<?xml version="1.0" encoding="ASCII"?>
<!-- Generated by CompSci Transform (tm) - http://www.compsciresources.com -->
<!-- Created: Mon May 15 13:06:58 UTC 2023 -->
<html xmlns:country="http://xbrl.sec.gov/country/2022" xmlns:pvnnf="http://pvnanocell.com./20221231" xmlns:dtr="http://www.xbrl.org/dtr/type/2020-01-21" xmlns:ixt="http://www.xbrl.org/inlineXBRL/transformation/2020-02-12" 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/2022" xmlns:iso4217="http://www.xbrl.org/2003/iso4217" xmlns:xbrli="http://www.xbrl.org/2003/instance" xmlns:compsci="http://compsciresources.com" xmlns:ix="http://www.xbrl.org/2013/inlineXBRL" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xmlns:us-types="http://fasb.org/us-types/2022" xmlns:srt="http://fasb.org/srt/2022" xmlns:xl="http://www.xbrl.org/2003/XLink" xmlns:xbrldi="http://xbrl.org/2006/xbrldi" xmlns:us-gaap="http://fasb.org/us-gaap/2022" xmlns:xs="http://www.w3.org/2001/XMLSchema-instance" xmlns:xlink="http://www.w3.org/1999/xlink" xmlns="http://www.w3.org/1999/xhtml">
<head>
     <title> </title>

<meta content="text/html" http-equiv="Content-Type" />
</head>
<body><div style="font: 10pt Times New Roman, Times, Serif"><div>

</div><p style="text-align: center; margin-top: 0; margin-bottom: 0"></p><div>

</div><!-- Field: Rule-Page --><div style="margin-top: 0pt; margin-bottom: 0pt; width: 100%"><div style="font-size: 1pt; border-top: Black 2pt solid; border-bottom: Black 1pt solid">&#160;</div></div><!-- Field: /Rule-Page --><div>

</div><p style="text-align: center; margin-top: 0; margin-bottom: 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>UNITED STATES</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>SECURITIES AND EXCHANGE COMMISSION<br/>
Washington, D.C. 20549</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Form <ix:nonNumeric contextRef="c0" name="dei:DocumentType">20-F</ix:nonNumeric></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><ix:nonNumeric contextRef="c0" format="ixt:fixed-false" name="dei:DocumentRegistrationStatement"><span style="font-family: Times New Roman, Times, Serif">&#9744;</span></ix:nonNumeric> <b>REGISTRATION
STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>OR</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><ix:nonNumeric contextRef="c0" format="ixt:fixed-true" name="dei:DocumentAnnualReport"><span style="font-family: Times New Roman, Times, Serif">&#9746;</span></ix:nonNumeric> <b>ANNUAL
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>For the fiscal year ended <ix:nonNumeric contextRef="c0" format="ixt:date-monthname-day-year-en" name="dei:DocumentPeriodEndDate"><ix:nonNumeric contextRef="c0" format="ixt:date-monthname-day-en" name="dei:CurrentFiscalYearEndDate">December 31</ix:nonNumeric>, <ix:nonNumeric contextRef="c0" name="dei:DocumentFiscalYearFocus">2022</ix:nonNumeric></ix:nonNumeric></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>OR</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif"><ix:nonNumeric contextRef="c0" format="ixt:fixed-false" name="dei:DocumentTransitionReport">&#9744;</ix:nonNumeric> </span><b>TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>OR</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><ix:nonNumeric contextRef="c0" format="ixt:fixed-false" name="dei:DocumentShellCompanyReport"><span style="font-family: Times New Roman, Times, Serif">&#9744;</span></ix:nonNumeric> <b>SHELL
COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>For the transition period from _______ to _______</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Commission File No. <ix:nonNumeric contextRef="c0" name="dei:EntityFileNumber">333-206723</ix:nonNumeric></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b><span style="-sec-ix-hidden: hidden-fact-0">P.V. NANO CELL LTD.</span></b></p><div>

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

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>N/A</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><i>(Translation of the Registrant&#8217;s name
into English)</i></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>State of <ix:nonNumeric contextRef="c0" format="ixt-sec:edgarprovcountryen" name="dei:EntityIncorporationStateCountryCode">Israel</ix:nonNumeric></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><i>(Jurisdiction of incorporation or organization)</i></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b><ix:nonNumeric contextRef="c0" name="dei:EntityAddressAddressLine1">8 Hamasger Street</ix:nonNumeric>, <ix:nonNumeric contextRef="c0" name="dei:EntityAddressCityOrTown">Migdal Ha&#8217;Emek</ix:nonNumeric>, <ix:nonNumeric contextRef="c0" format="ixt-sec:countrynameen" name="dei:EntityAddressCountry">Israel</ix:nonNumeric>
<ix:nonNumeric contextRef="c0" name="dei:EntityAddressPostalZipCode">2310102</ix:nonNumeric></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><i>(Address of principal executive offices)</i></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><ix:nonNumeric contextRef="c1" name="dei:ContactPersonnelName"><b>Avi Magid</b></ix:nonNumeric></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Chief Executive Officer</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><ix:nonNumeric contextRef="c1" name="dei:EntityAddressAddressLine1"><b>8 Hamasger Street</b></ix:nonNumeric></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b><ix:nonNumeric contextRef="c1" name="dei:EntityAddressCityOrTown">Migdal Ha&#8217;Emek</ix:nonNumeric>, <ix:nonNumeric contextRef="c1" format="ixt-sec:countrynameen" name="dei:EntityAddressCountry">Israel</ix:nonNumeric> <ix:nonNumeric contextRef="c1" name="dei:EntityAddressPostalZipCode">2310102</ix:nonNumeric></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Tel: <ix:nonNumeric contextRef="c1" name="dei:CityAreaCode">972</ix:nonNumeric>.<ix:nonNumeric contextRef="c1" name="dei:LocalPhoneNumber">4.654.6881</ix:nonNumeric></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Fax: 972.4.654.6880</b></p><div>

