on its activities, however at this stage it is unable to anticipate the extent of the
impact.
66
Legal
proceedings
From
time to time, ZOOZ may be involved in various claims and legal proceedings relating to claims arising out of its operations. As of the
date of this Annual Report, ZOOZ is not a party to any material legal proceedings (including any such proceedings that are pending or
threatened of which ZOOZ is aware), however it may be involved in the future in legal proceedings, claims, and government investigations
in the ordinary course of business, which may include proceedings, claims, and investigations relating to, among other things, regulatory
matters, commercial matters, intellectual property, competition, tax, employment, pricing, discrimination, consumer rights, personal
injury, and property rights.
Government
Regulations
Consumer
Protection and Data Privacy
ZOOZ
conducts marketing activities that are subject to consumer protection laws in jurisdictions in which ZOOZ operates. For example, the
United States and European Union are increasingly regulating certain activities on the internet and online commerce, including the use
of information retrieved from or transmitted over the internet and user-generated content, are increasingly focused on ensuring user
privacy and information security and limiting behavioral targeting and online advertising, and are imposing new or additional rules regarding
the taxation of internet products and services, the quality of products and services as well as the liability for third-party activities.
Moreover, the applicability to the internet of existing laws governing issues such as intellectual property ownership and infringement
is uncertain and evolving.
In
particular, ZOOZ is subject to an evolving set of data privacy laws. In the ordinary course of its business, ZOOZ may process a
significant amount of personal information and other regulated information from users of its products, employees and other third
parties. Accordingly, ZOOZ is, or may become, subject to numerous privacy and data protection obligations, including local and
foreign laws, regulations, guidance, and industry standards related to privacy and data protection. For additional information
regarding the consumer protection and privacy laws and regulations that affect ZOOZ's business, see the risk factor titled
"
ZOOZ is subject to complex and evolving laws, regulations, rules, standards and contractual obligations regarding data
privacy and cybersecurity, which can increase the cost of doing business, compliance risks and potential liability"
under
the section titled "Risk Factors" in this Annual Report.
Research
and Development
ZOOZ
has received governmental grants from the IIA, for the financing of a portion of its research and development expenditures. In addition,
ZOOZ has received grants from BIRD and governmental grants from the Israeli government under the Ministry of Economy and Industry Project
and under the Ministry of Energy-Financed Project, and is subject to the terms of such grants.
Employment
ZOOZ
is also subject to laws governing its relationship with employees, including laws governing wages and hours, benefits, immigration and
workplace safety and health.
Other
Regulations
ZOOZ's
business is subject to various other laws and regulations, involving matters such as income tax and other taxes, consumer protection,
online messaging, advertising and marketing, laws governing bribery and other corrupt business activities, and regulations aimed at preventing
money laundering or prohibiting business activities with specified countries or persons. As the company expands into additional markets,
it will be subject to additional laws and regulations.
The
regulatory environment in each market is often complex, evolving and can be subject to significant change. Some relevant laws and regulations
are inconsistent, ambiguous and could be interpreted by regulators and courts in ways that could adversely affect ZOOZ's business,
results of operations, and financial condition. For additional information regarding the laws and regulations that affect ZOOZ's
business, see the section titled "Risk Factors" in this Annual Report.
As
ZOOZ received grants from the IIA, it is subject to certain restrictions under the Innovation Law. These restrictions may impair ZOOZ's
ability to perform or outsource manufacturing activities outside of Israel, granting licenses for R&D purposes or otherwise transfer
outside of Israel the intellectual property and other know-how resulting, directly or indirectly, in whole or in part, in accordance
with or as a result of, research and development activities made according to an Approved Program, as well as any rights associated with
such know-how (including later developments, which derive from, are based on, or constitute improvements or modifications of such know-how)
(the "
IIA Funded Know-How
"). Below is a description of the main obligations and restrictions imposed on a recipient
of IIA grants ("
Recipient Company
") under the Innovation Law, with respect to the use of its IIA Funded Know-How:
●
Royalty
Payment Obligation
. In general, the Recipient Company is obligated to pay the IIA royalties from the revenues generated from the
sale of products (and related services), whether received by the Recipient Company or any affiliated entity, developed (in all or in
part), directly or indirectly, as a result of an Approved Program, or deriving therefrom, at rates which are determined under the Innovation
Law (currently a yearly rate of between 3% to 5% on sales of products or services developed under the Approved Programs, depending on
the type of the Recipient Company - i.e., whether it is a "Small Company," or a "Large Company"
as such terms are defined in the IIA's rules and guidelines), up to the aggregate amount of the total grants received by the IIA,
plus Annual Interest for a File, as such term is defined under the IIA's rules and guidelines.
67
●
Reporting
Obligations
. In general, the Recipient Company is subject to certain reporting obligations (such as, periodic reports regarding the
progress of the research and development activities under the Approved Programs and the related research expenses, and regarding the
scope of sales of the Recipient Company's products). In addition, any direct change in control of a Recipient Company must be notified
to the IIA. In the event that a non-Israeli entity or a non-Israeli citizen or resident person becomes an "Interested Party"
(as such term is defined in the Securities Law) in the Recipient Company, notification to the IIA is required, accompanied by
a written undertaking (in the form available on the IIA website) by such party to be bound by the Innovation Law and by the terms of
the Approved Program.
●
IIA
Funded Know-How Transfer Limitation
. Under the Innovation Law, a Recipient Company is prohibited from transferring the IIA Funded
Know-How outside of Israel except under limited circumstances, and only with the approval of the IIA Research Committee and in certain
circumstances, subject to certain payments to the IIA calculated according to formulas provided under the IIA's rules and guidelines
(which are capped to amounts specified under such rules and guidelines, generally up to 6 time the grants received (dollar linked) plus
Annual Interest, as such term is defined under the IIA's rules). The scope of the support received, the royalties that have already
paid to the IIA, the amount of time that has elapsed between the date on which the IIA Funded Know-How was transferred and the date on
which the IIA grants were received, the sale price and the form of transaction, will be taken into account in calculating the amount
of the payment to the IIA in the event of a transfer of IIA Funded Know-How outside of Israel. A transfer for the purpose of the Innovation
Law means an actual sale of the IIA Funded Know-How, or any other transaction which in essence constitutes a transfer of such know-how
(such as, providing an exclusive license to a foreign entity for R&D purposes, which precludes the Recipient Company from further
using such IIA Funded Know-How). A mere license solely to market products resulting from the IIA Funded Know-How would not be deemed
a transfer for the purpose of the Innovation Law. Upon payment of such redemption fee, the IIA Funded Know-How and the manufacturing
rights of the products supported by such IIA funding cease to be subject to the Innovation Law.
Subject
to the IIA's prior approval, a Recipient Company may transfer IIA Funded Know-How to another Israeli company. If IIA Funded Know-How
is transferred to another Israeli entity, the transfer would still require IIA approval but will not be subject to the payment of the
redemption fee. In such case, the acquiring company would have to assume all of the Recipient Company's responsibilities towards
the IIA as a condition to the IIA approval. The income from such transaction will generally be subject to the obligation to pay royalties
to the IIA (other than in specific circumstances that will be examined by the IIA, mainly when the transfer is between related entities).
●
Local
Manufacturing Obligation
. Products developed using the IIA grants must, as a general matter, be manufactured in Israel. The transfer
of manufacturing capacity outside of Israel in a manner that exceeds the manufacturing capacity that was declared in the recipient company's
original IIA grant application is subject to prior written approval from the IIA (except for the transfer of less than 10% of the manufacturing
capacity in the aggregate, which event requires only a notice to the IIA, which shall be provided in writing prior to the transfer of
such manufacturing rights abroad, while the IIA has a right to deny such transfer within 30 days following the receipt of such notice).
In general, the transfer of manufacturing capacity outside of Israel may be subject an increase in the royalties' cap (
inter
alia
, depending on the manufacturing volume that is performed outside of Israel) and such transfer will be subject to payment of
royalties in accelerated rate.
●
IIA
Funded Know-How License Limitation
. The grant to a foreign entity of a right to use the IIA funded know-how (which does not entirely
prevent the Recipient Company from using the IIA Funded Know-How) is subject to receipt of the IIA's prior approval. This approval
is subject to payment to the IIA calculated in accordance with the formulas stipulated in the IIA's rules (such payment shall be
no less than the amount of the IIA grants received (plus Annual Interest, as such term is defined under the IIA rules), and no more than
the cap stated in the IIA rules and will generally be due only upon the receipt of the license fee from the licensee).
The
IIA's rules include a mechanism with respect to the grant of a license by a Recipient Company (which is part of a multinational
corporation) to its group entities to use its IIA Funded Know-How. Such license is subject to the IIA's prior approval and to the
payment of 5% royalties from the income deriving from such license, with the cap of the royalties increasing to 150% of the grant amount
plus annual interest. Such mechanism includes certain requirements which must be met in order to be able to enjoy such lower royalty
payment.
●
Imposition
of Liens Over IIA Funded Know-How
. The Recipient Company is required to receive an IIA approval for every transaction involving the
grant of liens over IIA Funded Know-How (i.e., for both the imposing and the realization of the liens). This obligation refers to fixed
charges as well as to floating charges. In addition, to the extent that the transaction involves a foreign pledgee, the pledgee must
execute an undertaking (in the form available on the IIA website) to comply with the Innovation Law in the event of realization of the
lien.
●
Public
Offering of Securities
. A Recipient Company who wishes to offer its securities to the public (in Israel or abroad), must notify the
IIA regarding the expected public offering and receive the IIA approval.
68
ZOOZ's
Roadmap and Strategy
ZOOZ's
vision is to become a leading global supplier who participates in the global effort to address the climate crisis and take a significant
leading role in supporting and accelerating the global effort in transitioning the automotive market to electric transportation. ZOOZ
has developed a unique flywheel-based energy storage technology, which is the core differentiating technology that provides distinct
advantage in energy storage application which are geared towards power boosting challenges, meaning applications that require highly-demanding
operational profiles, including multiple, high-frequency, high-power charge-discharge cycles throughout many years of the product's
lifespan.
In
such demanding applications, ZOOZ believes that its flywheels-based products have a clear advantage compared to products based on chemical
batteries. As a result, ZOOZ has decided to focus its products on the needs of EVs charging infrastructure market, aiming to enable and
accelerate widespread deployment of ultra-fast charging infrastructure, especially in locations where the power grid is limited. Such
ultra-fast charging sites, establish a significant challenge to the grid, with a harsh high-power chain-saw-like demand profile, where
the characteristics of a flywheel-based power booster can be highly advantageous in suppressing the strain from the grid and providing
an efficient, economical, and "green" solution for deploying the necessary infrastructure for fast-charging EVs. Such infrastructure
is essential to address "range anxiety," and by that lift a significant barrier to the global shift towards EVs.
Thus,
ZOOZ believes that the rapidly evolving EV ultra-fast charging infrastructure market has an enormous potential for ZOOZ's products.
Therefore, ZOOZ believes that focusing on this market in the coming years, both in terms of business operations and development efforts,
is expected to enable it to grow rapidly and establish itself as a key provider of power boosting equipment and services to this market.
Sales
and marketing strategy
ZOOZ
expects its sales and marketing strategy to focus on the following key items in the coming years:
●
Geographical
spread
: in the coming years, ZOOZ plans to focus its operations in countries with significant growth in transition to EVs.
Initial market introduction and penetration efforts target the territories of Central and Western Europe and the U.S. (with focus on
states with high penetration of EVs, such as California, New York and Florida). At a later phase, ZOOZ intends to expand its
marketing and sales efforts to the Far East, and in particular to China, as a major global EV market, and other
countries.
●
Product
and value propositio
n: ZOOZ expects to leverage its unique flywheel technology and focus on related power boosting products,
targeting the EV fast charging infrastructure market. Following establishing a leading position in this market, ZOOZ believes it
will be able to leverage its products to provide additional services and complementary products in this market segment.
●
Customer
diversit
y: the electric vehicle charging market is diverse. ZOOZ will target customers establishing and operating fast-charging
infrastructure for EVs, especially in locations with high traffic and limited electrical infrastructure. Such customers include
Charge Point Operators (CPOs), EPC (Engineering, Procurement, Construction) firms, fleet operators, business operators &
real-estate asset owners, utilities.
●
Business
model
s: ZOOZ's main model is selling of its power booster systems as an equipment for ultra-fast charging infrastructure.
With and following such sale, ZOOZ provides professional services to its customers. ZOOZ may also consider leasing or renting
options to facilitate customer adoption.
R&D
strategy
ZOOZ
focuses on enhancing its flywheel technology, expanding its product range, and aligning its offerings with market demands and trends
in the EV charging sector.
Based
on ZOOZ's goals, market evolvement and product development strategy, ZOOZ will focus on the following major advancements in the
upcoming years:
●
Further improvement of current flywheel design for enhancing the performance, further validation and improvement of reliability and
robustness, and reduction of production costs. This includes experiments and tests on raw material quality, manufacturing
tolerances, and improvements aimed at cost reduction, robustness, and safety throughout the product's life. These improvements
might necessitate revisiting the certification processes of the flywheel.
69
●
ZOOZTER™-100 system development: ZOOZ is already moving forward with production of the ZOOZTER™-100 system. The related
R&D and engineering efforts (through NPI process) will focus on further performance improvement, reducing costs, validating and
improving reliability and robustness, key subsystem enhancement and establishing additional supply chain sources.
●
Advanced next-generation flywheel development (NG-FW): as a technology-oriented company, ZOOZ is progressing with development of a
more advanced version of its flywheel technology, aiming to improve the cost-performance ratio and improve storage volume and
efficiency. This development is expected to be driven by, and adapted based on, the customers' feedback and lessons learnt
from initial market introduction through sales and pilots in the years 2023 and 2024.
●
Next-generation (ZOOZTER™-NG) system development: ZOOZ is planning to move forward with the development of an advanced version
of the ZOOZTER™ power booster system based on the advanced flywheel design (NG-FW). This system will cater to the growing
demand for larger storage capacities, higher power outputs, and smaller dimensions. ZOOZ is expected to analyze market trends to
characterize the future product considering market needs in the upcoming years.
●
Development of supporting products: ZOOZ is aiming to work on expanding its product and service portfolio for the EV charging
infrastructure market. Examples include micro-grid management software enabling demand-charge costs reduction, continuous
monitoring, improved network efficiency, and stabilization services. Additionally, future offering may require developing software
components, electrical and electronic parts to enhance system efficiency, and advanced configurations in line with market trends and
customer needs, such as hybrid configurations (combining batteries, solar panels, and more).
Operations
and Customers' support
To
support the sales of its products and services, ZOOZ intends to establish an operations arm, capable of delivering hundreds of systems.
ZOOZ expects that this effort will encompass several key components:
●
Standardized flywheel production: ZOOZ has already set up an internal infrastructure for flywheel low rate, low volume production.
In view of its expectations for a significant growth in demand, ZOOZ has initiated a plan to outsource production to partners and
subcontractors, with greater capacity for high-volume high-rate production.
●
The ZOOZTER™-100 serial production: ZOOZ is outsourcing the manufacturing and assembly of the ZOOZTER™-100 integrated
system. As a first stage, the flywheel integration and final testing is done at ZOOZ's facility. In preparation for growth in
demand to its products, ZOOZ plans to outsource also this final stage of production, such that the ZOOZTER™-100 shall be
integrated and go through the final testing procedures by the manufacturing partner and will then be shipped to ZOOZ's
customers.
●
Supplier network: ZOOZ is continuously working on development of its supply-chain with suppliers for various system components,
aiming for long-term contracts, while training alternative suppliers to assure competitiveness and redundancy.
●
Local production: In certain territories, local production may be required as a criteria to win opportunities. Such local production
may also be important in reducing costs (e.g. freight) and assuring streamlined deliveries to customers. In preparation for expected
growth in ZOOZ's orders' pipeline, ZOOZ may engage with local partners at certain target markets.
●
Customer support: as ZOOZ is progressing with market introduction of its products, it is currently handling, with its own personnel,
the system installations and customer support. In preparation expected for growth in demand and install base, ZOOZ may engage with
local partners for installation and maintenance (following training by ZOOZ), thus allowing ZOOZ to focus on specialized and
professional maintenance services.
ZOOZ's
operations strategy and goals will be periodically reviewed based on market, technological, economic, and regulatory developments in
its operational regions.
ZOOZ's
roadmap and strategy contain forward-looking statements that involve risks and uncertainties and actual results could differ materially
from those anticipated in these forward-looking statements as a result of certain factors, including the risks described under the section
titled "Risk Factors" in this Annual Report. These forward-looking statements are not guarantees of future performance and
are subject to various risks and uncertainties, assumptions (including assumptions about general economic, market, industry, and operational
factors), known or unknown, which could cause the actual results to vary materially from those indicated or anticipated.
70
C.
ORGANIZATIONAL STRUCTURE
We
were incorporated in the State of Israel on February 5, 2013 under the name Chakratec Ltd., as an Israeli corporation and operate under
the Companies Law. In May 2022, ZOOZ rebranded and changed its name from Chakratec Ltd. to ZOOZ Power Ltd.,
which
is both our legal and commercial name. Keyarch Acquisition Corporation, our wholly-owned subsidiary following the consummation of the
Business Combination, was incorporated in
Cayman Islands on April 23, 2021, and was formed for the purpose of effecting a merger,
capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses.
D.
PROPERTY, PLANTS AND EQUIPMENT
We
are headquartered in Lod, Israel, where we lease office space from an unrelated third party, as well as an operational site (used for
research and development and initial production). The leased space includes our offices and research and development laboratories. Our
lease agreement is in effect until October 30, 2024, and we have an option to extend the lease term for an additional 3-year period.
In
July 2022, we entered into an addendum to our lease agreement, pursuant to which we have leased additional office space in Lod, Israel
until November 3, 2024, and we have an option to extend the lease until November 3, 2027.
To
our knowledge, there are no environmental issues that affect our use of the properties that we lease.
ITEM
4A. UNRESOLVED STAFF COMMENTS
None.
ITEM
5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS
You
should read the following discussion and analysis of our financial condition and results of operations together with ZOOZ's audited
consolidated financial statements and the related notes appearing elsewhere in this Annual Report. Some of the information contained
in this discussion and analysis is set forth elsewhere in this Annual Report, including information with respect to ZOOZ's plans
and strategy for ZOOZ's business, and includes forward-looking statements that involve risks and uncertainties. As a result of
many factors, including those factors set forth in the section titled "Risk Factors" and "Cautionary Note Regarding
Forward-Looking Statements," ZOOZ's actual results could differ materially from the results described in or implied by the
forward-looking statements contained in the following discussion and analysis. Throughout this section, unless otherwise noted or the
context requires otherwise, "we," "us," "our" and the "Company" refer to ZOOZ and its
consolidated subsidiary, and in references to monetary amounts, "dollars" and "$" refer to U.S. Dollars, and
"NIS" refers to New Israeli Shekels.
Certain
figures, including interest rates and other percentages included in this section, have been rounded for ease of presentation. Percentage
figures included in this section have not in all cases been calculated on the basis of such rounded figures but on the basis of such
amounts prior to rounding. For this reason, percentage amounts in this section may vary slightly from those obtained by performing the
same calculations using the figures in ZOOZ's audited consolidated financial statements or in the associated text. Certain other
amounts that appear in this section may similarly not sum due to rounding.
Overview
ZOOZ
is committed to accelerating the electrical vehicles revolution and supporting the mass adoption of EVs around the world, by enabling
and empowering a widespread deployment of ultra-fast charging infrastructure.
ZOOZ's
power-boosting products and solutions are built with longevity and the environment in mind, helping ZOOZ's customers to overcome,
sustainably and economically, the limitations of the existing electricity grid. By that, ZOOZ aims to help its customers and partners
in building, faster and everywhere, a robust, long-lasting, and cost-effective EV ultra-fast charging infrastructure.
ZOOZ
(previously called Chakratec) was founded in 2013 as an incubator private company
8
under the Capital Nature incubator, under
the framework of the directives of the CEO of the IIA and focused on developing a new concept of flywheel.
ZOOZ
develops, produces, markets and sells energy storage systems based on storing kinetic energy in flywheels for ultra-fast charging of
EVs. ZOOZ has developed proprietary flywheel technology for storing kinetic energy and as of the date of this Annual Report, has introduced
two generations of Kinetic Storage Systems – the KPB50, which was ZOOZ's first-generation product and was introduced in 2018
as proof-of-concept and for market introduction, and the ZOOZTER™-100, ZOOZ's second-generation product, which was introduced
in 2022 and is geared towards high-volume production and deployment.
8
An incubator company is a project company that operates under a technological incubator and is partly financed by the IIA.
71
As
of the date of this Annual Report, ZOOZ operates in the market of charging infrastructure for EVs and primarily in the field of ultra-fast
charging for EVs. Based on its technology, ZOOZ develops systems comprised of an array of flywheels and supporting sub-systems, which
get charged from the electricity grid. This energy, when discharged, is added to the power from the grid, which together constitute the
peak power levels, beyond grid power limit, that are needed to enable high-power ultra-fast charging of the EV even in areas where the
electricity grid has limited power. ZOOZ refers to these systems as Power Boosters.
Use
of ZOOZ's technology enables a power booster which is both reliable and delivers high-power energy surges repeatably while preserving
high-quality performance over time, for over 100,000 charge-discharge cycles. This is in contrast with the chemical battery-based solution,
the use of which is limited to hundreds or just a few thousands of cycles, as further detailed above.
Furthermore,
the kinetic storage system is a "green system." It is environmentally friendly, as opposed to battery-based energy storage
solutions, which are comprised of polluting chemicals, the use of which requires complicated, expensive recycling processes and involves
other restrictions relating to transport, storage and/or use.
In
2018, ZOOZ introduced its first-generation / pilot product, the KPB50, by installing the KPB50 in the Viena airport. In 2020 the KPB50
was also sold to a hotel in Germany. ZOOZ's KPB50 product served as proof of the advantages of ZOOZ's technology and solution
and for marketing demonstrations to customers in Europe. The KPB50 is a discontinued product, and ZOOZ's offerings are focused
on the new 2
nd
generation product, the ZOOZTER™-100.
In
March 2021, ZOOZ consummated its Israeli IPO and in May 2022, ZOOZ rebranded and changed its name from Chakratec Ltd. to ZOOZ Power Ltd.
In
the second half of 2022, ZOOZ introduced its second-generation product, the ZOOZTER™-100. The ZOOZTER™-100 was first introduced
to the market and installed in a pilot site in Zikhron Yaakov, Israel. Later, in 2023 the ZOOZTER™-100 was also installed in several
sites in Germany, as initial sales of this product, as further detailed below.
The
ZOOZTER™-100 system is geared to solve some of the challenges facing current-generation EV ultra-fast charging infrastructure,
by providing a system that supports (power-boosts) the grid and enables ultra-fast charging for EVs, especially in locations where the
grid is power-limited. This solution is aimed to be more sustainable and safer and allow better total cost of ownership compared to the
market alternatives, which are based on chemical (Li-Ion) batteries.
Starting
2023, ZOOZ initiated market penetration efforts with deliveries of the ZOOZTER™-100 to its customers and partners in Israel, Europe
and the U.S., and the primary efforts and delivery included the following:
(a)
In January 2023, a first site in Israel, which is supported by the ZOOZTER™-100, has commenced commercial operation. This site
was established as a pilot site, in collaboration with Afcon e-mobility and Dor-Alon gas stations (the operators of "ON"
charging network, which is the biggest fast charging network in Israel), and with the support of the IIA and the Israeli Ministry of
Energy. In March 2024, ZOOZ announced that based on the successful pilot with Afcon and Dor-Alon, it was agreed with Dor-Alon that two
ZOOZTER™-100 systems will be installed at two of Dor-Alon's gas stations along Highway 6 (one of Israel's main transportation
corridors), aiming to enable additional ultra-fast chargers in these sites, despite the grid's limitations. These sites are expected
to be upgraded during the second quarter of 2024. The ability of the ZOOZTER™-100 systems to support these multi-charger sites
will be evaluated for a period of several months and upon successful completion of this assessment, the ZOOZTER™-100 systems will
be purchased by Dor-Alon (pursuant to terms agreed by the parties);
(b)
During the second quarter of 2023, two charging sites, located in Herrenberg Germany, were built (in cooperation with Mer), with fast-chargers supported by
the ZOOZTER™-100 systems, finalized commissioning and started commercial operation;
(c)
During the fourth quarter of 2023, two additional ZOOZTER™-100 systems were installed and commissioned (in cooperation with
Parkstorm GmbH) in two additional charging sites in Germany (in Reiskirchen and Weiterstadt, located in Greater Frankfurt). These
sites are expected to start commercial operation during the second quarter of 2024;
(d)
During the third quarter of 2023, the first site in the U.S., at Scotchman Gas Station in Rock Hill, South Carolina, was built, and
finalized commissioning and in October 2023, started commercial operation. This site was established as part of a joint pilot with
ARKO Corp (a major U.S. convenience stores network);
(e)
During the third quarter of 2023, a ZOOZTER™-100 system was delivered to the U.S. and placed at the La-Guardia airport in NYC, in preparation
to a joint pilot with a major car rental company. The work in this site was delayed until receipt of the required permits by the La-Guardia
Port Authority, which was received in the first quarter of 2024, after which the construction work commenced. The site is expected to
become operational during the third quarter of 2024; and
72
(f) An additional ZOOZTER™-100 system was delivered to the U.K.,
for a first site which was built in collaboration with Osprey, one of the leading Charging Operators in the U.K. This site construction
was finalized during the first quarter of 2024 and is expected to start commercial operation during the second quarter of 2024. Osprey
and ZOOZ agreed that the ZOOZTER™-100 will be evaluated in the first 6 months, and upon successful completion of this evaluation
period, the ZOOZTER™-100 will be purchased by Osprey (at terms agreed by the parties);
(g)
In January 2024, a ZOOZTER™-100 system was delivered to the U.K., for a first site which was built in collaboration with Osprey,
one of the leading charging operators in the U.K. The construction of this site was finalized during the first quarter of 2024 and is
expected to start commercial operation during the second quarter of 2024. Osprey and ZOOZ have agreed that the ZOOZTER™-100 system
will be evaluated during the first 6 months, and if such evaluation is successfully completed, the ZOOZTER™-100 system will be
purchased by Osprey (pursuant to terms agreed by the parties);
(h) In March 2024, ZOOZ announced that based on the successful pilot with
Afcon & Dor-Alon (see above), it was agreed with Dor-Alon that two ZOOZTER™-100 will be installed in Dor-Alon's gas stations
along Highway 6 (one of Israel's main transportation corridors), aiming to enable additional ultra-fast chargers in these sites,
despite the grid's limitations. These sites are expected to be upgraded during the second quarter of 2024. The ZOOZTER™-100
ability to support these multi-chargers sites will be evaluated for a period of several months and upon successful completion of this
period, the ZOOZTER™-100 systems will be purchased by Dor-Alon (at terms already agreed by the parties).
Business
Combination Agreement
On
July 30, 2023, ZOOZ and its wholly-owned subsidiary entered into the Business Combination Agreement with Keyarch.
The
Business Combination Agreement and the related transactions were unanimously approved by both ZOOZ's board of directors and the
Keyarch board. The Business Combination and other transactions contemplated by the Business Combination Agreement, as amended, closed
on April 4, 2024, after receipt of the required approval by ZOOZ's shareholders and Keyarch's shareholders and the fulfillment
of certain other conditions. In connection with the Business Combination Agreement, Keyarch also obtained commitments for the purchase
in private transactions that closed concurrently with the Business Combination of $13 million of the ZOOZ Ordinary Shares.
Key
Factors and Trends Affecting Our Results of Operations
Market
trends
ZOOZ
has adapted its flywheel-based energy storage technology and focused its offering on power boosting solution, targeting the market
of charging infrastructure for EVs. ZOOZ assume a continuation of the accelerated transition of the automotive industry to EVs, and
with that, a rapidly growing demand for public ultra-fast charging, as critical services needed to resolve the "Range
Anxiety" phenomena and allow mass adoption of EVs.
ZOOZ
anticipates that the automotive industry trend, to enable EV's ultra-fast charging (allowing EV's battery to be charged within
only a short period of a few minutes), will continue and further improve (meaning, EV battery will be capable to be charged even faster).
Increased
population of EVs, capable to ultra-fast charging, is expected to generate a growing demand for ultra-fast charging infrastructure, which
consumes electricity from the grid as high-power peak surges, thus causing a significant strain on the grid, where such charging equipment
is installed, and an increasing need for upgrades of the electricity grid to allow the deployment of such ultra-fast charging infrastructure.
It
is expected that such grid upgrades cannot meet the demand's needed pace and volume, thus increasing the demand for power boosting
solutions to be deployed in order to enable and accelerate the roll-out of such needed ultra-fast charging infrastructure.
Furthermore,
the increased need in expensive expansion of the grid, to enable delivery and distribution of high-power peak consumption (as needed
for ultra-fast charging sessions), may cause increase in demand charges billed by the utility companies. Such increase may extend the
need for energy-storage / power booster solution, located behind-the-meter, as a local buffer, acting as "peak-shaver" in
order to reduce the peak power which is consumed from the grid, in by that, reducing the costs associated with such consumption.
Target
territories, verticals, customers and partners
ZOOZ
is currently targeting the EU and the U.S. territories, with plans to later expand to far-east territories (mainly China, Japan and South
Korea). It is expected that in each of these territories, the above market trends will generate increasing demand for power boosting
solutions.
In
each of those territories, it is expected that government regulations and incentives will continue to push towards adoption of EVs and
accelerated build of ultra-fast charging infrastructure.
ZOOZ's
main target verticals and use cases are fleet-related and public-ultra-fast charging infrastructure, built by utilities, charge-point
operators (CPOs), and engineering-procurement-construction companies (EPCs), in fleet-depots and parking-hubs, near businesses which
aim to attract EV drivers (such as shopping malls, convenience stores, restaurants, etc.), and along the highways and roads where drivers
would need to stop on-the-go to charge their EVs.
ZOOZ's
business results are dependent on its ability to be active in these target territories, form relationships and build collaborations with
these market players, as customers and/or partners, for building joined solutions to various use-cases which will become relevant as
they are aiming to solve the grid challenges while building the needed charging infrastructure. Furthermore, as this market is aiming
to provide long-lasting and reliable charging services, ZOOZ is expected to develop relationships with local partners who are able to
provide local repair and maintenance services at the expected level of service availability and quality.
73
In
order to achieve all the above, ZOOZ is required to establish local presence as sales force and/or local partners acting as agents, resellers
and/or distributors, and partners acting as local technical and service support. Such local presence is key for acquiring new customers
and for preserving them for long-term period.
In
some of these territories, ZOOZ may be required to have local manufacturing capability, in order to be eligible for government funding
and incentives, as well as to provide the needed accelerated demand for its products.
Product
– Market fit
The
ultra-fast charging infrastructure market is still in its early stage. Market players are still in the learning stage of the technical
challenges and the relevant technological solutions, while developing relevant business models to overcome the complexity and challenges
of needed huge investment (much earlier than reaching profits) and the high costs of operation while utilization is still low.
ZOOZ's
ability to penetrate this market in these territories and develop robust customer-base, is dependent on its ability to take part in such
learning phase (while collaborating with the above market players), adapt its offering to the market players' needs, educate them
with the added value and differentiation of ZOOZ's innovation and offering, and developing with them the use cases and business
models that make sense economically. This may result in a long sell cycle and piloting of the ZOOZ's solution, in various scenarios
and use-cases, before customers and partners are moving forward with long-term commitments and orders with significant orders.
Innovation
of advanced technology
ZOOZ
is differentiating its offering, from other competing products and solutions, based on its innovation in the field of flywheel-based
energy storage. ZOOZ business results are dependent on its ability to mature its flywheel technology and the ZOOZTER™-100 power
booster product, develop complementary features and offering (e.g. SW-related products and add-ons), adapting the offering and market-fit
in according to lessons-learnt from market-penetration phase (pilots and early deployment) in accordance to trends, regulations and evolving
needs of the various market players.
Furthermore,
in order to keep and/or further increase its competitive advantage, ZOOZ is required to advance its flywheel technology (targeting better
performance and lower costs), enhance and further extend its portfolio of power booster products (targeting better performance, lower
cost, and additional features and configuration as needed in accordance to market-fit), and further develop complementary software-based
products and add-ons, to compete its offering and increase added-value for its customers.
Production
capacity and supply chain
As
a technology and innovation focused company, ZOOZ intends to outsource the production of its products to partners who will be responsible
for procurement, manufacturing, integration and testing of ZOOZ's products. In view of the significant demand that ZOOZ expects
for its products, ZOOZ needs to make significant efforts and investments in building its supply chain, training and certification of
its suppliers, supporting NPI and outsourcing process, as well as guiding and monitoring the performance of its suppliers to assure deliveries
of high-quality products to the customers.
With
the expected demand growth of ZOOZ's products, ZOOZ is expected to expand its supply-chain, establish additional suppliers and
monitor the suppliers' ability and performance while ramping-up production. As indicated, in some territories it would be required
by the authorities and / or customers, and might also be more cost effective, to establish local manufacturing capability. ZOOZ aims
to establish such capability while collaborating with local manufacturing partners, to whom ZOOZ will outsource, whole or a portion of,
the manufacturing of its products.
In
addition, ZOOZ intends to invest in engineering and R&D effort geared towards increasing robustness, reliability and serviceability
of its products, in order to retain its customers and their satisfaction from ZOOZ's solution. Additional engineering and R&D
effort will be invested in modifications and enhancement of the products, geared towards production outsourcing (adapting to different
capabilities of the suppliers), cost reduction and quality assurance.
Customer
service and technical support
In
order to assure high-quality service and high retention of its customers, ZOOZ intends to establish collaboration with local (in the
target territory) partners who are able to provide customer service and first-aid technical support. ZOOZ will train these partners in
order to assure availability and high-quality serviceability of its products, and high-satisfaction of its customers.
ZOOZ
is expecting to remain the source for professional high-level technical support, addressing technical issues that cannot be resolved
by the local partner.
74
Investment
in human resources
As
a technology-oriented company, aiming to maintain and extend its competitive advantage by innovation, advanced products, and high-quality
professional services, ZOOZ intends to keep its investment in human resources, aiming to retain its talented team, and recruit additional
talents to key positions in the company, while fostering a dynamic culture geared towards excellence, integrity and teamwork based on
can-do approach.
Continued
investment in growth
As
ZOOZ is active in an early stage rapidly evolving market, which is expected to accelerate significantly in the coming years, ZOOZ is
committed to work with its customers and partners, and prepare for accelerated expansion, as part of its strategic goal to position itself
as a leading provider of Power Boosting solutions for EV charging infrastructure market. Such investment may include R&D geared towards
additional products and extended offering, outsourcing and ramping up production capacity, collaborations with suppliers and partners,
mergers and acquisitions with companies with complementary capabilities, establishing sales and marketing infrastructure in various territories,
using various business models to accelerate market penetration, etc.
Economic
conditions and resulting business trends
ZOOZ's
results of operations are impacted by the relative strength of the overall economy and its effect on business investment, unemployment,
consumer spending behavior, and business and consumer demand. Our customers' underlying business activities are also linked to
the macroeconomic and geopolitical environment.
COVID-19
impacts
The
impact of the COVID-19 pandemic, including changes in consumer and business behavior, pandemic fears and market downturns, and restrictions
on business and individual activities, created significant volatility in the global economy, especially in the years 2020-2022. The spread
of COVID-19 also created a disruption in the manufacturing, delivery and overall supply chain of vehicle manufacturers and suppliers
around the world. We have modified our business practices during the surge of the COVID-19 pandemic, reducing physical participation
in sales activities, meetings, events and conferences. We also implemented additional safety protocols for essential workers, implemented
cost cutting measures in order to reduce our operating costs, and if the COVID-19 pandemic surges again in the future, we may take further
actions as may be required by government authorities or that we determine are in the best interests of our employees, customers, suppliers,
vendors and business partners. There is no certainty that such actions will be sufficient to mitigate the risks posed by the virus or
otherwise be satisfactory to government authorities. If significant portions of our workforce are unable to work effectively, including
due to illness, quarantines, social distancing, government actions or other restrictions in connection with the COVID-19 pandemic, our
operations will be negatively impacted. Furthermore, if significant portions of our customers' or potential customers' workforces
are subject to stay-at-home orders or otherwise have substantial numbers of their employees working remotely for sustained periods of
time, user demand for High-Power-Charger and services will decline. In addition, any sustained downturn in demand for EVs or for components
needed for ZOOZ's product would harm our business. Furthermore, difficult macroeconomic conditions, such as decreases in per capita
income and level of disposable income, increased and prolonged unemployment or a decline in consumer confidence as a result of the COVID-19
pandemic, as well as reduced spending by businesses, could each have a material adverse effect on the demand for our products and services.
Swards
of Iron War impacts
On
October 7, 2023, the "Swords of Iron" war started between Israel and the terrorist organizations in the Gaza Strip led by
certain armed groups in the Gaza Strip, following a surprise attack on Israel led by certain armed groups in the Gaza Strip that included
massacres, terrorism and crimes against humanity. This war is concentrated in the Gaza Strip which is along the southern region of the
State of Israel, whereas the Hezbollah terrorist organization located in Lebanon and Syria, as well as the Houthis regime in Yemen has
also engaged in hostilities. Israel has responded to the attacks against it with airstrikes and extensive mobilization of reserves. ZOOZ's
factory is located in the city of Lod, which is more than 50 kilometers from the Gaza Strip. ZOOZ's facilities have not sustained
any damage or injury and in accordance with the instructions of the National Emergency Management Authority of Israel, there is no limitation
or denial of access or activity limitation in ZOOZ's facilities. None of ZOOZ's employees were directly harmed as a result
of the war. As of the date of this Annual Report, ZOOZ's operates continuously, although approximately 10% of ZOOZ's employees
were in reserve duty and a significant number of ZOOZ's employees may be recruited again to reserves duty at any time without ZOOZ's
control. ZOOZ has adjusted, and will continue to adjust to the extent necessary, to the security situation in accordance with the directives
of the National Emergency Management Authority. As of the date of this Annual Report, there is no known material impact on ZOOZ's
supply chain, although if the security situation continues, this may harm ZOOZ's production capacity, as well as marketing activities
outside of Israel. As of the date of this Annual Report, given the uncertainties associated with the current Swords of Iron war in Israel,
as well as the duration and scope of this conflict, ZOOZ has made and may be making additional adjustments to its human resources as
well as adopting other expense reduction measures. These adjustments are aimed to enable ZOOZ to continue to focus on its immediate business
goals while continually assessing the ongoing impact of the conflict on its business goals in the medium and long term. At this stage,
ZOOZ is unable to accurately assess the scope of the war's impact. In ZOOZ's estimation, the continuation of the fighting
may have a negative effect on its activities, however at this stage it is unable to anticipate the extent of the impact..