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

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Securities registered or to be registered pursuant
to Section 12(b) of the Act:&#160;None.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Securities registered or to be registered pursuant
to Section 12(g) of the Act:&#160;None.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Securities for which there is a reporting obligation
pursuant to Section 15(d) of the Act:</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Ordinary Shares, nominal value NIS 0.01&#160;per
share</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 1; Options: NewSection --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="margin: 0pt">&#160;</p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Indicate the number of outstanding
ordinary 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
<b><ix:nonFraction contextRef="c2" decimals="INF" format="ixt:num-dot-decimal" name="dei:EntityCommonStockSharesOutstanding" scale="0" unitRef="shares">147,134,792</ix:nonFraction> ordinary shares, nominal value NIS 0.01&#160;per share, as of December 31, 2022.</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Indicate by check mark if
the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. <b>Yes <span style="font-family: Times New Roman, Times, Serif">&#9744;</span>&#160;&#160;<ix:nonNumeric contextRef="c0" name="dei:EntityWellKnownSeasonedIssuer">No</ix:nonNumeric>&#160;<span style="font-family: Times New Roman, Times, Serif">&#9746;</span></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">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. <b>Yes&#160;</b><span style="font-family: Times New Roman, Times, Serif">&#9744;</span>&#160;&#160;<b><ix:nonNumeric contextRef="c0" name="dei:EntityVoluntaryFilers">No</ix:nonNumeric>
<span style="font-family: Times New Roman, Times, Serif">&#9746;</span></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">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 a 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. <b><ix:nonNumeric contextRef="c0" name="dei:EntityCurrentReportingStatus">Yes</ix:nonNumeric> <span style="font-family: Times New Roman, Times, Serif">&#9746;</span></b>&#160;&#160;<b>No
<span style="font-family: Times New Roman, Times, Serif">&#9744;</span></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Indicate by check mark whether
the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted
and posted pursuant to Rule 405 of Regulation S-T (&#167;232.405 of this chapter) during the preceding 12 months (or for such shorter
period that the registrant was required to submit and post such files). <b><ix:nonNumeric contextRef="c0" name="dei:EntityInteractiveDataCurrent">Yes</ix:nonNumeric>&#160;</b><span style="font-family: Times New Roman, Times, Serif">&#9746;</span><b>&#160;&#160;No
<span style="font-family: Times New Roman, Times, Serif">&#9744;</span></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Indicate by check mark whether
the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. 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.:</p><div>

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

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 28%; text-align: center"><span style="font-size: 10pt"><b>Large accelerated filer&#160;<span style="font-family: Times New Roman, Times, Serif">&#9744;</span></b></span></td> <td style="width: 41%; text-align: center"><span style="font-size: 10pt"><b>Accelerated filer&#160;</b><span style="font-family: Times New Roman, Times, Serif">&#9744;</span></span></td> <td style="width: 31%"><span style="font-size: 10pt"><b><ix:nonNumeric contextRef="c0" format="ixt-sec:entityfilercategoryen" name="dei:EntityFilerCategory">Non-accelerated filer</ix:nonNumeric>&#160;</b><span style="font-family: Times New Roman, Times, Serif">&#9746;</span></span></td></tr> <tr style="vertical-align: top"> <td>&#160;</td> <td>&#160;</td> <td><span style="font-size: 10pt"><b>Emerging growth company&#160;</b><ix:nonNumeric contextRef="c0" format="ixt:fixed-false" name="dei:EntityEmergingGrowthCompany"><span style="font-family: Times New Roman, Times, Serif">&#9744;</span></ix:nonNumeric></span></td></tr> </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">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.<b>&#160;</b><span style="font-family: Times New Roman, Times, Serif">&#9744;</span></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">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<b>.&#160;</b><ix:nonNumeric contextRef="c0" format="ixt:fixed-false" name="dei:IcfrAuditorAttestationFlag"><span style="font-family: Times New Roman, Times, Serif">&#9744;</span></ix:nonNumeric></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">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 style="font-family: Times New Roman, Times, Serif">&#9744;</span></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">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). <span style="font-family: Times New Roman, Times, Serif">&#9744;</span></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Indicate by check mark which
basis of accounting the registrant has used to prepare the financial statements included in this filing:</p><div>

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

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="white-space: nowrap; width: 25%; text-align: justify"><span style="font-size: 10pt"><b><ix:nonNumeric contextRef="c0" name="dei:DocumentAccountingStandard">U.S. GAAP</ix:nonNumeric>&#160;</b><span style="font-family: Times New Roman, Times, Serif">&#9746;</span></span></td> <td style="width: 1%">&#160;</td> <td style="white-space: nowrap; width: 48%; text-align: center"><span style="font-size: 10pt"><b>International Financial Reporting Standards<br/>
as issued by the International Accounting Standards Board&#160;</b><span style="font-family: Times New Roman, Times, Serif">&#9744;</span></span></td> <td style="width: 1%">&#160;</td> <td style="white-space: nowrap; width: 25%; text-align: right"><span style="font-size: 10pt"><b>Other&#160;</b><span style="font-family: Times New Roman, Times, Serif">&#9744;</span></span></td></tr> </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">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>: Item 17</b>&#160;<span style="font-family: Times New Roman, Times, Serif">&#9744;</span>&#160;<b>Item 18&#160;</b><span style="font-family: Times New Roman, Times, Serif">&#9744;</span></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">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)<b>. Yes&#160;</b><span style="font-family: Times New Roman, Times, Serif">&#9744;</span>&#160;<b>No&#160;</b><ix:nonNumeric contextRef="c0" format="ixt:fixed-false" name="dei:EntityShellCompany"><span style="font-family: Times New Roman, Times, Serif">&#9746;</span></ix:nonNumeric></p><div>

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

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

</div><!-- Field: Rule-Page --><div style="margin-top: 0pt; margin-bottom: 0pt; width: 100%"><div style="font-size: 1pt; border-top: Black 1pt solid; border-bottom: Black 2pt solid">&#160;</div></div><!-- Field: /Rule-Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 2 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="margin: 0pt">&#160;</p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>TABLE OF CONTENTS</b></p><div>

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

</div><table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
  <tr style="background-color: #CCEEFF">
    <td style="vertical-align: top; width: 11%"><a href="#a_001"><span style="font-size: 10pt">PART I</span></a></td>
    <td style="vertical-align: top; width: 82%; text-align: justify">&#160;</td>
    <td style="vertical-align: bottom; width: 7%; text-align: center">1</td></tr>
  <tr>
    <td style="vertical-align: top; padding-left: 9pt"><span style="font-size: 10pt">ITEM 1.</span></td>
    <td style="vertical-align: top; text-align: justify"><a href="#a_002"><span style="font-size: 10pt">Identity of Directors, Senior Management and Advisers</span></a></td>
    <td style="vertical-align: bottom; text-align: center">1</td></tr>
  <tr style="background-color: #CCEEFF">
    <td style="vertical-align: top; padding-left: 9pt"><span style="font-size: 10pt">ITEM 2.</span></td>
    <td style="vertical-align: top; text-align: justify"><a href="#a_003"><span style="font-size: 10pt">Offer Statistics and Expected Timetable</span></a></td>
    <td style="vertical-align: bottom; text-align: center">1</td></tr>
  <tr>
    <td style="vertical-align: top; padding-left: 9pt"><span style="font-size: 10pt">ITEM 3.</span></td>
    <td style="vertical-align: top; text-align: justify"><a href="#a_004"><span style="font-size: 10pt">Key Information</span></a></td>
    <td style="vertical-align: bottom; text-align: center">1</td></tr>
  <tr style="background-color: #CCEEFF">
    <td style="vertical-align: top; padding-left: 9pt"><span style="font-size: 10pt">ITEM 4.</span></td>
    <td style="vertical-align: top; text-align: justify"><a href="#a_005"><span style="font-size: 10pt">Information on the Company</span></a></td>
    <td style="vertical-align: bottom; text-align: center">24</td></tr>
  <tr>
    <td style="vertical-align: top; padding-left: 9pt"><span style="font-size: 10pt">ITEM 4A.</span></td>
    <td style="vertical-align: top; text-align: justify"><a href="#a_006"><span style="font-size: 10pt">Unresolved Staff Comments</span></a></td>
    <td style="vertical-align: bottom; text-align: center">33</td></tr>
  <tr style="background-color: #CCEEFF">
    <td style="vertical-align: top; padding-left: 9pt"><span style="font-size: 10pt">ITEM 5.</span></td>
    <td style="vertical-align: top; text-align: justify"><a href="#a_007"><span style="font-size: 10pt">Operating and Financial Review and Prospects</span></a></td>
    <td style="vertical-align: bottom; text-align: center">33</td></tr>
  <tr>
    <td style="vertical-align: top; padding-left: 9pt"><span style="font-size: 10pt">ITEM 6.</span></td>
    <td style="vertical-align: top; text-align: justify"><a href="#a_008"><span style="font-size: 10pt">Directors, Senior Management and Employees</span></a></td>
    <td style="vertical-align: bottom; text-align: center">44</td></tr>
  <tr style="background-color: #CCEEFF">
    <td style="vertical-align: top; padding-left: 9pt"><span style="font-size: 10pt">ITEM 7.</span></td>
    <td style="vertical-align: top; text-align: justify"><a href="#a_009"><span style="font-size: 10pt">Major Shareholders and Related Party Transactions</span></a></td>
    <td style="vertical-align: bottom; text-align: center">66</td></tr>
  <tr>
    <td style="vertical-align: top; padding-left: 9pt"><span style="font-size: 10pt">ITEM 8.</span></td>
    <td style="vertical-align: top; text-align: justify"><a href="#a_010"><span style="font-size: 10pt">Financial Information</span></a></td>
    <td style="vertical-align: bottom; text-align: center">69</td></tr>
  <tr style="background-color: #CCEEFF">
    <td style="vertical-align: top; padding-left: 9pt"><span style="font-size: 10pt">ITEM 9.</span></td>
    <td style="vertical-align: top; text-align: justify"><a href="#a_011"><span style="font-size: 10pt">The Offer and Listing</span></a></td>
    <td style="vertical-align: bottom; text-align: center">69</td></tr>
  <tr>
    <td style="vertical-align: top; padding-left: 9pt"><span style="font-size: 10pt">ITEM 10.</span></td>
    <td style="vertical-align: top; text-align: justify"><a href="#a_012"><span style="font-size: 10pt">Additional Information</span></a></td>
    <td style="vertical-align: bottom; text-align: center">70</td></tr>
  <tr style="background-color: #CCEEFF">
    <td style="vertical-align: top; padding-left: 9pt"><span style="font-size: 10pt">ITEM 11.</span></td>
    <td style="vertical-align: top; text-align: justify"><a href="#a_013"><span style="font-size: 10pt">Quantitative and Qualitative Disclosures About Market Risk</span></a></td>
    <td style="vertical-align: bottom; text-align: center">86</td></tr>
  <tr>
    <td style="vertical-align: top; padding-left: 9pt"><span style="font-size: 10pt">ITEM 12.</span></td>
    <td style="vertical-align: top; text-align: justify"><a href="#a_014"><span style="font-size: 10pt">Description of Securities Other Than Equity Securities</span></a></td>
    <td style="vertical-align: bottom; text-align: center">87</td></tr>
  <tr style="background-color: #CCEEFF">
    <td style="vertical-align: top">&#160;</td>
    <td style="vertical-align: top; text-align: justify">&#160;</td>
    <td style="vertical-align: bottom; text-align: center">&#160;</td></tr>
  <tr>
    <td style="vertical-align: top"><a href="#a_015"><span style="font-size: 10pt">PART II</span></a></td>
    <td style="vertical-align: top; text-align: justify">&#160;</td>
    <td style="vertical-align: bottom; text-align: center">88</td></tr>
  <tr style="background-color: #CCEEFF">
    <td style="vertical-align: top; padding-left: 9pt"><span style="font-size: 10pt">ITEM 13.</span></td>
    <td style="vertical-align: top; text-align: justify"><a href="#a_016"><span style="font-size: 10pt">Defaults, Dividend Arrearages and Delinquencies</span></a></td>
    <td style="vertical-align: bottom; text-align: center">88</td></tr>
  <tr>
    <td style="vertical-align: top; padding-left: 9pt"><span style="font-size: 10pt">ITEM 14.</span></td>
    <td style="vertical-align: top; text-align: justify"><a href="#a_017"><span style="font-size: 10pt">Material Modifications to the Rights of Security Holders and Use of Proceeds</span></a></td>
    <td style="vertical-align: bottom; text-align: center">88</td></tr>
  <tr style="background-color: #CCEEFF">
    <td style="vertical-align: top; padding-left: 9pt"><span style="font-size: 10pt">ITEM 15.</span></td>
    <td style="vertical-align: top; text-align: justify"><a href="#a_018"><span style="font-size: 10pt">Controls and Procedures</span></a></td>
    <td style="vertical-align: bottom; text-align: center">88</td></tr>
  <tr>
    <td style="vertical-align: top; padding-left: 9pt"><span style="font-size: 10pt">ITEM 16.</span></td>
    <td style="vertical-align: top; text-align: justify"><a href="#a_019"><span style="font-size: 10pt">[RESERVED]</span></a></td>
    <td style="vertical-align: bottom; text-align: center">88</td></tr>
  <tr style="background-color: #CCEEFF">
    <td style="vertical-align: top; padding-left: 9pt"><span style="font-size: 10pt">ITEM 16A.</span></td>
    <td style="vertical-align: top; text-align: justify"><a href="#a_020"><span style="font-size: 10pt">Audit Committee Financial Expert</span></a></td>
    <td style="vertical-align: bottom; text-align: center">88</td></tr>
  <tr>
    <td style="vertical-align: top; padding-left: 9pt"><span style="font-size: 10pt">ITEM 16B.</span></td>
    <td style="vertical-align: top; text-align: justify"><a href="#a_021"><span style="font-size: 10pt">Code of Ethics</span></a></td>