75
Components
of Results of Operations
The
period-to-period comparisons of our results of operations have been prepared using the historical periods included in our audited consolidated
financial statements. The following discussion should be read in conjunction with the audited consolidated financial statements and related
notes included elsewhere in this Annual Report.
Revenue
Revenue
is generated from sale of ZOOZTER™-100 products, in addition to professional services provided to customers in support of installation,
operation and maintenance of these products. Future revenues' streams may also be generated from services based on software products
which will be provided as add-on / complementary features to our Power Boosting solutions. In addition, future revenues may be generated
by providing services that include consulting, training, commissioning, and other services related to supporting our customers in establishing
charging infrastructure of EVs.
Cost
of revenues
Cost
of revenues primarily consists of product costs consisting of bill-of-materials (BOM) costs, manufacturing labor costs (salaries and
related expenses), operations-related costs (salaries and expenses of related team such as procurement, quality, support, etc.), costs
related to deliveries (packaging, freight, insurance, etc.). In addition, costs are also related to salaries and expenses of team and
subcontractors providing the above-mentioned services, as well as depreciation.
In
Addition, ZOOZ periodically evaluates the quantities on hand relative to current and historical selling prices and historical and projected
sales volume. Based on this evaluation, provisions are made when required to write-down inventory to its market value.
Research
and development expenses
Research
and development expenses consist primarily of employee compensation and related costs, professional services and consulting expenses,
and non-capitalized costs associated with the research of advanced innovation, development of new products and features, engineering
geared towards products' modifications, enhancement, cost reduction and outsourcing, and engineering efforts for professional support
of customers (at the stage of market introduction and acquiring new customers). Such costs are charged to the statement of operations
as incurred.
Sales
and marketing expenses
Sales
and marketing expenses consist of costs for business development, customer success, product launch costs and marketing and advertising
costs. This also includes employee compensation, agents and partners' commission fees, and related costs to support the sales and
marketing process.
General
and administrative expenses
General
and administrative expenses consist primarily of compensation, benefits and overhead expenses associated with management. We expect that
our general and administrative expenses will increase after becoming a dual-listed company, as we expect hiring additional personnel
and implement procedures and processes to address public company regulatory requirements and customary practices. We also expect to incur
additional annual expenses for, among other things, directors' and officers' liability insurance, director fees and additional
internal and external accounting and legal and administrative resources, including increased audit and legal fees.
Depreciation
ZOOZ
depreciates its assets on a straight-line basis in accordance with our accounting policies. The useful lives are three years for computers,
seven years for furniture and office equipment, five years for ZOOZTER™-100 pilot systems, and the lesser of the asset useful life
or remaining lease term for leasehold improvements. ZOOZ expects depreciation expenses to increase going forward as a result of systems
deployed for pilots as part of ZOOZ's market penetration efforts.
Financial
income, net
Financial
income, net primarily includes gains (losses) from foreign exchange fluctuations and financing income from interest on deposits. ZOOZ
conducts transactions worldwide and settles accounts with its financial intermediaries in various currencies. Interest income from cash
and cash equivalents deposited in its accounts is also included under financial income, net, which vary based on cash and cash equivalents,
and with market rates.
76
Results
of Operations
The
following table sets forth our results of operations data for the periods presented:
Year ended December 31,
2023
2022
2021
(dollars in thousands)
Sales
764
-
-
Cost of Sales
1,869
178
-
Gross Loss
(1,105
)
(178
)
-
Operating expenses:
Research and development expenses, net
5,215
4,163
1,523
Sales and marketing expenses
3,041
1,672
987
General and administrative expenses
2,850
2,189
2,028
Total operating expenses
11,106
8,024
4,538
Operating loss
(12,211
)
(8,202
)
(4,538
)
Other expense, net:
Finance income (expenses), net
456
377
(43
)
Loss before income tax
(11,755
)
(7,825
)
(4,581
)
Income Tax
-
-
-
Net loss for the year
(11,755
)
(7,825
)
(4,581
)
Net loss per ordinary share attributable to shareholder– - basic and diluted
(1.99
)
(1.51
)
(2.27
)
Weighted average ordinary shares outstanding – basic and diluted in thousands
5,912
5,166
2,020
Net Loss
(11,755
)
(7,825
)
(4,581
)
Other Comprehensive loss
Reporting currency translation (gain) loss
(819
)
(1,965
)
370
Total comprehensive loss
(12,574
)
(9,790
)
(4,211
)
Cost
of Sale
Year ended December 31,
2023
2022
2021
(dollars in thousands)
Cost of Sales
1,869
178
-
In
2021, ZOOZ did not generate revenues.
In
2022, cost of revenue primarily consists of an inventory write-off of $178 thousands. The increase in cost of revenue reflects anticipated
net realizable value on disposition of existing inventory assets.
77
For
the year ended December 31, 2023, cost of revenue primarily consisted of: (a) cost of two systems that were sold in Germany and recognized
for revenues, and (b) anticipated net realizable value of disposition of existing inventory assets.
Operating
Expenses
Year ended December 31,
2023
2022
2021
(dollars in thousands)
Research and development, net
5,215
4,163
1,523
Sales and marketing, net
3,041
1,672
987
General and administrative
2,850
2,189
2,028
Total operating expenses
11,106
8,024
4,538
For
the year ended December 31, 2023, 2022 and 2021, the total operating expenses are offset by the changes in fair value of liability-classified
awards in the amounts of $722 thousands, $2,294 thousands and $1,661 thousands, respectively.
Research
and Development Expenses, Net
For
the year ended December 31, 2023, research and development expenses, net, increased by approximately $1,052 thousands, from $4,163 thousands
for the year ended December 31, 2022, to $5,215 thousands for the year ended December 31, 2023.
For
the year ended December 31, 2022, research and development expenses, net, increased by approximately $2,640 thousands, from approximately
$1,523 million for the year ended December 31, 2021, to approximately $4,163 thousands for the year ended December 31, 2022.
For
the years ended December 31, 2023, 2022 and 2021, grants from government and others, in the amounts of $118 thousand, $359 thousands
and $189 thousands, respectively, were deducted from research and development expenses.
The
research and development activities related primarily to advanced stages of the development of ZOOZTER™-100, including CE certification
tests of the European configuration of the product, and the testing according to the UL standards for the U.S.-configuration. Furthermore,
the increased expenses include costs of subcontractors supporting certification process, NPI process, and development of customized components
of the flywheels and ZOOZTER™-100 (such as motors, drivers, and electrical cabinets). The increase in research and development
expenses, net, in 2023 was mainly due to testing performed as part of the U.S. certification process for the ZOOZTER™-100. The
increase in research and development expenses, net, in 2022 was due to an increase in head count and investment in two R&D prototype
systems (CE-configuration and UL-configuration).
Sales
and Marketing Expenses
Sales
and marketing expenses increased by approximately $1,369 thousands, from $1,672 thousands for the year ended December 31, 2022, to
$3,041 thousands for the year ended December 31, 2023 and by approximately $685 thousands, from $987 thousands for the year ended
December 31, 2021, to $1,672 thousands for the year ended December 31, 2022. The increase in 2023 compared to 2022 is primarily
attributed to an increase in head count, promoting pilots and turnkey projects to accelerate the penetration into target markets,
investment in the building of a pilot site at Scotchman Gas Station in Rock Hill, South Carolina (which is aimed to be a site for
demonstrations of ZOOZ solution and the ZOOZTER™-100 product to relevant U.S. customers) and increase in participation in
marketing events. The increase in 2022 compared to 2021 is primarily attributed to investment in a re-branding campaign of ZOOZ and
increased expenses in marketing materials.
For the years ended December 31, 2023 grants from NYPA in the amounts of
$270 thousand, were deducted from Sales and Marketing Expenses.
General
and Administrative Expenses
General
and administrative expenses increased by approximately $661 thousands, from $2,189 thousands on for the year ended December 31, 2022,
to $2,850 thousands for the year ended December 31, 2023 and by approximately $161 thousands, from approximately $2,028 thousands for
the year ended December 31, 2021, to approximately $2,189 thousands for the year ended December 31, 2022. The increase in 2023 compared
to 2022 is mainly attributed to professional and legal services incurred in 2023 with respect of the Business Combination.
78
Financial
Income (expenses), Net
Financial
income, (expenses), net, increased by approximately $79 thousands from $377 thousands for the year ended December 31, 2022, to $456 thousands
for the year ended December 31, 2023. Financial income (expenses), net, for the year ended December 31, 2022, increased by approximately
$420 thousands from financial expenses of approximately $43 thousands for the year ended December 31, 2021, to financial income,
net, of approximately $377 thousands for the year ended December 31, 2022. The increase in financial income (expenses), net, in 2023
and 2022 is primarily attributed to income from interest on bank deposits maintained in NIS and dollar, and foreign exchange fluctuations.
Liquidity
and Capital Resources
Sources
of liquidity
ZOOZ
has historically funded its operations primarily from private placements of its equity securities and public offerings of its securities
following the Israeli IPO. As of the date of this Annual Report, ZOOZ's principal sources of funding have been the net proceeds
received in the Israeli IPO and net proceeds received in a private placement and a public offering in Israel, which was completed in
March 2022, which amounted to $52 million, net, in the aggregate.
On
April 4, 2024, ZOOZ consummated the Business Combination and the Merger. As part of the Business Combination and Merger, ZOOZ received
a net amount of $10 million, pursuant to the terms of the Business Combination Agreement.
Funding
requirements
ZOOZ
expects its expenses to increase in connection with its ongoing activities, particularly as it continues research and development
activities and incurs significant commercialization expenses related to product sales, marketing and distribution. Furthermore,
following the Closing of the Merger, ZOOZ expects to incur legal, accounting, insurance and other costs associated with operating as
a U.S. public company. Since ZOOZ has only recently commenced commercial sales of its products and considering its expected cash
usage, ZOOZ's cash balance as of December 31, 2023, and as of the date of approval of the audited consolidated financial
statements for the period ended December 31, 2023, is not sufficient to continue ZOOZ's operations for at least 12 months from
the date of approval of the audited consolidated financial statements. Accordingly, ZOOZ expects that it will need to obtain
substantial additional funding in connection with its continuing operations. If ZOOZ is unable to raise capital when needed or on
attractive terms, it could be forced to delay, reduce or eliminate its research and development programs or future commercialization
efforts. In order to continue ZOOZ's operations, including research and development and sales and marketing, ZOOZ is looking
to secure financing from various sources, including additional investment funding. These circumstances raise substantial doubt about
ZOOZ's ability to continue as a going concern.
As
of December 31, 2023, ZOOZ had cash and cash equivalents of approximately $6,672 thousands. As of December 31, 2022, ZOOZ had cash
and cash equivalents of $20,569 thousands. As of April 30, 2024, ZOOZ had cash and cash equivalents of approximately 14,000
thousands (such amount includes amounts received in connection with the Closing of the Business Combination; based on its unaudited
and unreviewed balance sheet as of such date). To date, ZOOZ has not generated enough revenues from its activities and therefore
continues to depend on fundraising from new and existing investors to finance its activities, which will continue until a positive
cash flow from its business operation is achieved, although ZOOZ can give no assurance that it will be able to generate positive
cash flow from operations. These fundraising activities include the fundraising as described below under the paragraph of
"—
Recent Developments
", as well as other equity or debt financings.
Governmental
and other grants
A
portion of ZOOZ's research and development efforts were financed through grants from the IIA and other Israeli governmental institutions
(the Ministry of Economy and the Ministry of Energy). The total grants that ZOOZ received from the IIA and other Israeli governmental
institutions until December 31, 2023, amounted to approximately $897 thousands. ZOOZ is required to pay to the IIA, with respect to the
royalty-bearing grants, royalties at the rate of between 3% and 5% from any income deriving from a product (including know-how) which
was developed, in whole or in part, directly or indirectly, in the framework of such royalty-bearing research and development programs,
including any derivatives, and related services thereof. The royalty payments are capped at the amount of the royalty-bearing grants
received by ZOOZ plus Annual Interest for a File (as such term is defined under the IIA's rules).
ZOOZ
may in the future apply to receive additional grants from the IIA and other governmental institutions. However, ZOOZ cannot predict whether
it will be entitled to any future grants, or the amounts of any such grants. For more information regarding such grants-related programs,
please see "
ZOOZ's Business – Government Regulations – Other Regulations
."
ZOOZ
has also received grants within the framework of a joint research and development project (together with Blink) partially financed by
BIRD. In April 2020, ZOOZ entered into the BIRD Agreement, for the development of the BIRD-Funded Project.
79
Pursuant
to the terms of the BIRD Agreement, BIRD undertook to bear 50% of the BIRD-Funded Project implementation expenses, up to a total amount
of $0.9 million, upon achievement of several milestones. The total grants that ZOOZ received from the BIRD Foundation until December
31, 2023, amounted to approximately $368 thousand. ZOOZ is committed to pay royalties to BIRD at a rate of 5% of the sales of the American
configuration of the ZOOZTER™-100 system, up to 100% of the amount of the grants received if full repayment made by April 1, 2024,
113% if full repayment is made by April 2025, 125% if full repayment is made by April 2026, 138% if full repayment is made by April 2027,
and 150% if full repayment is made after April 2027.
On
September 12, 2022, ZOOZ entered into the NYPA Cooperation Agreement with NYPA for the development, installation, implementation and
demonstration of ZOOZ's technology and products at locations where the power grid is limited. Pursuant to the NYPA Cooperation
Agreement, ZOOZ will establish and demonstrate an ultra-fast charging station, based on the ZOOZTER™-100 system, with financing
in the amount of $0.97 million to be provided by NYPA in several milestone-based installments, of which ZOOZ received until December
31, 2023, $520 thousand. According to the NYPA Cooperation Agreement, ZOOZ shall be required to pay NYPA royalties from revenues derived
in the U.S. from the sale, licensing or usage of ZOOZ's product, in a total amount not to exceed the total financing provided by
NYPA pursuant to the agreement.
Substantial
Doubt about the Company's Ability to Continue as a Going Concern
As
of December 31, 2023, ZOOZ had an accumulated deficit of $47 million. During the year ended December 31, 2023, ZOOZ incurred operating
losses of approximately $12.2 million and a negative cash flow from operating activities of approximately $12.2 million. ZOOZ's
current operating plan includes various assumptions concerning the level and timing of cash outflows for operating activities. ZOOZ's
ability to successfully carry out its business plan is primarily dependent upon its ability to obtain sufficient additional capital and
increase its revenue and reduce its costs. There are no assurances that ZOOZ will be successful in obtaining an adequate level of financing
needed for the long-term business plan or that any financing will result in and increasing its profitability.
These
conditions raise substantial doubt about ZOOZ's ability to continue as a going concern. The audited consolidated financial statements
do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts
and classification of liabilities that may result from uncertainty related to ZOOZ's ability to continue as a going concern.
ZOOZ
also expects its losses and the cash flow used in operations to be significantly higher in future periods as it:
●
increases its research and development expenses;
●
increase its expenses related to cost-reduction and production outsourcing efforts;
●
expand its service capabilities.
●
increases its sales and marketing activities; and
●
increases its general and administrative expenses to support the growth and U.S. public company infrastructure.
In
addition, to the extent that ZOOZ may include debt financing, it will incur interest costs as well as other charges which may be included
in any financing agreement.
Because
ZOOZ will incur the costs and expenses from these efforts before it generates revenue or positive cash flow from its operations to offset
such costs and expenses, losses and negative cash flow from operations in future periods may be significant. In addition, ZOOZ may find
that these efforts are more expensive than it currently anticipates and that these efforts may not result in the anticipated revenues
or cash flow, which would further increase ZOOZ's losses and negative cash flow from operations and its need for additional financing.
Cash
Flows Summary
The
following table summarizes ZOOZ's cash flows for the years ended December 31, 2023, 2022 and 2021:
Year ended December 31,
2023
2022
2021
(dollars in thousands)
Net cash used in operating activities
(12,232
)
(10,547
)
(6,085
)
Net cash used in investing activities
(1,339
)
(500
)
(298
)
Net cash provided by financing activities
-
27,870
7,645
80
Cash
Flows from Operating Activities
Cash
flows used in operating activities increased by approximately $1,685 thousands from approximately $10,547 thousands for the year ended
December 31, 2022, to approximately $12,232 thousands for the year ended December 31, 2023. The increase is primarily attributed to the
increase in net loss.
Cash
Flows from Investing Activities
Cash
flows used in investing activities increased by approximately $899 thousands, from approximately $500 thousands for the year ended December
31, 2022, to approximately $1,339 thousands for the year ended December 31, 2023. The increase is primarily attributed to three ZOOZTER™-100
systems which were classified as fixed assets and are used in pilots.
Cash
Flows from Financing Activities
Cash
flows provided by financing activities decreased by approximately $27,870 thousands, from approximately $27,870 thousands for the
year ended December 31, 2022, to 0 for the year ended December 31, 2023. The decrease is primarily attributed to capital raising in
2022.
Key
Financial and Operating Metrics
In
evaluating its business, ZOOZ considers its cash, inventory, research and development expenses, sales and marketing expenses and net
cash used in operating activities. These factors are discussed below with respect to the results of its operations for the years ended
December 31, 2023, 2022 and 2021.
Year ended December 31,
2023
2022
2021
(dollars in thousands)
Cash
6,672
20,569
5,661
Inventory
2,848
1,767
480
Research and development expenses
5,215
4,163
1,523
Sales and marketing expenses
3,041
1,672
987
Net cash used in operating activities
(12,232
)
(10,547
)
(6,085
)
Off-Balance
Sheet Arrangements
ZOOZ
has not entered into any off-balance sheet arrangements and does not have any holdings in variable interest entities.
Contractual
Obligations, Commitments and Contingencies
The
following table summarizes our contractual obligations as of December 31, 2023.
Payments due by period
(dollars in thousands)
Total
2024
2025
2026
2027
2028
Operating leases
1,518
415
404
390
309
-
81
Critical
Accounting Policies
Basis
of presentation
The
audited consolidated financial statements of ZOOZ have been prepared in conformity with United States generally accepted accounting
principles (U.S. GAAP).
Use
of estimates in the preparation of financial statements
The
preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the
amounts reported in the financial statements and accompanying notes. ZOOZ's management believes that the estimates, judgments,
and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions
can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial
statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates,
and such differences may have a material impact on the Company's financial statements. As applicable to these financial statements,
the most significant estimates relate to inventory fair value and share-based compensation.
Functional
and presentation currency
The
currency of the primary economic environment in which the operations of the Company are conducted is the NIS. Thus, the functional currency
of the Company is the NIS. The Company's presentation and reporting currency is the U.S dollar.
Inventory
Inventory
consists of raw materials, work in process and finished products. Inventories are stated at the lower of cost or net realizable value.
Inventory write-offs are provided to cover risks arising from slow-moving and obsolescent items.
ZOOZ
periodically evaluates the quantities on hand relative to current and historical selling prices and historical and projected sales volume.
Once written-down, a new lower cost basis for that inventory is established. Cost of inventories is assigned as follows:
●
Raw material– - at cost of purchase represents the first in, first out method.
●
Work in process – on the basis of direct manufacturing costs with the addition of allocable indirect manufacturing
costs.
●
Finished product – based on average costs of materials, contracting and manufacturing costs.
Revenues
ZOOZ
generates revenues from the sale of energy storage system for supporting fast chargers for electric vehicles, based on kinetic storage
using flywheels.
ZOOZ
recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration that
the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that ZOOZ determines
are within the scope of ASC 606, the entity performs the following five steps:
1.
Identify the contract(s) with a customer;
2.
Identify the performance obligations in the contract;
3.
Determine the transaction price;
4.
Allocate the transaction price to the performance obligations
in the contract;
5.
Recognize revenue when (or as) the performance obligation is
satisfied.
ZOOZ
accounts for a contract with customer when it has approval and commitment from both parties, the rights of the parties and payment terms
are identified, the contract has commercial substance and collectability of consideration is probable. ZOOZ's contract includes
one type of performance obligation, which is satisfied at a point in time. ZOOZ recognizes revenue upon transfer of control of the system
to the customer in an amount that reflects the consideration that ZOOZ expects to receive in exchange for the system. Transfer of control
occurs generally upon the receipt of customer acceptance or once risk of loss has transferred to the customer. The acceptance received
from customers include successful installation and commissioning test of the energy storage system. ZOOZ does not provide a right of
return. ZOOZ provides to customers a limited warranty assurance that the systems are in compliance with the applicable specifications
at the time of delivery. Under the standard terms and conditions of sale, liability for certain failures of product during the stated
warranty periods are limited to repair or replacement of defective items.‏
82
During
the reporting period, ZOOZ delivered to its customer and installed in the customer's site located in Germany two energy storage
systems. ZOOZ recognized the revenues related to these two systems during the reporting period, after receiving the acceptance certificate
for the systems. In addition, starting 2023, ZOOZ initiated market penetration efforts with deliveries of the ZOOZTER™-100 to its
customers and partners in Israel, Europe and the U.S., and the primary efforts included delivery and installation of ZOOZTER™-100
systems as detailed in "
Item 5 – Overview
".
Research
and development, net
Research
and development costs are expensed to the statement of operations as incurred, net of government grants which represents participations
in research and development.
Research
and development expenses include costs directly attributable to the conduct of research and development programs, including payroll costs,
lab expenses, materials, consumables, and consulting fees. All costs associated with research and development are expensed as incurred.
ZOOZ
received royalty-bearing grants, which represent participation of the IIA, other Israeli governmental institutions and BIRD in approved
programs for research and development, as well as participation under the NYPA Cooperation Agreement. At the time the grants were received,
successful development of the related projects was not assured. As such, these grants are recognized as a reduction of research and development
expenses as the related costs are incurred.
Recapitalization
In
connection with the consummation of the Business Combination, on March 21, 2024, the extraordinary general meeting of ZOOZ's shareholders
approved the Recapitalization (a reverse share split of the ZOOZ ordinary shares), effective as of March 25, 2024, at a conversion ratio
between 11.3 and 11.5, which was determined in accordance with the Business Combination Agreement and was finally determined to be at
a conversion ratio of 11.43720665, and a corresponding amendment to ZOOZ's amended and restated articles of association then in
effect.
ZOOZ
accounted for the Recapitalization on a retroactive basis pursuant to ASC 260. As a result, all ZOOZ ordinary shares, and options and
warrants outstanding and exercisable into ZOOZ ordinary shares, exercise prices and loss per share amounts have been adjusted, on a retroactive
basis, for all periods presented in ZOOZ audited consolidated financial statements and the applicable disclosures, to reflect such Recapitalization.
Share-based
compensation
ZOOZ
accounts for options granted to employees under the fair value recognition provision of ASC 718 "stock compensation". ZOOZ
measures all share-based awards, based on their estimated fair value on the grant date.
ZOOZ's
employees and directors share-based payment awards are classified as equity awards, except for awards as described below. The grant date
fair value of these share-based payment transactions is recognized as an expense over the requisite service period using an accelerated
method, net of estimated forfeitures. ZOOZ elected to recognize compensation costs for awards conditioned only on continued service that
have a graded vesting schedule based on the multiple-option award approach. ZOOZ adopted ASU 2018-07 and therefore accounts for its equity
classified share-based payment awards to its advisors in a similar manner.
Liability
classified share-based options
Some
of the ZOOZ's share-based awards have an exercise price denominated in US$, which is not the Company's functional currency
and not the employees' salary currency or the currency in which the employees are paid. These awards are classified as liability
awards, measured at fair value at the date of grant and re-measured at fair value at each reporting date up to and including the settlement
date. The fair value of the awards is expensed over the respective vesting period of the individual awards with recognition of a corresponding
liability. Changes in fair value after vesting are recognized through compensation expense in the statement of operations. Compensation
expense reflects estimates of the number of awards expected to vest. The impact of forfeitures and fair value revisions, if any, are
recognized in earnings such that the cumulative expense reflects the revisions, with a corresponding adjustment to the settlement liability.
Comprehensive
loss
ZOOZ
complies with ASC 220, "Comprehensive Income," which establishes rules for the reporting and display of comprehensive
income (loss) and its components. ZOOZ reports the financial impact of translating its audited consolidated financial statements
from its functional currency to its reporting currency as a component of other comprehensive income (loss).
83
Leases
ZOOZ
accounts for leases in accordance with ASC 842, Leases. All of ZOOZ's leases are classified as operating leases. ZOOZ determines
if an arrangement is a lease at inception. Lease classification is governed by five criteria in ASC 842-10-25-2. If any of these five
criteria is met, ZOOZ classifies the lease as a finance lease; otherwise, ZOOZ classifies the lease as an operating lease.
Operating
leases are included as operating lease right-of-use ("
ROU
") assets and operating lease liabilities on the balance
sheet.
ROU
assets represent ZOOZ's right to use an underlying asset for the lease term and lease liabilities represent its obligation to make
lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the
present value of lease payments over the lease term. The Company uses its incremental borrowing rate based on the information available
at the commencement date to determine the present value of the lease payments. ZOOZ elected the practical expedient to not separate lease
and non-lease components for all of ZOOZ's leases, and to keep leases with an initial term of 12 months or less off the balance
sheet and recognize the associated lease payments in the statements of operations on a straight-line basis over the lease term.
ZOOZ
subsequently measures the ROU asset at the present value of the remaining lease payments, adjusted for the remaining balance of any lease
incentives received, any cumulative prepaid or accrued rent if the lease payments are uneven throughout the lease term and any unamortized
initial direct costs. Further, ZOOZ recognizes lease expense on a straight-line basis over the lease term.
The
lease terms include options to extend or terminate the lease when it is reasonably certain that ZOOZ will exercise or not exercise the
option to renew or terminate the lease.
Emerging
Growth Company Status
ZOOZ
is an "emerging growth company," as defined in Section 2(a) of the Securities Act, as modified by the JOBS Act. As such,
ZOOZ is eligible to take advantage of certain exemptions from various reporting requirements that are applicable to other public companies
that are not "emerging growth companies" including, but not limited to, not being required to comply with the auditor attestation
requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in their periodic
reports and proxy statements, and exemptions from the requirements of holding a non-binding advisory vote on executive compensation and
shareholder approval of any golden parachute payments not previously approved. As long as ZOOZ remains an emerging growth company, it
will be exempt from the auditor attestation requirement.
Further,
Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial
accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared
effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised
financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and
comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. ZOOZ has
elected not to opt out of such extended transition period, which means that when a standard is issued or revised and it has
different application dates for public or private companies, ZOOZ, as an emerging growth company, can adopt the new or revised
standard at the time private companies adopt the new or revised standard. This may make comparison of ZOOZ's audited
consolidated financial statements with certain other public companies difficult or impossible because of the potential differences
in accounting standards used.
ZOOZ
will remain an emerging growth company until the earlier of: (i) the last day of the fiscal year (a) following the fifth anniversary
of the closing of its initial public offering, which will be the closing of the Business Combination, (b) in which ZOOZ's total
annual gross revenue of at least $1.235 billion, or (c) in which ZOOZ is deemed to be a large accelerated filer, which means the market
value of its common equity that is held by non-affiliates exceeds $700 million as of the last business day of its most recently completed
second fiscal quarter; and (ii) the date on which we have issued more than $1.00 billion in non-convertible debt securities during the
prior three-year period. References to "emerging growth company" in this Annual Report have the meaning associated with that
term in the JOBS Act.
Foreign
Private Issuer Status
ZOOZ
is organized under the laws of the State of Israel. Following the consummation of the Business Combination, ZOOZ reports under the Exchange
Act as a non-U.S. company with foreign private issuer status. Under Rule 405 of the Securities Act, the determination of foreign private
issuer status is made annually on the last business day of an issuer's most recently completed second fiscal quarter, and accordingly,
the next determination will be made with respect to ZOOZ on June 30, 2024. Even after ZOOZ no longer qualifies as an emerging growth
company, for so long as ZOOZ qualifies as a foreign private issuer, it will be exempt from certain provisions of the Exchange Act that
are applicable to U.S. domestic public companies, including:
●
the rules requiring domestic filers to issue financial statements prepared under U.S. GAAP, although we intend to use U.S. GAAP in
our financial statements;
84
●
the rules under the Exchange Act requiring the filing of quarterly reports on Form 10-Q or current reports on Form 8-K with the
SEC;
●
the sections of the Exchange Act regulating the solicitation of proxies, consents, or authorizations in respect of a security
registered under the Exchange Act;
●
the sections of the Exchange Act requiring insiders to file public reports of their share ownership and trading activities and
liability for insiders who profit from trades made in a short period of time; and
●
the selective disclosure rules by issuers of material nonpublic information under Regulation Fair Disclosure, or Regulation FD,
which regulates selective disclosure of material non-public information by issuers.
ZOOZ
is required to file an annual report on Form 20-F within four months of the end of each fiscal year. In addition, ZOOZ intends to publish
its results on a quarterly basis through press releases, distributed pursuant to the rules and regulations of Nasdaq. Press releases
relating to financial results and material events will also be furnished to the SEC on Form 6-K. However, the information ZOOZ is required
to file with or furnish to the SEC will be less extensive and less timely compared to that required to be filed with the SEC by U.S.
domestic issuers. Accordingly, after the Business Combination, ZOOZ shareholders will receive less or different information about ZOOZ
than a shareholder of a U.S. domestic public company would receive.
Nasdaq
market rules permit a foreign private issuer such as ZOOZ to follow the corporate governance practices of its home country. Certain corporate
governance practices in Israel, which is ZOOZ's home country, may differ significantly from Nasdaq corporate governance listing
standards. Pursuant to the "foreign private issuer exemption," ZOOZ is permitted to comply with Israeli corporate governance
practices instead of the Nasdaq corporate governance rules, provided that it discloses which requirements it is not following and the
equivalent Israeli requirement. Pursuant to this "home country practice exemption" with respect to the following:
●
ZOOZ follows the quorum requirement for shareholder meetings in accordance with the Companies Law. As permitted under the Companies
Law, pursuant to the Articles, the quorum required for an ordinary meeting of shareholders will consist of at least
two shareholders present in person, by proxy or by other voting instrument in accordance with the Companies Law, who hold at least
25% of the voting power of its shares (and in an adjourned meeting, with some exceptions, any number of shareholders), instead of 33
1/3% of the issued share capital required under the Nasdaq corporate governance rules;
●
ZOOZ intends to adopt and approve material changes to equity incentive plans in accordance with the Companies Law which does not
impose a requirement of shareholder approval for such actions. In addition, ZOOZ follows Israeli corporate governance practice
instead of the Nasdaq corporate governance rule which requires shareholder approval prior to an issuance of securities in connection
with equity-based compensation of officers, directors, employees, or consultants; and
●
ZOOZ also follows Israeli corporate governance practice instead of the Nasdaq corporate governance rule requiring shareholder
approval for certain dilutive events (such as issuances that will result in a change of control, certain transactions other than a
public offering involving issuances of a 20% or greater interest in ZOOZ and certain acquisitions of the stock or assets of another
company).
ZOOZ
relies on the exemptions listed above. As a result, you may not be provided with the benefits of certain corporate governance requirements
of Nasdaq applicable to U.S. domestic public companies. ZOOZ would cease to be a foreign private issuer at such time as more than 50%
of its outstanding voting securities are held by U.S. residents and any of the following three circumstances applies: (i) the majority
of its executive officers or directors are U.S. citizens or residents, (ii) more than 50% of its assets are located in the United States
or (iii) its business is administered principally in the United States.
Foreign
private issuers, similar to emerging growth companies, are also exempt from certain more stringent executive compensation disclosure
rules. Thus, even if ZOOZ no longer qualifies as an emerging growth company but remains a foreign private issuer, it will continue to
be exempt from the more stringent compensation disclosures required of public companies that are neither an emerging growth company nor
a foreign private issuer.
If
at any time ZOOZ ceases to be a foreign private issuer, we will take all action necessary to comply with the applicable rules of the
SEC and Nasdaq.
85
Quantitative
and Qualitative Disclosures About Market Risk
For
a discussion of ZOOZ's quantitative and qualitative disclosures about market risk, please see "
Item 11. Quantitative and
Qualitative Disclosures about Market Risk
."
ITEM 6.
DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES
A.
DIRECTORS AND SENIOR MANAGEMENT
The
following table sets forth information with respect to ZOOZ Power's directors and senior management as of April 15, 2024:
Name
Age
Positions
Avi Cohen
70
Chairman of the Board of Directors
Doron Meir Vadai
65
Director
Dan Weintraub
58
Director
Christine Y. Zhao
51
Director
Sanqiang (Larry) Wang
54
Director
Fang Zheng
59
Director
Naama Zeldis
60
Director
Boaz Weizer
52
Chief Executive Officer
Ruth Smadja
48
Chief Financial Officer
Ilan Ben David
59
Chief Technology Officer and Co-Founder
Tal Harmon
57
VP R&D
Udi Tzuri
58
VP Product
Eyal Blum
50
Chief Revenue Officer
Avi
Cohen
has served as the Chairman of the Board of Directors of ZOOZ since 2021. He also serves as a director of Nova Ltd. and Cognyte
Software (public companies on Nasdaq) as well as on the board of directors of Cortica Ltd., Sight Diagnostics and CGS Tower Networks Ltd.
From 2021 to 2023 he served as Executive Chairman of Xjet 3D Ltd. From July 2016 to September 2017 Mr. Cohen served as the CEO of MX1,
a global media service provider founded in July 2016 as a result of the acquisition of RR Media (Nasdaq: RRM) by SES S.A. and the following
merger between RR Media, and SES Platform Services GmbH. From July 2012 until the merger, Mr. Cohen served as the CEO of RR Media. Prior
to that, until March 2012, Mr. Cohen served as President and CEO of Orbit Technologies Ltd., a public company traded on the TASE. From
September 2006 to December 2008, Mr. Cohen served as Chief Operating Officer and deputy to the CEO of ECI Telecom Ltd. Prior to joining
ECI, Mr. Cohen served in a variety of executive management positions at KLA (Nasdaq: KLAC). From 2003 he was a group Vice President and
member of the executive management committee. From 1995 he was the president of KLA Israel responsible for the optical metrology division.
Prior to joining KLA, Mr. Cohen also spent three years as managing director of Octel Communications, Israel, after serving as CEO of
Allegro Intelligent Systems, which he founded, and which was acquired by Octel. Mr. Cohen holds B.Sc. and M.Sc. degrees in electrical
engineering and applied physics from Case Western Reserve University, USA.
Doron
Meir Vadai
has more than 30 years' experience as a CEO in the automotive market including the introduction of Hyundai and BYD
to the Israeli market. Doron is the Chairman and co-founder of Afcon electric transportation. Doron served as Co-chairman of Shlomo Motors
(formerly 277 all Motors) the importer of BYD, a world leader in electric cars and buses. Doron served as CEO of 277 all Energy and president
of the Ford distributor in Croatia, Serbia, Montenegro and Albania for three years.
86
Dan
Weintraub
is the CEO of the Private VC company Ratio Technologies and serves as a board member in ZOOZ Board of Directors and in
several private companies. He was also co-chairman of the board of directors of Capital Nature. Dan has also served as the CEO of Union
Bank of Israel's private equity arm; Director of Finance at the start-up company TeamWorks Technology; an investment banker; and
coordinator in the privatization unit at the Ministry of Finance. He also served as a board member in numerous public, state-owned and
private companies. He was also active in non-profit organizations, in his positions as VP Business Development in Israel Venture Networks
fund and as the CEO of Lotan's Way, specializing in Wilderness Therapy for youths at risk. In addition, Dan serves as the chairman
of the Executive Committee of the "Together, Beyond Words" association, dedicated with the empowerment of Jewish and Arab
women. Dan holds a BA in economics and political science from the Hebrew University of Jerusalem and a master's degree in business
administration from the Hebrew University of Jerusalem.
Chirstine
Y. Zhao
is partner of Wisdom Advisory, LLC, which provides CFO advisory services to entrepreneurs and institutions. From July 2021
to June 2023, Ms. Zhao served as Chief Financial Officer of AlTi Global Inc, (Nasdaq: ALTI) and its predecessor Tiedemann Advisors. During
the period from July 2020 to November 2023, Ms. Zhao served on the Boards of three special purpose acquisition companies (SPACs), including
Audit committee member for Jaguar Global Growth Corp I (Nasdaq: JGGC), a property tech focused SPAC; Audit Committee Chair for D and
Z Media Acquisition Corp. (NYSE: DNZ), a media and ed tech focused SPAC; and CFO and Director for Edoc Acquisition Corp. (Nasdaq: ADOC),
a healthcare-focused SPAC. Most recently, she was Governance & Nomination Committee Chair of Nasdaq-listed bio-pharmaceutical company
BeyondSpring Inc. (Nasdaq: BYSI), which develops innovative immune-oncology cancer therapies, from October 2016 to January 2023. Previously,
she served as Chief Financial Officer for two large PE-backed growth-stage companies, including Best Inc., a pre-IPO logistics technology
company in China with major investors including Alibaba, Softbank, Goldman, IFC, among other large PE funds, which later priced its initial
public offering at a valuation over $3 billion (NYSE: BEST). Prior to this, she served as a Managing Director of Bank of America Merrill
Lynch and an Executive Director of JPMorgan, where she held senior positions at headquarters and global corporate and investment banking
units, across a broad spectrum of functional areas including Treasury, liquidity products, capital management, risk management, and as
regional CFO/COO in transaction banking and corporate banking units. She also worked at American Express in various capacities including
corporate strategic planning and venture investing from March 2003 to March 2008. Early in her career, Ms. Zhao worked in investment
banking at Goldman Sachs and in corporate finance/corporate development at FedEx. She has worked in New York, London, Singapore, Hong
Kong and China, and has managed teams across four continents. Ms. Zhao is a Board member of several non-profit organizations, including
Volunteers of America – Greater New York, founded in 1896 and one of America's largest faith-based social service organizations,
and the Chinese Finance Association (TCFA) with over 8,000 members worldwide.