    <td style="vertical-align: bottom; text-align: center">89</td></tr>
  <tr style="background-color: #CCEEFF">
    <td style="vertical-align: top; padding-left: 9pt"><span style="font-size: 10pt">ITEM 16C.</span></td>
    <td style="vertical-align: top; text-align: justify"><a href="#a_022"><span style="font-size: 10pt">Principal Accountant Fees and Services</span></a></td>
    <td style="vertical-align: bottom; text-align: center">89</td></tr>
  <tr>
    <td style="vertical-align: top; padding-left: 9pt"><span style="font-size: 10pt">ITEM 16D.</span></td>
    <td style="vertical-align: top; text-align: justify"><a href="#a_023"><span style="font-size: 10pt">Exemptions from the Listing Standards for Audit Committees</span></a></td>
    <td style="vertical-align: bottom; text-align: center">89</td></tr>
  <tr style="background-color: #CCEEFF">
    <td style="vertical-align: top; padding-left: 9pt"><span style="font-size: 10pt">ITEM 16E.</span></td>
    <td style="vertical-align: top; text-align: justify"><a href="#a_024"><span style="font-size: 10pt">Purchases of Equity Securities by the Issuer and Affiliated Purchasers</span></a></td>
    <td style="vertical-align: bottom; text-align: center">90</td></tr>
  <tr>
    <td style="vertical-align: top; padding-left: 9pt"><span style="font-size: 10pt">ITEM 16F.</span></td>
    <td style="vertical-align: top; text-align: justify"><a href="#a_025"><span style="font-size: 10pt">Change in Registrant&#8217;s Certifying Accountant</span></a></td>
    <td style="vertical-align: bottom; text-align: center">90</td></tr>
  <tr style="background-color: rgb(204,238,255)">
    <td style="vertical-align: top; padding-left: 9pt"><span style="font-size: 10pt">ITEM 16G.</span></td>
    <td style="vertical-align: top; text-align: justify"><a href="#a_026"><span style="font-size: 10pt">Corporate Governance</span></a></td>
    <td style="vertical-align: bottom; text-align: center">90</td></tr>
  <tr>
    <td style="vertical-align: top; padding-left: 9pt"><span style="font-size: 10pt">ITEM 16H.</span></td>
    <td style="vertical-align: top; text-align: justify"><a href="#a_027"><span style="font-size: 10pt">Mine Safety Disclosure</span></a></td>
    <td style="vertical-align: bottom; text-align: center">90</td></tr>
  <tr style="background-color: rgb(204,238,255)">
    <td style="vertical-align: top; padding-left: 9pt"><span style="font-size: 10pt">ITEM 16I.</span></td>
    <td style="vertical-align: top; text-align: justify"><a href="#a_028"><span style="font-size: 10pt">Disclosure Regarding Foreign Jurisdictions That Prevent Inspections</span></a></td>
    <td style="vertical-align: bottom; text-align: center">90</td></tr>
  <tr>
    <td style="vertical-align: top; padding-left: 9pt">ITEM 16J.</td>
    <td style="vertical-align: top; text-align: justify"><a href="#m_001">Insider Trading Policy</a></td>
    <td style="vertical-align: bottom; text-align: center">90</td></tr>
  <tr style="background-color: rgb(204,238,255)">
    <td style="vertical-align: top">&#160;</td>
    <td style="vertical-align: top; text-align: justify">&#160;</td>
    <td style="vertical-align: bottom; text-align: center">&#160;</td></tr>
  <tr>
    <td style="vertical-align: top"><a href="#a_030"><span style="font-size: 10pt">PART III</span></a></td>
    <td style="vertical-align: top; text-align: justify">&#160;</td>
    <td style="vertical-align: bottom; text-align: center">91</td></tr>
  <tr style="background-color: rgb(204,238,255)">
    <td style="vertical-align: top; padding-left: 9pt"><span style="font-size: 10pt">ITEM 17.</span></td>
    <td style="vertical-align: top; text-align: justify"><a href="#a_031"><span style="font-size: 10pt">Financial Statements</span></a></td>
    <td style="vertical-align: bottom; text-align: center">91</td></tr>
  <tr>
    <td style="vertical-align: top; padding-left: 9pt"><span style="font-size: 10pt">ITEM 18.</span></td>
    <td style="vertical-align: top; text-align: justify"><a href="#a_032"><span style="font-size: 10pt">Financial Statements</span></a></td>
    <td style="vertical-align: bottom; text-align: center">91</td></tr>
  <tr style="background-color: rgb(204,238,255)">
    <td style="vertical-align: top; padding-left: 9pt"><span style="font-size: 10pt">ITEM 19.</span></td>
    <td style="vertical-align: top; text-align: justify"><a href="#a_033"><span style="font-size: 10pt">Exhibits</span></a></td>
    <td style="vertical-align: bottom; text-align: center">92</td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 3; Options: NewSection --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: LowerRoman; Name: PageNo -->i<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>ABOUT THIS ANNUAL REPORT</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">All references to &#8220;we&#8221;,
&#8220;us&#8221;, &#8220;our&#8221;, &#8220;the Company&#8221;, &#8220;PV Nano&#8221;, &#8220;our company&#8221; and &#8220;our Company&#8221;,
in this Annual Report on Form 20-F, or our annual report, are to P.V. Nano Cell Ltd., unless the context otherwise requires. All references
to &#8220;Group&#8221; in this annual report on Form 20-F, are to the Company and its direct and indirect subsidiaries, unless the context
otherwise requires. All references to &#8220;shares&#8221;, &#8220;ordinary shares&#8221; or &#8220;our ordinary shares&#8221; are to
our ordinary shares, NIS 0.01 nominal value per share. All references to &#8220;Israel&#8221; are to the State of Israel. &#8220;U.S.
GAAP&#8221; means the generally accepted accounting principles in the United States. Unless otherwise stated, all of our financial information
presented in this annual report has been prepared in accordance with U.S. GAAP. Any discrepancies in any table between totals and sums
of the amounts listed are due to rounding. Unless otherwise indicated, or the context otherwise requires, references in this annual report
to financial and operational data for a particular year refer to the fiscal year of our company ended December&#160;31 of that year.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our reporting currency and
financial currency is the U.S. dollar. In this annual report on Form 20-F, &#8220;NIS&#8221; means New Israeli Shekel, and &#8220;$,&#8221;
&#8220;US$&#8221; and &#8220;U.S. dollars&#8221; mean United States dollars. Unless stated otherwise, U.S. dollar translation of NIS amounts
presented in this annual report are translated using the rate of $1.00 =NIS 3.519, the exchange rate published by the Bank of Israel on
December 31, 2022.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This annual report on Form
20-F contains forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities
Exchange Act of 1934, as amended (the &#8220;Exchange Act&#8221;), that involve risks and uncertainties. All statements other than statements
of historical facts contained in this annual report on Form 20-F are forward-looking statements. In some cases, you can identify forward-looking
statements by words such as &#8220;anticipate,&#8221; &#8220;believe,&#8221; &#8220;continue,&#8221; &#8220;could,&#8221; &#8220;estimate,&#8221;
&#8220;expect,&#8221; &#8220;intend,&#8221; &#8220;may,&#8221; &#8220;plan,&#8221; &#8220;potential,&#8221; &#8220;predict,&#8221; &#8220;project,&#8221;
&#8220;seek,&#8221; &#8220;should,&#8221; &#8220;will,&#8221; &#8220;would,&#8221; or the negative of these words or other comparable
terminology. These forward-looking statements include, but are not limited to, statements about:</p><div>

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

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">the potential market opportunities
for commercializing our current and planned products;</span></td>
</tr></table><div>

</div><p style="margin-top: 0; margin-bottom: 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">our ability to raise the capital
needed to realize exploit market opportunities;</span></td>
</tr></table><div>

</div><p style="margin-top: 0; margin-bottom: 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">our going concern qualification
in our consolidated financial statements for the year ended December 31, 2022 and its impact on our capital raising efforts;</span></td>
</tr></table><div>

</div><p style="margin-top: 0; margin-bottom: 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">our expectations and beliefs regarding the technological advantages
and potential market size for our current and planned products;

</span></td>
</tr></table><div>

</div><p style="margin-top: 0; margin-bottom: 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">estimates of our expenses, future
revenue, capital requirements, and our needs for additional financing;</span></td>
</tr></table><div>

</div><p style="margin-top: 0; margin-bottom: 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">our ability to develop and advance
our current and planned products;</span></td>
</tr></table><div>

</div><p style="margin-top: 0; margin-bottom: 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">the implementation of our business model and strategic plans for our
business and products;

</span></td>
</tr></table><div>

</div><p style="margin-top: 0; margin-bottom: 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">the scope of protection we are
able to establish and maintain for intellectual property rights covering our current and planned products;</span></td>
</tr></table><div>

</div><p style="margin-top: 0; margin-bottom: 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">our ability to maintain and
establish collaborations or obtain additional funding;</span></td>
</tr></table><div>

</div><p style="margin-top: 0; margin-bottom: 0">&#160;</p><div>

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

</div><p style="margin-top: 0; margin-bottom: 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">developments and projections
relating to our competitors and our industry.</span></td>
</tr></table><div>


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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Any forward-looking statements
in this annual report on Form 20-F reflect our current views with respect to future events or to our future financial performance and
involve known and unknown risks, uncertainties, and other factors that may cause our actual results, performance or achievements to be
materially different from any future results, performance, or achievements expressed or implied by these forward-looking statements. Factors
that may cause actual results to differ materially from current expectations include, among other things, those listed under &#8220;Item
3 D. &#8212; Risk Factors&#8221; and elsewhere in this annual report on Form 20-F. Given these uncertainties, you should not place undue
reliance on these forward-looking statements. Except as required by law, we assume no obligation to update or revise these forward-looking
statements for any reason, even if new information becomes available in the future.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This annual report on Form
20-F also contains estimates, projections, and other information concerning our industry, our business, and the markets for our products,
including data regarding the estimated size of those markets. Information that is based on estimates, forecasts, projections, market research,
or similar methodologies is inherently subject to uncertainties and actual events or circumstances may differ materially from events and
circumstances reflected in this information. Unless otherwise expressly stated, we obtained this industry, business, market, and other
data from reports, research surveys, studies, and similar data prepared by market research firms and other third parties, industry and
general publications, government data and similar sources.</p><div>

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




</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 4 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: LowerRoman; Name: PageNo -->ii<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><div><a id="a_001"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>PART I</b></p><div>

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

</div><div><a id="a_002"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>ITEM 1. Identity of Directors, Senior Management
and Advisers.</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Not applicable.</p><div>

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

</div><div><a id="a_003"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>ITEM 2. Offer Statistics and Expected Timetable.</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Not applicable.</p><div>

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

</div><div><a id="a_004"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>ITEM 3. Key Information.</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>A. [Reserved].</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>B. Capitalization and Indebtedness</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Not applicable.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>C. Reasons for the Offer and Use of Proceeds</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Not applicable.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>D. Risk Factors</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span><i>Our
business faces significant risks. You should carefully consider all of the information set forth in this annual report and in our other
filings with the United States Securities and Exchange Commission (the &#8220;SEC&#8221;), including the following risk factors which
we face and which are faced by our industry. Our business, financial condition and results of operations could be materially and adversely
affected by any of these risks. In that event, the trading price of our ordinary shares would likely decline and you might lose all or
part of your investment. This report also contains forward-looking statements that involve risks and uncertainties. Our results could
materially differ from those anticipated in these forward-looking statements, as a result of certain important factors including the risks
described below and elsewhere in this report and our other SEC filings. See &#8220;Cautionary Note Regarding Forward-Looking Statements&#8221;
on page ii.</i></span></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Risk Factors Summary</b></p><div>