Sanqiang
(Larry) Wang
is currently a senior advisor to a number of smart electric vehicle OEMs and suppliers. He brings more than 25 years
of experience in consulting, business building and investment, in Greater China, across Asia and in the U.S. Most recently from
2021 to 2023, he co-founded and led the investment, financing and corporate finance functions of a new premium smart electric vehicle
OEM, and successfully raised US$ 200 million from European and Chinese strategic investors. Previously he worked for McKinsey & Company
for 12 years from 2004 to 2016 as a Partner and Co-Leader of the Greater China Automotive and Industrial Practice and Co-leader of Asia
Merger Management Practice, supporting OEMs, suppliers, dealer groups and PE firms. He has worked extensively in OEM strategic and operational
planning, product planning and product development, manufacturing capacity planning and footprint in China/ASEAN, JV partner selection
and negotiation, governance, sales and network, operations and organization issues and has wide experience in addressing key disruptive
trends around electrification, car connectivity, autonomous driving/ADAS, shared mobility and digitization. He also led support to many
cross-border transactions in the automotive and industrial sectors. In addition to consulting, he worked as a senior executive, in charge
of investment in international markets, and disruptive digital technology sectors for leading Chinese corporations including as Group
Executive Committee member of PingAn Group, and Deputy President of its construction technology division, and as Group Vice President
of CFLD group, in charge of its international expansion and investment. Earlier in his career, he worked for PricewaterhouseCoopers in
its management consulting division in New York, and also acted as CEO for Zhaopin.com, a leading Chinese online recruiting platform,
to turn around its business. Larry graduated from Peking University with a BA in English and Harvard Business School with a MBA.
Fang
Zheng
was a co-founder and portfolio manager at Neon Liberty Capital Management. Prior to co-founding Neon Liberty in 2002, Mr. Zheng
was a Vice President and portfolio manager at the JP Morgan Emerging Market Equity Group. Mr. Zheng was responsible for the team's
investment strategy in the Asian markets and small cap arena. An employee of JP Morgan for over 6 years, Mr. Zheng began his career as
an equity research analyst in Singapore, covering the financial and property sectors. Prior to joining JP Morgan, Mr. Zheng worked at
the Ministry of Machinery and Electronics Industries and CITIC in China, and Rockefeller & Co., Inc. in New York as an equity analyst.
Mr. Zheng holds a BA from the University of International Business & Economics in Beijing, an MBA from Harvard Business School, and
is a CFA charter holder. Mr. Zheng is a native of China and speaks Mandarin. Mr. Zheng is based in Hong Kong.
87
Naama
Zeldis
has served as the Chief Executive Officer of Aquarius-Spectrum Ltd., a private company specializing in innovative solutions
for monitoring urban water pipes and detecting hidden leaks from the earliest stage, until January 2023. Formerly, Ms. Zeldis served
as Chief Financial Officer for a variety of high-tech and industrial companies, such as Tahal Group from 2013 to 2020, Netafim Ltd. from
2005 to 2013, the Israeli subsidiary of Electronic Data Systems from 2001 to 2005 and Radguard Ltd. from 1999 to 2001. Ms. Zeldis currently
serves on the board of directors of Radware Ltd. (NASDAQ: RDWR), a global leader in application delivery and cyber security solutions
for virtual, cloud and software defined data centers; on the board of directors of Orbit Technologies Ltd. (TASE: ORBI), a company specializing
in satellite communications, tracking systems, airborne communication and audio managements solutions; on the board of directors of Aquarius
Engines (A.M.) Ltd. (TASE: AQUA), a developer of a Free Piston Linear Engine, which is integrated into a comprehensive, reliable, cost-effective,
green energy generator; and on the board of directors of Electra Real Estate Ltd. (TASE: ELCRE), a global leader in real estate investment,
development, finance, and management, mainly in the U.S. and U.K. In addition, Ms. Zeldis is a member of the board of directors (pro-bono)
of the Spirit of Israel, a non-profit public benefit company, focusing on young people at risk. Ms. Zeldis has also served as a member
of the boards of directors of several other companies, including Nova Measuring Instruments Ltd. (Nasdaq: NVMI), Rafael Advanced Defense
Systems Ltd. and Metalink Ltd. She holds a B.A. degree in accounting from the Tel Aviv University and a B.A. degree in economics and
an M.B.A. from the Hebrew University in Jerusalem.
Boaz
Weizer
is an accomplished executive with over 20 years of senior management experience, leading business strategy and
operations, as well as R&D organizations. Prior to joining ZOOZ, he held multiple executive positions at Elbit Systems, a global
defense technology company, where he led several business lines to success, as well as the company's large-scale and highly
technological R&D organization. Before Elbit, he led an innovative automotive startup's business unit to a successful
spin-off. Boaz is a graduate of the Israeli Naval Academy where he served as a submarine officer and chief engineer. He holds a
B.Sc. in electrical engineering and MBA from the Technion, Israel Institute of Technology.
Ruth
Smadja,
with over 20 years of experience Ruth became ZOOZ's chief financial officer (CFO) in October 2022. She has
extensive experience as a corporate leader finance and business strategy, proven track record of scaling growth stage starts up to
mature business – through planning, modelling, funding, acquisitions, and mergers. Experience includes leading IPO, funding
and transaction rounds with top PEs and strategic investors. Prior to ZOOZ Power, Ruth was CFO at Telrad Networks for 11 years (sold
to Liquid Intelligent Technologies) and CFO at Nur Macroprinters (acquired by HP). Ruth holds a BA in Business
Management, major in Accounting from the Management College.
Ilan
Ben David
is a veteran entrepreneur and executive with a proven track record of outperforming business goals. Ilan co-founded ZOOZ
and served as the ZOOZ's CEO from its foundation in 2013 and until 2020. Before co-founding ZOOZ, Ilan co-founded and served as
the CEO of Genoa Color Technologies, a display semiconductor company. Prior to Genoa, he held several senior executive positions in the
electronic printing industry. Ilan served in the prestigious 8200 IDF technology unit, and is the inventor of more than 20 patent families,
having earned a B.Sc. in mechanical engineering and an M.Sc. in electrical engineering, both from Tel-Aviv University.
Tal
Harmon
served for more than 25 years in a variety of R&D and management roles in Highcon and HP Scitex, prior to joining
ZOOZ. His experience in developing and leading the development of multidisciplinary systems such as digital packaging systems and
wide format digital printing products through the full product life cycle, from problem definition through design, validation,
production and field implementation allows him to have comprehensive view of the whole product aspects – customer needs,
innovative technological solutions, productivity and serviceability. Tal holds a BSc in mathematics and computer science from
Tel-Aviv university and an MBA from Heriot Watt University.
Udi
Tzuri
is a marketing executive with over 20 years of expertise leading marketing and strategy for international high-tech firms.
Before joining ZOOZ, he had several top executive positions, including Director of Marketing and Product Management at Emerson-Spectronix
and Chief Marketing Officer at Applied Materials Israel. Udi graduated from Ben-Gurion University with a B.Sc. in Electrical Engineering.
Eyal
Blum
holds over 20 years in legal, sales and business development, Eyal has vast experience in translating tech vision into functional
reality. Prior to ZOOZ Power, Eyal was VP of Business Development at Driivz (acquired by Vontier Corporation), where he became an expert
in the global industry of electric transportation. Before that, Eyal worked as VP Corporate Operations & Legal at Trans Innovations
Group, a leading provider of innovative solutions and digital systems to industries such as telecom, medical, aerospace, and energy.
Eyal holds both a BA in finance and marketing and an MBA. In addition, he has an LLB in Law and is a member of the Israeli Bar Association.
88
B.
COMPENSATION
Aggregate
Executive Compensation
During
2023, the aggregate compensation paid or accrued by us to all persons listed in Item 6.A above (Directors and Senior Management), and
to other directors and officers who served as such during 2023, was approximately $1.8 million. This amount includes amounts set aside
or accrued to provide pension, severance, retirement or similar benefits, but excludes expenses (including business travel, professional
and business association dues and expenses) reimbursed to our executives and other fringe benefits commonly reimbursed or paid by companies
in Israel.
During
2023, we granted to our Directors and Senior Management listed in Item 6.A, and to other directors and officers who served as such
during 2023, options to purchase a total of 195,547 ordinary shares (after applying certain adjustments to the number of shares
underlying outstanding options following the issuance of the Earnout Rights, in accordance with the respective terms of the
options). These options are exercisable at an average exercise price of $9.04 per share, and generally expire ten years after their
respective dates of grant. As of December 31, 2023, there were options to purchase a total of 758,728 ordinary shares (after
applying certain adjustments to the number of shares underlying outstanding options following the issuance of the Earnout Rights, in
accordance with the respective terms of the options) that were held by the Directors and Senior Management listed in Item 6.A and by
other directors and officers who served as such during 2023.
Individual
Compensation of Covered Office Holders
The
table below outlines the compensation granted to our five most highly compensated office holders (as such term is defined in the
Companies Law – see below under "Approvals Required for Office Holders Terms of Employment") with respect to the
year ended December 31, 2023. All amounts reported in the table reflect the cost to the Company, as recognized in our audited
consolidated financial statements for the year ended December 31, 2023. We refer to the five individuals for whom disclosure is
provided herein as our "Covered Office Holders".
Compensation for Services
(2)
Name and Principal Position
(1)
Salary Costs
(3)
($)
Benefits and Perquisites ($)
(4)
Share-Based Compensation ($)
(5)
Total ($)
Name: Boaz Weizer
Title: Chief Executive
248
37
91
(6)
194
Name: Ilan Ben David
Title: Chief Technology Officer and Co- Founder
185
-
163
(6)
22
Name: Ruth Smadja
Title: Chief Financial Officer
233
-
46
279
Name: Udi Tzuri
Title: VP Product
210
28
37
275
Name: Eyal Blum
Title: Chief Revenue Officer
213
-
31
244
(1)
All Covered Office Holders listed in the table were full-time officers of the Company during their term of service in
2023.
(2)
Cash compensation amounts denominated in currencies other than the dollar were converted into dollars at an exchange rate of NIS
3.689 = $1.00, which reflects the average conversion rate for 2023.
(3)
Costs include gross salary, including benefits mandated by applicable law which may include, to the extent applicable to each
Covered Office Holders, payments, contributions and/or allocations for pension, severance, vacation, payments for social security,
study funds and other similar benefits consistent with ZOOZ's guidelines.
(4)
Amounts reported in this column include benefits and perquisites, including those mandated by applicable law. Such benefits and
perquisites may include, to the extent applicable to the respective Covered Office Holder, bonuses, payments, contributions, car or
car allowance, and other similar benefits and perquisites consistent with the ZOOZ's policies.
(5)
Amounts reported in this column represent the expense recorded in our audited consolidated financial statements for the year ended
December 31, 2023, with respect to options to purchase our ordinary shares granted to our Covered Office Holders. Assumptions and
key variables used in the calculation of such amounts are discussed in Note 12 to our audited consolidated financial statements for
the year ended December 31, 2023.
(6) The actual amount is negative and represents a decrease in the fair
value of ZOOZ's liabilities for share-based compensation.
89
Compensation
Policy
Compensation
Policy under the Companies Law
In
general, under the Companies Law, the board of directors of a public company must approve a compensation policy after receiving and considering
the recommendations of the compensation committee. In addition, the compensation policy must be approved at least once every three years,
first, by our
Board of Directors
,
upon recommendation of our compensation committee, and second, by a simple majority of ZOOZ ordinary shares present, in person or by
proxy, and voting (excluding abstentions) at a general meeting of shareholders, provided that either:
●
the
majority of such ZOOZ ordinary shares is comprised of shares held by shareholders who are not controlling shareholders and
shareholders who do not have a personal interest in such compensation policy; or
●
the
total number of shares of non-controlling shareholders and shareholders who do not have a personal interest in the compensation
policy voting against the policy does not exceed two percent (2%) of the aggregate voting rights in the company.
Under
special circumstances, the board of directors may approve the compensation policy despite the objection of the shareholders on the condition
that the compensation committee and then the board of directors decide on the basis of detailed grounds, and after discussing again with
the compensation committee, that approval of the compensation policy, despite the objection of shareholders, is for the benefit of the
company.
If
a company adopts a compensation policy in anticipation of its initial public offering and describes such compensation policy in the prospectus
for such offering, then such compensation policy shall be deemed a validly adopted policy in accordance with the Companies Law requirements
described above. Furthermore, if the compensation policy is established in accordance with the foregoing procedures, then it will remain
in effect for a term of five years from the date such company becomes a public company. We have elected to follow such relief, and our
compensation policy, which we have adopted prior to the Israeli IPO, is described below.
The
compensation policy must be based on certain considerations and include certain provisions and reference certain matters as set forth
in the Companies Law. The compensation policy must serve as the basis for decisions concerning the financial terms of employment or engagement
of office holders, including exculpation, insurance, indemnification, or any monetary payment or obligation of payment in respect of
employment or engagement. The compensation policy must be determined and later reevaluated according to certain factors, including: the
advancement of the company's objectives, business plan and long-term strategy; the creation of appropriate incentives for office
holders, while considering, among other things, the company's risk management policy; the size and the nature of the company's
operations; and with respect to variable compensation, the contribution of the office holder towards the achievement of the company's
long-term goals and the maximization of its profits, all with a long-term objective and according to the position of the office holder.
The compensation policy must furthermore consider the following additional factors:
●
The
education, skills, experience, expertise, and accomplishments of the relevant office holder;
●
the
office holder's position and responsibilities;
●
prior
compensation agreements with the office holder;
●
the
ratio between the cost of the terms of employment of an office holder and the cost of the employment of other employees of the
company, including employees employed through contractors who provide services to the company, and in particular the ratio between
such cost to the average and median salary of such employees of the company, as well as possible impacts of compensation disparities
between them on the work relationships in the company;
●
if
the terms of employment include variable components, the possibility of reducing variable components at the discretion of the board
of directors and setting a limit on the value of non-cash variable equity-based components; and
●
if
the terms of employment include severance compensation, the term of employment or office of the office holder, the terms of the
office holder's compensation during such period, the company's performance during such period, the office holder's
individual contribution to the achievement of the company goals and the maximization of its profits, and the circumstances under
which the office holder is leaving the company.
90
The
compensation policy must also include, among other things:
●
with
regards to variable components:
○
with
                                            the exception of office holders who report to the chief executive officer, a means of determining
                                            the variable components on the basis of long-term performance and measurable criteria; provided
                                            that the company may determine that an immaterial part of the variable components of the
                                            compensation package of an office holder shall be awarded based on non-measurable criteria,
                                            or if such amount is not higher than three months' salary per annum, taking into account
                                            such office holder's contribution to the company; or
○
the
                                            ratio between variable and fixed components, as well as the limit of the values of variable
                                            components at the time of their payment, or in the case of equity-based compensation, at
                                            the time of grant.
●
a
condition under which the office holder will refund to the company, according to conditions to be set forth in the compensation
policy, any amounts paid as part of the office holder's terms of employment, if such amounts were paid based on information
later to be discovered to be wrong, and such information was restated in the company's financial statements;
●
the
minimum holding or vesting period of variable equity-based components to be set in the terms of office or employment, as applicable,
while taking into consideration long-term incentives; and
●
a
limit to retirement grants.
Our
compensation policy was approved by our shareholders on February 11, 2021, as amended on October 14, 2021
,
following the approval of our
Board of Directors
and
our compensation committee, respectively.
Approvals
Required for Office Holders Terms of Employment
The
term "office holder" as defined in the Companies Law includes a director, the chief executive officer,
chief
business manager, deputy chief executive officer, vice chief executive officer
, any other person fulfilling or assuming any of
the foregoing positions without regard to such person's title, and any manager who is directly subordinated to the chief executive
officer. In addition to each person listed in the table under "
Item 6. Directors, Senior Management and Employees
–
A. Directors and Senior Management
", two other individuals have been office holders as of December 31, 2023.
"Terms
of Office and Employment" means the terms of office and employment of our office holders, including exemption and release of the
office holder from liability for breach of his or her duty of care to the Company, an undertaking to indemnify the office holder, post
factum indemnification or insurance; any grant, payment, remuneration, compensation, or other benefit provided in connection with termination
of service and any benefit, other payment or undertaking to provide any payment as aforesaid.
Compensation
for office holders subordinated to the Chief Executive Officer.
The terms of office and employment of office holders (other than
directors and the chief executive officer) require the approval of the compensation committee and the board of directors, provided such
terms are in accordance with the company's compensation policy. Shareholder approval is also required if the compensation of such
officer is not in accordance with such policy. However, in special circumstances the compensation committee and then the board of directors
may nonetheless approve such compensation even if such compensation was not approved by the shareholders, following a further discussion
and for detailed reasoning.
Compensation
for office holders who are Directors or Chief Executive Officers.
The Terms of Office and Employment of directors, other than directors
who serve as chief executive officers and/or who possess a controlling interest in a company or who are external directors (to the extent
applicable), require the approval of the compensation committee, board of directors and shareholders by a simple majority, as long as
it complies with the compensation policy. With respect to our president and chief executive officer or with respect to any chief executive
officer, further approval of the shareholders by the Special Majority is required. However: (A) under certain circumstances, and to the
extent that the proposed Terms of Office and Employment are in compliance with the compensation policy, a company may be exempt from
receiving shareholder approval with respect to the Terms of Office and Employment of a candidate for the position of chief executive
officer (provided that the candidate is not a director) (i) provided that the company's compensation committee and board of directors
approved such terms and that such terms: (a) are not more beneficial than the terms of the former chief executive officer, or are essentially
the same in their effect; (b) are in line with the compensation policy; and (c) are brought for shareholder approval at the next general
meeting of shareholders; and (B) a company's compensation committee and board of directors are permitted to approve Terms of Office
and Employment of a director, without convening a general meeting of shareholders, provided that such terms are only beneficial to the
Company or that such terms are in compliance with the terms set forth in the Israeli Companies Regulations
(Rules
Regarding Compensation and Expenses of External Directors), 2000, or the Compensation Regulations
. To the extent applicable, external
directors are entitled to Terms of Office and Employment as set forth in the Compensation Regulations, as supplemented by the Israeli
Companies Regulations (Alleviation for Public Companies whose shares are Traded on the Stock Exchange Outside of Israel), 2000, or the
Alleviation Regulations. In addition, the Israel Securities Authority may issue from time-to-time bulletins or staff position statements
relating to, among other things, compensation payable to external directors. Since our Board of Directors determined to opt out of the
requirement to elect and have external directors and composition criteria of the audit committee and compensation committee under the
Companies Law pursuant to the relief available under the Alleviation Regulations, as further detailed in this Item below under "Board
Practices - External Directors and Independent Directors Under the Companies Law", we are not subject to such bulletins or staff
position statements.
91
Variable
Compensation and Annual Cash Bonuses of office holders
. The Companies Law requires that all variable compensation of directors and
chief executive officers be based on measurable criteria, with the exception of a non-substantial portion of up to ‎3 monthly salaries,
which should take into consideration the applicable office holder's contribution to the company‎. With respect to office holders
who are not directors or chief executive officers, the Companies Law allows that 100% of the variable compensation be based on non-measurable
criteria. Our Compensation Policy allows for a non-substantial portion of up to 20% (but not more than 3 monthly salaries) of the bonus
objectives for each year to be based on non-measurable criteria, provided, however, that with respect to (i) our office holders who are
not directors nor our chief executive officer, our compensation committee and board of directors may increase the portion of targets
based on non-measurable criteria above the rate of 30%, up to 60% and with respect to our chief executive officer, our compensation committee
and board of directors may increase the portion of targets based on non-measurable criteria for up to three (3) monthly base salaries.
Further, the annual cash bonus of each of our office holders who is not a director is determined according to a formula that is consistent
with the Compensation Policy and that links the bonus payment score to measurable and qualitative objectives relating to both the Company's
performance and to the performance by each such office holder of his responsibilities. In the case of our office holders, other than
the chief executive officer, assuming that the bonus terms conform to the Compensation Policy, the annual bonus objectives and subsequent
payment scores are determined by the compensation committee and board of directors, while the bonus terms for our chief executive officer
generally require the additional approval by our shareholders. For each fiscal year, our board of directors determines the maximum target
bonus for each of our office holders, including our chief executive officer.
Compensation
Paid to our Non-Executive Directors
On
February 11, 2021, our shareholders approved, following previous resolutions made by our board of directors, and consistent with our
Compensation Policy, to compensate each of our non-executive directors whether currently in office or appointed in the future, excluding
the Chairman of the Board (each a "non-executive director") as follows:
Cash
Compensation
. Except for our chairman of the Board of Directors, our directors are compensated in accordance with regulations promulgated
under the Companies Law concerning the remuneration of external directors (the "
Remuneration Regulations
"), as supplemented
by the Alleviation Regulations. Each of them is entitled to a cash compensation in accordance with the "fixed" amounts of
the annual and participation fees, as set forth in the Remuneration Regulations, based on the classification of the Company according
to the amount of its capital, and to reimbursement of travel expenses for participation in a meeting, which is held outside of the director's
place of residence; currently, the sum of NIS 32 thousands (approximately $9 thousands based on the Exchange Rate) as an annual fee,
the sum of NIS 1 thousands (approximately $0.28 thousands, based on the Exchange Rate) as an in-person participation fee, NIS 0.6 thousands
(approximately $0.17thousands, based on the Exchange Rate) for conference call participation and NIS 0.5 thousands (approximately $0.14
thousands, based on the Exchange Rate) for written resolutions. As the above-mentioned amounts are within the range between the fixed
amounts set forth in the Remuneration Regulations and the maximum amounts set forth in the Foreign Listed Regulations, they are exempt
from shareholder approval, in accordance with the Israeli Companies Regulations (Relief from Related Party Transactions) – 2000
(the "
Relief Regulations
"). These cash amounts are subject to an annual adjustment for changes in the Israeli consumer
price index and to an annual adjustment in accordance with the classification of the Company according to the size of its capital. The
above-mentioned cash compensation is in line with the Company's Compensation Policy, according to which each of the Company's
non-executive directors is entitled to receive cash fees which include annual and participation fees.
No
additional compensation shall be paid for attendance at a board or committee meeting.
92
VAT
is added to the above compensation in accordance with applicable law.
Chairman
Cash Fee
. Avi Cohen servs as our chairman of the Board of Directors in a 40% position scope. In consideration for his services, he
is entitled to a NIS 30,000 monthly fee, which was approved by our shareholders on April 17, 2023, in an extraordinary general meeting
(the "
2023 EGM
").
Equity
Compensation
. During 2023, we granted to our directors and members of our senior management detailed in Section 6.A and other
directors and executive officers who served as such during the year 2023, options to purchase 195,547 ordinary shares, in the
aggregate (after applying certain adjustments to the number of shares underlying outstanding options following the issuance of the
Earnout Rights, in accordance with the respective terms of the options), with an exercise price that ranges from $4.38 to $11.76 per
share. As of December 31, 2023, there were outstanding options to purchase a total of 531,114 ordinary shares (after applying certain adjustments to the number of shares underlying outstanding options following the issuance
of the Earnout Rights, in accordance with the respective terms of the options) that were held by our
directors and senior management, which was vested in 2023, detailed in Section 6A. In addition to cash fees, as remuneration for
their contribution and efforts as directors of the Company, and in line with the limitations set forth in our Compensation Policy
with respect to equity-based compensation, certain directors received equity grants with respect to their term of service as our
directors, which was approved to them by our shareholders at the 2023 EGM, as follows:
●
To Mr. Avi Cohen, chairman of the Board of Directors, options to purchase 107,393 ordinary shares of the Company. The options will
vest over a period of 3 years from the date of the board of directors' approval of the said grant, i.e., March 2, 2023 (the
"
Grant Approval Date
").
●
To Mr. Manuel Fernandes, a former director of the Company, and to Mr. Doron Vadai, a non-executive director of the Company, options
to purchase 32,543 and 24,407 ordinary shares of the Company, respectively. The options will vest over a period of 3 years
from the Grant Approval Date.
Company
Equity Plan
In
August 2015 the Company adopted the Company Equity Plan, which is managed by the ZOOZ board of directors, or by a special committee authorized
by ZOOZ board of directors.
Eligibility
.
In accordance with the Company Equity Plan and subject to applicable law, ZOOZ's board of directors may grant options that are
not registered for trading to be exercised for ZOOZ ordinary shares ("
Options
"), to employees, officers, directors,
consultants and other selected senior service providers of ZOOZ or affiliated companies (including persons who are responsible for or
contribute to the management, growth or profitability of, or who provide substantial services to, ZOOZ or any affiliated company) (the
"
Grantees
")).
Grant
of Options
. Options shall be granted with no consideration and evidence by an option agreement. Each Grantee shall be required to
execute, in addition to the option agreement, any and all other documents required by the Company or any affiliated company, whether
before or after the grant of the Options.
Exercise
Price
. Each Option may not be granted with an exercise price of less than the minimum price per share as will be determined in the
TASE rules and regulations from time to time, unless otherwise determined by ZOOZ's board of directors.
Vesting
Schedule
. Unless otherwise determined by ZOOZ's board of directors or a committee thereof administering the Company Equity
Plan, the Options shall vest over a four-year period as follows: twenty five percent (25%) will vest one calendar year from the date
of grant; and an additional 6.25% will vest each quarter thereafter for the next 36 months. In addition, the ZOOZ board of directors
may determine that certain and/or all Options shall be accelerated upon a merger of ZOOZ with another company.
Expiration
Date
. The Options will expire ten years after the grant date, unless ZOOZ board of directors determined otherwise.
Exercise
Period
. Each Option shall be exercisable from the date upon which it becomes vested until the expiration date of such Option. In
the event of a merger of ZOOZ with or into another corporation which ZOOZ is not the surviving entity, or the sale of all or substantially
all the assets or the shares of ZOOZ other than to a wholly-owned subsidiary of the parent company or other than in the framework of
a corporate reorganization, the surviving or the acquiring entity, as the case may be, or its respective parent company or subsidiary
may either assume ZOOZ's rights and obligations under outstanding Options or substitute the outstanding Options, as determined
under the Company Equity Plan.
Transferability
.
Other than by will, the laws of descent and distribution or as otherwise provided under the Company Equity Plan, neither the awards nor
any right in connection with such awards are assignable or transferable, made subject to attachment, lien or encumbrance of any kind,
and the Grantee shall not grant with respect thereto any power of attorney or transfer deed, whether valid immediately or in the future.
Following the exercise of vested Options, the exercised shares shall be transferable in accordance with terms of the Company Equity Plan.
93
Termination
of Services
. Any Option granted in favor of any Grantee but not exercised by such Grantee within the exercise period and in strict
accordance with the terms of the Company Equity Plan, any applicable sub-plan and the applicable option agreement, shall, upon the lapse
of the exercise period, immediately expire and terminate and become null and void. Upon the termination of a Grantee's Service
(as such term defined under the Company Equity Plan), for any reason whatsoever, any Options granted in favor of such Grantee which are
not vested Options, shall immediately expire and terminate and become null and void. Additionally, in the event of the termination of
a Grantee's Service for Cause (as such term defined under the Company Equity Plan) (a) all of such Grantee's vested Options
shall also, upon such termination for Cause, immediately expire and terminate and become null and void. Following termination of Grantee's
Service other than for Cause, the expiration date of such Grantee's vested Options shall be deemed the earlier of: (a) the expiration
date of such vested Options as was in effect immediately prior to such termination; or (b) three (3) calendar months following the date
of such termination or, if such termination is the result of death or disability of the Grantee, twelve (12) calendar months from the
date of such termination.
During
the year of 2023, we granted Options to purchase 286,038 ordinary shares to 20 employees and officers of the Company (after applying
certain adjustments to the number of shares underlying outstanding options following the issuance of the Earnout Rights, in
accordance with the respective terms of the options). As of March 28, 2024, Options to purchase 79,050 ordinary shares (as adjusted
in accordance with the conversion ratio) are reserved for future issuances under the 2015 Plan.
Insurance,
Indemnification and Exemption
Our
Office Holder's Insurance
. Our Articles provide that, subject to any applicable law, the Company may enter into contract to
cover any Company officer's liability, as imposed on them following an action they perform in their capacity as a Company officer,
to the maximum extent permitted in the law, due to each of the following:
●
A violation of the duty of care toward the Company or toward another person;
●
A violation of the fiduciary duty toward the Company, as long as the officer acted in good faith and had reasonable grounds for
assuming the action will not harm the Company's best interest;
●
A monetary liability imposed on them for the benefit of another person;
●
Expenses the officer spent or has been charged with in connection with an Administrative Enforcement Proceeding they were subject
to, including reasonable litigation expenses, such as an attorney's fee;
●
A payment imposed on the officer for the benefit of an injured party, as stated in Section 52.BBB(A)(1)(A) of the Securities Law
("Payment to an Injured Party");
●
Any other Company officer liability, undertaking, or expense that may be lawfully insured now or in the future.
Under
the Companies Law, exemption and indemnification of, and procurement of insurance coverage for, our office holders, must be approved
by our compensation committee and our board of directors and, with respect to an office holder who is the CEO or a director, also by
our shareholders. However, according to regulations promulgated under the Companies Law, shareholders and board of directors approvals
for the procurement of such insurance are not required if the insurance policy is approved by our compensation committee and: (i) the
terms of such policy are within the framework for insurance coverage as approved by our shareholders and set forth in our Compensation
Policy; (ii) the premium paid under the insurance policy is at fair market value; and (iii) the insurance policy does not and may not
have a substantial effect on the Company's profitability, assets or obligations.
In
accordance with our Compensation Policy,
approved by our shareholders at the 2021 annual general
meeting,
we are currently entitled to hold directors' and officers' liability insurance policy for the benefit of
our office holders with insurance coverage of up to $15,000,000, provided that the insurance period shall not exceed 7 years, and with
such annual premium reflecting market terms and not having a substantial effect on our profitability,
assets or obligations
.
Our
Office Holders' Indemnification.
Our Articles provide that, subject to any applicable law, the Company may indemnify an officer
therein due to a liability or an expense imposed on them or that they have spent following an action performed in their capacity as a
Company officer, to the maximum amount permitted under any applicable law, and as stated below:
●
A monetary liability imposed on them for the benefit of another Person according to a judgment, including a judgment in a settlement
or an arbitration award that a court has ratified;
94
●
Reasonable litigation expenses, including an attorney's fee, that officer has spent because of an investigation or proceeding
administered against them by an authority that is authorized to administer an investigation or a proceeding, that concluded without
a criminal charge lodged against them, and without imposing a monetary sanction on them in lieu of a criminal proceeding, or that
has concluded without submitting a criminal charge, but by imposing a monetary sanction in lieu of a criminal proceeding, in an
offense that does not require proof of mens rea or in connection with a monetary sanction. In this Article: (1) "conclusion
without submitting a criminal charge in a matter in which a criminal investigation has been launched"; and (2) "a
monetary sanction in lieu of a criminal proceeding" are as defined in Section 260 (A)(1A) of the Companies Law;
●
Reasonable litigation expenses, including an attorney's fee, the officer spent or was charged with by a court, in a proceeding
lodged against the officer by the Company or on its behalf or by another person, or in a criminal charge the officer was acquitted
from, or in a criminal offense it was charged with, that does not require proof of mens rea;
●
Expenses the officer has spent or has been charged with in connection with an Administrative Enforcement Proceeding they were
subject to, including reasonable litigation expenses, such as an attorney's fee, to the extent permitted under the
law;
●
Any Payment to an Injured Party, including reasonable litigation expenses, such as an attorney's fee; and
●
Any liability, undertaking, or other expense for which it is or will be permissible to indemnify Company officers.
The
Company may give an advanced undertaking to indemnify an officer due to a liability or an expense, as stated in Article 32.3 of the Articles,
as long as the advance undertaking to indemnify due to a liability, as stated in Article 32.3.1 of the Articles, is limited to events
the Board of Directors considers predictable given the Company's activity in practice when making the undertaking to indemnify,
and to an amount or according to a criterion that Board of Directors has found reasonable under the circumstances, and that the undertaking
to indemnify states the events the Board of Directors considers foreseeable, given the Company's activity in practice when making
the undertaking, and the amount or the criteria the Board of Directors has found reasonable under the circumstances.
The
total, aggregate indemnification amount the Company will bear according to the advanced undertaking to indemnify due to such liability,
as stated in Article 32.3.1 of the Articles (along with the amounts to be received from an insurance company, if any, under an officer
liability insurance policy the Company has acquired) for all Company officers, shall be determined under the Company's compensation
policy.
Subject
to the Companies Law, the Company may indemnify any officer after the fact, for a liability or expense, as stated in Articles 31.3.1
to 31.3.6 of the Articles, including with regards to an indemnification for a liability as stated in Article 31.3.1 of the Articles,
without applying the restrictions stated in Article 31.4 of the Articles.
Our
Office Holder's Exemption.
Our Articles provide that, subject to the provisions of the Companies Law, may, at the maximum permissible
in the law, exempt an officer from all or some of their liability, in advance or in retrospect, due to damage of any kind caused to them
or that may be caused to them, directly or indirectly, if it was or is caused following a violation of the duty of care toward the Company,
including for any decision, failure to decide, or any derivative of the above, and due to any other incident, cause, liability, expense,
or damage, if it is permissible to grant an exemption due to them pursuant to the Companies Law at the relevant time for approving the
exemption, except in the event of a violation of the duty of care toward the Company within a distribution.
The
foregoing also applies to a Company officer's exemption in connection with their role as an officer in a subsidiary or position
holder in a subsidiary or in any other company that the Company has a share in, directly or indirectly, or that the Company is otherwise
interested in ("Other Company").
Limitations
on Insurance, Indemnification and Exemption.
According to the Companies Law, and as long as the Companies Law does not allow otherwise,
the Company may not enter into contract to cover the liability of an officer therein, and may not indemnify or exempt any of its officers
from their liability toward the Company due to any of the following:
●
A violation of the fiduciary duty, except for the purpose of indemnification and insurance due to a violation of the fiduciary duty
toward the Company, if the officer has acted in good faith, and had reasonable grounds for assuming the action will not harm the
Company's best interests;
●
A deliberate or reckless violation of the duty of care, unless it has been made out of negligence;
●
An action with the intent of unlawfully making a personal gain;
●
A fine, as civil fine, a monetary sanction, or a monetary settlement in lieu of a criminal proceeding imposed on them;
●
Directly or indirectly insuring a proceeding under Chapter H3 (Imposition of a Monetary Sanction by the Authority), Chapter H4
(Imposition of Administrative Enforcement measures by an Enforcement Committee), or Chapter I1 (Arrangement for a Conditional
Avoidance from Launching Proceedings or Terminate Proceedings) of the Securities Law.
95
Administrative
Enforcement
The Securities Law includes an administrative enforcement procedure that may be used by the Securities Authority, to enhance
the efficacy of enforcement in the securities market in Israel. Pursuant to the Companies Law and the Securities Law, the Israel
Securities Authority is authorized to impose administrative sanctions, including monetary fines, against companies like ours and their
officers and directors for certain violations of the Securities Law or the Companies Law. Furthermore, the Securities
Law requires that the CEO of a company supervise and take all reasonable measures to prevent the company or any of its employees from
breaching the Securities Law. The CEO is presumed to have fulfilled such supervisory duty if the company adopts internal enforcement
procedures designed to prevent such breaches, appoints a representative to supervise the implementation of such procedures and takes
measures to correct the breach and prevent its reoccurrence.
Under
the Securities Law, a company cannot obtain insurance against or indemnify a third-party (including its officers and/or employees) for
any administrative procedure and/or monetary fine (other than for payment of damages to an injured party). The Securities Law permits
insurance and/or indemnification for expenses related to an administrative procedure, such as reasonable legal fees, provided that it
is permitted under the company's articles of association.
We
have adopted and implemented an internal enforcement plan to reduce our exposure to potential breaches of sections in the Companies Law
and the Securities Law, applicable to us. Our Articles and letters of indemnification permit, among others, insurance and/or
indemnification as contemplated under the Securities Law (see "
Insurance, Indemnification and Exemption"
above).
C.
BOARD PRACTICES
We
are incorporated in Israel, and, therefore, are generally subject to various corporate governance practices under Israeli law such as
with respect to external directors, independent directors, audit committee, compensation committee, an internal auditor and approvals
of interested party transactions. These matters are in addition to the requirements of The Nasdaq Capital Market and other relevant provisions
of U.S. securities laws applicable to us. Under the Nasdaq Listing Rules, a foreign private issuer may generally follow its home country
practices for corporate governance in lieu of the comparable Nasdaq Capital Market requirements, except for certain matters such as composition
and responsibilities of the audit committee and the SEC-mandated standards for the independence of its members. We currently comply with
all the above-mentioned requirements. See "
Item 3. Key Information – D. Risk Factor– Risks related to operations
in Israel – Being a foreign private issuer exempts us from certain SEC requirements and Nasdaq rules, which may result in less
protection that is afforded to investors under rules applicable to domestic issuers
". For information regarding home country
practices followed by us see "
Item 16 – Corporate Governance
".