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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Risks Related to Our Financial Position
and Capital Requirements</i></b></p><div>

</div><p style="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have a relatively limited operating history on which to assess our business, have incurred significant losses since our inception, and
anticipate that we will continue to incur significant losses for the foreseeable future.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
history of net losses has raised substantial doubt regarding our ability to continue as a going concern. If we do not continue as a going
concern, investors could lose their entire investment.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
will need significant additional capital on an immediate basis, which we may be unable to obtain.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Risks Related to Our Business</i></b></p><div>

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

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have generated only minimal revenue from product sales and may never be profitable.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
failure to complete the development of our technology and introduce improved Sicrys&#8482; ink and paste formulations, may adversely
affect our ability to successfully commercialize our products and technologies.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
our conductive inks and pastes fail to achieve and sustain sufficient market acceptance or if market penetration occurs more slowly than
expected, our future revenues will be adversely affected.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
believe that our future success depends on our ability to deliver products and services that meet changing technology and customer needs.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
currently have minimal marketing and sales capabilities. If we are unable to establish significant sales and marketing capabilities or
enter into agreements with third parties to market and sell our products once development of our technology for mass production is completed,
we may be unable to generate significant revenue.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
ability to grow our business successfully depends, among other things, on our ability to develop and implement our production and operating
infrastructure in a way that would effectively support our growth in our target markets.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are subject to a multitude of manufacturing risks, any of which could substantially increase our costs and limit supply of our products
and technologies.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 5; Options: NewSection --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->1<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are subject to risks resulting from fluctuations in the price of silver and other raw materials.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
business involves the use of hazardous materials, and we must comply with environmental, health and safety laws and regulations, which
can be expensive and restrict how we do business, and if we fail to comply with such laws and regulations, we could become subject to
fines or penalties or incur costs that could have a material adverse effect on the success of our business.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
face competition in the markets in which we operate and the possibility that our competitors may develop products that are similar to,
more advanced than, or more effective than ours, which may adversely affect our financial condition and our ability to successfully commercialize
our products and technologies.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">International
expansion of our business exposes us to business, regulatory, political, operational, financial, and economic risks associated with doing
business outside of Israel.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
health effects of nanotechnology are unknown.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
future success depends in part on our ability to retain our key management personnel and to attract, retain, and motivate other qualified
personnel.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
may not be successful in our efforts to identify, license, or discover additional products and technologies.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Environmental,
social and corporate governance (&#8220;ESG&#8221;) issues, including those related to climate change and sustainability, may have an
adverse effect on our business, financial condition and results of operations and damage our reputation.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
business, operating results and growth rates may be adversely affected by current or future unfavorable economic and market conditions
and adverse developments with respect to financial institutions and associated liquidity risk.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">A
pandemic, epidemic or outbreak of an infectious disease, such as COVID-19, may materially and adversely affect our business, financial
condition and operating results.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Risks Related to Our Intellectual Property</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
we are unable to obtain and maintain effective patent rights for our products and technologies or any future products and technologies,
we may not be able to compete effectively in our markets.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
we are unable to maintain effective proprietary rights for our products and technologies or any future products and technologies, we
may not be able to compete effectively in our markets.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Third-party
claims of intellectual property infringement may prevent or delay our development and commercialization efforts.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
may become subject to claims of intellectual property infringement by third parties or may be required to indemnify our distributors
or other third parties against such claims, which, regardless of their merit, could result in litigation, distract our management and
materially adversely affect our business, results of operations or financial condition.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
may not be successful in obtaining or maintaining necessary rights to our products and technologies through intellectual property rights
in-licenses.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
may not be able to fully enforce covenants not to compete with our key employees, and therefore we may be unable to prevent our competitors
from benefiting from the expertise of such employees.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
may not be able to protect our intellectual property rights throughout the world.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Risks Related to Our Operations in Israel</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
headquarters and other significant operations are located in Israel and, therefore, our results may be adversely affected by political,
economic and military instability in Israel.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Israeli government grants we have received for research and development expenditures restrict our ability to manufacture products and
transfer technologies outside of Israel and require us to satisfy specified conditions. If we fail to satisfy these conditions, we may
be required to refund grants previously received together with interest and penalties.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exchange
rate fluctuations, primarily between the U.S. dollar and the NIS currencies, and inflation may negatively affect our results of operations.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Provisions
of Israeli law and our Amended and Restated Articles of Association (&#8220;Articles of Association&#8221;), may delay, prevent or make
undesirable an acquisition of all or a significant portion of our shares or assets.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 6 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->2<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
tax benefits that are available to us as a preferred enterprise require us to continue to meet various conditions and may be terminated
or reduced in the future, which could increase our costs and taxes.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">It
may be difficult to enforce a judgment of a United States court against us and our officers and directors and the Israeli experts named
in this annual report on Form 20-F located in Israel or the United States, to assert United States securities laws claims in Israel or
to serve process on our officers and directors and these experts.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Risks Related to Our Ordinary Shares</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
U.S. investors may suffer adverse tax consequences if we are characterized as a passive foreign investment company.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Your
rights and responsibilities as a shareholder will be governed by Israeli law which differs in some material respects from the rights
and responsibilities of shareholders of U.S. companies.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have never paid cash dividends on our share capital, and we do not anticipate paying any cash dividends in the foreseeable future.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
major shareholders, directors and officers as a group have significant voting power and may take actions that may not be in the best
interest of shareholders.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
incur significant costs as a result of operating as a public company, and our management is required to devote substantial time to new
compliance initiatives.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are a &#8220;foreign private issuer&#8221; and have disclosure obligations that are different from those of U.S. domestic reporting companies.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Offers
or availability for sale of a substantial number of our ordinary shares may cause the price of our ordinary shares to decline.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
management conducted an evaluation of the effectiveness of our internal control over financial reporting and concluded that our internal
control over financial reporting was not effective as of December 31, 2022. If we fail to maintain an effective system of internal control
over financial reporting, we may not be able to accurately report our financial results or prevent fraud. As a result, shareholders could
lose confidence in our financial and other public reporting.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
market price of our ordinary shares may fluctuate significantly.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Because
our ordinary shares are traded as a &#8220;penny stock,&#8221; it may be more difficult for investors to sell our ordinary shares, and
the market price of our ordinary shares may be adversely affected.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Compliance
with changing regulations concerning corporate governance and public disclosure may result in additional expenses.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Risks Related to Our Financial Position and
Capital Requirements</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>We have a relatively limited operating history
on which to assess our business, have incurred significant losses since our inception, and anticipate that we will continue to incur significant
losses for the foreseeable future.</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We have a limited operating history. We have incurred net losses since
our inception in 2009, including a net loss of approximately $4.5 million for the year ended on December 31, 2022 and an accumulated deficit
of approximately $40.6 million as of December 31, 2022. We are in default in repayment of our convertible notes which as of December 31,
2022 aggregated to approximately $1.5 million (including principal and interest). To date, we have financed our operations primarily through
the issuance of equity instruments and convertible notes as well as through government grants. The amount of our future net losses will
depend, in part, on the rate of our future expenditures and our ability to generate significant revenues via commercialization of our
products or technologies. We do not know whether or when we will become profitable. Even if we do achieve profitability, we may not be
able to sustain or increase profitability on an ongoing basis. Our inability to achieve and then maintain profitability would negatively
affect our business, financial condition, results of operations and cash flows.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Our history of net losses has raised substantial
doubt regarding our ability to continue as a going concern. If we do not continue as a going concern, investors could lose their entire
investment.</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We generated relatively limited revenues, which are not presently sufficient
to sustain our operations. Our total revenues generated from sales were $603,359, $568,704 and $761,319 for the years ended December 31,
2022, 2021, and 2020, respectively. We have incurred net losses since our inception in 2009, including a net loss of approximately $4.5
million for the year ended December 31, 2022. In addition, we are in default in repayment of our convertible notes which as of December
31, 2022 aggregated to approximately $1.5 million (including principal and interest). As of December 31, 2022, and as of the date of the
filing of this annual report on Form 20-F, we had limited cash resources.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p><div>