Board
of Directors
Our
Articles provide that we may have no less than three nor more than ten directors (including independent and external directors). Currently
our board of directors consists of seven members. Our directors are elected at the annual general meeting for a term of approximately
one year, ending at the annual general meeting immediately following the annual general meeting at which they were elected or upon earlier
termination in circumstanced referred to under the Companies Law or our Articles. Our directors may further be appointed by the board
of director and in this case shall hold office until the end of the immediately following annual general meeting or upon earlier termination
in circumstanced referred to under the Companies Law or our Articles.
None
of our directors is party to a service contract with us that provides for any severance or similar benefits upon termination of his or
her service.
96
Board
of Directors Diversity
The
table below provides certain information regarding the diversity of our board of directors.
Board
    Diversity Matrix as of April 15, 2024
Total
    Number of Directors
7
Female
Male
Non-Binary
Did
    Not Disclose Gender
Part
    I: Gender Identity
Directors
2
3
2
Part
    II: Demographic Background
African
    American or Black
Alaskan
    Native or Native American
Asian
1
Hispanic
    or Latinx
Native
    Hawaiian or Pacific Islander
White
Two
    or More Races or Ethnicities
LGBTQ+
Did
    Not Disclose Demographic Background
6
Directors
Under the Companies Law - General
A
nominee for service as a director in a public company may not be elected without submitting a declaration to the company, prior to his
or her election, specifying that he or she has the requisite qualifications to serve as a director, an external director or an independent
director, as applicable, and the ability to devote the appropriate time to performing his or her duties as such.
A
director, including an external director or an independent director, who ceases to meet the statutory requirements to serve as a director,
external director or independent director, as applicable, must notify the company to that effect immediately and his or her service as
a director will expire upon submission of such notice.
External
Directors and Independent Directors
Under
the Companies Law, Israeli public companies are generally required to have on their board of directors at least two external directors
meeting certain independence criteria, provided under Israeli law. In accordance with the Alleviation Regulations, we, as an Israeli
public company with no controlling shareholder (within the meaning of the Companies Law), whose shares are listed on The Nasdaq Capital
Market, may opt out from the requirement of electing and having external directors on our board of directors and related requirements
concerning the composition of the audit and compensation committees of the board of directors, provided that we do not have a controlling
shareholder, we continue to comply with the U.S. securities laws and Nasdaq Listing Rules applicable to U.S. domestic issuers regarding
the independence of the board of directors and the composition of the audit and compensation committee, or the Opt Out Criteria. On April
15, 2024, our board of directors determined to opt out of the requirement to elect and have external directors and of the rules governing
composition of the audit committee and compensation committee under the Companies Law pursuant to the relief available under the Alleviation
Regulations, since at that time (and since that time) we have complied and continue to comply with the Opt Out Criteria. In accordance
with this decision, we currently have no external directors on our board of directors and we are subject to the U.S. securities laws
and Nasdaq Listing Rules applicable to U.S. domestic issuers regarding the independence of our board of directors and the composition
of our audit and compensation committees.
The
term controlling shareholder, as used in the Companies Law for purposes of all matters related to external directors and for certain
other purposes, means a shareholder that has the ability to direct the activities of the company, other than by virtue of being an office
holder. For purposes of all matters related to external directors, a shareholder is presumed to be a controlling shareholder if the shareholder
holds 50% or more of the voting rights in the company or has the right to appoint the majority of the directors of the company or its
chief executive officer.
Under
the Companies Law, an 'independent director' is either an external director or a director appointed or classified as such
who meets the same non-affiliation criteria as an external director, as determined by the company's audit committee, and who has
not served as a director of the company for more than nine consecutive years. For these purposes, ceasing to serve as a director for
a period of two years or less would not be deemed to sever the consecutive nature of such director's service. However, as our shares
are listed on The Nasdaq Capital Market, pursuant to the Alleviation Regulations, we may also classify directors who qualify as independent
directors under the relevant non-Israeli rules, as 'independent directors' under the Companies Law. In addition, the Alleviation
Regulations provide that 'independent directors' may be elected
for additional terms
that do not exceed three years each, beyond the
9 consecutive years
, provided that, if the
director is being re-elected for an additional term or terms beyond the 9 consecutive years, the audit committee and board of directors
must determine that, in light of the director's expertise and special contribution to the board of directors and its committees,
the re-election for an additional term is to the company's benefit and the director must be re-elected by the required majority
of shareholders and subject to the terms specified in the Companies Law
.
97
In
addition to the requirements of the Companies Law as described above, since our shares are listed on The Nasdaq Capital Market, pursuant
to the Nasdaq Listing Rules, a majority of our directors must be independent (as defined under the Nasdaq Listing Rules). We comply with
such Nasdaq independence requirement, as 6 of our directors, has been determined by our board of directors to meet the Nasdaq independence
requirements. Since, as described above, pursuant to the Alleviation Regulations we may classify directors who qualify as independent
directors under the relevant non-Israeli rules, as 'independent directors' under the Companies Law, each of these 6 directors
is also deemed to qualify as an 'independent director' under the Companies Law (as supplemented by the Alleviation Regulations).
Financial
and Accounting Expertise Under the Companies Law
Pursuant
to the Companies Law
, the board of directors of a publicly traded company is required to make a
determination as to the minimum number of directors who must have financial and accounting expertise
according to criteria set
forth under the Companies Law and regulations promulgated there under
and based, among other things,
on the type of company, its size, the volume and complexity of the company's activities and the number of directors.
Our
board of directors has determined that the minimum number of directors with financial and accounting expertise is one. Currently, all
of our directors qualify as such.
Board
Committees
Audit
Committee
The
Companies Law requires public companies such as ours to appoint an audit committee, the responsibilities of which include, among other
things: (i) identifying flaws in the management of the company's business, among other things, in consultation with the company's
internal auditor or external auditor, and making recommendations to the board of directors as to how to correct them, (ii) reviewing
and considering certain related party transactions and certain actions involving conflicts of interest (as well as deciding whether certain
actions specified in the Companies Law are considered material or non-material and whether certain transactions are considered exceptional
or ordinary),
(iii) establishing procedures to be followed with respect to related party transactions
with a "controlling shareholder" (where such are not extraordinary transactions), which may include, where applicable, the
establishment of a competitive process for such transaction, under the supervision of the audit committee, or individual, or other committee
or body selected by the audit committee, in accordance with criteria determined by the audit committee, (iv) determining procedures for
approving certain related party transactions with a "controlling shareholder", which were determined by the audit committee
not to be extraordinary transactions, but which were also determined by the audit committee not to be negligible transactions,
(v)
reviewing the internal auditor's work program performance, examining the company's internal control structure and processes
and determining whether the internal auditor has the requisite tools and resources required to
perform his or her role,
(vi) examining the external auditor's scope of work as well as the external auditor's fees
and providing its recommendations to the appropriate corporate organ, (vii)
overseeing the accounting
and financial reporting processes of the Company, and
(viii) providing arrangements regarding employee complaints with respect
to flaws in the management of the Company's business and the protection to be provided to such employees
.
Under
the Nasdaq Listing Rules, we are required to maintain an audit committee that operates under a formal written charter and has certain
responsibilities and authority, including being directly responsible for the appointment, compensation, retention and oversight of the
work of our external auditor. However, under Israeli law and our Articles, the appointment of external auditor and their compensation
requires the approval of the shareholders, however their compensation can also be approved by our board of directors. In addition, as
described above, pursuant to the Companies Law, the audit committee is required to examine the external auditor's scope of work
as well as the external auditor's fees and to provide its recommendations with respect thereto to the appropriate corporate organ.
Accordingly, the appointment of our external auditor is approved by our shareholders at the audit committee's recommendation and
its compensation for audit and non-audit services is approved by the board of directors following the audit committee's recommendation.
We
have adopted a charter for the audit committee, which sets forth the purpose and responsibilities of such committee.
In
carrying out its duties, the audit committee meets with management at least once in each fiscal quarter at which time, among other
things, it reviews, and either approves or disapproves, the financial results of the Company for the immediately preceding fiscal
quarter and conveys its conclusions in this regard to the board of directors. The audit committee also generally monitors the
services provided by the Company's external auditor to ensure their independence and reviews all audit and non-audit services
provided by them. The Company's external and internal auditors also report regularly to the audit committee and the audit
committee discusses with our external auditor the quality, not just the acceptability, of the accounting principles, the
reasonableness of significant judgments and the clarity of disclosures in our audited consolidated financial statements, as and when
it deems it appropriate to do so.
98
Under
the Nasdaq Listing Rules, the audit committee is required to consist of at least three independent directors, each of whom is financially
literate and at least one of whom has accounting or related financial management expertise.
We
have an audit committee consisting of three directors, Mrs. Naama Zeldis, who serves as the chairperson of our audit committee, Mr. Dan
Weintraub and Mrs. Christine Y. Zhao, all of whom are financially literate under the applicable rules and regulations of the SEC and
Nasdaq Listing Rules and each of whom is an audit committee financial expert, as defined by the SEC rules, and has the requisite financial
experience required under the Nasdaq Listing Rules. Additionally, each of the members of the audit committee is "independent"
as such term is defined in Rule 10A-3(b)(1) under the Exchange Act, which is different from the general test for independence of board
and committee members under the Nasdaq Listing Rules.
The
audit committee composition requirements referred to under Section 115 of the Companies Law are not applicable to the Company as our
board of directors, as part of its decision to opt out of the requirement to elect external directors pursuant to the relief available
under the Alleviation Regulations, also opted out of such composition requirements on the basis that the Company complies, and will continue
to comply, with the U.S. Securities Law and Nasdaq Listing Rules concerning the composition of the audit committee, as described above.
Compensation
Committee
The
Companies Law generally provides that public companies such as the Company must appoint a compensation committee, the responsibilities
of which include, among others: (i) reviewing and making recommendations to the board of directors with respect to our Compensation Policy
and with respect to any updates which may be required thereto from time to time, (ii)
reviewing
the implementation of the Compensation Policy by the Company
, (iii) reviewing and considering arrangements with respect to the
Terms of Office and Employment of office holders, (iv)
exempting, under certain circumstances,
a transaction relating to the
Terms of Office and Employment of office holders
from the
requirement of approval of the shareholders,
and (v) overseeing, subject to applicable law, the administration of the Company's
various compensation plans and arrangements, including, incentive compensation and equity based plans. Under the Companies Law, the compensation
committee may need to seek the approval of the board of directors and the shareholders for certain compensation-related decisions, (see
"
Item 6 - Directors, Senior Management and Employees - B. Compensation - Approvals Required for Office Holders Terms of Employment
").
We
have adopted a charter for the compensation committee, which sets forth the purpose and responsibilities of such committee.
Under
the Nasdaq Listing Rules, we are required to maintain a compensation committee consisting of at least two independent directors (as defined
under the Nasdaq Listing Rules). Each compensation committee member must also be deemed by our board of directors to meet the enhanced
independence requirements for members of the compensation committee under the Nasdaq Listing Rules, which requires, among other things,
that our board of directors considers the source of each such committee member's compensation in considering whether he or she
is independent.
The
compensation committee composition requirements referred to under Section 118A of the Companies Law are not applicable to the Company
as our board of directors, as part of its decision to opt out of the requirement to elect external directors pursuant to the relief available
under the Alleviation Regulations, also opted out of such composition requirements on the basis that the Company complies, and will continue
to comply, with the Nasdaq majority board independence requirement and with U.S. Securities Law and Nasdaq Listing Rules concerning the
composition of the compensation committee, as described above.
We
have a compensation committee consisting of three directors, Mr. Dan Weintraub who serves as the chairperson of our compensation committee,
Ms. Christine Y. Zhao and Mrs. Naama Zeldis. Each member of our compensation committee is an 'independent director' in accordance
with the Nasdaq listing standards.
Nomination
and Corporate Governance Committee
The
Nasdaq Listing Rules require that director nominees be selected or recommended for the board's selection either by a nomination
committee composed solely of independent directors, or by a majority of independent directors, in a vote in which only independent directors
participate, subject to certain exceptions. Mr. Fang Zheng, who serves as the chairman of our nomination and corporate governance committee,
Mr. Avi Cohen and Mr. Doron Meir Vadai, each an independent director, are the members of our nomination and corporate governance committee,
which, among other responsibilities, recommends director nominees for our board's approval.
99
Internal
Auditor
Under
the Companies Law, the board of directors must appoint an internal auditor, recommended by the audit committee. The role of the internal
auditor is to examine, among other matters, whether the company's actions comply with the law and orderly business procedures.
Under the Companies Law, an interested party or an office holder of a company, or a relative of an interested party or of an office holder
of a company, as well as the company's external auditor or any one on behalf of the external auditor may not serve as a company's
internal auditor. The internal auditor's tenure cannot be terminated without his or her consent, nor can he or she be suspended
from such position unless the board of directors has so resolved after hearing the opinion of the audit committee and after providing
the internal auditor with the opportunity to present his or her position to the board of directors and to the audit committee. An interested
party is defined in the Companies Law as a holder of 5% or more of the company's outstanding shares or voting rights, any person
or entity who has the right to designate one or more directors or the chief executive officer of the company or any person who serves
as a director or as a chief executive officer of the company.
Ms.
Dana Gottesman of Ziv Haft Certified Public Accountants, a member of BDO International Limited, has served as our internal auditor since
2021. Ms. Dana Gottesman is not an employee, affiliate or office holder of the Company, or affiliated with the Company's external
auditor.
Fiduciary
Duties and Approval of Related Party Transactions Under Israeli Law
Fiduciary
Duties of Office Holders
The
Companies Law codifies the fiduciary duties that office holders owe to a company. All persons listed in the table under "
Item
6. Directors, Senior Management and Employees - A. Directors and Senior Management
" are office holders. In addition to those
persons listed in the table under Item 6.A, there were five additional individuals who were office holders of the Company as of December
31, 2023.
An
office holder's fiduciary duties consist of a duty of care and a duty of loyalty. The duty of care requires an office holder to
act with the standard of skills with which a reasonable office holder in the same position would have acted under the same circumstances.
The duty of care includes a duty to use reasonable means to obtain:
●
information
                                            regarding the business advisability of a given action brought for the office holder's
                                            approval or performed by the office holder by virtue of his or her position; and
●
all
                                            other information of importance pertaining to the aforesaid actions.
The
duty of loyalty requires an office holder to act in good faith and for the benefit of the company and includes the duty to:
●
refrain
                                            from any act involving a conflict of interest between the fulfillment of his or her position
                                            in the company and the fulfillment of any other position or his or her personal affairs;
●
refrain from any act that is competitive with the business of the company;
●
refrain
                                            from exploiting any business opportunity of the company with the aim of obtaining a personal
                                            gain for himself or herself or for others; and
●
disclose
                                            to the company all relevant information and provide it with all documents relating to the
                                            company's affairs which the office holder obtained due to his or her position in the
                                            company.
Disclosure
of Personal Interests of Office Holders and Approval of Certain Transactions
The
Companies Law requires office holder
s to
promptly discloses to the company any
personal interest that the
y
may have,
and
all related material information known to him or her, in connection with any existing or proposed transaction by the company. In
addition, if the transaction is an extraordinary transaction, as defined under Israeli law, the office holder must also disclose any
personal interest held by the office holder's spouse, siblings, parents, grandparents, descendants, spouse's descendants
and the spouses of any of the foregoing, or a Relative. In addition, the office holder must also disclose any interest held by any
corporation in which the office holder: (i) holds at least 5% of the company's outstanding share capital or voting rights;
(ii) is a director or general manager; or (iii) has the right to appoint at least one director or the general manager. An
extraordinary transaction is defined as a transaction which is either not in the ordinary course of business, not on market terms,
or likely to have a material impact on the company's profitability, assets or liabilities
.
100
Under
the Companies Law, unless the articles of association of a company provide otherwise, a transaction in which an office holder has a personal
interest and which is not an extraordinary transaction, requires board approval, after the office holder complies with the above disclosure
requirement and provided the transaction is not adverse to the company's interest. Our Articles do not provide for a different
method of approval. Furthermore, if the transaction is an extraordinary transaction, then, in addition to any approval stipulated by
the articles of association, it also must be approved by the company's audit committee and then by the board of directors, and,
under certain circumstances, by the shareholders of the company.
A
person with a personal interest in any matter may not generally be present at any audit committee, compensation committee or board of
directors meeting where such matter is being considered, and if he or she is a member of the committee or a director, he or she may not
generally vote on such matter at the applicable meeting.
Disclosure
of Personal Interest of Controlling Shareholders and Approval of certain Transactions
The
Companies Law extends the disclosure requirements applicable to an office holder to a 'controlling shareholder' in a public
company. For this purpose, a 'controlling shareholder' is a shareholder who has the ability to direct the activities of a
company, including a shareholder or a group of shareholders who together own 25% or more of the voting rights if no other shareholder
holds more than 50% of the voting rights.
Extraordinary
transactions of a public company with a controlling shareholder or in which a controlling shareholder has a personal interest, as well
as any engagement by a public company of a controlling shareholder or of such controlling shareholder's Relative, directly or indirectly,
with respect to the provision of services to the company, and, if such person is also an office holder of such company, with respect
to such person's Terms of Office and Employment as an office holder, and if such person is an employee of the company but not an
office holder, with respect to such person's employment by the company, generally require the approval of each of the audit committee
(or with respect to Terms of Office and Employment, the compensation committee), the board of directors and the shareholders of the company,
in that order. The shareholder approval must fulfill one of the following requirements: (i) it received the positive vote of at least
a majority of the voting rights in the company who are present and voting in the meeting and held by shareholders who do not have a personal
interest in the transaction; (abstentions are disregarded) or (ii) the voting rights held by shareholders who have no personal interest
in the transaction and who have voted against the transaction, do not exceed two percent of the voting rights in the company.
Any
extraordinary transactions with a controlling shareholder or in which a controlling shareholder has a personal interest with a term of
more than three years generally need to be brought for re-approval in accordance with the above procedure every three years, unless the
audit committee determines that the duration of the transaction is reasonable given the circumstances related thereto and has been approved
by the shareholders for such longer duration.
Pursuant
to regulations promulgated under the Companies Law, certain transactions with a controlling shareholder or his or her Relative, or with
directors, that would otherwise require approval of a company's shareholders may be exempt from shareholder approval upon certain
determinations of the audit committee or the compensation committee and board of directors.
For
information concerning the direct and indirect personal interests of certain of our office holders and principal shareholders in certain
transactions with us, see "
Item 7. Major Shareholders and Related Party Transactions - B. Related Party Transactions.
"
Shareholders
Duties
Pursuant
to the Companies Law, a shareholder has a duty to: (i) act in good faith in fulfilling his obligations towards the company and the other
shareholders; and (ii) refrain from abusing his or her power with respect to the company, including, when voting at a general meeting
with respect to the following matters: (a) an amendment to the company's articles of association; (b) an increase of the company's
authorized share capital; (c) a merger; or (d) approval of interested party transactions that require shareholders' approval.
In
addition, any controlling shareholder, any shareholder who knows that it possesses power to determine the outcome of a shareholder vote
and any shareholder who, pursuant to the provisions of a company's articles of association has the power to appoint or prevent
the appointment of an office holder in the company, is under a duty of fairness towards the company. The Companies Law does not describe
the substance of such duty of fairness but states that the remedies generally available upon a breach of contract will also apply in
the event of a breach of the duty of fairness, taking into account such shareholder's position.
101
Approval
of Significant Private Placement
Under
the Companies Law, a significant private placement of securities requires approval by the board of directors and the shareholders by
a simple majority. A private placement is considered a significant private placement if it results in a person becoming a controlling
shareholder, or if all of the following conditions are met: the securities issued amount to 20% or more of the company's outstanding
voting rights before the issuance; some or all of the consideration is other than cash or listed securities or the transaction is not
on market terms; and the transaction will increase the relative holdings of a shareholder who holds 5% or more of the company's
outstanding share capital or voting rights or will cause any person to become, as a result of the issuance, a holder of more than 5%
of the company's outstanding share capital or voting rights. Pursuant to the
10
th Amendment to the Alleviation Regulations,
which became effective in March 2024, we are permitted to adhere to the pertinent U.S. securities laws and Nasdaq Regulations that apply
to U.S. domestic issuers in relation to such private offerings, insofar as they encompass rules and guidelines pertaining to private
offerings.
D.
EMPLOYEES
The
following table sets out the number of our full-time employees engaged in specified activities, at the end of the fiscal years 2023,
2022 and 2021:
December 31, 2023
December 31, 2022
December 31, 2021
Operation
18
17
6
Research & Development
20
17
12
Sales and Marketing
7
8
4
General and Administration
5
5
3
Total
50
47
25
ZOOZ
is headquartered in Lod, Israel. As of December 31, 2023, 49 of our employees are located in Israel and one on the U.K.
We
consider our relations with our employees to be satisfactory and we have not experienced a significant labor dispute or strike. We are
not a party to any collective bargaining agreement with respect to our Israeli employees. However, we may be subject to certain labor
related statutes and to certain provisions of expansion orders the Israeli Minister of the Economy has given to collective bargaining
agreements between the Histadrut (General Federation of Labor in Israel) and the Coordinating Bureau of Economic Organizations and/or
the Industrialists' Association, which may be applicable to the employment of our Israeli employees. These statutes and provisions
and additional mandatory Israeli labor law provisions cover a wide range of subjects and provide certain minimum employment standards,
including the length of the workday and work week, minimum wages, travel expenses, contributions to a pension fund, insurance for work-related
accidents, determination of severance pay, annual and other vacations, sick pay and other conditions of employment. We generally provide
our employees with benefits and working conditions beyond the required minimum.
Our
severance pay liability to our Israeli employees, based upon the number of years of service and the latest monthly salary, is in the
large part covered by regular deposits with recognized pension funds, deposits with severance pay funds and purchases of insurance policies.
Pursuant to Section 14 of the Israeli Severance Pay Law 5723-1963, certain of our liabilities for employee severance rights upon termination
are covered by regular contributions to defined contribution plans, so that upon termination of employment of the relevant employees,
we are only required to release the payments made by us to such funds on account of severance and by doing so are deemed to have complied
with all of our severance payment obligations relating to the service of applicable employees with respect to the period during which
the provisions of such section apply. For information concerning our liability for severance pay, see Note 2 to our audited consolidated
financial statements for the year ended December 31, 2023.
Our
employees are not represented by a labor union. We have written employment contracts (including signed offers of employment) with each
of our employees.
102
E.
SHARE OWNERSHIP
Share
Ownership by Directors and Other Executive Officers
All
of the persons listed above under the caption "Directors and Senior Management" own ordinary shares of the Company and/or
options to purchase ordinary shares of the Company
(1)
. Except as set forth in the table below, none of the directors or executive
officers beneficially owns ordinary shares and/or ordinary shares underlying options amounting to 1% or more of the outstanding ordinary
shares. The following table sets forth certain information as of April 15, 2024, regarding the beneficial ownership by our directors
and senior management. All numbers quoted in the table are inclusive of options to purchase shares that are exercisable within 60 days
after April 15, 2024. The shares that may be issued under these options are deemed to be outstanding for the purpose of computing the
percentage of ownership of such individual or group but are not deemed to be outstanding for the purpose of computing the percentage
of ownership of the other individual or group shown in the table.
The information in this table
is based on 12,066,115 ordinary shares outstanding as of April 15, 2024
(2)
.
Name
Number of Ordinary Shares Beneficially Owned
(3)
Percentage of Outstanding Ordinary Shares Beneficially Owned
Avi Cohen
88,802
(4)
0.73
%
Doron Meir Vadai
8,136
0.07
%
Dan Weintraub
-
-
Christine Y. Zhao
-
-
Sanqiang (Larry) Wang
-
-
Fang Zheng
2,614,800
(5)
21.24
%
Naama Zeldis
-
-
Boaz Weizer
73,794
0.61
%
Ruth Smadja
9,751
0.08
%
Ilan Ben David
289,189
(6)
2.37
%
Tal Harmon
11,701
0.10
%
Udi Tzuri
11,701
0.10
%
Eyal Blum
7,800
0.06
%
All directors and executive officers as a group (13 persons)
(7)
3,115,674
25.36
%
(1)
Each option is exercisable into 1.18 ordinary share (after applying certain
adjustments to the number of shares underlying outstanding options following the issuance of the Earnout Rights, in accordance with the
respective terms of the options) (i.e., were granted but not canceled, expired nor exercised) after and expires 10 years from the date
of its grant. Of the number of share options listed options to purchase 273,003 ordinary shares are vested or shall become vested within
60 days of April 15, 2024 for directors and senior management as a group.
(2)
Includes
                                                                                                                                                                                                                                                 12,066,115 ordinary shares of the Company; does not include 4,000,000 ZOOZ Earn Out Shares.
(3)
Consists
                                            of 2,574,308 ordinary shares and options to purchase 541,366 ordinary shares which are vested
                                            or shall become vested within 60 days of April 15, 2024.
(4)
ZOOZ
ordinary shares and ZOOZ options. Calculation includes options to purchase 58,911 ZOOZ ordinary shares, exercisable within 60 days of
April 15, 2024.
(5)
Based
                                            on the Schedule 13D filed by Fang Zheng on April 11, 2024, which presented ownership as of
                                            April 4, 2024, of the 1,901,521 Ordinary Shares reported as beneficially owned by Fang Zheng
                                            (i) 150,000 Ordinary Shares, of the Company held by Fang Zheng, (ii) 2,219,550 Ordinary Shares
                                            held by the Sponsor, and (iii) 245,250 Ordinary Shares issuable upon the exercise of the
                                            Private Warrants held by the Sponsor. The Warrants are exercisable beginning 30 days after
                                            completion of the Business Combination, or May 4, 2024, until five years after such date,
                                            or May 4, 2029, and each Warrant is exercisable for one Ordinary Share at an exercise price
                                            of $11.50 per share. Fang Zheng is the majority shareholder of the Sponsor and therefore
                                            could be deemed to be the beneficial owner of all of the securities of the Issuer held of
                                            record by the Sponsor. Fang Zheng disclaims any beneficial ownership of the reported shares
                                            held by the Sponsor other than to the extent of any pecuniary interest he may have therein,
                                            directly or indirectly. Fang Zheng's principal business address is c/o, Keywise Capital
                                            Management (HK) Limited, Room 3008-10, 30/F, Cosco Tower, 183 Queen's Road Central,
                                            Hong Kong.
(6)
ZOOZ
ordinary shares and ZOOZ options. Calculation includes options to purchase 114,322 ZOOZ ordinary shares, exercisable within 60 days of
April 15, 2024.
(7)
Includes (i) a total of 2,574,308 ZOOZ ordinary shares held by directors
and executive officers, and (ii) options to purchase a total of 541,366 ordinary shares that are beneficially owned by directors and executive
officers that are exercisable within 60 days of April 15, 2024, with a weighted average exercise price of $10.2 per share and which expire
between December 2027 and April 2033.
Share
Incentive Plan
We
currently maintain one active share incentive plan, which is our 2015 Incentive Compensation Plan, or the 2015 Plan. In addition to the
discussion below, see Note 12 to our audited consolidated financial statements for the year ended December 31, 2023.
ZOOZ
Power 2015 Incentive Compensation Plan
In
August 2015, the Board of Directors approved the Company's option plan for employees and officers, which was submitted in June
2016 to the Israel income tax authorities as a plan administered by a trustee and treated for tax purposes as a capital gain pursuant
to Section 102(b)(2). Options to non-employees and non-officers of the Company, in addition to controlling shareholders of the Company,
are to be allocated under Section 3(i) of the Income Tax Ordinance. The 2015 Plan was further amended on February 11, 2021 and on March
21, 2024.
According
to the 2015 Plan, the Company's Board of Directors is permitted to grant employees, officers, directors, consultants and other
senior service providers of the Company (as this term is defined by Section 102(a) to the Income Tax Ordinance unlisted options and warrants
that are exercisable into shares of the Company. The 2015 Plan is managed by the Company's Board of Directors, or by a committee
authorized by the Board. All shares that will arise from exercising the unlisted options grants to employees, consultants and officers
under the 2015 Plan would be fully paid up on their date of allocation and, beginning on the date the Company becomes public, would be
registered in the name of the Company.
103
On
March 21, 2024, the extraordinary general meeting of the Company's shareholders approved the amendment of the 2015 Plan, and the
adoption of a U.S sub-plan, that is intended to address U.S. tax provisions, and allow for the utilization of certain U.S. tax benefits
for U.S. grantees. Following the said amendment, the 2015 Plan allows for the grant of restricted share units, and performance based
awards; it was also adjusted to reflect the Company's dual listing.
The
Board administers the 2015 Plan and has the authority to designate the terms of the options granted thereunder, including the identity
of the grantees, exercise prices, grant dates, vesting schedules and expiration dates, which may be no more than ten years after the
grant date. The administration of the 2015 Plan by our Board is subject to applicable law, including with respect to the approval procedure
of compensation to office holders required under the Companies Law (for additional information on the approval procedure of compensation
to office holders, see "
Item 6. Directors, Senior Management and Employees
– B. Approvals Required for Office Holders
Terms of Employment
").
If
a grantee leaves his or her employment or other relationship with us, or if his or her relationship with us is terminated without cause
(and other than by reason of death or disability, as defined in the 2015 Plan), the term of his or her unexercised options will generally
expire in 90 days, unless determined otherwise by our board of directors.
As
of December 31, 2023, options to purchase 987,626 ordinary shares at a weighted average exercise price of approximately $8.63 per
share were outstanding (after applying certain adjustments to the number of shares underlying outstanding options following the
issuance of the Earnout Rights, in accordance with the respective terms of the options) (i.e., were granted but not canceled,
expired nor exercised) under the 2015 Plan and options to purchase 79,049 ordinary shares remained available for future grant under
the 2015 Plan (after applying certain adjustments to the number of shares underlying outstanding options following the issuance
of the Earnout Rights, in accordance with the respective terms of the options). No options to purchase ordinary shares under the 2015 Plan have ever been exercised through December
31, 2023.
Taxation
of Equity Granted under our 2015 Plan
Our
board of directors elected the "Capital Gains Track" (as defined in Section 102(b) (2) of the Tax Ordinance) for the grant
of equity under the 2015 Plan to Israeli grantees who are eligible for grant under said Section 102 of the Tax Ordinance.
Pursuant
to such election, and provided such eligible grantees comply with all the requirements of the "Capital Gains Track", gains
derived by them, arising from the sale of shares acquired pursuant to the 2015 Plan or the exercise of options granted to them, will
generally be subject to a flat capital gains tax rate of 25%, although these gains, or part of them, will also be considered part of
a grantee's regular salary and subject to such grantee's regular tax rate applicable to such salary. As a result of the Company's
election in the "Capital Gains Track" under Section 102, the Company is not allowed to claim as an expense for tax purposes
in Israel the amounts credited to the grantee as capital gains, although it is generally entitled to do so in respect of the salary income
component (if any) of such grant, if any, when the related tax is paid by the grantee as long as the grantee complies with all the requirements
of the "Capital Gains Track"
F.
DISCLOSURE OF A REGISTRANT'S ACTION TO RECOVER ERRONEOUSLY AWARDED COMPENSATION.
On
April 28, 2024, we adopted a Policy for Recovery of Erroneously Awarded Compensation, or the Clawback Policy, providing for recovery
of certain incentive-based compensation from current and former executive officers of the Company in the event we are required to restate
any of our financial statements filed with the SEC under the Exchange Act in order to correct an error that is material to the previously-issued
financial statements, or that would result in a material misstatement if the error were corrected in the current period or left uncorrected
in the current period. Adoption of the Clawback Policy was mandated by Nasdaq listing standards introduced pursuant to Exchange Act Rule
10D-1. The Clawback Policy is in addition to Section 304 of the Sarbanes-Oxley Act of 2002 which permits the SEC to order disgorgement
of bonuses and incentive-based compensation earned by a registrant issuer's chief executive officer and chief financial officer
in the year following the filing of any financial statement that the issuer is required to restate because of misconduct, and the reimbursement
of those funds to the issuer. A copy of the Clawback Policy has been filed herewith as Exhibit 97.1.
104
ITEM
7 MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS
A.
MAJOR SHAREHOLDERS
The
following table sets forth share ownership information as of April 15, 2024 (unless otherwise noted below) with respect to each person
who is known by us to be the beneficial owner of more than 5% of our outstanding ordinary shares. The information contained in the table
below has been obtained from the Company's records or from information furnished by an individual or entity to the Company or disclosed
in public filings with the SEC. Except where otherwise indicated, and except pursuant to community property laws, we believe, based on
information furnished by such owners, that the beneficial owners of the ordinary shares listed below have sole investment and voting
power with respect to such shares.
Total
"Number of Ordinary Shares Beneficially Owned" in the table below include shares that may be acquired by any of the below
entities upon the exercise of options or warrants known to us, that are either currently exercisable or will become exercisable within
60 days of April 15, 2024.
The
shareholders listed below do not have any different voting rights from any of our other shareholders. The percentage of beneficial ownership
is based upon
12,066,115
ordinary shares outstanding as of April 15, 2024.
(1)
Beneficial Owner
Amount Owned
Percent of Class
Y.D More Investments Ltd.
(2)
1,518,955
11.9
%
The Phoenix Provident Funds
(3)
1,266,600
10.0
%
Elah Fund
(4)
674,332
5.6
%
Afcon Electric Transportation LTD.
(5)
751,470
6.0
%
Keyarch Global sponsor Limited
(6)
2,614,800
21.2
%
(1)
Includes
                                                                                                                                                                                                                                                 12,066,115 ordinary shares of the Company; does not include 4,000,000 ZOOZ Earn Out Shares.
(2)
The information presented in pursuant to a Schedule 13G filed with the
SEC on April 10, 2024. The
                                            securities reported herein are held by More Provident Funds and Pension Ltd. or by More Mutual
                                            Funds Management (2013) Ltd. for the benefit of beneficiaries of various provident and pension
                                            funds or mutual funds, respectively, or by More Investment House Portfolio Management Ltd.
                                            for the benefit of various portfolio management clients. More Provident Funds and Pension
                                            Ltd., More Mutual Funds Management (2013) Ltd. and More Investment House Portfolio Management
                                            Ltd. are each controlled by Y.D More Investments Ltd., which is controlled by (i) Yosef Meirov,
                                            directly and through B.Y.M. Mor Investments Ltd., a company which he controls with Michael
                                            Meirov and Dotan Meirov, (ii) Eli Levy through Elldot Ltd., a wholly owned company, (iii)
                                            Yosef Levy and (iv) Benjamin Meirov.
(3)
To the Company's knowledge, as of immediately after the Closing of
the Business Combination. Includes 92,291 Series 3 Warrants exercisable within 60 days of April 15, 2024.
(4)
To the Company's knowledge, as of immediately after the Closing of
the Business Combination. Includes 70,725 Series 3 Warrants exercisable within 60 days of April 15, 2024.
(5)
To the Company's knowledge, as of immediately after the Closing of
the Business Combination. Includes 377,821 Series 3 Warrants exercisable within 60 days of April 15, 2024.
(6)
The information presented in pursuant to a Schedule 13D filed with the
SEC on April 11, 2024. Includes (i) 150,000 Ordinary Shares, of the Company held by
Fang Zheng, (ii) 2,219,550 Ordinary Shares held by the Sponsor, and (iii) 245,250 Ordinary Shares issuable upon the exercise of the Private
Warrants held by the Sponsor. The Warrants are exercisable beginning 30 days after completion of the Business Combination, or May 4,
2024, until five years after such date, or May 4, 2029, and each Warrant is exercisable for one Ordinary Share at an exercise price of
$11.50 per share. Fang Zheng is the majority shareholder of the Sponsor and therefore could be deemed to be the beneficial owner of all
of the securities of the Issuer held of record by the Sponsor. Fang Zheng disclaims any beneficial ownership of the reported shares held
by the Sponsor other than to the extent of any pecuniary interest he may have therein, directly or indirectly. Does not include
1,120,000
SPAC Earn Out Shares
.
B.
RELATED PARTY TRANSACTIONS
Other
than as set forth below and transactions related to compensation of our executive officers and directors as described under "
Item
6. Directors, Senior Management and Employees - B. Compensation,
" since January 1, 2023, we have entered into the following
material related party transactions:
105
Registration
Rights Agreement Amendment
ZOOZ
and certain equity holders of ZOOZ and certain equity holders of Keyarch are expected to enter into the Registration Rights Agreement
and the Keyarch Registration Rights Agreement Amendment, providing such shareholders with customary demand registration rights and piggyback
registration rights with respect to registration statements filed by ZOOZ after the Closing. Under the ZOOZ Lock-Up Agreement, the securityholders
of ZOOZ party thereto (other than the Sponsor) have agreed not to transfer their ZOOZ ordinary shares, except to certain permitted transferees,
beginning on the closing date of the Business Combination and continuing until the earlier of (x) the date that is 180 days after the
date of the Closing, or (y) the date after the Closing on which ZOOZ consummates a liquidation, merger, share exchange, reorganization
or other similar transaction that results in all of ZOOZ's shareholders having the right to exchange their ZOOZ ordinary shares
for cash, securities or other property ZOOZ.
Loans
Granted to Members of the Board of Directors or Executive Management
As
of the date of this Annual Report, we have no outstanding loan or guarantee commitments to members of the board of directors or management.
Indemnification
and Exemption Agreements
Our
Articles permit us to exculpate, indemnify and insure our office holders to the fullest extent permitted by the Companies Law. Accordingly,
we release our office holders from liability and indemnify them to the fullest extent permitted by law and provide them with letters
of indemnification and exemption and release for this purpose, in the form most recently approved at our 2021 AGM. Under the letters
of indemnification and exemption and release (i) our undertaking to indemnify each office holder for monetary liabilities or obligations
imposed by a court judgment (including a settlement or an arbitrator's award approved by a court) is limited to matters that result
from or are connected to those events or circumstances set forth therein, and (ii) the indemnification that we undertake towards all
persons whom it resolved to indemnify for the matters and circumstances described therein, jointly and in the aggregate, do not exceed
the amount equal to 25% of the Company's shareholders' equity, per the most recent financial statements (audited or reviewed)
after the time that notice is provided to the Company.
Our
office holders are also covered by directors' and officers' liability insurance. For more information see "
Item
6. Directors, Senior Management and Employees – B. Compensation - Insurance, Indemnification and Exemption
."