</div><!-- Field: Page; Sequence: 7; Options: NewSection; Value: 3 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->3<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our history of net losses
has raised substantial doubt about our ability to continue as a going concern, and as a result, our independent registered public accounting
firm included an explanatory paragraph in its report on our consolidated financial statements as of and for the year ended December 31,
2022 with respect to this uncertainty. We believe that we will need to raise significant additional funds before we have significant cash
flow from operations. Accordingly, our ability to continue as a going concern will require us to seek alternative financing to fund our
operations. The substantial doubt about our ability to continue as a going concern could materially limit our ability to raise additional
funds through the issuance of new debt or equity securities or otherwise. Future reports on our consolidated financial statements may
include an explanatory paragraph with respect to our ability to continue as a going concern.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>We will need significant additional capital
on an immediate basis, which we may be unable to obtain.</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of December 31, 2022, we
had cash balance of $362,609. We are in default in repayment of our convertible notes which as of December 31, 2022 aggregated to approximately
$1.5 million (including principal and interest). As of the date of this annual report, we had sufficient cash to fund operations as presently
maintained through June 2023. We will need to raise additional capital to continue our operations beyond such period. There can be no
assurance that additional funds will be available when needed from any source or, if available, will be available on terms that are commercially
acceptable to us. We may be required to pursue sources of additional capital through various means, including debt or equity financings.
Future financing through equity investments is likely to be dilutive to existing shareholders. Furthermore, the terms of securities we
may issue in future capital transactions may be more favorable for our new investors. Newly issued securities may include preferences,
superior voting rights, the issuance of warrants or other derivative securities, and the issuance of incentive awards under equity employee
incentive plans, which may have additional dilutive effects. Further, we may incur substantial costs in pursuing future capital and/or
financing, including finder fees, investment banking fees, legal fees, accounting fees, printing and distribution expenses and other costs.
We may also be required to recognize non-cash expenses in connection with certain securities we may issue, such as convertible notes and
warrants, which will adversely impact our financial condition. Our ability to obtain needed financing may be impaired by such factors
as our history of losses and capital market conditions, including inflation and rising interest rates across the global economy, which
have resulted in, and may continue to result in, significant disruption of global financial markets and could impact the availability
or cost of future financings. If the amount of capital we are able to raise from financing activities, together with our revenues from
operations, is not sufficient to satisfy our capital needs, even to the extent that we reduce our operations accordingly, we may be required
to cease operations.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Risks Related to Our Business</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>We have generated only minimal revenue from
product sales and may never be profitable.</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We have generated only minimal
revenue in the past, primarily from limited sales of our Sicrys&#8482; inks and pastes. Our ability to generate revenue and achieve profitability
depends on (among other things) our ability to demonstrate the technological advantage and successfully commercialize our Sicrys&#8482;
inks and pastes and future products and technologies. There is no assurance that we will be successful in any of these endeavors.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our ability to generate future
revenue from product sales depends heavily on our success in many areas, including but not limited to:</p><div>