Collaboration
Agreement with Dor-Alon
In
January 2023, a first site in Israel, which is supported by the ZOOZTER™-100, has commenced commercial operation. This site was
established as a pilot site, in collaboration with Afcon e-mobility and Dor-Alon gas stations (the operators of the largest charging
network in Israel), and with the support of the IIA.
In
March 2024, ZOOZ announced that based on the successful pilot with Afcon & Dor-Alon (see above), it was agreed with Dor-Alon that
two ZOOZTER™-100 will be installed in Dor-Alon's gas stations along Highway 6 (one of Israel's main transportation
corridors), aiming to enable additional ultra-fast chargers in these sites, despite the grid's limitations. These sites are expected
to be upgraded during the second quarter of 2024. The ability of the ZOOZTER™-100 to support these multi-chargers sites will be
evaluated for a period of several months and upon successful completion of this evaluation, the ZOOZTER™-100 systems will be purchased
by Dor-Alon (at terms agreed to by the parties).
For
cautionary purposes only, ZOOZ has classified this transaction as a related party transaction under Israeli law.
C.
INTERESTS OF EXPERTS AND COUNSEL
Not
applicable.
ITEM 8.
FINANCIAL INFORMATION
A.
CONSOLIDATED STATEMENTS AND OTHER FINANCIAL INFORMATION
Consolidated
Financial Statements
Our
audited consolidated financial statements are included beginning on page F-1 of this Annual Report. See also "
Item 18.
Financial Statements
."
Legal
Proceedings
Currently,
we are not a party to any legal or arbitration proceedings, including governmental proceedings, that are pending or known to be contemplated,
that our management believes, individually or in the aggregate, may have, or have had in the recent past, a significant effect on our
financial position or profitability, nor are we party to any material proceeding in which any director, member of our senior management
or affiliate is a party adverse to us or our subsidiary or has a material interest adverse to us or our subsidiary.
106
Dividend
Distribution Policy
We
have never paid any cash dividends on our ordinary shares, and we do not intend to pay cash dividends on our ordinary shares in the foreseeable
future. Our current policy is to retain any earnings we have (if any) for use in our business.
In
the event that we decide to pay a cash dividend from income that is tax exempt under Benefiting Enterprises program (to the extent applicable),
we would be required to pay the applicable corporate tax that would otherwise have been payable on such income which would be in addition
to the tax payable by the dividend payee. See "
Item 10. Additional Information - E. Taxation
."
B.
SIGNIFICANT CHANGES
Not
applicable.
ITEM 9.
THE OFFER AND LISTING
A.
OFFER AND LISTING DETAILS
Our
ordinary shares and public warrants began trading on The Nasdaq Capital Market on April 5, 2024 under the symbols "ZOOZ"
and "ZOOZW", respectively. Our ordinary shares are traded on the Tel Aviv Stock Exchange since March 2021 and our warrants
(series 3) are traded on the Tel Aviv Stock Exchange since March 2022, under the symbols "ZOOZ" and "ZOOZ.W3",
respectively.
B.
PLAN OF DISTRIBUTION
Not
applicable.
C.
MARKETS
Our
ordinary shares and public warrants began trading on The Nasdaq Capital Market on April 5, 2024. Our ordinary shares are traded on the
Tel Aviv Stock Exchange since March 2021 and our warrants (series 3) are traded on the Tel Aviv Stock Exchange since March 2022.
D.
SELLING SHAREHOLDERS
Not
applicable.
E.
DILUTION
Not
applicable.
F.
EXPENSES OF THE ISSUE
Not
applicable.
ITEM 10.
ADDITIONAL INFORMATION
A.
SHARE CAPITAL
Not
applicable.
B.
MEMORANDUM AND ARTICLES OF ASSOCIATION
Copy
of the ZOOZ Articles as in effect as of the date of this Annual Report is attached as Exhibit 1.1 to this Annual Report. The information
called for by this Item is set forth in Exhibit 2.1 to this Annual Report and is incorporated by reference into this Annual Report.
C.
MATERIAL CONTRACTS
Please
see "
Item 4. Information on the Company - B. Business Overview – Material Agreements – Cooperation Agreement with
the New York Power Authority
", "
Item 4. Information on the Company - B. Business Overview – Material Agreements
- Distribution Agreement with Blink Charging Co.
" and "
Item 4. Information on the Company - B. Business Overview –
Material Agreements - The Business Combination Agreement and Related Agreements
" for a discussion of our material contracts.
D.
EXCHANGE CONTROLS
There
are currently no exchange controls in effect in Israel that restrict the repatriation by non-residents of Israel in non-Israeli currency
of any dividends, if any are declared and paid, and liquidation distributions or the Company's ability to import and export capital,
except that such restrictions may exist with respect to citizens of countries which are in a state of war with Israel.
107
E.
TAXATION
The
following is a brief summary of certain material Israeli and U.S. federal tax consequences concerning the ownership and disposition of
our ordinary shares and public warrants by purchasers or holders of our ordinary shares or public warrants. Because parts of this discussion
are based on new or existing tax or other legislation that has not been subject to judicial or administrative interpretation, there can
be no assurance that the views expressed herein will be accepted by the tax or other authorities in question. The summary below does
not address all of the tax consequences that may be relevant to all purchasers or holders of our ordinary shares or public warrants in
light of each purchaser's or holder's particular circumstances and specific tax treatment. For example, the summary below
does not address the tax treatment of residents of Israel and traders in securities who are subject to specific tax regimes. As individual
circumstances may differ, holders of our ordinary shares or public warrants should consult their own tax advisors as to U.S., Israeli
or other tax consequences of the purchase, ownership and disposition of our ordinary shares and public warrants. This discussion is not
intended, nor should it be construed, as legal or professional tax advice and it is not exhaustive of all possible tax considerations.
Each person should consult his, her or its own tax or legal advisor.
Israeli
tax considerations
General
corporate tax structure in Israel
Israeli
companies are generally subject to corporate tax at the rate of 23% effective from January 1, 2018. However, the effective tax rate payable
by a company that derives income from an Approved Enterprise, a Preferred Enterprise, a Beneficiary Enterprise or a Technological Enterprise
(as discussed below) may be considerably less. Capital gains derived by an Israeli company are generally subject to the corporate tax
rate.
Law
for the Encouragement of Industry (Taxes), 5729-1969
The
Law for the Encouragement of Industry (Taxes), 5729-1969, generally referred to as the Industry Encouragement Law, provides several tax
benefits for "Industrial Companies".
The
Industry Encouragement Law defines an "Industrial Company" as an Israeli resident-company, of which 90% or more of its income
in any tax year, other than income from certain defense loans, is derived from an "Industrial Enterprise" owned by it and
located in Israel or in the "Area", in accordance with the definition under section 3A of the Israeli Income Tax Ordinance
(New Version) 1961, or the Ordinance. An "Industrial Enterprise" is defined as an enterprise whose principal activity in
a given tax year is industrial production.
Following
are the main tax benefits available to Industrial Companies:
●
Amortization of the cost of purchased patent, rights to use a patent, and know-how, which are used for the development or
advancement of the Industrial Enterprise, over an eight-year period, commencing on the year in which such rights were first
exercised;
●
Under limited conditions, an election to file consolidated tax returns with controlled Israeli Industrial Companies; and
●
Expenses related to a public offering are deductible in equal amounts over three years commencing on the year of the
offering.
Eligibility
for benefits under the Industry Encouragement Law is not contingent upon approval of any governmental authority.
Tax
benefits and grants for research and development
Israeli
tax law allows, under certain conditions, a tax deduction for expenditures, including capital expenditures, related to scientific research
and development for the year in which they are incurred. Expenditures are deemed related to scientific research and development projects,
if:
●
The expenditures are approved by the relevant Israeli government ministry, determined by the field of research;
●
The research and development must be for the promotion of the company; and
●
The research and development is carried out by or on behalf of the company seeking such tax deduction.
The
amount of such deductible expenses is reduced by the sum of any funds received through government grants for the finance of such scientific
research and development projects. No deduction under these research and development deduction rules is allowed if such deduction is
related to an expense invested in an asset depreciable under the general depreciation rules of the Israeli Income Tax Ordinance (the
"
Ordinance
"). Expenditures that are unqualified under the conditions above are deductible in equal amounts over three
years.
108
From
time to time, we may apply to the IIA for approval to allow a tax deduction for all or most of research and development expenses during
the year incurred. There can be no assurance that such application will be accepted. If we will not be able to deduct research and development
expenses during the year they were incurred, we will be able to deduct research and development expenses during a period of three years
commencing in the year of the payment of such expenses.
Law
for the Encouragement of Capital Investments, 5719-1959
The
Law for the Encouragement of Capital Investments, 5719-1959, generally referred to as the Investment Law, provides certain eligible companies
with incentives for capital investments in production facilities (or other eligible assets) and certain tax benefits with respect to
certain eligible income.
The
Investment Law was significantly amended effective as of April 1, 2005 (the "
2005 Amendment
"), as of January 1, 2011
(the "
2011 Amendment
") and as of January 1, 2017 (the "
2017 Amendment
"). Pursuant to the 2005 Amendment,
tax benefits granted in accordance with the provisions of the Investment Law prior to its revision by the 2005 Amendment remain in force
but any benefits granted subsequently are subject to the provisions of the amended Investment Law. Similarly, the 2011 Amendment introduced
new benefits to replace those granted in accordance with the provisions of the Investment Law in effect prior to the 2011 Amendment.
However, companies entitled to benefits under the Investment Law as in effect prior to January 1, 2011, were entitled to choose to continue
to enjoy such benefits, provided that certain conditions are met, or instead irrevocably, elect to forego such benefits and apply the
benefits of the 2011 Amendment apply. The 2017 Amendment introduces new benefits for Preferred Technological Enterprises or Special Preferred
Technological Enterprises, alongside the existing tax benefits.
The
following discussion is a summary of the Investment Law following its most recent amendments:
Tax
benefits under the 2011 Amendment
The
2011 Amendment canceled the availability of the benefits granted to Industrial Companies under the Investment Law prior to 2011 and,
instead, introduced new benefits for income generated by a "Preferred Company" through its "Preferred Enterprise"
(as such terms are defined in the Investment Law) as of January 1, 2011. The definition of a Preferred Company includes a company incorporated
in Israel that is not fully owned by a governmental entity, and that has, among other things, Preferred Enterprise status and is controlled
and managed from Israel. Pursuant to the 2011 Amendment, a Preferred Company is entitled to a reduced corporate tax rate of 15% with
respect to its income derived by its Preferred Enterprise in 2011 and 2012, unless the Preferred Enterprise is located in development
zone "A", in which case the rate will be 10%. Under the 2011 Amendment, such corporate tax rate was reduced from 15% and
10%, respectively, to 12.5% and 7%, respectively, in 2013, 16% and 9% respectively, in 2014, 2015 and 2016, and 16% and 7.5%, respectively,
in 2017 and thereafter. Income derived by a Preferred Company from a "Special Preferred Enterprise" (as such term is defined
in the Investment Law) would be entitled, during a benefits period of 10 years, to further reduced tax rates of 8%, or 5% if the Special
Preferred Enterprise is located in development zone "A".
Dividends
distributed from income which is attributed to a "Preferred Enterprise" will be subject to withholding tax at source at the
following rates: (i) Israeli resident corporations–0%, (although, if such dividends are subsequently distributed to individuals
or a non-Israeli company the below rates detailed in sub sections (ii) and (iii) shall apply) (ii) Israeli resident individuals–20%
(iii) non-Israeli residents (individuals and corporations)–20%, or a reduced tax rate under the provisions of any applicable double
tax treaty (subject to the receipt in advance of a valid certificate from the ITA allowing for a reduced tax rate).
The
2011 Amendment also provided transitional provisions to address companies already enjoying existing tax benefits under the Investment
Law. These transitional provisions provide, among other things, that unless an irrevocable request is made to apply the provisions of
the Investment Law as amended in 2011 with respect to income to be derived as of January 1, 2011, a Beneficiary Enterprise can elect
to continue to benefit from the benefits provided to it before the 2011 Amendment came into effect, provided that certain conditions
are met.
As
of March 31, 2024, ZOOZ did not apply the new benefits under the Preferred Enterprise regime.
New
tax benefits under the 2017 Amendment that became effective on January 1, 2017
The
2017 Amendment was enacted as part of the Economic Efficiency Law that was published on December 29, 2016, and is effective as of January
1, 2017. The 2017 Amendment provides new tax benefits for two types of "Technological Enterprises", as described below, and
is in addition to the other existing tax beneficial programs under the Investment Law. The 2017 Amendment will apply to a Preferred Company
which meets the "Preferred Enterprise" condition and certain additional conditions, including, all the following:
●
the company's average R&D expenses in the three years prior to the current tax year must be greater than or equal to the
average of 7% of its total revenue or exceed NIS 75 million per year; and
109
●
the company must also satisfy one of the following conditions: (1) the full salary at least 20% of the company's overall
workforce, or at least 200 employees, was recorded and paid as R&D expenses in the company's financial statements; (2) a
venture capital investment of an amount of at least NIS 8 million was previously made in the company; or (3) a growth in sales by an
average of 25% over the three years preceding the tax year (provided transactions revenue of over NIS 10 million for the said
years); (4) a growth in workforce by an average of 25% over the three years preceding the tax year (provided that the company
employed at least 50 employees in the said years).
A
Preferred Company satisfying certain conditions (including the conditions as stated above) will qualify as a "Preferred Technological
Enterprise" and will thereby enjoy a reduced corporate tax rate of 12% on income that qualifies as "Preferred Technology
Income", as defined in the Investment Law. The tax rate is further reduced to 7.5% for a Preferred Technological Enterprise located
in development zone "A". In addition, a Preferred Technological Enterprise will enjoy a reduced corporate tax rate of 12%
on capital gain derived from the sale of certain "Benefitted Intangible Assets" (as defined in the Investment Law) to a related
foreign company if the Benefitted Intangible Assets were acquired from a foreign company on or after January 1, 2017 for at least NIS
200 million, and the sale receives prior approval from the IIA.
The
2017 Amendment further provides that a Preferred Company satisfying certain conditions (group-consolidated revenues of at least NIS 10
billion) will qualify as a "Special Preferred Technological Enterprise" and will thereby enjoy a reduced corporate tax rate
of 6% on "Preferred Technological Income" regardless of the company's geographic location within Israel. In addition,
a Special Preferred Technological Enterprise will enjoy a reduced corporate tax rate of 6% on capital gain derived from the sale of certain
"Benefitted Intangible Assets" to a related foreign company if the Benefitted Intangible Assets were either developed by
the Special Preferred Enterprise or acquired from a foreign company on or after January 1, 2017, and the sale received prior approval
from the IIA. A Special Preferred Technological Enterprise that acquires Benefitted Intangible Assets from a foreign company for more
than NIS 500 million will be eligible for these benefits for at least ten years, subject to certain approvals as specified in the Investment
Law.
Dividends
distributed by a Preferred Technological Enterprise or a Special Preferred Technological Enterprise, paid out of Preferred Technological
Income, are generally subject to withholding tax at source at the rate of 20% or such lower rate as may be provided in an applicable
tax treaty (subject to the receipt in advance of a valid certificate from the ITA allowing for a reduced tax rate). However, if such
dividends are paid to an Israeli company, no tax is required to be withheld. If such dividends are distributed to a foreign company that
holds solely or together with other foreign companies 90% or more in the Israeli company and other conditions are met, the withholding
tax rate will be 4%. Please note that the reduced withholding tax rate of 4% will apply only on profits generated after the Preferred
Technological Enterprise was acquired by a foreign company.
As
of March 31, 2024, ZOOZ did not apply for a tax ruling from the ITA or implemented benefits under The Preferred Technological Enterprise
regime.
From
time to time, the Israeli Government has discussed reducing the benefits available to companies under the Investment Law. The termination
or substantial reduction of any of the benefits available under the Investment Law could materially increase our tax liabilities.
Taxation
of our shareholders
Capital
gains taxes applicable to non-Israeli resident shareholders
Israeli
capital gains tax is imposed on the disposition of capital assets by a non-Israeli resident if those assets (i) are located in Israel,
(ii) are shares or a right to shares in an Israeli resident corporation or (iii) represent, directly or indirectly, rights to assets
located in Israel. The Israeli tax law distinguishes between "Real Capital Gain" and "Inflationary Surplus."
Inflationary Surplus is a portion of the total capital gain which is equivalent to the increase in the relevant asset's price that
is attributable to the increase in the Israeli Consumer Price Index or, in certain circumstances, a foreign currency exchange rate, between
the date of purchase and the date of disposition. Inflationary Surplus is currently not subject to tax in Israel. Real Capital Gain is
the excess of the total capital gain over the Inflationary Surplus. Generally, Real Capital Gain accrued by individuals on the sale of
ZOOZ ordinary shares will be taxed at the rate of 25%. However, if the shareholder is a "substantial shareholder" at the
time of sale or at any time during the preceding 12- month period (or claims a deduction for interest and linkage differences expenses
in connection with the purchase and holding of such shares), such gain will be taxed at the rate of 30%. A "substantial shareholder"
is generally a person who alone or together with such person's relative or another person who collaborates with such person with
respect to the material matters of the corporation on a permanent basis pursuant to an agreement, holds, directly or indirectly, at least
10% of any of the "means of control" of the corporation. "Means of control" generally include the right to vote,
receive profits, nominate a director or an executive officer, receive assets upon liquidation, or order someone who holds any of the
aforesaid rights how to act, regardless of the source of such right. Real Capital Gain derived by corporations will be generally subject
to a corporate tax rate of 23% (in 2024).
110
A
non-Israeli resident that derives capital gains from the sale of shares of an Israeli resident company that were purchased after the
company was listed for trading on a stock exchange outside of Israel, will be exempt from Israeli tax if the shares were not held through
a permanent establishment that the non-resident maintains in Israel. However, non-Israeli corporations will not be entitled to the foregoing
exemption if Israeli residents: (i) hold, whether directly or indirectly, more than 25% of the means of control, as such term is defined
above, in such non-Israeli corporation or (ii) are the beneficiaries of, or are entitled to, 25% or more of the revenues or profits of
such non-Israeli corporation, whether directly or indirectly. In addition, such exemption is not applicable to a person whose gains from
selling or otherwise disposing of the shares are deemed to be business income.
Additionally,
a sale of securities by a non-Israeli resident may be exempt from Israeli capital gains tax under the provisions of an applicable tax
treaty (subject to the receipt in advance of a valid certificate from the ITA). For example, under Convention Between the Government
of the United States of America and the Government of the State of Israel with respect to Taxes on Income, as amended (the "United
States Israel Tax Treaty"), the sale, exchange or other disposition of shares by a shareholder who is a United States resident
(for purposes of the treaty) holding the shares as a capital asset and is entitled to claim the benefits afforded to such a resident
by the U.S. Israel Tax Treaty (a "U.S. Resident") is generally exempt from Israeli capital gains tax unless either: (i) the
capital gain arising from such sale, exchange or disposition is attributed to real estate located in Israel; (ii) the capital gain arising
from such sale, exchange or disposition is attributed to royalties; (iii) the capital gain arising from such sale, exchange or disposition
is attributed to a permanent establishment in Israel, under certain terms; (iv) such U.S. Resident holds, directly or indirectly, shares
representing 10% or more of the voting capital during any part of the 12 month period preceding the disposition, subject to certain conditions;
or (v) such U.S. Resident is an individual and was present in Israel for 183 days or more during the relevant taxable year. In any such
case, the sale, exchange or disposition of such shares would be subject to Israeli tax, to the extent applicable. However, under the
United States-Israel Tax Treaty, a Treaty U.S. Resident may be permitted to claim a credit for the Israeli tax against the U.S. federal
income tax imposed with respect to the sale, exchange or disposition of the shares, subject to the limitations under U.S. laws applicable
to foreign tax credits. The United States-Israel Tax Treaty does not provide such credit against any U.S. state or local taxes.
In
some instances where our shareholders may be liable for Israeli tax on the sale of their ordinary shares, the payment of the consideration
may be subject to the withholding of Israeli tax at source. Shareholders may be required to demonstrate that they are exempt from tax
on their capital gains in order to avoid withholding at source at the time of sale (i.e., resident certificate or other documentation
).
Capital
gains taxes applicable to Israeli resident shareholders
An
Israeli resident corporation that derives capital gains from the sale of shares in an Israeli resident company that were purchased after
the company was listed for trading on a stock exchange outside of Israel will generally be subject to tax on the real capital gains generated
on such sale at the corporate tax rate of 23%. An Israeli resident individual will generally be subject to capital gain tax at the rate
of 25%. However, if the individual shareholder claims deduction of interest expenditures or is a "substantial shareholder"
at the time of the sale or at any time during the preceding twelve months period, such gain will be taxed at the rate of 30%. Individual
holders dealing in securities in Israel for whom the income from the sale of securities is considered "business income" as
defined in section 2(1) of the Ordinance are taxed at the marginal tax rates applicable to business income (up to 47% in 2024). Certain
Israeli institutions who are exempt from tax under section 9(2) or section 129(C)(a)(1) of the Ordinance (such as exempt trust fund,
pension fund) may be exempt from capital gains tax from the sale of the shares. With respect to corporate investors, capital gain tax
equal to the corporate tax rate (23% starting in 2018) will be imposed on the sale of our traded shares, unless contrary provisions in
a relevant tax treaty applies.
Taxation
of Israeli shareholders on receipt of dividends
An
Israeli resident individual is generally subject to Israeli income tax on the receipt of dividends at the rate of 25%. With respect to
a person who is a "substantial shareholder" at the time of receiving the dividend or on any time during the preceding twelve
months, the applicable tax rate is 30%. Such dividends are generally subject to Israeli withholding tax at a rate of 25% if the shares
are registered with a "nominee company", as such term is used in the Securities Law, whether the recipient is a substantial
shareholder or not, 15% if the dividend is distributed from income attributed to an Approved Enterprise or a Beneficiary Enterprise (if
the first year the company requested to have the tax benefits apply was 2013 or before) and 20% if the dividend is distributed from income
attributed to a Preferred Enterprise or a Preferred Technological Enterprise. If the recipient of the dividend is an Israeli resident
corporation such dividend income will be exempt from tax provided the income from which such dividend is distributed was derived or accrued
within Israel and was received directly or indirectly from another corporation that is liable to Israeli corporate tax. An exempt trust
fund, pension fund or other entity that is exempt from tax under section 9(2) or section 129C(a)(1) of the Ordinance is exempt from tax
on dividend.
111
Taxation
of non-Israeli shareholders on receipt of dividends
Non-Israeli
residents (either individuals or corporations) are generally subject to Israeli income tax on the receipt of dividends at the rate of
25%, which tax will be withheld at source, unless relief is provided in a treaty between Israel and the shareholder's country of
residence. With respect to a person who is a "substantial shareholder" at the time of receiving the dividend or on any time
during the preceding twelve months, the applicable tax rate is 30%. Such dividends are generally subject to Israeli withholding tax at
a rate of 25% if the shares are registered with a nominee company (whether the recipient is a substantial shareholder or not), 15% if
the dividend is distributed from income attributed to an Approved Enterprise or a Beneficiary Enterprise (if the first year the company
requested to have the tax benefits apply was 2013 or before and subject to the receipt in advance of a valid certificate from the ITA
allowing for a reduced 15%, or such lower rate as may be provided under an applicable tax treaty), 20% if the dividend is distributed
from income attributed to a Preferred Enterprise or a Technological Enterprise, and 4% if the dividend is distributed from income attributed
to a Technological Enterprise to a foreign company that holds solely or together with other foreign companies 90% or more in the Israeli
company and other conditions are met, (please note that the reduced withholding tax rate of 4% will apply only on profits generated after
the Preferred Technological Enterprise was acquired by a foreign company), unless a reduced rate is provided under an applicable tax
treaty (subject to the receipt in advance of a valid certificate from the ITA allowing for a reduced tax rate). For example, under the
United States-Israel Tax Treaty, the maximum rate of tax withheld at source in Israel on dividends paid to a holder of our ordinary shares
who is a U.S. Resident is 25%. However, generally, the maximum rate of withholding tax on dividends, not generated by an Approved Enterprise,
a Preferred Enterprise, Beneficiary Enterprise, a Preferred Enterprise or a Preferred Technological Enterprise, that are paid to a United
States corporation holding 10% or more of the outstanding voting capital throughout the tax year in which the dividend is distributed
as well as during the previous tax year, is 12.5%, provided that not more than 25% of the gross income for such preceding year consists
of certain types of dividends and interest. Notwithstanding the foregoing, dividends distributed from income attributed to an Approved
Enterprise, Beneficiary Enterprise, Preferred Enterprise or a Preferred Technological Enterprise are not entitled to such reduced rate
under the tax treaty but are subject to a withholding tax rate of 15% for a shareholder that is a U.S. corporation, provided that the
conditions related to the outstanding voting rights and the gross income for the previous year (as set forth in the previous sentence)
are met. If the dividend is attributable partly to income derived from an Approved Enterprise, Benefited Enterprise, Preferred Enterprise
or a Preferred Technological Enterprise, and partly to other sources of income, the withholding rate will be a blended rate reflecting
the relative portions of the two types of income. We cannot assure you that we will designate the profits that we may distribute in a
way that will reduce shareholders' tax liability. Application for the reduced tax rate requires appropriate documentation presented
and specific instruction received from the ITA to the extent tax is withheld at source at the maximum rates (see above), a qualified
tax treaty recipient will be required to comply with certain administrative procedures with the Israeli Tax Authorities in order to receive
a refund of the excess tax withheld.
A
foreign resident receiving dividend income from an Israeli company, from which the full tax was deducted, will generally be exempt from
filing a tax return in Israel with respect to such income, provided that (i) such income was not generated from business conducted in
Israel by the taxpayer, (ii) the taxpayer has no other taxable sources of income in Israel with respect to which a tax return is required
to be filed, and (iii) the taxpayer is not obligated to pay Surtax (see below) in accordance with section 121B of the Ordinance.
Israeli
Tax Withholding
In
addition to all of the above, any payment made by an Israeli resident company may be subject to Israeli withholding tax, regardless of
whether the recipient should be subject to Israeli tax with respect to the receipt of such payment, unless the recipient provides the
company with a valid certificate issued by the ITA to exempt the recipient from such withholding tax liability.
Surtax
Individuals
who are subject to tax in Israel (whether any such individual is an Israeli resident or non-Israeli resident) are also subject to an
additional tax at a rate of 3% on annual income (including, but not limited to, dividends, interest and capital gain) exceeding NIS 721,560
for 2024, which amount is linked to the annual change in the Israeli consumer price index.
112
Estate
and Gift Tax
Israeli
law presently does not impose estate or gift taxes.
Israeli
Transfer Pricing Regulations
On
November 29, 2006, Income Tax Regulations (Determination of Market Terms) promulgated under Section 85A of the Ordinance, came into effect
("
TP Regulations
"). Section 85A of the Ordinance and the TP Regulations generally require that all cross-border transactions
carried out between related parties be conducted on an arm's length principle basis and will be taxed accordingly.
Certain
Withholding Tax Consequences of the Business Combination
The
Business Combination is a taxable event in Israel. Generally, the Keyarch shareholders, holders of Keyarch rights and holders of Keyarch
warrants that are not residents of Israel should, under certain conditions, be entitled to an exemption from Israeli tax while those
that are Israeli residents may be taxed on any capital gains resulting from the exchange of their Keyarch ordinary shares, the Keyarch
Rights and/or the Keyarch warrants.
ZOOZ,
Merger Sub, their respective affiliates, and any other person making a payment under the Business Combination Agreement (including
the issuance of shares as consideration under the Business Combination Agreement) is required to deduct and withhold tax from the
consideration payable by them under the Business Combination Agreement in accordance with applicable legal requirements. Keyarch
applied for and received a tax ruling from the ITA exempting ZOOZ, Merger Sub and their respective agents from any obligation to
withhold Israeli tax from such consideration payable or otherwise deliverable to certain Keyarch shareholders, holders of Keyarch
rights and holders of Keyarch warrants, and deferring the taxable event to the time of the sale of the shares or warrants by such
holders, as described below. We sometimes refer to such tax ruling as the WHT Ruling. Pursuant to the terms of the WHT Ruling, such
ruling applies to each person who was a Keyarch shareholders, holder of Keyarch rights and holder of Keyarch warrants that meets all
of the following requirements: (1) it acquired all of its equity interests in Keyarch in or following Keyarch's initial public
offering on Nasdaq; (2) it held less than 5% of outstanding Keyarch ordinary shares; (3) it was not a registered shareholder; (4) it
was not a "relative" (as defined under Section 88 of the Ordinance) of a registered shareholder; (5) it was not an
Israeli resident "office holder" as defined under the Securities Law) in Keyarch; and (6) it did not receive any
other tax ruling issued by the ITA in connection with its Keyarch equity interests, or was subject to other tax arrangement, that
may contradict the terms and conditions of the WHT Ruling. Regarding Keyarch shareholders, holders of Keyarch rights and/or holders
of Keyarch warrants (collectively, "
Keyarch Securityholders
") that are not covered under the WHT Ruling: (1) any
Keyarch Securityholders that owned at least 5% of Keyarch outstanding shares or 5% of the rights on a fully diluted basis will be
subject to tax withholding in Israel, unless a residency declaration or an exemption certificate or other ruling from the ITA is
provided by such Keyarch Securityholders and (2) a Keyarch Securityholders that owned less than 5% of or 5% of the rights on a fully
diluted basis Keyarch outstanding shares who is not covered under the WHT Ruling will be subject to tax withholding in Israel,
unless any of the following will be provided to the Exchange Agent within 180 days from the Closing: (a) a valid declaration has
been provided by such that it has never been an Israeli tax resident and that it never maintained a permanent establishment in
Israel, (b) a SPAC Declaration (as such term is defined in the Business Combination Agreement), (c) an exemption certificate, or (d)
WHT Ruling applicable to such Keyarch Securityholder.
Taxation
of the conversion of the Earnout Rights into Earnout Shares and the issuance of the Earnout Shares
Subject
to the terms and conditions set in the Business Combination Agreement, ZOOZ issued to the Pre-Closing ZOOZ Shareholders an aggregate
of 4,000,000 Earnout Rights, which were allocated among the Pre-Closing ZOOZ Shareholders according to their respective share on a pro
rata basis. The Earnout Rights will be automatically converted into ZOOZ Ordinary Shares (by ZOOZ issuing one ZOOZ Ordinary Share in
lieu of each converted Earnout Right which shall be automatically cancelled and extinguished upon such conversion), in an amount not
to exceed 4,000,000 Earnout Shares (subject to adjustment after the Closing for share splits, combinations or exchange or readjustment
of shares, reorganizations, recapitalizations, share sub-divisions (including share consolidations), split-up and the like, including
to account for any equity securities into which such shares are exchanged or converted), upon and subject to the occurrence of Earnout
Milestone(s) (as such terms defined in the Business Combination Agreement) during the Earnout Period, and without the payment of any
consideration by the Pre-Closing ZOOZ Shareholders (other than, to the extent applicable, the transfer of the applicable Withholding
Amount (as defined below) by each respective Pre-Closing ZOOZ Shareholder as described below.
The
conversion of the Earnout Rights into Earnout Shares and the issuance of the Earnout Shares will be subject to withholding tax according
to the relevant provision of the applicable law. Such withholding tax from the Earnout Shares will be conducted by any TASE member.
113
Any
Tax will be required to be withheld in connection with the conversion of the Earnout Rights (or any part thereof) and/or issuance of
the Earnout Shares (or any part thereof) pursuant to any applicable law relating to taxes, any TASE member shall be authorized to withhold
such tax. However, if any Pre-Closing ZOOZ Shareholder will transfer to the TASE member the applicable withholding amount which needed
to be withheld in connection with the conversion of the Earnout Rights and issuance of the Earnout Shares, attributed to such Pre-Closing
ZOOZ Shareholder, calculated according to the applicable law during the applicable periods provided by TASE member ("
Withholding
Amount
") then no withholding tax will be apply with respect to issuing the Earnout Shares to such Pre-Closing ZOOZ Shareholder.
U.S.
Federal Income Tax Considerations
General
The
following is a summary of certain material U.S. federal income tax considerations generally applicable to the acquisition, ownership
and disposition of our ordinary shares and public warrants by U.S. Holders (as defined below) that hold our ordinary shares or public
warrants as "capital assets" (generally, property held for investment) under the Code. For this purpose, a U.S. Holder is,
a holder, who, for U.S. federal income tax purposes, is a beneficial owner of ordinary shares or public warrants and who is: (a) a citizen
or individual resident of the United States; (b) a corporation (or other entity taxable as a corporation for U.S. federal income tax
purposes) created or organized in or under the laws of the United States, any state thereof or the District of Columbia; (c) an estate
the income of which is subject to U.S. federal income tax regardless of its source; or (d) a trust that is subject to the primary supervision
of a court over its administration and one or more U.S. persons control all substantial decisions, or a trust that has validly elected
to be treated as a domestic trust under applicable Treasury Regulations. This summary does not address any tax consequences to persons
other than U.S. Holders.
The
statements in this summary are based on the current U.S. federal income tax laws as contained in the Code, Treasury Regulations, and
relevant judicial decisions and administrative guidance, all as of the date hereof, and such authorities may be replaced, revoked or
modified, possibly with retroactive effect, so as to result in U.S. federal income tax consequences different from those discussed below.
No ruling has been sought from the U.S. Internal Revenue Service, or IRS, with respect to any U.S. federal income tax consequences described
below, and there can be no assurance that the IRS will not take a contrary position or that a court will not sustain such a position
in the event of a challenge.
The
following summary does not address all aspects of U.S. federal income tax consequences that may apply to certain types of U.S. Holders
that are subject to special treatment, such as banks, insurance companies, tax-exempt or governmental organizations, financial institutions,
broker-dealers, dealers in securities or currencies, traders in securities that elect to use the mark-to-market method of accounting
for their securities, S corporations, partnerships or other pass-through entities (or arrangements treated as a partnership) for U.S.
federal tax purposes, regulated investment companies, real estate investment trusts, "controlled foreign corporations" within
the meaning of Section 957(a) of the Code, "passive foreign investment companies" within the meaning of Section 1297(a) of
the Code, certain expatriates, persons owning, directly, constructively or by attribution, 5% or more, by voting power or value, of our
ordinary shares, persons whose "functional currency" is not the U.S. dollar, persons who hold ordinary shares as part of
a hedging, constructive sale or conversion, straddle, or other risk-reducing transaction, former U.S. citizens or long term residents
of the United States, corporations that accumulate earnings to avoid U.S. federal income tax, persons who hold our ordinary shares in
connection with a trade or business, permanent establishment or fixed base outside the United States, or persons that received an interest
in our ordinary shares through the exercise of an option or otherwise in exchange for services. In addition, it does not address consequences
relevant to holders subject to special rules, including, without limitation banks, insurance companies, and certain other financial institutions,
regulated investment companies and real estate investment trusts, tax-exempt organizations or governmental organizations, persons subject
to special tax accounting rules as a result of any item of gross income with respect to ZOOZ ordinary shares and/or ZOOZ public warrants,
as the case may be, being taken into account in an applicable financial statement, U.S. Holders having a functional currency other than
the U.S. dollar, persons who hold or received ZOOZ ordinary shares and/or ZOOZ public warrants, as the case may be, pursuant to the exercise
of any employee stock option or otherwise as compensation, and tax-qualified retirement plans.
This
summary is a general summary and does not address all aspects of U.S. federal income taxation that may be relevant to particular U.S.
Holders based on their particular investment or tax circumstances.
This
summary relates only to U.S. federal income taxes and does not address any other taxes, including but not limited to, U.S. state or local,
or non-U.S., taxes and does not describe all of the U.S. federal income tax consequences that may be relevant, including the special
tax accounting rules under Section 451(b) of the Code, the U.S. federal non-income tax considerations, including estate or gift tax considerations,
the Medicare contribution tax on net investment income and the alternative minimum tax.
This
discussion does not address the tax treatment of ZOOZ ordinary shares or ZOOZ public warrants that were issued to holders of outstanding
Keyarch shares and Keyarch public and/or private warrants in connection with the Business Combination.
114
If
an entity or arrangement treated as a partnership for U.S. federal income tax purposes holds ZOOZ ordinary shares and/or ZOOZ public
warrants, the tax treatment of an owner of such entity will depend on the status of the owners, the activities of the entity or arrangement
and certain determinations made at the owner level. Accordingly, entities or arrangements treated as partnerships for U.S. federal income
tax purposes and the partners in such partnerships should consult their tax advisors regarding the U.S. federal income tax consequences
to them.
This
summary is not a substitute for careful tax planning. Investors are urged to consult their own tax advisors regarding the specific U.S.
federal, state, foreign and other tax consequences to them, in light of their own particular circumstances, of the purchase, ownership
and disposition of our ordinary shares and the effect of potential changes in applicable tax laws.
IN
ADDITION, THE U.S. FEDERAL INCOME TAX TREATMENT OF OWNING ZOOZ ORDINARY SHARES AND ZOOZ PUBLIC OR PRIVATE WARRANTS TO ANY PARTICULAR
HOLDER WILL DEPEND ON THE HOLDER'S PARTICULAR TAX CIRCUMSTANCES. YOU ARE URGED TO CONSULT YOUR TAX ADVISOR REGARDING THE U.S. FEDERAL,
STATE, AND LOCAL, AND NON-U.S. INCOME AND OTHER TAX CONSEQUENCES TO YOU, IN LIGHT OF YOUR PARTICULAR INVESTMENT OR TAX CIRCUMSTANCES,
OF ACQUIRING, HOLDING, AND DISPOSING OF ZOOZ ORDINARY SHARES AND ZOOZ PUBLIC WARRANTS.
U.S.
Holders
Distributions
on ZOOZ Ordinary Shares
If
ZOOZ makes distributions of cash or property on the ZOOZ ordinary shares, such distributions will be treated for U.S. federal income
tax purposes first as a dividend to the extent of ZOOZ's current or accumulated earnings and profits (as determined for U.S. federal
income tax purposes), and then as a tax-free return of capital to the extent of the U.S. Holder's tax basis, with any excess treated
as capital gain from the sale or exchange of the shares. If ZOOZ does not provide calculations of its earnings and profits under U.S.
federal income tax principles, a U.S. Holder should expect all cash distributions to be reported as dividends for U.S. federal income
tax purposes. Any dividend will not be eligible for the dividends received deduction allowed to corporations in respect of dividends
received from U.S. corporations.
Subject
to the discussion below under "
Passive Foreign Investment Company Rules
," dividends received by certain non-corporate
U.S. holders (including individuals) may be "qualified dividend income," which is taxed at the lower applicable capital gains
rate, provided that:
●
either (a) the shares are readily tradable on an established securities market in the United States (such as the Nasdaq, where the
ZOOZ ordinary shares are intended to be listed), or (b) ZOOZ is eligible for the benefits of a qualifying income tax treaty with the
United States that includes an exchange of information program;
●
ZOOZ is neither a PFIC (as discussed below under below under "Passive Foreign Investment Company Rules") nor treated as
such with respect to the U.S. holder in any taxable year in which the dividend is paid or the preceding taxable year;
●
the U.S. Holder satisfies certain holding period requirements; and
●
the U.S. Holder is not under an obligation to make related payments with respect to positions in substantially similar or related
property.
There
can be no assurances that ZOOZ will be eligible for benefits of an applicable comprehensive income tax treaty between the United States
and Israel. Furthermore, ZOOZ will not constitute a "qualified foreign corporation" for purposes of these rules if it is
a PFIC for the taxable year in which it pays a dividend or for the preceding taxable year. See "
Passive Foreign Investment Company
Rules.
" U.S. Holders should consult their own tax advisors regarding the availability of the lower rate for dividends paid
with respect to ZOOZ ordinary shares. The amount of any dividend distribution paid in foreign currency will be the U.S. dollar amount
calculated by reference to the applicable exchange rate in effect on the date of actual or constructive receipt, regardless of whether
the payment is in fact converted into U.S. dollars at that time. A U.S. Holder may have foreign currency gain or loss if the dividend
is converted into U.S. dollars after the date of receipt.
Subject
to certain exceptions, dividends on ZOOZ ordinary shares will constitute foreign source income for foreign tax credit limitation purposes.
If such dividends are qualified dividend income (as discussed above), the amount of the dividend taken into account for purposes of calculating
the foreign tax credit limitation will be limited to the gross amount of the dividend, multiplied by a fraction, the numerator of which
is the reduced rate applicable to qualified dividend income and the denominator of which is the highest rate of tax normally applicable
to dividends. The limitation on foreign taxes eligible for credit is calculated separately with respect to specific classes of income.
For this purpose, dividends distributed by ZOOZ with respect to the ZOOZ ordinary shares generally will constitute "passive category
income" but could, in the case of certain U.S. Holders, constitute "general category income."
115
Sale,
Exchange, Redemption or Other Taxable Disposition of ZOOZ ordinary shares and ZOOZ Public and Private Warrants
.
Subject
to the discussion below under "—
Passive Foreign Investment Company Rules
," a U.S. Holder generally will recognize
gain or loss on any sale, exchange, redemption or other taxable disposition of ZOOZ ordinary shares or ZOOZ public and/or private warrants
in an amount equal to the difference between (i) the amount realized on the disposition and (ii) such U.S. Holder's adjusted tax
basis in such ZOOZ ordinary shares and/or ZOOZ public warrants. Any gain or loss recognized by a U.S. Holder on a taxable disposition
of ZOOZ ordinary shares or ZOOZ public warrants generally will be capital gain or loss. A non-corporate U.S. Holder, including an individual,
who has held the ZOOZ ordinary shares and/or ZOOZ public warrants for more than one year generally will be eligible for reduced tax rates
for such long-term capital gains. The deductibility of capital losses is subject to limitations.
Any
such gain or loss recognized generally will be treated as U.S. source gain or loss. Accordingly, in the event any Israeli tax (including
withholding tax) is imposed upon such sale or other disposition, a U.S. holder may not be able to utilize foreign tax credits unless
such U.S. Holder has foreign source income or gain in the same category from other sources. Moreover, there are special rules under the
income tax treaty between the United States and Israel (the "
Treaty
"), which may impact a U.S. Holder's ability
to claim a foreign tax credit. U.S. Holders are urged to consult their own tax advisors regarding the ability to claim a foreign tax
credit and the application of the Treaty to such U.S. Holder's particular circumstances.
Exercise
or Lapse of a ZOOZ Public Warrant
Except
as discussed below with respect to the cashless exercise of a ZOOZ public warrants a U.S. Holder generally will not recognize gain or
loss upon the acquisition of a ZOOZ ordinary share on the exercise of a ZOOZ public warrant for cash. A U.S. Holder's tax basis
in a ZOOZ ordinary share received upon exercise of a ZOOZ public warrant generally should be an amount equal to the sum of the U.S. Holder's
tax basis in the ZOOZ public warrant exercised and the exercise price. The U.S. Holder's holding period for a ZOOZ ordinary share
received upon exercise of a ZOOZ public warrants will generally begin on the date following the date of exercise (or possibly the date
of exercise) of the ZOOZ public and/or private warrants and will not include the period during which the U.S. Holder held the ZOOZ public
and/or private warrants. If a ZOOZ public warrant is allowed to lapse unexercised, a U.S. Holder that has otherwise received no proceeds
with respect to such ZOOZ public warrant generally will recognize a capital loss equal to such U.S. Holder's tax basis in the ZOOZ
public warrant.
The
tax consequences of a cashless exercise of a ZOOZ public warrant are not clear under current U.S. federal income tax law. A cashless
exercise may be tax-deferred, either because the exercise is not a realization event or because the exercise is treated as a recapitalization
for U.S. federal income tax purposes. In either situation, a U.S. Holder's basis in the ZOOZ ordinary shares received would generally
equal the U.S. holder's basis in the ZOOZ public warrant exercised for such shares. If the cashless exercise is not treated as
a realization event, a U.S. Holder's holding period in the ZOOZ ordinary shares would generally be treated as commencing on the
date following the date of exercise (or possibly the date of exercise) of the ZOOZ public warrant. If the cashless exercise were treated
as a recapitalization, the holding period of the ZOOZ ordinary shares would generally include the holding period of the ZOOZ public warrant
exercised therefor.
It
is also possible that a cashless exercise of a ZOOZ public warrant could be treated in part as a taxable exchange in which gain or loss
would be recognized in the manner set forth above under "
Sale, Exchange, Redemption or Other Taxable Disposition of ZOOZ Ordinary
Shares and ZOOZ Public Warrants
." In such event, a U.S. Holder could be deemed to have surrendered warrants having an aggregate
fair market value equal to the exercise price for the total number of warrants to be exercised. The U.S. Holder would recognize capital
gain or loss in an amount generally equal to the difference between (i) the fair market value of the ZOOZ public warrant deemed surrendered
and (ii) the U.S. Holder's tax basis in such ZOOZ public and/or private warrants deemed surrendered. In this case, a U.S. Holder's
tax basis in the ZOOZ ordinary shares received would equal the sum of (i) U.S. Holder's tax basis in the ZOOZ public warrant deemed
exercised and (ii) the exercise price of such ZOOZ public warrants. A U.S. Holder's holding period for the ZOOZ ordinary shares
received in such case generally would commence on the date following the date of exercise (or possibly the date of exercise) of the ZOOZ
public warrants.
Due
to the absence of authority on the U.S. federal income tax treatment of a cashless exercise of warrants, there can be no assurance which,
if any, of the alternative tax consequences and holding periods described above would be adopted by the IRS or a court of law. Accordingly,
U.S. holders should consult their own tax advisors regarding the tax consequences of a cashless exercise of ZOOZ public and/or private
warrants.
116
Possible
Constructive Distributions
The
terms of each ZOOZ public warrant provide for an adjustment to the number of ZOOZ ordinary shares for which the ZOOZ public warrant may
be exercised or to the exercise price of the ZOOZ public warrants in certain events. An adjustment which has the effect of preventing
dilution generally is not taxable. A U.S. holder of a ZOOZ public warrants would, however, be treated as receiving a constructive distribution
from ZOOZ if, for example, the adjustment increases the holder's proportionate interest in ZOOZ's assets or earnings and
profits (for instance, through an increase in the number of ZOOZ ordinary shares that would be obtained upon exercise of such warrant)
as a result of a distribution of cash or other property such as other securities to the holders of the ZOOZ ordinary shares which is
taxable to the U.S. Holders of such shares as described under "
Distributions on ZOOZ ordinary shares
" above. Such
constructive distribution would be subject to tax as described under that section in the same manner as if the U.S. Holder of such ZOOZ
public and/or private warrants received a cash distribution from ZOOZ equal to the fair market value of such increased interest.
Passive
Foreign Investment Company Rules
The
treatment of U.S. Holders of the ZOOZ ordinary shares could be materially different from that described above, if ZOOZ is treated as
a PFIC for U.S. federal income tax purposes. A non-U.S. entity treated as a corporation for U.S. federal income tax purposes generally
will be a PFIC for U.S. federal income tax purposes for any taxable year if either:
●
at least 75% of its gross income for such year is passive income, or
●
at least 50% of the value of its assets (generally based on an average of the quarterly values of the assets) during such year is attributable
to assets that produce passive income or are held for the production of passive income (including cash).
For
this purpose, ZOOZ will be treated as owning its proportionate share of the assets and earning its proportionate share of the income
of any other entity treated as a corporation for U.S. federal income tax purposes in which ZOOZ owns, directly or indirectly, 25% or
more (by value) of the stock. Passive income generally includes dividends, interest, rents, royalties and capital gains.
Based
on the current and anticipated composition of the income, assets and operations of ZOOZ and its subsidiaries, there is a substantial
risk that ZOOZ may be treated as a PFIC for the taxable year that includes the Business Combination.
Nevertheless,
whether ZOOZ or any of its subsidiaries is treated as a PFIC is determined on an annual basis. The determination of whether ZOOZ or any
of its subsidiaries is a PFIC is a factual determination that depends on, among other things, the composition of ZOOZ's income
and assets, and the value of its and its subsidiaries' shares and assets. Changes in the composition of the income or assets of
ZOOZ and its subsidiaries may cause ZOOZ to be or become a PFIC for the current or subsequent taxable years. Thus, no assurance can be
given as to whether ZOOZ will be a PFIC in 2024 or for any future taxable year. In addition, ZOOZ's U.S. counsel expresses no opinion
with respect to ZOOZ's PFIC status for 2024 or future taxable years.
Under
the PFIC rules, if ZOOZ were considered a PFIC at any time that a U.S. Holder owns ZOOZ ordinary shares or ZOOZ public warrants, ZOOZ
would continue to be treated as a PFIC with respect to such investment unless (i) it ceased to be a PFIC and (ii) (a) the U.S. Holder
has made a valid "QEF election" (as described below) for the first taxable year in which the holder owned such holder's
ordinary shares in which ZOOZ was a PFIC, (b) a valid mark-to-market election (as described below) is in effect for the particular year,
or (c) the U.S. Holder has made a "deemed sale" election under the PFIC rules. If such a deemed sale election is made, a
U.S. Holder will be deemed to have sold its ZOOZ ordinary shares and/or ZOOZ public warrants at their fair market value on the last day
of the last taxable year in which ZOOZ is classified as a PFIC, and any gain from such deemed sale would be subject to the consequences
described below, but any loss would not be recognized. After the deemed sale election, the ZOOZ ordinary shares or ZOOZ public warrants
with respect to which the deemed sale election was made will not be treated as shares in a PFIC unless ZOOZ subsequently becomes a PFIC.
For
each taxable year that ZOOZ is treated as a PFIC with respect to a U.S. Holder's ZOOZ ordinary shares or ZOOZ public warrants,
the U.S. Holder will be subject to special tax rules with respect to any "excess distribution" (as defined below) received
and any gain realized from a sale or disposition (including a pledge) of its ZOOZ ordinary shares or ZOOZ public warrants (collectively
the "
Excess Distribution Rules
"), unless the U.S. holder makes a valid QEF election or mark-to-market election as
discussed below. Distributions received by a U.S. Holder in a taxable year that are greater than 125% of the average annual distributions
received during the shorter of the three preceding taxable years or the U.S. Holder's holding period for the ZOOZ ordinary shares
or ZOOZ public warrants will be treated as excess distributions. Under these special tax rules:
●
the excess distribution or gain will be allocated ratably over the U.S. Holder's holding period for the ZOOZ ordinary shares
or ZOOZ public warrants;
●
the amount allocated to the current taxable year, and any taxable years in the U.S. Holder's holding period prior to the first
taxable year in which ZOOZ is a PFIC, will be treated as ordinary income; and
117
●
the amount allocated to each other taxable year will be subject to the highest tax rate in effect for individuals or corporations,
as applicable, for each such year and the interest charge generally applicable to underpayments of tax will be imposed on the
resulting tax attributable to each such year.
Under
the Excess Distribution Rules, the tax liability for amounts allocated to taxable years prior to the year of disposition or excess distribution
cannot be offset by any net operating losses, and gains (but not losses) realized on the sale of the ZOOZ ordinary shares or ZOOZ public
warrants cannot be treated as capital gains, even though the U.S. Holder holds the ZOOZ ordinary shares or ZOOZ public warrants as capital
assets.
Certain
of the PFIC rules may impact U.S. Holders with respect to equity interests in subsidiaries and other entities which ZOOZ may hold, directly
or indirectly, that are PFICs (collectively, "
Lower-Tier PFICs
"). There can be no assurance, however, that ZOOZ does
not own, or will not in the future acquire, an interest in a subsidiary or other entity that is or would be treated as a Lower-Tier PFIC.
U.S. holders should consult their own tax advisors regarding the application of the PFIC rules to any of ZOOZ's subsidiaries.
If
ZOOZ is a PFIC, a U.S. Holder of ZOOZ ordinary shares (but not ZOOZ public and/or private warrants, as discussed in more detail below)
may avoid taxation under the Excess Distribution Rules described above by making a "qualified electing fund" ("
QEF
")
election. However, a U.S. Holder may make a QEF election with respect to its ZOOZ ordinary shares only if ZOOZ provides U.S. holders
on an annual basis with certain financial information specified under applicable U.S. Treasury regulations. Upon written request, ZOOZ
will endeavor to provide U.S. Holders with the required information on an annual basis to allow U.S. Holders to make a QEF election with
respect to the ZOOZ ordinary shares in the event ZOOZ is treated as a PFIC for any taxable year. There can be no assurance, however,
that ZOOZ will timely provide such information for the current year or subsequent years. The failure to provide such information on an
annual basis could prevent a U.S. Holder from making a QEF election or result in the invalidation or termination of a U.S. Holder's
prior QEF election.
In
the event ZOOZ is a PFIC, a U.S. Holder that makes a QEF election with respect to its ZOOZ ordinary shares would generally be required
to include in income for each year that ZOOZ is treated as a PFIC the U.S. Holder's pro rata share of ZOOZ's ordinary earnings
for the year (which would be subject to tax as ordinary income) and net capital gains for the year (which would be subject to tax at
the rates applicable to long-term capital gains), without regard to the amount of any distributions made in respect of the ZOOZ ordinary
shares. Any net deficits or net capital losses of ZOOZ for a taxable year would not be passed through and included on the tax return
of the U.S. Holder, however. A U.S. Holder's basis in the ZOOZ ordinary shares would be increased by the amount of income inclusions
under the qualified electing fund rules. Dividends actually paid on the ZOOZ ordinary shares generally would not be subject to U.S. federal
income tax to the extent of prior income inclusions and would reduce the U.S. Holder's basis in the ZOOZ ordinary shares by a corresponding
amount.
If
ZOOZ owns any interests in a Lower-Tier PFIC, a U.S. Holder generally must make a separate QEF election for each Lower-Tier PFIC, subject
to ZOOZ's providing the relevant tax information for each Lower-Tier PFIC on an annual basis.
If
a U.S. Holder does not make a QEF election (or a mark-to-market election, as discussed below) effective from the first taxable year of
a U.S. Holder's holding period for the ZOOZ ordinary shares in which ZOOZ is a PFIC, then the ZOOZ ordinary shares will generally
continue to be treated as an interest in a PFIC, and the U.S. Holder generally will remain subject to the Excess Distribution Rules.
A U.S. Holder that first makes a QEF election in a later year may avoid the continued application of the Excess Distribution Rules to
its ZOOZ ordinary shares by making a "deemed sale" election. In that case, the U.S. Holder will be deemed to have sold the
ZOOZ ordinary shares at their fair market value on the first day of the taxable year in which the QEF election becomes effective, and
any gain from such deemed sale would be subject to the Excess Distribution Rules described above. A U.S. Holder that is eligible to make
a QEF election with respect to its ZOOZ ordinary shares generally may do so by providing the appropriate information to the IRS in the
U.S. Holder's timely filed tax return for the year in which the election becomes effective.
U.S.
holders should consult their own tax advisors as to the availability and desirability of a QEF election.
Under
proposed Treasury regulations, if a U.S. Holder has an option, warrant, or other right to acquire stock of a PFIC, such option, warrant
or right is considered to be PFIC stock subject to the PFIC rules. However, a U.S. Holder of an option, warrant or right to acquire stock
of a PFIC may not make a QEF election that will apply to the option, warrant or other right to acquire PFIC stock. In addition, under
proposed Treasury regulations, if a U.S. Holder holds an option, warrant or other right to acquire stock of a PFIC, the holding period
with respect to shares of stock of the PFIC acquired on exercise of such option, warrant or other right will include the period that
the option, warrant or other right was held. Consequently, under the proposed Treasury regulations, if a U.S. Holder of shares made a
QEF Election, such election generally would not have been treated as a timely QEF Election with respect to shares acquired upon exercise
of warrants of the corporation and the PFIC rules discussed above will continue to apply with respect to such shares. However, a U.S.
Holder of such shares should have been eligible to make a timely QEF Election if such U.S. Holder met certain requirements and made a
"purging election," electing in the year in which such shares were received to recognize gain (which would have been taxed
under the PFIC rules discussed above) as if such shares were sold for fair market value on the date such U.S. Holder acquired them by
exercising the corresponding warrants. U.S. Holders should consult their own tax advisors regarding the application of the PFIC rules
to ZOOZ public warrants.
118
Alternatively,
a U.S. Holder of "marketable securities" (as defined below) may make a mark-to-market election for its ZOOZ ordinary shares
to elect out of the Excess Distribution Rules discussed above if ZOOZ is treated as a PFIC. If a U.S. Holder makes a mark-to-market election
with respect to its ZOOZ ordinary shares, such U.S. Holder will include in income for each year that ZOOZ is treated as a PFIC with respect
to such ZOOZ ordinary shares an amount equal to the excess, if any, of the fair market value of the ZOOZ ordinary shares as of the close
of the U.S. Holder's taxable year over the adjusted basis in the ZOOZ ordinary shares. A U.S. Holder will be allowed a deduction
for the excess, if any, of the adjusted basis of the ZOOZ ordinary shares over their fair market value as of the close of the taxable
year. However, deductions will be allowed only to the extent of any net mark-to-market gains on the ZOOZ ordinary shares included in
the U.S. Holder's income for prior taxable years. Amounts included in income under a mark-to-market election, as well as gain on
the actual sale or other disposition of the ZOOZ ordinary shares, will be treated as ordinary income. Ordinary loss treatment will also
apply to the deductible portion of any mark-to-market loss on the ZOOZ ordinary shares, as well as to any loss realized on the actual
sale or disposition of the ZOOZ ordinary shares, to the extent the amount of such loss does not exceed the net mark-to-market gains for
such ZOOZ ordinary shares previously included in income. A U.S. Holder's basis in the ZOOZ ordinary shares will be adjusted to
reflect any mark-to-market income or loss. If a U.S. Holder makes a mark-to-market election, any distributions ZOOZ makes would generally
be subject to the rules discussed above under "
Distributions on ZOOZ ordinary shares
," except the lower rates applicable
to qualified dividend income would not apply. U.S. Holders of ZOOZ public warrants will only be able to make a mark-to-market election
with respect to their ZOOZ public warrants to the extent that such warrants are treated as "marketable securities" (as defined
below).
The
mark-to-market election is available only for "marketable securities," which are securities that are regularly traded on
a qualified exchange or other market, as defined in applicable U.S. Treasury regulations. The ZOOZ ordinary shares and ZOOZ public warrants,
which are listed on the Nasdaq, are expected to qualify as marketable securities for purposes of the PFIC rules, but there can be no
assurance that ZOOZ ordinary shares or ZOOZ public warrants will be "regularly traded" for purposes of these rules. Because
a mark-to-market election cannot be made for equity interests in any Lower-Tier PFICs, a U.S. Holder that does not make the applicable
QEF elections generally will continue to be subject to the Excess Distribution Rules with respect to its indirect interest in any Lower-Tier
PFICs as described above, even if a mark-to-market election is made for ZOOZ.
If
a U.S. Holder does not make a mark-to-market election (or a QEF election, as discussed above) effective from the first taxable year of
a U.S. Holder's holding period for the ZOOZ ordinary shares in which ZOOZ is a PFIC, then the U.S. Holder generally will remain
subject to the Excess Distribution Rules. A U.S. Holder that first makes a mark-to-market election with respect to the ZOOZ ordinary
shares in a later year will continue to be subject to the Excess Distribution Rules during the taxable year for which the mark-to-market
election becomes effective, including with respect to any mark-to-market gain recognized at the end of that year. In subsequent years
for which a valid mark-to-mark election remains in effect, the Excess Distribution Rules generally will not apply. A U.S. Holder that
is eligible to make a mark-to-market with respect to its ZOOZ ordinary shares may do so by providing the appropriate information on IRS
Form 8621 and timely filing that form with the U.S. Holder's tax return for the year in which the election becomes effective. U.S.
Holders should consult their own tax advisors as to the availability and desirability of a mark-to-market election, as well as the impact
of such election on interests in any Lower-Tier PFICs.
A
U.S. Holder of a PFIC may be required to file an IRS Form 8621 on an annual basis. U.S. Holders should consult their own tax advisors
regarding any reporting requirements that may apply to them if ZOOZ is a PFIC.
U.S.
Holders are strongly encouraged to consult their tax advisors regarding the application of the PFIC rules to their particular circumstances.
Non-U.S.
Holders
This
section applies to Non-U.S. Holders of ZOOZ ordinary shares and ZOOZ public warrants. For purposes of this discussion, a Non-U.S. Holder
means a beneficial owner (other than a partnership or an entity or arrangement so characterized for U.S. federal income tax purposes)
of ZOOZ ordinary shares or ZOOZ public warrants that is not a U.S. Holder, and is: (i) a nonresident alien individual, other than certain
former citizens and residents of the United States, (ii) a foreign corporation, or (iii) an estate or trust that is not a U.S. Holder.
U.S.
Federal Income Tax Consequences of the Ownership and Disposition of ZOOZ Ordinary Shares and ZOOZ Warrants to Non-U.S. Holders
119
Subject
to the discussion below concerning backup withholding, any (i) distributions of cash or property paid to a Non-U.S. Holders in respect
of ZOOZ ordinary shares (including constructive distributions treated as dividends as discussed above under "
U.S. Holders—Possible
Constructive Distributions"
) or (ii) gain realized upon the sale or other taxable disposition of ZOOZ ordinary shares and/or
ZOOZ public warrants generally will not be subject to U.S. federal income taxation unless:
●
the gain or distribution is effectively connected with the Non-U.S. Holder's conduct of a trade or business within the United
States (and, if required by an applicable income tax treaty, the Non-U.S. holder maintains a permanent establishment in the United
States to which such gain is attributable); or
●
in the case of any gain, the Non-U.S. Holder is a nonresident alien individual present in the United States for 183 days or more
during the taxable year of the disposition and certain other requirements are met.
Gain
or distributions described in the first bullet point above generally will be subject to U.S. federal income tax on a net income basis
at the regular rates in the same manner discussed in "—
U.S. Holders Distributions on Ordinary Shares
" and "—
U.S.
Holders Sale, Exchange, Redemption or Other Taxable Disposition of ZOOZ Ordinary Shares and ZOOZ Public Warrants
." A Non-U.S.
Holder that is a corporation also may be subject to a branch profits tax at a rate of 30% (or such lower rate specified by an applicable
income tax treaty) on such effectively connected gain, as adjusted for certain items.
Gain
described in the second bullet point above will be subject to U.S. federal income tax at a rate of 30% (or such lower rate specified
by an applicable income tax treaty), which may be offset by U.S. source capital losses of the Non-U.S. Holder (even though the individual
is not considered a resident of the United States), provided the Non-U.S. Holder has timely filed U.S. federal income tax returns with
respect to such losses.
The
U.S. federal income tax treatment of a Non-U.S. Holder's exercise of a ZOOZ public warrants, or the lapse of a ZOOZ public warrants
held by a Non-U.S. Holder, generally will correspond to the U.S. federal income tax treatment of the exercise or lapse of a warrant by
a U.S. Holder, as described under "—
U.S. Holders—Exercise or Lapse of a ZOOZ Public Warrant
," above, although
to the extent a cashless exercise or lapse results in a taxable exchange, the consequences would be similar to those described in the
preceding paragraphs above for a Non-U.S. Holder's gain on the sale or other disposition of the ZOOZ ordinary shares and ZOOZ public
warrants.
Non-U.S.
Holders should consult their own tax advisors regarding potentially applicable income tax treaties that may provide for different rules.
Foreign
Account Tax Compliance Act
The
United States Foreign Account Tax Compliance Act, or FATCA, imposes a reporting regime and, potentially, a 30% withholding tax on certain
payments made to certain non-U.S. financial institutions that fail to comply with certain information reporting, account identification,
withholding, certification and other FATCA related requirements in respect of their direct and indirect United States shareholders and/or
United States accountholders. To avoid becoming subject to FATCA withholding, we may be required to report information to the IRS regarding
the holders of ZOOZ ordinary shares and to withhold on a portion of payments with respect to our ordinary shares to certain holders that
fail to comply with the relevant information reporting requirements (or that hold our ordinary shares directly or indirectly through
certain non-compliant intermediaries). This withholding tax made with respect to ZOOZ ordinary shares will not apply to payments made
before the date that is two years after the date of publication of final regulations defining the term "foreign passthru payment".
An intergovernmental agreement between the United States and another country may also modify these requirements. FATCA is particularly
complex and its application is uncertain at this time. Holders of ZOOZ ordinary shares should consult their tax advisors to obtain a
more detailed explanation of FATCA and to learn how FATCA might affect each holder in its particular circumstances.
Information
Reporting and Backup Withholding
Information
reporting requirements may apply to dividends received by U.S. Holders of ZOOZ ordinary shares and the proceeds received on sale or other
taxable disposition of ZOOZ ordinary shares or ZOOZ public warrants effected within the United States (and, in certain cases, outside
the United States), in each case other than U.S. Holders that are exempt recipients (such as corporations). Backup withholding (currently
at a rate of 24%) may apply to such amounts if the U.S. Holder fails to provide an accurate taxpayer identification number (generally
on an IRS Form W-9 provided to the paying agent of the U.S. holder's broker) or is otherwise subject to backup withholding. Any
payment treated as dividend payments with respect to ZOOZ ordinary shares and proceeds from the sale, exchange, redemption or other disposition
of ZOOZ ordinary shares or ZOOZ public warrants may be subject to information reporting to the IRS and possible U.S. backup withholding.
U.S. Holders should consult their own tax advisors regarding the application of the U.S. information reporting and backup withholding
rules.
120
Information
returns may be filed with the IRS in connection with, and Non-U.S. Holders may be subject to backup withholding on amounts received in
respect of, a Non-U.S. Holder's disposition of ZOOZ ordinary shares or ZOOZ public warrants, unless the Non-U.S. Holder furnishes
to the applicable withholding agent the required certification as to its non-U.S. status, such as by providing a valid IRS Form W-8BEN,
IRS Form W-8BEN-E or IRS Form W-8ECI, as applicable, or the Non-U.S. Holder otherwise establishes an exemption. Dividends paid with respect
to ZOOZ ordinary shares and proceeds from the sale of other disposition of ZOOZ ordinary shares or ZOOZ public warrants received in the
United States by a Non-U.S. Holder through certain U.S.-related financial intermediaries may be subject to information reporting and
backup withholding unless such Non-U.S. Holder provides proof of an applicable exemption or complies with certain certification procedures
described above, and otherwise complies with the applicable requirements of the backup withholding rules.
Backup
withholding is not an additional tax. Amounts withheld as backup withholding generally may be credited against the taxpayer's U.S.
federal income tax liability, and a taxpayer may obtain a refund of any excess amounts withheld under the backup withholding rules by
timely filing the appropriate claim for a refund with the IRS and furnishing any required information.
F.
DIVIDENDS AND PAYING AGENTS
Not
applicable.
G.
STATEMENT BY EXPERTS
Not
applicable.
H.
DOCUMENTS ON DISPLAY
We
are required to file reports and other information with the SEC under the Exchange Act, and the regulations thereunder applicable to
foreign private issuers. As a "foreign private issuer" we are exempt from the rules and regulations under the Securities
Exchange Act prescribing the furnishing and content of proxy statements, and our officers, directors and principal shareholders are exempt
from the reporting and "short-swing" profit recovery provisions contained in Section 16 of the Securities Exchange Act, with
respect to their purchase and sale of our shares. In addition, we are not required to file reports and financial statements with the
SEC as frequently or as promptly as U.S. companies whose securities are registered under the Securities Exchange Act. Furthermore, as
a "foreign private issuer", we are also not subject to the requirements of Regulation FD (Fair Disclosure) promulgated under
the Exchange Act. Nasdaq rules generally require that companies send an annual report to shareholders prior to the annual general meeting,
however we rely upon an exception under the Nasdaq Listing Rules and follow the generally accepted business practice for companies in
Israel. Specifically, we file annual reports on Form 20-F, which contain financial statements audited by an independent accounting firm,
electronically with the SEC and post a copy on our website. We also furnish to the SEC reports on Form 6-K containing unaudited financial
information after the end of each of the first three quarters.
You
may review a copy of our filings with the SEC, including any exhibits and schedules, at the offices of the Israel Securities Authority
at 22 Kanfei Nesharim St., Jerusalem, Israel. As a "foreign private issuer", we were only required to file through the SEC's
EDGAR system as of April 2024. Our periodic filings are therefore available on the SEC's Website
www.sec.gov
from that date.
You may read and copy any reports, statements or other information that we file with the SEC, through the SEC's EDGAR system available
on the SEC's website. These SEC filings are also available to the public on the Israel Securities Authority's website at
www.isa.gov.il
and from commercial document retrieval services.
Any
statement in this Annual Report about any of our contracts or other documents is not necessarily complete. If the contract or document
is filed as an exhibit to this Annual Report, the contract or document is deemed to modify the description contained in this Annual Report.
We urge you to review the exhibits themselves for a complete description of the contract or document.
I.
SUBSIDIARY INFORMATION
Not
applicable.
ITEM 11.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We
are exposed to various risks in relation to financial instruments. The main types of risks are foreign currency risk and interest rate
risk. While we may enter into hedging contracts from time to time, any change in the fair value of the contracts could be offset by changes
in the underlying value of the transactions being hedged. Furthermore, we do not have foreign-exchange hedging contracts in place with
respect to all currencies in which we do business.
121
Foreign
Currency Risk
We
are exposed to foreign exchange risk to the extent that there is a mismatch between the currencies in which sales, purchases, and receivables
that are denominated in a currency other than our respective functional currencies. Our sales are substantially denominated in EURO or
USD, but our functional currency is in NIS. Accordingly, changes in exchange rates are reflected in reported income and loss from our
international businesses are included in our statements of operations.
For
the year ended December 31, 2023, we had $819 thousands of other comprehensive loss generated from the exchange differences on translation
of foreign operations. For the year ended December 31, 2022 we had $1,965 thousands of other comprehensive loss generated from the same.
While
we have not engaged in the hedging of our foreign currency transactions to date and have not entered into any hedging contracts for trading
or speculative purposes, we may in the future enter into derivatives or other financial instruments in an attempt to hedge our foreign
currency exchange risk. It is difficult to predict the impact hedging activities would have on our results of operations.
Credit
Risk
For
the year ended December 31, 2023, our main credit risk was that counterparties will not repay in full the accounts receivable based on
the agreed terms. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past
experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by our
board of directors. For the year ended December 31, 2022, we did not have credit risk.
Liquidity
Risk
We
manage liquidity risk by monitoring and maintaining a level of cash deemed adequate to finance our operations and mitigate the effects
of fluctuations in cash flows.
Interest
Rate Risk
As
of December 31, 2023, we had approximately $6.7 million in cash, cash equivalents, restricted cash. We mostly invest our cash
surplus in bank deposits. Since these investments typically carry fixed interest rate or yields, financial income over the holding
period is not sensitive to changes in interest rates. For more information, see Note 2 to our audited consolidated financial
statements for the year ended December 31, 2023.
Foreign
Currency Exchange Risk and Inflation
The
cost of our Israel operations, as expressed in dollars, is influenced by the extent to which any increase in the rate of inflation in
Israel is not offset (or is offset on a lagging basis) by a devaluation of the NIS in relation to the dollar. The inflation rate in Israel
was 3.0%, 5.3% and 2.8% in 2023, 2022, and 2021, respectively. The appreciation (devaluation) of the dollar against the NIS was 3.1%,
13.2% and (3.3%) in 2023, 2022 and 2021, respectively. For 2023, assuming a 10% devaluation of the dollar against the NIS, we would experience
an increase in our net loss of approximately $1.4 million, while assuming a 10% appreciation of the dollar against the NIS, we would
experience a decrease in our net loss of approximately $1.1 million. A significant portion of our expenditures is employee compensation
related. Salaries for Israel-based employees are paid in NIS and may be adjusted for changes in the Israeli consumer price index, or
CPI, through salary increases or adjustments. These upward adjustments increase salary expenses in dollar terms. The devaluation/appreciation
of the NIS against the dollar decreases/increases employee compensation expenditures as expressed in dollars proportionally. Some of
our other NIS-based expenses are either currently adjusted to dollars or are adjusted to the CPI. We currently have no foreign currency
derivative contracts to hedge against currency exchange risk fluctuation but may consider entering into such contracts in the future.
ITEM 12.
DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES
Not
applicable.
PART
II
ITEM 13.
DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES
None.
ITEM 14.
MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS
Not
applicable.
122
ITEM
15. CONTROLS AND PROCEDURES
A.
DISCLOSURE CONTROLS AND PROCEDURES
We
maintain disclosure controls and procedures (as that term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange
Act of 1934, as amended) that are designed to ensure that information required to be disclosed in our reports under the Exchange Act
is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms and that such
information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as
appropriate, to allow timely decisions regarding required disclosures. Any controls and procedures, no matter how well designed and
operated, can provide only reasonable assurance of achieving the desired control objectives. Our management, with the participation
of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the design and operation of our
disclosure controls and procedures as of December 31, 2023. Based upon that evaluation, our Chief Executive Officer and Chief
Financial Officer concluded that, as of December 31, 2023, our disclosure controls and procedures were not effective to accomplish
their objectives at the reasonable assurance level due to the material weaknesses disclosed below. In light of this fact, our
management has performed additional analyses, reconciliations, and other post-closing procedures and has concluded that,
notwithstanding the material weakness in our internal control over financial reporting, the audited consolidated financial
statements for the periods covered by and included in this Annual Report on Form 20-F fairly state, in all material respects, our
financial position, results of operations and cash flows for the periods presented in conformity with U.S GAAP.
Previously
identified material weakness
In
connection with the preparation and audit of ZOOZ's audited consolidated financial statements for the years ended December 31,
2023 and 2022, material weaknesses were identified in ZOOZ's internal control over financial reporting. A material weakness is
a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility
that a material misstatement of ZOOZ's audited consolidated annual financial statements will not be prevented or detected on a
timely basis.
The
material weaknesses referenced above are described below:
●
Segregation of duties has not been sufficiently established across the key business and financial processes. Given the size, nature
of the organization, and the current structure of the finance function, a lack of segregation of duties applied to the key business
and financial processes across the organization has been identified. A consequence of the lack of segregation of duties is the
heightened risk of fraud or material misstatement when no appropriate mitigating controls are in place.
●
Lack of personnel with appropriate knowledge and experience relating to U.S. GAAP and SEC reporting requirements to enable the
entity to design and maintain an effective financial reporting process. A lack of knowledge and experience in these areas may lead
to ZOOZ being in breach of SEC financial reporting and other related requirements, especially given that the current finance
function has not been designed to include sufficient accounting and financial reporting personnel with (i) the requisite knowledge
and experience in the application of SEC financial reporting rules and regulations; and (ii) the appropriate expertise in the
relevant U.S. accounting standards.
Remediation
activities and Plans
ZOOZ
has begun implementation of a plan to remediate these material weaknesses, including implementation of an ERP system, for, among other
things, improving its appropriately designed, implemented and documented controls in inventory process, in respect of separation of operation
costs from research and development costs.
These
remediation measures are ongoing and may include hiring additional accounting and financial reporting personnel and implementing additional
policies, procedures and controls.
In
order to maintain and improve the effectiveness of ZOOZ's internal control over financial reporting, ZOOZ has expended, and anticipate
that it will continue to expend, significant resources, including accounting-related costs and significant management oversight.
123
B.
MANAGEMENT'S ANNUAL REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
This
Annual Report does not include a report of management's assessment regarding internal control over financial reporting (as such
term is defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act) due to a transition period established by rules of
the SEC for newly-public companies.
C.
ATTESTATION REPORT OF THE REGISTERED PUBLIC ACCOUNTING FIRM
This
Annual Report does not include an attestation report of the company's registered public accounting firm due to a transition period
established by rules of the SEC for newly-public companies and because the Company is an emerging growth Company.
D.
CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING
There
were no changes in our internal controls over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the
Securities Exchange Act) other than as discussed above under "Remediation Activities and Plans" ,that occurred during the
period covered by this Annual Report that have materially affected, or are reasonably likely to materially affect, our internal control
over financial reporting.
ITEM 16.
RESERVED
ITEM
16A. AUDIT COMMITTEE FINANCIAL EXPERT
Our
board of directors has determined that Ms. Christine Y. Zhao and Mrs. Naama Zeldis are "audit committee financial experts"
as defined by the SEC rules and have the requisite financial experience as defined by the corporate governance rules of Nasdaq. See "
Item
6.A – Directors, Senior Management and Employees – Directors and Senior Management
" for a summary of Ms. Christine
Y. Zhao and Mrs. Naama Zeldis' relevant professional experience.
Our
board of directors has determined that each member of our audit committee is "independent" as such term is defined in Rule
10A-3(b)(1) under the Exchange Act, which is different from the general test for independence of board and committee members.
ITEM
16B. CODE OF ETHICS
We
have adopted a code of business conduct that applies to all of our employees, officers and directors as well as a code of ethics for
senior financial officers that applies to our chief executive officer, chief financial officer, controller and assistant controller.
The
code of ethics for senior financial officers is available on our website,
https://www.zoozpower.com/
. However, information
contained on our website does not constitute a part of this Annual Report.
We
intend to post on our website all disclosures that are required by the rules and regulations of the SEC or by the Nasdaq Listing Rules
concerning any amendments to, or waivers from, any provision of the code of business conduct or the code of ethics.
ITEM
16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES
The
following table presents the fees billed or accrued to us by our principal accountant for professional services rendered in the years
ended December 31, 2023, and 2022, in thousands:
2023
2022
Audit Fees
$
41
$
44
Audit Related Fees
$
218
$
-
Tax Fees
$
5
$
5
All Other Fees
$
7
$
Total
$
271
$
49
"Audit
Fees" include fees for the audit of our annual consolidated financial statements and review work. This category also includes services
that the independent accountant generally provides, such as consents and assistance with and review of documents filed with the SEC.
"Audit
Related Fees" relate to services in connection with the Business Combination.
"Tax
Fees" were related to ongoing tax advisory, tax compliance and tax planning services.
"All
Other Fees" are fees for other consulting services rendered by our principal accountant to us.
124
Pre-Approval
Policies for Non-Audit Services
Our
audit committee is in charge of a policy and procedures for approval of audit and non-audit services rendered by our external auditor.
This policy generally provides that we will not engage our independent registered public accounting firm to render audit or non-audit
services unless the service is specifically approved in advance by our audit committee or the engagement is entered into pursuant to
the pre-approval procedure described below. Annually, our audit committee pre-approves specified types of services that are expected
to be provided to us by our independent registered public accounting firm during the next 12 months. Any such pre-approval is detailed
as to the particular service or type of services to be provided and is also generally subject to a maximum dollar amount. All of the
fees listed in the table above were approved by our audit committee.
ITEM
16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES
Not
Applicable.
ITEM
16E. PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS
Not
applicable.
ITEM
16F. CHANGE IN REGISTRANT'S CERTIFYING ACCOUNTANT
Not
applicable.
ITEM
16G. CORPORATE GOVERNANCE
The
Nasdaq Listing Rules require companies with securities listed thereon to comply with its corporate governance standards. As a foreign
private issuer whose shares are listed on Nasdaq, we are permitted to follow certain home country corporate governance practices instead
of those followed by U.S. companies under the Nasdaq Listing Rules, including:
Shareholder
Approval
. Pursuant to Israeli law, we seek shareholder approval for all corporate actions requiring such approval under the requirements
of the Companies Law, which are different from the requirements for seeking shareholder approval under Nasdaq Listing Rule 5635. We seek
shareholder approval in specified situations, including upon issuance of options to directors in their capacity as directors, as required
by Israeli law.
Quorum
at General Meetings of Shareholders
. We have opted out of the requirement set under Rule 5620(c) of the Nasdaq Rules, which requires
the presence of two or more shareholders holding at least 33 1/3%, and in lieu follow our home country practice and Israeli law, according
to which the quorum for any shareholders meeting will be the presence (in person or by Proxy) of two or more shareholders holding at
least 25% of the voting rights in the aggregate - within half an hour from the time set for opening the meeting.
Distribution
of Annual Reports
. We have chosen to follow our home country practice in lieu of the requirements of Nasdaq Rule 5250(d)(1), relating
to an issuer's furnishing of its annual report to shareholders. Specifically, we file annual reports on Form 20-F, which contain
financial statements audited by an independent accounting firm, electronically with the SEC and post a copy on our website.
Approval
of Material Changes to Equity Incentive Plans
. We have chosen to follow our home country practice and adopt and approve material
changes to equity incentive plans in accordance with the Companies Law which does not impose a requirement of shareholder approval for
such actions.
ITEM
16H. MINE SAFETY DISCLOSURE
Not
applicable.
ITEM
16I. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS
Not
applicable.
ITEM
16J. INSIDER TRADING POLICIES
Not
applicable.
ITEM
16K. CYBERSECURITY
We
have implemented and maintain various information security processes designed to identify, assess and manage material risks from cybersecurity
threats to our critical computer networks, certain third party hosted services, communications systems, hardware and software, and our
critical data, including intellectual property, confidential information that is proprietary, strategic or competitive in nature, and
employees' information, or the Information Systems and Data.
Our
VP R&D helps identify, assess and manage our cybersecurity threats and risks by monitoring and evaluating our threat environment
using various methods including, for example by engaging third parties to conduct penetration tests on our behalf.
125
Depending
on the environment and system, we implement and maintain various technical, physical, and organizational measures, processes, standards
and policies designed to manage and mitigate material risks from cybersecurity threats to our Information Systems and Data, including,
for example, incident response policy, business continuity plan, cybersecurity insurance, firewalls in certain environments and systems,
access controls, physical security and employee cybersecurity trainings.
Our
overall risk assessment and management processes covers material risks from cybersecurity threats. Our VP R&D works with relevant
management members to prioritize and mitigate cybersecurity threats that are more likely to lead to a material impact to our business.
We
use third-party service providers to assist us from time to time to identify, assess, and manage material risks from cybersecurity threats,
including for example professional services firms, including legal counsel, cybersecurity and cloud consultants, and a penetration testing
firm.
We
use third-party service providers to perform a variety of functions throughout our business, including in connection with our data management,
research and development information, financial information management, payments and others. We rely on the different security levels
of these third-parties.
For
a description of the risks from cybersecurity threats that may materially affect us and how they may do so, see our risk factors under
Part 1. Item 3D. Risk Factors in this Annual Report, including the applicable risk factors under "
Risk Factors - Risks Related
to Intellectual Property, Information Technology, Data Privacy and Cybersecurity
."
Governance
Our
board of directors addresses our cybersecurity risk management as part of its general oversight function through its audit committee.
Our
cybersecurity risk assessment and management processes are under the responsibility of our VP R&D.
Our
VP R&D is responsible for hiring appropriate personnel and /or use third-party service providers, helping to integrate cybersecurity
risk considerations into our overall risk management strategy, communicating key priorities to relevant personnel, helping prepare for
cybersecurity incidents, approving cybersecurity processes, and reviewing security assessments and other security-related reports.
The
audit committee will receive periodic reports from our VP R&D concerning our significant cybersecurity threats and risk and the processes
we have implemented to address them. The audit committee will also receive various reports, summaries or presentations related to cybersecurity
threats, risk and mitigation.
PART
III
ITEM 17.
FINANCIAL STATEMENTS
See
Item 18.
ITEM 18.
FINANCIAL STATEMENTS
Our
audited consolidated financial statements and related notes are included in this Annual Report beginning on page F-1.
126
Item
19. Exhibits.
Exhibit
    No.
Exhibit
1.
Amended and Restated Articles of Registrant (incorporated herein by reference to Exhibit 3.2 to the Registrant's Registration Statement on Form F-4/A, File No. 333-277295, filed with the Securities and Exchange Commission on March 15, 2024 (the "
F-4/A
").
2.1*
Description of Registrant's Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934.
4.1*
2015 Incentive Compensation Plan.
4.2
Form of Indemnification Agreement (incorporated herein by reference to Exhibit 10.19 to the F-4/A).
4.3*
Amended and Restated Compensation Policy
4.5*
Amended and Restated Registration Rights Agreement, dated April 4, 2024, among the Company, Keyarch, and the "Investor" parties thereto.
4.6
Cooperation Agreement, dated September 12, 2022, between ZOOZ and the New York Power Authority (incorporated herein by reference to Exhibit 10.8 to the F-4/A).
4.7
Distribution Agreement, dated December 1, 2022, between ZOOZ and Blink Charging Co (incorporated herein by reference to Exhibit 10.9 to the F-4/A).
4.8
Summary of Lease Agreement dated July 25, 2021, as amended, between ZOOZ and REIT 1 Ltd (incorporated herein by reference to Exhibit 10.10 to the F-4/A).
8.1
Subsidiaries of the Registrant (incorporated herein by reference to Exhibit 21.1 to the F-4/A).
12.1
Certification of Chief Executive Officer required by Rules 13a-14(a) and Rule 15d-14(a) under the Securities Exchange Act of 1934, as amended.*
12.2
Certification of Chief Financial Officer required by Rules 13a-14(a) and Rule 15d-14(a) under the Securities Exchange Act of 1934, as amended.*
13.1
Certification of the Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*
97.1
ZOOZ Power Ltd. Policy for Recovery of Erroneously Awarded Compensation.*
101
Inline
    XBRL Instance Document
101.SCH
Inline
    XBRL Taxonomy Extension Schema Document
101.CAL
Inline
    XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF
Inline
    XBRL Taxonomy Extension Definition Linkbase Document
101.LAB
Inline
    XBRL Taxonomy Extension Labels Linkbase Document
101.PRE
Inline
    XBRL Taxonomy Extension Presentation Linkbase Document
104
Cover
    Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)
‡
English
                                            translations from Hebrew original.
*
Filed
                                            herewith.
127
SIGNATURES
The
Company hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the
undersigned to sign this Annual Report on its behalf.
ZOOZ
    POWER LTD.
By:
/s/
    Boaz Weizer
Name:
Boaz
    Weizer
Title:
Chief
    Executive Officer
Date:
April 30, 2024
128
Page
Report of Independent Registered Public Accounting Firm
(PCAOB ID #
1309
)
F-1
Consolidated Balance Sheets as of December 31, 2022 and December 31, 2023
F-2
Consolidated Statements of Operations for the years ended December 31, 2021, 2022 and 2023
F-3
Consolidated Statements of Changes in Shareholders' (Deficit)/Equity for the years ended December 31, 2022 and 2023
F-5
Consolidated
    Statements of Cash Flows for the years ended December 31, 2021, 2022 and 2023
F-8
Notes to Consolidated Financial Statements
F-9
129
Report
of Independent Registered Public Accounting Firm
To
the Board of Directors and Shareholders of ZOOZ Power Ltd.
Opinion
on the Financial Statements
We
have audited the accompanying consolidated balance sheets of ZOOZ Power Ltd. (the "Company') as of December 31, 2023 and
2022, and the related consolidated statements of operations, of comprehensive loss, of redeemable convertible preferred shares and changes
in shareholders' equity and of cash flows for each of the three years in the period ended December 31, 2023, including the related
notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements
present fairly, in all material respects, the financial position of the Company as of December 31, 2023, and 2022, and the results of
its operations and its cash flows for each of the three years in the period ended December 31, 2023 in conformity with accounting principles
generally accepted in the United States of America.
Substantial
Doubt about the Company's Ability to Continue as a Going Concern
The
accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed
in Note 1 to the consolidated financial statements, the Company has net losses and has generated negative cash flows from operating activities
for the years ended December 31, 2023, 2022 and 2021. Such circumstances raise substantial doubt about the Company's ability to
continue as a going concern. Management's plans in regard to these matters are also described in Note 1. The consolidated financial
statements do not include any adjustments that might result from the outcome of this uncertainty.
Basis
for Opinion
These
consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion
on the Company's consolidated financial statements based on our audits. We are a public accounting firm registered with the Public
Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance
with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We
conducted our audits of these consolidated financial statements in accordance with the standards of the PCAOB. Those standards require
that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material
misstatement, whether due to error or fraud.
Our
audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether
due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence
regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles
used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.
We believe that our audits provide a reasonable basis for our opinion.
/s/
Kesselman & Kesselman
Jerusalem,
    Israel
Certified
    Public Accountants (Isr.)
April
    30, 2024
A
    member firm of PricewaterhouseCoopers International Limited
We
have served as the Company's auditor since 2018.
Kesselman
& Kesselman,
Rad Tower
, 16 Hartom Street, Jerusalem 9777516, Israel, P.O Box 45192,
Har
Hotzvim, Jerusalem 91451, Telephone: +972 -2- 5418200, Fax:+972 -2- 5418201, www.pwc.com/il
F-
1
ZOOZ
POWER LTD.
CONSOLIDATED
BALANCE SHEETS
December 31
2023
2022
U.S. dollars
in thousands
Assets
CURRENT ASSETS:
Cash
6,672
20,569
Prepaid expenses and other current assets
752
597
Inventory
2,848
1,767
TOTAL CURRENT ASSETS
10,272
22,933
NON-CURRENT ASSETS:
Restricted bank deposits
224
224
Prepaid expenses
79
90
Operating lease right of use assets
1,309
1,463
Property and equipment, net
1,593
723
TOTAL NON-CURRENT ASSETS
3,205
2,500
TOTAL ASSETS
13,477
25,433
Liabilities and equity
CURRENT LIABILITIES:
Accounts payable
536
485
Other payables and accrued expenses
1,387
352
Short term employee benefits
788
766
Share based payment liabilities
232
996
Current maturities of operating lease liabilities
309
321
TOTAL CURRENT LIABILITIES
3,252
2,920
NON-CURRENT LIABILITIES:
Operating lease liabilities
1,035
1,252
TOTAL NON-CURRENT LIABILITIES
1,035
1,252
TOTAL LIABILITIES
4,287
4,172
COMMITMENTS AND CONTINGENCIES (Note 10)
SHAREHOLDERS' EQUITY (
*
):
Share capital - Ordinary shares of NIS
0.00286
par value - Authorized:
34,973,575
shares on December 31, 2023 and 2022; Issued and outstanding:
5,912,223
shares on December 31, 2023 and 2022
5
5
Additional paid-in capital
58,780
58,277
Accumulated other comprehensive loss
(
2,414
)
(
1,595
)
Accumulated deficit
(
47,181
)
(
35,426
)
TOTAL EQUITY
9,190
21,261
TOTAL LIABILITIES AND EQUITY
13,477
25,433
(*)
Adjusted to reflect
reverse stock split, see Note 11
The
accompanying notes are an integral part of the consolidated financial statements.
F-
2
ZOOZ
POWER LTD.
CONSOLIDATED
STATEMENTS OF OPERATIONS
(U.S.
dollars in thousands,
except share and per share data
)
Year ended December 31
2023
2022
2021
Sales
764
-
-
Cost of sales
1,869
178
-
Gross loss
(
1,105
)
(
178
)
-
Research and development, net
5,215
4,163
1,523
Sales and marketing
3,041
1,672
987
General and administrative
2,850
2,189
2,028
Operating loss
(
12,211
)
(
8,202
)
(
4,538
)
Finance income (expenses), net
456
377
(
43
Loss before income tax
(
11,755
)
(
7,825
)
(
4,581
)
Income tax benefit
-
-
-
Net loss
(
11,755
)
(
7,825
)
(
4,581
)
Net loss per ordinary share attributable to shareholders - basic and diluted (*)
(
1.99
)
(
1.51
)
(
2.27
)
Weighted average ordinary shares outstanding – basic and diluted in thousands (*)
5,912
5,166
2,020
(*)
Adjusted to reflect
reverse stock split, see Note 11
The
accompanying notes are an integral part of the consolidated financial statements.
F-
3
ZOOZ
POWER LTD.
CONSOLIDATED
STATEMENTS OF COMPREHENSIVE LOSS
Year ended December 31
2023
2022
2021
U.S. dollars in thousands
Net Loss
(
11,755
)
(
7,825
)
(
4,581
)
Other Comprehensive income (loss)
Reporting currency translation gain (loss)
(
819
)
(
1,965
)
370
Total other comprehensive income (loss)
(
819
)
(
1,965
)
370
Total comprehensive loss
(
12,574
)
(
9,790
)
(
4,211
)
The
accompanying notes are an integral part of the consolidated financial statements.
F-
4
ZOOZ
POWER LTD.
CONSOLIDATED
STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED SHARES AND CHANGES IN SHAREHOLDERS' EQUITY
(U.S.
dollars in thousands,
except share and per share data
)
Accumulated
Share capital
Additional
other
Number of
paid-in
comprehensive
Accumulated
Shares (**)
Amount
capital
income (loss)
loss
Total
BALANCE AS OF JANUARY 1, 2023
5,912,223
5
58,277
(
1,595
)
(
35,426
)
21,261
CHANGES IN 2023:
Share-based compensation
-
-
503
-
-
503
Net loss
-
-
-
-
(
11,755
)
(
11,755
)
Other comprehensive loss
-
-
-
(
819
)
-
(
819
)
BALANCE AS OF DECEMBER 31, 2023
5,912,223
5
58,780
(
2,414
)
(
47,181
)
9,190
(**)
Adjusted to reflect
reverse stock split, see Note 11
The
accompanying notes are an integral part of the consolidated financial statements.
F-
5
ZOOZ
POWER LTD.
CONSOLIDATED
STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED SHARES AND CHANGES IN SHAREHOLDERS' EQUITY
(U.S.
dollars in thousands,
except share and per share data
)
Accumulated
Share capital
Additional
other
Number of
paid-in
comprehensive
Accumulated
Shares (**)
Amount
capital
income (loss)
loss
Total
BALANCE AS OF JANUARY 1, 2022
2,295,736
2
29,867
370
(
27,601
)
2,638
CHANGES IN 2022:
Private placement and public offering of shares and warrants, net of issuance costs of $
1,700
3,616,487
3
27,867
-
-
27,870
Share-based compensation
-
-
543
-
-
543
Net loss
-
-
-
-
(
7,825
)
(
7,825
)
Other comprehensive loss
-
-
-
(
1,965
)
-
(
1,965
)
BALANCE AS OF DECEMBER 31, 2022
5,912,223
5
58,277
(
1,595
)
(
35,426
)
21,261
(*)
Represents less
than $1 thousand
(**)
Adjusted to reflect
reverse stock split, see Note 11
The
accompanying notes are an integral part of the consolidated financial statements.
F-
6
ZOOZ
POWER LTD.
CONSOLIDATED
STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED SHARES AND CHANGES IN SHAREHOLDERS' EQUITY
(U.S.
dollars in thousands,
except share and per share data
)
Redeemable
Convertible
Accumulated
Preferred Shares
Share capital
Additional
other
Number of
Shares (**)
Amount
Number of
Shares
Amount
paid-in
capital
comprehensive
income
Accumulated
loss
Total
BALANCE AS OF JANUARY 1, 2021
18,881,400
21,878
349,736
-
-
-
(
23,020
)
(
23,020
)
CHANGES IN 2021:
Conversion of preferred shares into ordinary shares
(
18,881,400
)
(
21,878
)
1,650,875
(*)
21,878
-
-
21,878
Initial Public Offering of shares and warrants, net of issuance costs of $
600
-
-
295,125
2
7,643
-
-
7,645
Share-based compensation
-
-
-
-
346
-
-
346
Net loss
-
-
-
-
-
-
(
4,581
)
(
4,581
)
Other comprehensive income
-
-
-
-
-
370
-
370
BALANCE AS OF DECEMBER 31, 2021
-
-
2,295,736
2
29,867
370
(
27,601
)
2,638
(*)
Represents less
than $1 thousand
(**)
Adjusted to reflect
reverse stock split, see Note 11
The
accompanying notes are an integral part of the consolidated financial statements.
F-
7
ZOOZ
POWER LTD.
CONSOLIDATED
STATEMENTS OF CASH FLOWS
Year ended December 31
2023
2022
2021
U.S. dollars in thousands
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss
(
11,755
)
(
7,825
)
(
4,581
)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation
239
131
44
Non-cash finance expenses (income), net
(
206
)
(
279
)
34
Net changes in operating lease assets and liabilities
(
148
)
119
(
3
)
Gain from disposal of assets
-
(
16
)
-
Share-based compensation
(
219
)
(
1,751
)
(
1,315
)
Changes in operating assets and liabilities:
Trade receivables
-
-
36
Prepaid expenses and other current assets
(
163
)
(
74
)
(
132
)
Inventory
(
1,117
)
(
1,405
)
(
462
)
Accounts payable
64
10
(
28
)
Other payables and accrued expenses
1,028
51
244
Short term employee benefits
45
492
78
Net cash used in operating activities
(
12,232
)
(
10,547
)
(
6,085
)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment
(
1,365
)
(
500
)
(
298
)
Grants received for property and equipment
250
-
-
Long term restricted deposits
(
224
)
-
-
Net cash used in investing activities
(
1,339
)
(
500
)
(
298
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of shares and warrants, net of issuance costs
-
27,870
7,645
Net cash provided by financing activities
-
27,870
7,645
Effect of change in exchange on cash balances held in foreign currencies
(
550
)
(
1,906
)
428
Net change in cash and restricted cash equivalent
(
14,121
)
14,917
1,690
Cash and restricted cash equivalent at beginning of year
20,793
5,876
4,186
Cash and restricted cash equivalent at end of year
6,672
20,793
5,876
Supplemental disclosure of cash flow information
Non-cash activity:
Lease liabilities arising from obtaining right-of-use assets
55
319
1,496
Purchase of equipment
-
-
196
Reclassification of inventory to property and equipment
195
-
-
Conversion of preferred shares into ordinary shares
-
-
21,878
The
accompanying notes are an integral part of the consolidated financial statements.
F-
8
ZOOZ
POWER LTD.
NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS
Note
1 -
GENERAL
:
ZOOZ
Power Ltd. (hereinafter - "the Company"), an Israeli company, was incorporated and commenced operations in Israel on February
5, 2013. The offices of the Company are located at 4 Hamelacha St., Lod, Israel. The Company operates as
one
operating segment and is
engaged in developing, manufacturing, marketing and selling of Energy Storage Solutions, for electric vehicles. The system is based on
kinetic storage using flywheels.
In
March 2021, the Company completed an initial public offering of shares and marketable warrants on the Tel Aviv Stock Exchange and became
a public company and started trading on that day. In March 2022, the Company completed a public offering of shares and warrants. For
more information see note 11.
In
June 2023, the Company established a subsidiary in the Cayman Islands, ZOOZ Power Cayman (hereinafter - "the subsidiary").
The subsidiary is wholly owned by the Company. The subsidiary did not operate during 2023.
On
July 30, 2023, the Company entered into a business combination agreement with Keyarch Acquisition Corporation, a public company incorporated
in the Cayman Islands, then traded on the Nasdaq Global Market, which was issued as a Special Purpose Acquisition Company (SPAC) and
additional related agreements, according to which a reverse triangular merger take effect, in which the Company recently established
a subsidiary registered in the Cayman Islands with which the SPAC company will merge, such that the SPAC has become a private company
fully owned (
100
%) by the Company, against the allocation of shares and tradable warrants of the Company to the shareholders and holders
of the SPAC's tradable warrants.
The
Company's shareholders prior to the closing are entitled to additional contingent consideration of up to 4 million ordinary shares
upon the Company's achievement of the applicable earnout milestones (hereinafter - "the Earnout Rights") (based on
share price) as set forth in the Business Combination Agreement, in the form of non-tradable, non-assignable rights, that were issued
by the Company pro rata to the Pre-Closing company Shareholders on April 4, 2024. The Earnout Rights may be converted into ZOOZ ordinary
shares within 5 years from the lapse of the first quarter following the Closing Upon meeting the applicable milestones.
On
February 9, 2024, Keyarch and the Company entered into subscription agreements with certain investors (hereinafter - "subscription
agreements"). Under the terms of the Subscription Agreements, the PIPE Investors agreed to subscribe for and purchase, an aggregate
of
1,300,000
Keyarch Class A ordinary shares for a purchase price of $
10.00
per share, for gross proceeds of $
13,000,000
. In addition,
pursuant to the Subscription Agreement, the Company agreed to register the Subscription Shares and granted customary resale registration
rights to PIPE Investors.
On
March 21, 2024,
the extraordinary general meeting of the Company's shareholders approved a reverse share split of the Company's
ordinary Shares, effective as of March 25, 2024, at a conversion ratio of 11.43720665
.
The
Company accounted for the Reverse Stock Splits on a retroactive basis pursuant to ASC 260. As a result, all common stock, warrants,
and options outstanding and exercisable for common stock, exercise prices and loss per share amounts have been adjusted, on a retroactive
basis, for all periods presented in these financial statements and the applicable disclosures, to reflect such Reverse Stock Split.
The
closing of the Merger and the Transactions took place on April 4, 2024. At the Effective Time, and upon the terms and subject to the
conditions of the Business Combination Agreement, and in accordance with the Cayman Act, Keyarch and Merger Sub consummated the
Merger, pursuant to which Merger Sub was merged with and into Keyarch, with Keyarch being the surviving company, following which the
separate corporate existence of Merger Sub ceased and Keyarch continued as the surviving company Pursuant to the Closing, Keyarch
became a direct, wholly-owned subsidiary of the Company. As part of the merger $
10
million
net was invested in the company.
F-
9
ZOOZ
POWER LTD.
NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
In
connection to the Closing of the Business Combination, the Company's ordinary shares and public warrants began trading on the Nasdaq
Capital Market under the ticker symbols "ZOOZ" and "ZOOZW", respectively, on April 5, 2024, and became a dual
Company.
Following
the Issuance of Earnout rights in April 2024, the company's options and warrants conversion ratio has been adjusted, so each option
or warrant will be exercisable to
1.18961
common share.
Current
impact of Swords of Iron War
On
October 7, 2023, following a surprise attack by the terrorist organization, Hamas, from the Gaza Strip, the Israeli government declared
the "Swords of Iron" War. Following the attack from the Gaza Strip, an attack was also launched towards northern Israel by
the terrorist organization, Hezbollah, from Lebanon and tensions in other sectors increased. As of the date of approval of the financial
statements, the security situation in both the southern sector and the northern sector remained tense, and the uncertainty regarding
the return to normalcy remains.
As
part of dealing with the threats of a Swords of Iron War, the Israeli government ordered the evacuation of dozens of localities located
in the south of the country, around the Gaza Strip, and in the north of the country, along the border with Lebanon, and also imposed
restrictions on various gatherings, activities in workplaces and educational activities in accordance with the directives of the Home
Front Command. In addition, many citizens were called to reserve service for extended periods of time.
The
Company's factory is located in the city of Lod. The Company's facilities were not damaged during the war. In accordance
with the guidelines of the National Emergency Authority, there is no denial of access or any restriction in the activity of the Company's
facilities. As of the date of approval of the financial statements, the Company operates normally. As of the date of publication of the
financial statements, there is no material impact on the Company's supply chain. However, if the security situation continues for
an extended period of time, the Company's production capacity and even marketing and advertising activities outside of Israel may
be affected. At this stage, the Company cannot reasonably assess the consequences of the continuation of the Swords of Iron War on the
level of its activity and the results of this activity. These consequences depend, among other things, on the duration and scope of the
war, on its economic effects on the entire economy in Israel and on the ability to raise capital from foreign and local investors and
the industry in which the Company operates.
The
Company continues regularly to monitor the development of events and considers the implications for its business activity and the measures
it will take accordingly.
Current
impact of the current financial markets and economic conditions
F-
10
ZOOZ
POWER LTD.
NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
The
Company's business may materially be affected by conditions in the financial markets and economic conditions in the U.S. and Europe.
2022 was characterized by steep declines and significant volatility in global markets, driven by investor concerns over inflation, rising
interest rates, slowing economic growth and geopolitical uncertainty. Inflation across many key economies reached generational highs,
prompting central banks to take monetary policy tightening actions that are likely to create headwinds to economic growth. Continued
global supply chain disruption, including due to China's recurrent restrictions and the ongoing war between Russia and Ukraine,
are also contributing to mounting inflationary pressure. In 2022, in the U.S., annual inflation rose to the highest level in over 40
years. Concurrently, Europe experienced high year-over-year inflation. In response to rising inflation, the Federal Reserve raised the
federal funds target range and the European Central Bank raised rates for the first time in 11 years. Both central banks reiterated expectations
for additional increases in the coming months. While several key economic factors, including employment, wage growth and household savings
have demonstrated resilience, the U.S. economic contraction in 2022 has opened a debate among economists as to whether the U.S. has entered,
or in the near term will enter, a recession.
Liquidity
The
Company has net losses for the years ended December 31, 2023, 2022 and 2021 in the amounts of $
11,755
thousands $
7,825
thousands and
$
4,581
thousands and negative cash flows from operating activities in the amounts of $
12,232
thousand $
10,547
thousand and $
6,085
thousand,
respectively.
The
Company has historically financed its operations over the years by raising funds from investors. On April 4, 2024, the Company finalized
a merger deal with a SPAC. As part of the merger
10
million USD net, was invested in the company (for details, see above). Since the
Company has just started commercial sales of its products and considering the Company's expected cash usage, the Company's
cash balance as of December 31, 2023, and as of the date of approval of the financial statements is not sufficient to continue the Company's
operations for at least 12 months from the date of approval of the financial statements. These circumstances raise substantial doubt
about the Company's ability to continue as a going concern.
In
order to continue the Company's operations, including research and development and sales and marketing, the Company is looking
to secure financing from various sources, including additional investment funding.
The
financial statements do not include any adjustments that might result from the outcome of this uncertainty.
Note
2 -
SIGNIFICANT ACCOUNTING POLICIES
:
Basis
of presentation of financial statements
The
financial statements of the Company have been prepared in conformity with United States generally accepted accounting principles (U.S.
GAAP)
Use
of estimates in the preparation of financial statements
The
preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the
amounts reported in the financial statements and accompanying notes. The Company's management believes that the estimates, judgments,
and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions
can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial
statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates,
and such differences may have a material impact on the Company's financial statements. As applicable to these financial statements,
the most significant estimates relate to inventory net realizable value and share-based compensation.
F-
11
ZOOZ
POWER LTD.
NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
Functional
and Presentation Currency
The
currency of the primary economic environment in which the operations of the Company are conducted is the New Israeli Shekel ("NIS").
Thus, the functional currency of the Company is the NIS. The Company's presentation and reporting currency is the U.S dollar.
Balances
in non-NIS currencies are translated into NIS using historical and current exchange rates for non-monetary and monetary balances, respectively.
For non-NIS transactions and other items in the statements of operations (indicated below), the following exchange rates are used: (i)
for transactions - exchange rates at transaction dates; and (ii) for other items (derived from non-monetary balance sheet items such
as depreciation and amortization) - historical exchange rates. Currency transaction gains and losses are presented in finance income
or expenses, as appropriate.
The
financial statements are translated into the reporting currency, the U.S dollar, using the current rate method - equity accounts are
translated using historical exchanges rates, while all other balance sheet accounts are translated using the exchanges rates in effect
at the balance sheet date. Statement of operations amounts have been translated using the average exchange rate for the year, unless
this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, The resulting
translation adjustments are reported as a component of shareholders' equity in accumulated other comprehensive income (loss). Exchange
rates of NIS to U.S dollar as of December 31, 2023 and 2022 are
3.63
and
3.52
, respectively.
Fair
Value Measurements
Fair
value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. A hierarchy has been established for inputs used in measuring fair value that maximizes
the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available.
Observable
inputs are inputs that are developed using market data, such as publicly available information about actual events or transactions, and
that reflect the assumptions that market participants would use when pricing the asset or liability. Unobservable inputs are inputs for
which market data are not available and that are developed using the best information available about the assumptions that market participants
would use when pricing the asset or liability.
The
fair value hierarchy is categorized into three levels. Level 1 inputs are quoted prices (unadjusted) in active markets for identical
assets or liabilities that the reporting entity can access at the measurement date. Level 2 inputs include inputs other than quoted prices
included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable
inputs for the asset or liability.
The
fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level
1 inputs) and the lowest priority to unobservable inputs (Level 3 inputs). Categorization within the valuation hierarchy is based upon
the lowest level of input that is significant to the fair value measurement.
The
carrying amounts of other current assets, account payables and other payables and accrued expenses approximate fair value because of
their generally short maturities.
F-
12
ZOOZ
POWER LTD.
NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
Restricted
long-term bank deposits
Restricted
long-term bank deposits are deposits with a maturity of more than one year. The bank deposits are used as a security for the Company's
lease agreements. Long-term bank deposits are denominated in NIS. The interest on the Company's deposits is insignificant. As of
December 31, 2023 and 2022, the Company had a lien on the Company's bank deposits in respect of bank guarantees granted in order
to secure its lease agreements. The fair value of bank deposits approximates the carrying value since they bear interest at rates close
to the prevailing market rates.
Concentration
of credit risks
Financial
instruments that potentially subject the Company to concentrations of credit risk consist principally of cash, restricted long-term deposits
and other receivables.
All
the Company's cash and restricted long-term bank deposits are invested in banks within Israel. The Company is exposed to credit
risk in the event of default by the financial institutions to the extent of the amounts recorded on the accompanying balance sheets exceed
federally insured limits. The Company places its cash and deposits with financial institutions for which management believes there is
limited credit loss exposure with respect to the investments.
Inventory
Inventory
consists of raw materials, work in process and finished products. Inventories are stated at the lower of cost or net realizable value.
Inventory write-offs are provided to cover risks arising from slow-moving and obsolescent items.
The
Company periodically evaluates the quantities on hand relative to current and historical selling prices and historical and projected
sales volume. Once written-down, a new lower cost basis for that inventory is established . Cost of inventories is assigned as follows:
Raw
materials - at cost of purchase represents the first in, first out method.
Work
in process - on the basis of direct manufacturing costs with the addition of allocable indirect manufacturing costs.
Finished
products - based on average costs of materials, contracting and manufacturing costs.
Property
and equipment
Property
and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated by the straight-line method over the estimated
useful lives of the assets at the following annual rates:
%
Computers and peripherals
33
Office furniture and equipment
7
Machines and electronic devices
15
-
33
Energy storage systems
20
Leasehold improvements
21
-
26
Leasehold
improvements are amortized over the terms of the respective leases or the estimated useful lives of the improvements, whichever is shorter.
The
Company's property and equipment include, among other things, energy storage systems that were manufactured by the Company and
transferred to a third party free of charge for the purpose of a marketing pilot. At the end of a period agreed between the parties,
the systems will be returned to the Company.
Grants
that relate to assets are presented in the statement of financial position by deducting the grant in order to arrive at the book value
of the asset. The grant is recognized in profit or loss over the life of a depreciable asset through the imputation of reduced depreciation.
F-
13
ZOOZ
POWER LTD.
NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
Impairment
of long-lived assets
The
Company tests long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset
may no longer be recoverable. Recoverability of long-lived assets is measured by comparing the carrying amount of the long-lived asset
to the estimated undiscounted future cash flows expected to be generated by the asset. If the sum of the expected undiscounted cash flow
is less than the carrying amount of the asset, the Company recognizes an impairment loss, which is the excess of the carrying amount
over the fair value of the asset, using the expected future discounted cash flows.
For
the years ended December 31, 2023, 2022 and 2021, the Company did not recognize an impairment loss on its long-lived assets.
Basic
and diluted net loss per share
The
Company's basic net loss per share is calculated by dividing net loss attributable to ordinary shareholders by the weighted-average
number of ordinary shares outstanding for the period, without consideration of potentially dilutive securities. The diluted net loss
per share is calculated by giving effect to all potentially dilutive securities outstanding for the period using the treasury share method
or the if-converted method based on the nature of such securities. All share options, warrants and preferred shares were excluded from
the calculation of diluted net loss per ordinary share because their effect would have been anti-dilutive for the years presented.
The
Company computes net loss per share using the two-class method required for participating securities. The two-class method requires income
available to ordinary shareholders for the period to be allocated between ordinary shares and participating securities based upon their
respective rights to receive dividends as if all income for the period had been distributed. These participating securities do not contractually
require the holders of such shares to participate in the Company's losses. As such, a net loss for the periods presented was not
allocated to the Company's participating securities.
For
the year ended December 31, 2023, the Company had
834,172
options and
39,710
warrants, and for the year ended December 31 2022, the Company
had
711,539
options,
39,710
warrants. These securities were not considered when calculating diluted loss per share since their effect
is anti-dilutive.
Collaborative
arrangements
The
Company entered into collaborative arrangements with partners that fall under the scope of Topic 808, "Collaborative Arrangements"
("ASC 808"). While these arrangements are in the scope of ASC 808, the Company may analogize to ASC 606 for some aspects
of the arrangements.
The
terms of the Company's collaborative arrangements typically include reimbursements or cost-sharing of research and development
expenses. Each of these payments results in an offset against research and development expenses.
Under
certain collaborative arrangements, the Company has been reimbursed for a portion of its research and development expenses or participates
in the cost-sharing of such research and development expenses. Such reimbursements and cost-sharing arrangements have been reflected
as a reduction of research and development expense in the Company's statements of operations, as the Company does not consider
performing research and development services for reimbursement to be a part of its ongoing major or central operations.
F-
14
ZOOZ
POWER LTD.
NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
Revenues
The
Company generates revenues from the sale of energy storage system for supporting fast chargers for electric vehicles, based on kinetic
storage using flywheels.
The
Company recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration
that the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that the
Company determines are within the scope of ASC 606, the entity performs the following five steps:
1.
Identify
    the contract(s) with a customer;
2.
Identify
    the performance obligations in the contract;
3.
Determine
    the transaction price;
4.
Allocate
    the transaction price to the performance obligations in the contract;
5.
Recognize
    revenue when (or as) the performance obligation is satisfied.
The
Company accounts for a contract with customer when it has approval and commitment from both parties, the rights of the parties and payment
terms are identified, the contract has commercial substance and collectability of consideration is probable. The Company's contract
includes one type of performance obligation, which is satisfied at a point in time. The Company recognizes revenue upon transfer of control
of the system to the customer in an amount that reflects the consideration the Company expects to receive in exchange for the system.
Transfer of control occurs generally upon the receipt of customer acceptance or once risk of loss has transferred to the customer. The
acceptance received from customers include successful installation and commissioning test of the energy storage system. The Company does
not provide a right of return. The Company provide to customers a limited warranty assurance that the systems are in compliance with
the applicable specifications at the time of delivery. Under the standard terms and conditions of sale, liability for certain failures
of product during the stated warranty periods are limited to repair or replacement of defective items.‏
During
the reporting period the Company delivered to its client and installed in the client's site located in Germany two energy storage
systems. The Company recognized the revenues related to these two systems during the reporting period, after receiving the acceptance
certificate for the systems.
The
Company's trade receivable balances are driven by sale of energy storage systems. Credit is granted based on evaluation of a customer's
financial condition and generally, collateral is not required. Trade receivable balances are stated at amounts due from customers net
of a provision for current expected losses.
F-
15
ZOOZ
POWER LTD.
NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
Trade
receivables are reduced by an allowance for current expected losses. The Company maintains the allowance for estimated losses resulting
from the inability of the Company's customers to make required payments. The allowance represents the current estimate of lifetime
expected credit losses over the remaining duration of existing accounts receivable considering current market conditions and supportable
forecasts when appropriate. The estimate is a result of the Company's ongoing evaluation of collectability, customer creditworthiness,
historical levels of credit losses, and future expectations.‏‏ As of December 31, 2023, the Company has collected all trade receivable
balances.
Research
and development, net
Research
and development costs are expensed to the statement of operations as incurred, net of government grants which represents participations
in research and development.
Research
and development expenses include costs directly attributable to the conduct of research and development programs, including payroll costs,
lab expenses, materials, consumables, and consulting fees. All costs associated with research and development are expensed as incurred.
The
Company receives royalty-bearing grants, which represents participation of the Israel Innovation Authority (hereafter "IIA"),
other governmental institutions (the Ministry of Economy and the Ministry of Energy) and the BIRD Foundation ("BIRD") in
approved programs for research and development. At the time the grants were received, successful development of the related projects
was not assured. Grants are recognized as a reduction of research and development expenses as the related costs are incurred. For more
information see note 16a.
Sales
and marketing
The
Company receives royalty-bearing grants, which represents participation of the New York Power Authority (hereafter "NYPA")
in approved programs for sales and marketing. These grants are recognized as a reduction of sales and marketing expenses as the related
costs are incurred.
Income
taxes
The
Company accounts for income taxes in accordance with ASC 740, "Income Taxes" ("ASC 740"). ASC 740 prescribes
the use of the liability method whereby deferred tax asset and liability account balances are determined based on differences between
financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect
when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets
to their estimated realizable value, if it is more likely than not that a portion or all the deferred tax assets will not be realized.
ASC
740-10, "Income Taxes" ("ASC 740-10") clarifies the accounting for uncertainty in income taxes recognized in
an enterprise's financial statements. This standard contains a two-step approach to recognizing and measuring a liability for uncertain
tax positions.
The
first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence
indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit,
including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount
that is more than 50% likely to be realized upon ultimate settlement. The Company accrues interest and penalties related to unrecognized
tax benefits in its taxes on income.
F-
16
ZOOZ
POWER LTD.
NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
The
Company believes that its income tax filing positions and deductions will be sustained on audit and does not anticipate any adjustments
that will result in a material change to its financial position.
Share-based
compensation
The
Company accounts for options granted to employees under the fair value recognition provision of ASC 718 "stock compensation".
The Company measures all share-based awards, based on their estimated fair value on the grant date.
The
Company's employees and directors share-based payment awards are classified as equity awards, except for awards as described below.
The grant date fair value of these share-based payment transactions is recognized as an expense over the requisite service period using
an accelerated method, net of estimated forfeitures. The Company elected to recognize compensation costs for awards conditioned only
on continued service that have a graded vesting schedule based on the multiple-option award approach. The Company accounts for its equity
classified share-based payment awards to its advisors in a similar manner.
The
Company uses the Black-Scholes option-pricing model to determine the fair value of stock options. The determination of the fair value
of stock-based payment awards on the date of grant using an option- pricing model is affected by the Company's stock price as well
as assumptions regarding number of complex and subjective variables. These variables include the estimated stock price volatility over
the term of the awards; actual and projected employee stock option exercise behaviors, which is referred to as expected term; risk-free
interest rate and expected dividends.
The
expected term is calculated using the simplified method, as the Company has concluded that its historical share option exercise experience
does not provide a reasonable basis to estimate the expected option term. The Company uses an average historical stock price volatility
based on a combined weighted average of the Company's historical average volatility and that of a selected peer group of comparable
public companies within the industry that were deemed to be representative of future stock price trends as the Company does not have
a sufficient historical trading history of its own Common Stock. The Company will continue to apply this process until a sufficient amount
of historical information regarding the volatility of its own stock price becomes available. The Company bases the risk-free interest
rate used in its option-pricing models on U.S. Treasury zero-coupon issues with remaining terms similar to the expected term to maturity
of its equity awards. The Company does not anticipate paying any cash dividends in the foreseeable future and therefore uses an expected
dividend yield of zero.
Liability
classified share-based options
Some
of the Company's share-based awards have an exercise price denominated in USD, which is not the Company's functional currency
and not the employees' salary currency or the currency in which the employees are paid. These awards are classified as liability
awards, measured at fair value at the date of grant and re-measured at fair value at each reporting date up to and including the settlement
date. The determination of the fair value of these awards is described in Note 12. The fair value of the awards is expensed over the
respective vesting period of the individual awards with recognition of a corresponding liability. Changes in fair value after vesting
are recognized through compensation expense in the statement of operations. Compensation expense reflects estimates of the number of
awards expected to vest. The impact of forfeitures and fair value revisions, if any, are recognized in earnings such that the cumulative
expense reflects the revisions, with a corresponding adjustment to the settlement liability.
F-
17
ZOOZ
POWER LTD.
NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
Severance
pay
Under
Israeli law, the Company is required to pay a severance payment to its employees in Israel upon dismissal of an employee or upon termination
of employment in certain other circumstances. The Company makes ongoing deposits into its Israeli employee pension plans to fund their
severance liabilities. For its employees who are employed under the Section 14 of the Severance Pay Law, 1963 ("Section 14"),
the Company makes deposits with certain insurance companies for accounts controlled by each applicable employee in order to secure the
employee's rights upon termination. In addition, the related obligations and amounts deposited on behalf of the applicable employees
for such obligations are not presented on the Company's balance sheets, as the amounts funded are not under the control of management
and the Company is legally released from the obligation to pay any severance payments to the employees once the required deposit amounts
have been paid. For the years ended December 31, 2023, 2022 and 2021, severance pay expenses were $
375
thousand, $
253
thousand and $
181
thousand, respectively.
Comprehensive
loss
The
Company complies with ASC 220, "Comprehensive Income," which establishes rules for the reporting and display of comprehensive
income (loss) and its components. The Company reports the financial impact of translating its financial statements from its functional
currency to its reporting currency as a component of other comprehensive income (loss).
Leases
The
Company accounts for leases in accordance with ASC 842, Leases. All of the Company's leases are classified as operating leases.
The Company determines if an arrangement is a lease at inception. Lease classification is governed by five criteria in ASC 842-10-25-2.
If any of these five criteria is met, the Company classifies the lease as a finance lease; otherwise, the Company classifies the lease
as an operating lease.
Operating
leases are included as operating lease right-of-use ("ROU") assets and operating lease liabilities on the balance sheet.
ROU
assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent its obligation
to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based
on the present value of lease payments over the lease term. The Company uses its incremental borrowing rate based on the information
available at the commencement date to determine the present value of the lease payments. The Company elected the practical expedient
to not separate lease and non-lease components for all of the Company leases, and to keep leases with an initial term of 12 months or
less off the balance sheet and recognize the associated lease payments in the statements of operations on a straight-line basis over
the lease term.
The
Company subsequently measures the ROU asset at the present value of the remaining lease payments, adjusted for the remaining balance
of any lease incentives received, any cumulative prepaid or accrued rent if the lease payments are uneven throughout the lease term and
any unamortized initial direct costs. Further, the Company recognizes lease expense on a straight-line basis over the lease term.
The
lease terms include options to extend or terminate the lease when it is reasonably certain that the Company will exercise or not exercise
the option to renew or terminate the lease.
F-
18
ZOOZ
POWER LTD.
NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
Contingent
Liabilities
Certain
conditions may exist as of the date of the financial statements, which may result in a loss to the Company, but which will only be resolved
when one or more future events occur or fail to occur. If the assessment of a contingency indicates that it is probable that a material
loss has been incurred and the amount of the liability can be estimated, then the estimated liability is recorded as accrued expenses
in the Company's financial statements. If the assessment indicates that a potential material loss contingency is not probable but
is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate
of the range of possible loss if determinable and material are disclosed. As of December 31, 2023, no contingent liabilities have been
recognized.
Accounting
Pronouncements effective in future periods
:
In
December 2023, the FASB issued ASU 2023-09 Improvements to Income Tax Disclosures. The ASU improves the transparency of income tax disclosures
by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid
disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures. This
ASU is effective for the Company for annual periods beginning after December 15, 2025. The Company is evaluating the potential impact
of this guidance on its financial statements.
In
November 2023, the FASB issued ASU No. 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The ASU
improves reportable segments disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The
ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December
15, 2024. Early adoption is permitted. The Company is evaluating the potential impact of this guidance on its financial statements.
NOTE
3 -
FAIR VALUE MEASUREMENT
:
The
Company's financial instruments consist mainly of cash, restricted long-term deposits and other current assets, accounts payable
and other payables. Other than the share-based payment liabilities, the recorded amounts approximate their respective fair value because
of the liquidity and short period of time to maturity, receipt, or payment of these instruments.
The
Company's financial instruments which are considered as a Level 3 measurement is the share-based payment liability. For more information
see Note 12.
Note
4 -
CASH AND RESTRICTED CASH EQUIVALENT
:
The
following table provides a reconciliation of cash and restricted deposits reported on the balance sheets that sum to the same total amount
as shown in the statements of cash flows:
December 31
2023
2022
U.S. dollars in thousands
Cash
6,672
20,569
Restricted deposits
(1)
-
224
Total cash and restricted cash equivalent shown in the statement of cash flows
6,672
20,793
(1)
As
    of December 31, 2022, the Company's restricted deposits consisted of bank deposits that were denominated in New Israeli Shekel.
    Restricted deposits are presented at cost including accrued interest. These bank deposits are used as security for collateralizing
    the Company's lease contracts.
F-
19
ZOOZ
POWER LTD.
NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
Note
5 -
PREPAID EXPENSES AND OTHER CURRENT ASSETS
:
December 31
2023
2022
U.S. dollars in thousands
Prepaid expenses
203
66
Institutions
117
216
Advances to suppliers
304
16
Other
128
299
752
597
Note
6 –
INVENTORY
:
December 31
2023
2022
U.S. dollars in thousands
Raw materials
955
558
Work in process
425
904
Finished goods
1,468
305
2,848
1,767
The
Company recorded an inventory write-off of $
1,123
thousand and $
178
thousand in 2023 and 2022, respectively, which is presented within
cost of sales in the statement of operations. In addition, the Company recorded an inventory write off of $
144
thousand in 2023 related
to raw materials which are not expected to be used during the future production process. Inventory write-offs were recorded to reflect
anticipated net realizable value on disposition of existing inventory assets.
Note
7 -
PROPERTY AND EQUIPMENT
:
December 31
2023
2022
U.S. dollars in thousands
Cost:
Computers and peripheral equipment
254
115
Office furniture and equipment
170
163
Machines and equipment
652
550
Leasehold improvements
264
252
Energy storage systems
844
-
2,184
1,080
Accumulated depreciation:
(
591
)
(
357
)
Depreciated cost
1,593
723
For
the years ended December 31, 2023, 2022 and 2021, depreciation expenses amounted to $
239
thousand, $
131
thousand, and $
44
thousand, respectively.
F-
20
ZOOZ
POWER LTD.
NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
Note
8 -
OTHER PAYABLES AND ACCRUED EXPENSES
:
December 31
2023
2022
U.S. dollars in thousands
Accrued expenses
975
252
Grants in advance
268
90
Others
144
10
1,387
352
Note
9 -
OPERATING LEASES
:
The
Company is party to a lease agreement for its facilities located in Israel through November 2024. The Company has the option to extend
the agreement for an additional
3
-year period. Upon exercising the extension option, the annual rental payments will increase by
3
%.
The Company concluded that it is reasonably certain that it will exercise the renewal option. Accordingly, such renewal option was included
in determining the lease term.
The
Company also leases vehicles for its employees with different commencement and ending periods in Israel (for 3 years periods). The Company
has an option terminate these lease agreements, which may result in penalties of insignificant amounts. The Company concluded that it
is not reasonably certain that it will exercise the termination option. Accordingly, such termination option was not included in determining
the lease term.
The
company has short term agreements for the of parking spaces for periods of up to
12 months
.
The
Company's operating lease expenses are recognized on a straight-line basis. Operating lease costs for the years ended December
31, 2023, 2022 and 2021 were as follows:
December 31
2023
2022
2021
U.S. dollars in thousands
Operating lease cost
781
760
209
Short term lease costs
18
14
-
Total lease costs
799
774
209
Cash
flow and other information related to operating leases were as follows:
December
31
2023
2022
2021
U.S. dollars in thousands
Cash paid for amounts included in the measurement of lease liabilities
443
250
106
Right-of-use assets obtained in exchange for new operating lease liabilities
108
319
1,496
F-
21
ZOOZ
POWER LTD.
NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
Other
information related to operating leases were as follows
:
December 31,
2023
2022
Weighted-average remaining lease term
3.9
years
4.7
years
Weighted-average discount rate
12.88
%
12.27
%
The
table below presents value of lease liabilities of the company for the lease period (USD thousands):
December 31,
2023
2024
415
2025
404
2026
390
2027
309
Total operating lease payments
1,518
Less: imputed interest
(
174
)
Present value of lease liabilities
1,344
NOTE
10 -
COMMITMENTS AND CONTINGENCIES
:
Commitment
to pay royalties to the Israel Innovation Authority and other participation grants
Since
incorporation of the Company and through 2023, the Company received grants for participation in research and development the IIA, other
governmental institutions (the Ministry of Economy and the Ministry of Energy) the BIRD Foundation, and from NYPA In the case of project
termination and/or unsuccessful development prior to having a mature product and beginning of sales, the Company does not have any commitment
to pay royalties. As a precondition for receiving the grants, the Company committed to pay royalties in a range of
11
% to
16
% (pending
territory) of revenue generated from selling the products, and up to the amount of grants received, based on a letter of commitment entered
with those entities.
Total
contingent obligations as of December 31, 2023 and 2022, amounted to $
2.0
million and $
1.3
million, respectively.
The
Company receives royalty-bearing grants, which represent participation of BIRD in approved programs for funding, covering up to
50
%
of
project development costs. These grants are recognized as a reduction of research and development expenses as the related costs are incurred.
For the years ended December 31,2023, 2022 and 2021, the Company received $
0.1
million $
0.1
million and $
0.2
million from BIRD, respectively.
The
Company is committed to pay royalties to BIRD at a rate of 5% of the sales of its product, up to 100% of the amount of the grants received
if full repayment made by April 1, 2024, 113% if full repayment is made by April 2025, 125% if full repayment is made by April 2026,
138% if full repayment is made by April 2027, and 150% if full repayment is made after April 2027
.
F-
22
ZOOZ
POWER LTD.
NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
The
Company receives royalty-bearing grants, which represent participation of IIA in approved programs for funding, covering up to
50
%
of
project development costs. These grants are recognized as a reduction of research and development expenses as the related costs are incurred.
For the years ended December 31, 2023, 2022 and 2021, the Company received $
0.3
million, $
0
and $
0.1
million from IIA, respectively.
The amount of $
0.3
million received in 2023 from the IIA was recorded as "Other Receivables" in 2022.
The Company is committed
to pay royalties to the Israeli Government at a rate of 3% to 5% of the sales of its product, up to 100% of the amount of the grants
received plus Annual Interest for a File, as such term is defined under the IIA's rules and guidelines
. In 2023 the Company paid
$
23
thousand to the Innovation Authority with respect of sales recognized during the year.
The
amounts deducted from research and development expenses are $
382
thousand, $
359
thousand and $
189
thousands for the years ended on December
31, 2023, 2022 and 2021, respectively.
Engagement
in collaborations agreements and pilot programs:
1.
Collaboration
    agreement with Blink
In
February 2020, the Company engaged in a collaboration agreement with Blink, a company engaged in development, marketing, and distribution
of equipment for electric vehicles, for the development of an energy storage system for the U.S. market designed to accelerate EV charging.
50
%
of the project's approved budget was funded by BIRD. Under the agreement, the Company is responsible for the development and
manufacturing of the facility for the U.S. market in compliance with U.S. standards, while Blink is responsible for the manufacturing
of a high-power EV charger, and for the marketing and distribution of the joint product. The Company is committed under the agreement
to pay
5
%
royalties on U.S. sales and up to the amount of the grant.
2.
Collaboration
    agreement with Afcon Electric Transportation LTD.
In
July 2022, the Company entered into an agreement with Afcon Electric Transportation Ltd. (hereafter - "Afcon"), in a cooperation
agreement for the establishment and execution of a pilot for an ultra-fast charging infrastructure for electric vehicles, based on a
ZOOZTER-100 kinetic storage system in combination with the energy management software (EMS) for smart management of power consumption
on the site produced by the Company.
The
engagement in the agreement is subject to the approval from the IIA for a pilot support grant amounting to
40
%
of the project budget,
in the amount of $
0.3
million.
F-
23
ZOOZ
POWER LTD.
NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
3.
Collaboration
    agreement with New York Power Authority
On
September 12, 2022, the Company engaged in a cooperation agreement with the NYPA for the development, installation, integration and demonstration
of the Company's systems for use as ultra-fast charging infrastructure for electric vehicles, in locations with limited power grid
capacity. Under the agreement, the Company is expected to construct and demonstrate with NYPA's funding of up to $
0.9
million,
of which the Company received $
0.5
million during 2023) an ultra-fast charging station based on the Company's system. According
to the contract, the Company is obliged to pay royalties in the range between
1.5
%
to
2
%
until the receipts received from NYPA are fully
covered.
Note
11 -
EQUITY
:
In
March 2024, the Company's general meeting of shareholders approved a reverse split of shares on a conversion ratio of
11.4372
.
All numbers of shares and options, and warrants presented in these financial statements are after retrospective application of the reverse-split.
For more information see Note 1.
Each
holder of the Company's ordinary shares, par value NIS
0.00286
per share, is entitled to one vote. The holders of ordinary shares
are also entitled to receive dividends whenever funds are legally available and declared by the Company's Board of Directors (the
"Board"). Since inception, the Company has not declared any dividends.
In
February 2021, the Company converted
467,571
preferred shares into
1,565,000
ordinary shares before the split as describe below (Following
the reverse split in March 2024, as described above, the converted preferred shares would have differed from
18,881,400
ordinary shares
to
1,650,875
ordinary shares).
In
February 2021, the Company's general meeting of shareholders approved the split of all classes in its issued and paid-up share
capital into ordinary shares. Additionally, the general meeting approved a split of shares on a 40:1 ratio.
On
February 18, 2021, the Company signed a binding memorandum with Arko shortly before obtaining permission to issue a complementary prospectus
ahead of an initial public offering (IPO) of the Company on the Tel Aviv Stock Exchange ("TASE"), granting
26,230
warrants
for the acquisition of ordinary shares of
the Company, exercisable for a price per share at 120% of a the share price that would be determined
at the IPO and for a period of five years
. As of December 31, 2023, the warrants have yet to be exercised. Sales and marketing expenses
for the year ended December 31, 2021 include an expense of $
269
thousand.
In
March 2021,
the Company completed an IPO of its securities on the TASE and issued to the public
33,754
units, each composed of 8.74 ordinary
shares, 6.56 Series 1 and 2.19 Series 2 options. Option series 1 will exercise period is within one year, with an exercise price of $
29.7
(NIS
92.9
). Option series 2 exercise period is within two years, with an exercise price of $
44.6
(NIS
139.5
). Gross issue proceeds were
$
8.4
million (NIS
27.4
million). Issuance costs were $
0.6
million (NIS
1.9
million), recognized as a deduction from additional paid-in
capital
.
In
March 2022,
the Company completed a financing round through a private placement and a public offering. As part of the public offering,
the Company issued
352,276
units, each composed of
8.74
ordinary shares and
5.68
Series 3 options. The options will vest over a period
of 3 years, with an exercise price of $
9.1
(NIS 32) for one year period and $11.4 (NIS 41.2) for additional two years period. In the
private placement, the Company issued
42,735
units, each composed of
8.74
ordinary shares and 7.43 Series 3 options as well as 16,239
units, each composed of 8.74 ordinary shares and 5.68 Series 3 options. Gross issue proceeds were $
29
million (NIS
96
million). Issuance
costs amounted to USD
1.7
million (NIS
5.7
million), including NIS
0.5
million paid to an advisor through the allocation of shares and
Series 3 options, were recognized as a deduction from additional paid-in capital
.
F-
24
ZOOZ
POWER LTD.
NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
Note
12 -
SHARE BASED COMPENSATION
:
The
2015 Incentive Compensation Plan ("2015 Plan")
In
August 2015, the Board of Directors approved the Company's option plan for employees and officers, which was submitted in June
2016 to the Israel income tax authorities as a plan administered by a trustee and treated for tax purposes as a capital gain pursuant
to Section 102(b)(2). Options to non-employees and non-officers of the Company, in addition to controlling shareholders of the Company,
are to be allocated under Section 3(i) of the Income Tax Ordinance.
According
to the 2015 Plan, the Company's Board of Directors is permitted to grant employees, officers, directors, consultants and other
senior service providers of the Company (as this term is defined by Section 102(a) to the Income Tax Ordinance unlisted options and warrants
that are exercisable into shares of the Company. The 2015 Plan is managed by the Company's Board of Directors, or by a committee
authorized by the Board. All shares that will arise from exercising the unlisted options grants to employees, consultants and officers
under the 2015 Plan would be fully paid up on their date of allocation and, beginning on the date the Company becomes public, would be
registered in the name of the Company.
The
exercise price for each option or warrant is as determined by the Board of Directors, but provided that if the Board of Directors does
not indicate otherwise, the exercise price would be the fair market value of the Company's share on the date of the decision to
allocate.
The
vesting period, unless the Company's Board of Directors determines otherwise in respect to any specific grantee is (1) 25% of options
would vest after twelve consecutive months of services by the grantee since the date of grant; (2) 6.25% of options would vest after
every three (3) additional months of consecutive service by the grantee, until 100% of the options vest, after four (4) years after grant
date.
Further, the Company's Board of Director is permitted, at its exclusive judgment, to accelerate vesting of all or part of
an option of warrant in the event of a merger of the Company with another company.
Unless
expired at an earlier date, the unexercised options would expire after
ten years
after grant date.
Equity
classified awards
In
November 2021, the Company granted
78,621
options (unlisted), exercisable into ordinary shares of the Company, to an officer who is a
related party, with whom the Company has no employment relationship, for an exercise price of NIS
74.8
per share.
In
November 2021, the Company granted
13,989
options (unlisted), exercisable into ordinary shares of the Company, to employees or officers,
for an exercise price of NIS
65.6
per share.
In
November 2021, the Company granted
13,989
options (unlisted), exercisable into ordinary shares of the Company, to an officer, for an
exercise price of NIS
65.6
per share.
In
July 2022, the Company granted
82,187
options (unlisted), exercisable into ordinary shares of the Company, to employees or officers with
whom the Company has employment relationships, for an exercise price of NIS
21.6
per share.
In
July 2022, the Company granted
17,486
options (unlisted), exercisable into ordinary shares of the Company, to an officer, with whom the
Company has employment relationship for an exercise price of NIS
26.8
per share.
F-
25
ZOOZ
POWER LTD.
NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
In
August 2022, the Company granted
52,460
options (unlisted), exercisable into ordinary shares of the Company, to officers, with whom the
Company has employment relationships for an exercise price of NIS
26.8
per share.
In
October 2022, the Company granted
26,230
options (unlisted), exercisable into ordinary shares of the Company, to an officer, with whom
the Company has employment relationship for an exercise price of NIS
26.8
per share.
In
December 2022, the Company granted
13,989
options (unlisted), exercisable into ordinary shares of the Company, to employees or officers,
and with whom the Company has employment relationships for an exercise price of NIS
17.4
per share.
In
February 2023, the Company granted
13,115
options (unlisted), exercisable into ordinary shares of the Company, to an employee, with whom
the Company has employment relationships for an exercise price of NIS
17.7
per share.
In
March 2023, the Company granted
39,782
options (unlisted), exercisable into ordinary shares of the Company, to employees, with whom the
Company has employment relationships for an exercise price of NIS
15.9
per share.
In
April 2023, the Company granted
90,275
options (unlisted), exercisable into ordinary shares of the Company, to an officer who is a related
party, with whom the Company has no employment relationship. The options will vest over
3
years from the date of the grant -
33
%
each
year. The exercise price for each option is variable in each tranche: NIS
28.6
, NIS
32.0
, NIS
42.7
, respectively.
The
grant of the options was made against the cancellation of
78,621
options that were granted to that officer in November 2021. The accounting
treatment of the grant of the options that replaced the canceled options was carried out by way of a modification. The incremental fair
value granted, which is the difference between the fair value of the new options issued and the fair value of the canceled options at
the time the new options were granted, will be recognized as an expense over the vesting period of the new grant.
In
April 2023, the Company granted
47,873
options (unlisted), exercisable into ordinary shares of the Company, to two directors, with whom
the Company has no employment relationships. The options will vest over
3
years from the date of the grant -
33
%
each year. The exercise
price for each option is variable in each tranche: NIS
28.6
, NIS
32.0
, NIS
42.7
, respectively.
In
August 2023, the Company granted
49,400
options (unlisted), exercisable into ordinary shares of the Company, to employees, with whom
the Company has employment relationships for an exercise price of NIS
12.1
per share.
The
value of benefit is measured on the grant date by reference to the fair value of the granted equity instruments, as described above.
The fair value is calculated using the Black and Scholes formula, with the following assumptions:
2023
2022
2021
Dividend yield
0
%
0
0
%
Expected volatility
74
%
-
76
%
52
%
-
76
%
55
%
-
75
%
Risk-free interest rate
3.3
%
-
3.9
%
2.4
%
-
3.1
%
0.75
%
-
2
%
Expected term (years)
4
-
7 years
5
-
7 years
5
-
6 years
Exercise price (USD)
3.32
-
11.78
4.92
-
7.55
5.15
-
21.16
F-
26
ZOOZ
POWER LTD.
NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
The
following is summary information of equity classified options in 2023:
Year ended December 31, 2023
Weighted average exercise price
Weighted average remaining contractual life
Aggregate Intrinsic
Number
USD
Years
Value
Outstanding at beginning of year
298,955
8.46
9.4
-
Expired
(
110,945
)
16.81
-
-
Granted
240,447
5.60
9.3
-
Outstanding at end of year
428,457
7.55
8.9
-
Exercisable at end of year
64,291
9.15
8.2
-
The
weighted-average grant-date fair value of equity awards granted during the year was $
1.73
.
The
following is information regarding exercise prices and remaining contractual lives of outstanding options at December 31, 2023:
December 31, 2023
Outstanding
Exercisable
Number of options outstanding
Exercise price (USD)
Weighted average remaining contractual life
Number of options Exercisable
Exercise price (USD)
Weighted average remaining contractual life
49,400
3.32
9.6
-
-
-
39,782
4.35
9.2
-
-
-
9,618
4.80
8.9
2,077
4.80
8.9
13,115
4.92
9.1
-
-
-
59,482
5.95
8.5
19,809
5.95
8.5
96,177
7.43
8.7
28,416
7.43
8.7
46,050
7.89
9.3
-
-
-
46,050
9.04
9.3
-
-
-
46,050
11.78
9.3
-
-
-
22,733
18.07
7.8
13,989
18.07
7.8
428,457
7.55
8.9
64,291
9.15
8.2
As
of December 31, 2023, there is an unrecognized share-based compensation expense of $
441
thousand to be recognized over the average remaining
vesting period of
2.5
years.
F-
27
ZOOZ
POWER LTD.
NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
Liability
classified awards
The
options were classified as liabilities in accordance with ASC 718, as the exercise price is denominated in USD, that is not the Company's
functional currency and not the employees' salary currency or the currency in which the Company is traded. Accordingly, the options
are measured at fair value each reporting period, and changes in their fair value are recognized in the statements of operations. The
fair value of the options as of December 31, 2023, was evaluated using the Black-Scholes Option Pricing Model. For the various scenarios
modeled, volatility is based on companies in the industry by statistical analysis of a daily share pricing model. The risk-free interest
rate assumption is based on observed interest rates appropriate for the period until the options expiration date. Following the merger
in April 2024, as detailed in note 1, given that the currency of the market in which the Company's equity securities are traded,
these awards will be reclassified to equity.
The
table below sets forth a summary of changes in the fair value of the options:
Number of options measured at fair value
Fair value (U.S. Dollars in thousands)
Balance at January 1, 2021
446,703
4,769
Effect of change in exchange rate
112
Changes in fair value
-
(
1,276
)
Balance at December 31, 2021
446,703
3,605
Effect of change in exchange rate
(
315
)
Changes in fair value
-
(
2,294
)
Balance at December 31, 2022
440,045
996
Effect of change in exchange rate
(
30
)
Changes in fair value
-
(
734
)
Balance at December 31, 2023
405,714
232
As
of December 31, 2023,
386,016
options were fully vested.
The
following table summarizes assumptions used as of December 31, 2023, 2022 and 2021:
2023
2022
2021
Expected dividend
0
%
0
%
0
%
Expected volatility*
81.2
%
-
90.9
%
79.6
%
-
95.7
%
86.9
%
-
95
%
Risk-free interest rate
4.97
%
-
5.35
%
4.68
%
-
5.27
%
1.18
%
-
1.87
%
Expected life
2
-
4
1.5
-
5
2
-
5.9
Exercise price (USD)
4.57
-
15.67
4.57
-
15.67
4.57
-
15.67
F-
28
ZOOZ
POWER LTD.
NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
The
following is summary information about liability classified options in 2023:
Year ended December 31, 2023
Weighted
average
exercise
price
Weighted
average
remaining
contractual
life
Aggregate
Intrinsic
Number
USD
years
Value
Outstanding at beginning of year
440,045
8.46
6.3
-
Expired
(
34,331
)
7.66
-
-
Outstanding at end of year
405,714
9.72
6.2
-
Exercisable at end of year
386,016
10.52
6.1
-
The
following is information regarding exercise prices and remaining contractual lives of outstanding options at December 31, 2023:
December 31, 2023
outstanding
Exercisable
Number of
options
outstanding
Exercise price
range (USD)
Weighted
average
remaining
contractual life
Number of
options
Exercisable
Exercise price
range (USD)
Weighted
average
remaining
contractual life
78,110
7.55
4.1
78,110
7.55
4.1
239,009
7.78
6.8
239,009
7.78
6.8
78,795
15.67
6.9
59,097
15.67
6.9
9,800
25.62
0.4
78,110
25.62
0.4
405,714
9.72
6.2
386,016
10.52
6.1
As
of December 31, 2023, there is an unrecognized share-based compensation expense of $
1
thousand to be recognized over the average remaining
vesting period of
0.9
year.
The
table below presents the expense (income) recognized in the financial statements of the Company in respect to share-based payment:
Year ended December 31
2022
2021
Equity
classified
awards
Liability
classified
awards
Total
expense
Equity
classified
awards
Liability
classified
awards
Total
expense
Research and development expenses (income)
206
(
1,426
)
(
1,220
)
7
(
1,297
)
(
1,290
)
Sales and marketing expenses (income)
59
(
546
)
(
487
)
269
(
459
)
(
190
)
General and Administrative expenses (income)
278
(
322
)
(
44
)
70
95
165
543
(
2,294
)
(
1,751
)
346
(
1,661
)
(
1,315
)
F-
29
ZOOZ
POWER LTD.
NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
Year ended December 31
2023
Equity classified
awards
Liability
classified awards
Total
expense
Research and development expenses (income)
98
(
440
)
(
342
)
Sales and marketing expenses (income)
111
(
171
)
(
60
)
General and Administrative expenses (income)
294
(
111
)
183
503
(
722
)
(
219
)
Note
13 –
TAXES ON INCOME
:
Tax
rates
The
Company is taxed under the laws of the State of Israel at a corporate tax rate of
23
%. Capital gains of the Company are subject to the
normal corporate tax rate beginning in the tax year.
Deferred
Tax Assets
The
Company's deferred tax assets are as follows:
December 31
2023
2022
U.S. dollars in thousands
Deferred Tax assets:
Net operating losses carryforward
8,053
5,882
Operating lease liabilities
309
362
Employee benefits
70
60
Inventory write off
291
-
Research and development expenses
1,250
-
Issuance costs
120
290
Total deferred tax assets
10,093
6,594
Less deferred tax liabilities (related to right of use assets)
(
301
)
(
336
)
Deferred tax assets, net
9,792
6,258
Less valuation allowance for deferred tax assets
(
9,792
)
(
6,258
)
Deferred tax assets
-
-
December 31
2023
2022
U.S. dollars in thousands
Valuation allowance at beginning of year
(
6,258
)
(
4,739
)
Changes in valuation allowance
(
3,534
)
(
1,519
)
Valuation allowance at end of year
(
9,792
)
(
6,258
)
Deferred
taxes were calculated using
23
% tax rate as this represents the applicable corporate tax rate for the Company.
F-
30
ZOOZ
POWER LTD.
NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
Significant
judgment is required in determining any valuation allowance recorded against deferred tax assets. In assessing the need for a valuation
allowance, the Company considered all available evidence, including past operating results, the most recent projections for taxable income,
and prudent and feasible tax planning strategies. The Company reassess its valuation allowance periodically and if future evidence allows
for a partial or full release of the valuation allowance, a tax benefit will be recorded accordingly.
Management
currently believes that since the Company has a history of losses, it is more likely than not that the deferred tax assets regarding
the loss carry-forward will not be realized in the foreseeable future and as a result the Company recorded a full valuation allowance.
Carryforward
losses
Carryforward
losses for tax purposes are NIS
127
million ($
35
million) and NIS
90
million ($
26
million) as of December 31, 2023 and 2022, respectively.
Such carryforward losses have no expiration date.
Tax
assessments
As
prescribed by law, the statute of limitations on taxpayer self-assessments is four years after the end of the tax year in which the assessment
is filed. Accordingly, self-assessments filed by the Company until and including 2018 are considered final.
Note
14 -
RELATED PARTIES TRANSACTIONS
:
Year
    ended December 31
2023
2022
2021
U.S.
    dollars in thousands
Share based
    compensation expenses
:
Research and development
    income, net
(
163
)
(
529
)
(
459
)
General and administrative
    expenses
76
19
399
NOTE
15 -
RESEARCH AND DEVELOPMENT EXPENSES, NET
:
Year ended December 31
2023
2022
2021
U.S. dollars in thousands
Payroll and related expenses
3,308
1,824
507
Subcontractors
697
1,212
625
Materials
388
945
301
Operating lease expenses
208
189
47
Depreciation
211
130
44
Maintenance
223
136
174
Other
298
86
14
5,333
4,522
1,712
Less – grants from governments and others
(
118
)
(
359
)
(
189
)
5,215
4,163
1,523
F-
31
ZOOZ
POWER LTD.
NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
NOTE
16 –
FINANCE INCOME EXPENSES (EXPENSE), NET
:
Year ended December 31
2023
2022
2021
U.S. dollars in thousands
Interest on deposits
265
108
-
Foreign exchange losses (gain), net
206
279
(
34
)
Bank fees
(
15
)
(
10
)
(
9
)
456
377
(
43
)
NOTE
17 –
SUBSEQUENT EVENTS
:
1.
On
                                            March 2024, the Company signed with Dor-Alon a binding memorandum of understanding, according
                                            to which the companies will cooperate within a project (the "Project") to upgrade
                                            the ultra-fast charging infrastructure of the ON network, at Dor-Alon stations on Route 6,
                                            using the company's solution, which is based on the ZOOZTER™-100 Power Booster
                                            (the "System") and the Company's charging management software. The purpose
                                            of the project is to enable the addition of ultra-fast charging ports, despite the limitation
                                            of the electricity grid, at the charging sites at the Dor-Alon stations on Route 6, as described
                                            below.
As
part of the project, in cooperation with Dor Alon and Afcon Electric Transportation, the charging infrastructure will be upgraded at
two Dor Alon stations, on Route 6 - Magal station (east side) and Naan station (west side) - while installing two ZOOZTER™-100
systems (one system at each station), and adding charging ports based on ultra-fast chargers, which allow charging with a power of up
to 150 kilowatts. The upgrade of the charging infrastructure is expected to enable a significant improvement in the experience of EV
drivers, who travel on Route 6 (being a major transportation corridor in Israel) and look for charging services at these sites.
In
the first months of operation, of the ZOOZTER™-100 systems at the Route 6 sites, will be used to test their ability to allow the
addition of charging ports while managing charging at a large number of charging ports (this is different from the outline of the pilot
carried out during 2023 at the Dor-Alon station "Mall-Zikhron"). To the extent that the company's solution is proven
to allow the addition of the aforementioned charging ports, the systems will be purchased by Dor-Alon, under conditions agreed upon between
the parties.
2.
As
                                            for the completion of the Merger transaction see Note 1
F-
32