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

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">completing the development of our metallization solutions for the solar
manufacturing market<b>;</b></span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">obtaining market acceptance
of our products and technologies;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">attracting, hiring, and retaining
qualified personnel.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">developing ink and paste products compatible with commercially available
printing technologies and print heads;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 8; Value: 3 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->4<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">expanding our distribution channels,
including our ability to enter into cooperation arrangements with printing technologies manufacturers to be able to supply printers to
our potential customers;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">ramping up our production capabilities
if and when our sales volume increases;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">maintaining, protecting, and
expanding our portfolio of intellectual property rights, including patents, trade secrets, and know-how; and</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">addressing any competing technological
and market developments.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; "><b><i>Our failure to
complete the development of our technology and introduce improved Sicrys</i></b>&#8482; <b><i>ink and paste formulations, may adversely
affect our ability to successfully commercialize our products and technologies. </i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; ">We
need to continue to invest significant financial resources in the completion of the development of our Sicrys&#8482; inks and pastes for
commercialization in the solar manufacturing market. However, research and development activities are inherently uncertain, and we could
encounter difficulties in commercializing our research results. We seek to continuously improve our products and processes. While we believe
that we will be able to manage these uncertainties, we may encounter unanticipated challenges and there can be no guarantee that our significant
research and development expenditures will produce corresponding benefits. If we are unable to achieve the necessary technological developments,
our overall growth and financial performance and our operating results could be adversely impacted.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>If our conductive inks and pastes fail to
achieve and sustain sufficient market acceptance or if market penetration occurs more slowly than expected, our future revenues will be
adversely affected.</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our success depends, among
other things, on our ability to gain additional market acceptance of our Sicrys&#8482; inks and pastes as a reliable and cost-saving alternative
to existing production technologies. Compared to some competing technologies, our nano-metric conductive ink technology is relatively
new, and most potential customers have limited knowledge of, or experience with, our conductive inks and pastes, may have substantial
investments and know-how related to their existing printing technologies, and may perceive risks relating to the reliability, quality,
usefulness and profitability of adopting our conductive inks and pastes when compared to other production technologies available in the
market. Our potential customers may also need to devote significant time and effort to testing and validating our technology prior to
its adoption. Any failure of our technology to meet our potential customer benchmarks could result in customers choosing to retain their
existing technology or to purchase technologies other than ours. If we fail to achieve market acceptance of our conductive inks and pastes
or if market penetration is slower than expected, then our opportunities to grow our revenues and reach profitability will be severely
limited. There is no assurance that we will succeed in any of the foregoing.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>We believe that our future success</i></b><i>&#160;<b>depends</b>&#160;<b>on
our ability to deliver products and services that meet changing technology and customer needs.</b></i></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our business may be affected
by rapid technological change, changes in user and customer requirements and preferences, frequent new product and service introductions
embodying new technologies and the emergence of new standards and practices, any of which could render our existing products and proprietary
technology obsolete. Accordingly, our ongoing research and development programs are intended to enable us to maintain technological leadership.
We believe that to remain competitive we must continually enhance and improve the functionality and features of our products, services
and technologies. However, there is a risk that we may not be able to:</p><div>

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

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">Develop or obtain leading technologies
useful in our business;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">Enhance our existing products;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">Develop new products, services
and technologies that address the increasingly sophisticated and varied needs of prospective customers, particularly in the area of printer
speeds and materials functionality;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p><div>

</div><!-- Field: Page; Sequence: 9; Value: 3 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->5<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">Respond to technological advances
and emerging industry standards and practices on a cost-effective and timely basis; or</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">Recruit or retain key technology
employees.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If we are unable to meet changing
technology and customer needs, our competitive position, revenue, results of operations and financial condition could be adversely affected.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>We currently have minimal marketing and
sales capabilities. If we are unable to establish significant sales and marketing capabilities or enter into agreements with third parties
to market and sell our products once development of our technology for mass production is completed, we may be unable to generate significant
revenue.</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We have limited experience
and capabilities in selling and marketing our conductive inks. In order to successfully commercialize our Sicrys&#8482; inks and pastes
or any other products, we will need to either further develop these capabilities on our own or by collaboration with third party distributors
and sales agents with established sales and marketing operations and industry experience. However, there can be no assurance that we will
be able to enter into other agreements with such third-party distribution and sales agents agreements on terms acceptable to us, or at
all, or that such distributors or sales agents will be successful in marketing our inks and pastes. If we are not successful entering
into such agreement our results of operation may be adversely affected.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Our ability to grow our business successfully
depends, among other things, on our ability to develop and implement our production and operating infrastructure in a way that would effectively
support our growth in our target markets.</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We manufacture our inks and
pastes at our Migdal Ha&#8217;Emek facilities. We currently have capacity to produce an estimated one ton of ink and paste per year and
plan to upgrade our facilities to increase production capacity to 20 tons per year (estimated capital cost of at least $2.5 million),
if and when demand for our inks and pastes is projected to surpass our production capabilities and we have sufficient available capital
to do so.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our future success requires
among others that we have adequate capacity in our manufacturing facilities to manufacture the quantities of products to support our current
sales level and the anticipated increased levels that may result from our growth. There can be no assurance as to the timing or our ability
to achieve planned, needed, or desired manufacturing capacity levels. We believe that the capacity of our current manufacturing facilities
is sufficient to meet anticipated demand for our products through the end of 2023. In the event that demand for our inks and pastes outgrows
our internal manufacturing capacity, we intend to engage third-party manufacturers to produce additional inks and pastes. There can be
no assurance that we will be able to enter into agreements with such manufacturers on terms acceptable to us, or at all, or that, once
contracted, such manufacturers will perform as expected. If we are not successful entering into such agreement our results of operation
may be adversely affected.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>We are subject to a multitude of manufacturing
risks, any of which could substantially increase our costs and limit supply of our products and technologies.</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We currently only have one
operating manufacturing line. The process of manufacturing our products and technologies is complex and subject to several risks and uncertainties,
including but not limited to availability and prices of the raw materials (including silver in particular) necessary for production of
our inks, and any major malfunctions in our manufacturing line. Any adverse developments affecting manufacturing operations for our products
and technologies may result in shipment delays, inventory shortages, lot failures, withdrawals or recalls, or other interruptions in the
supply of our products and technologies. We may also have to take inventory write-offs and incur other charges and expenses for products
and technologies that fail to meet specifications, undertake costly remediation efforts, or seek more costly manufacturing alternatives.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 10; Value: 3 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->6<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>We are subject to risks resulting from fluctuations
in the price of silver and other raw materials.</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The manufacturing process
for our silver-based inks and pastes utilizes a silver salt, the price of which is linked to the price of silver. The price of silver
as well as the price of other raw materials used in the manufacturing process for our inks and pastes, is affected by numerous factors
beyond our control, including inflation, fluctuation of the United States dollar and foreign currencies, global and regional demand, speculative
activities by commodities traders and others and the political and economic conditions of major silver producing countries throughout
the world The volatility of mineral prices represents a substantial risk which no amount of planning or technical expertise can fully
eliminate. In the event the prices of silver or other raw materials used in our manufacturing process increase and remain high for prolonged
periods of time, we may not be able to produce inks and pastes at a cost effective and competitive price. Furthermore, if the price of
silver decreases substantially and remains low for prolonged periods of time, the value proposition that we believe is offered by our
copper-based nano-metric ink and paste may be substantially decreased, since a low price of the silver used in their manufacturing processes
reduces the incentive for manufacturers of electronic devices to replace silver with another metal, such as copper. Any of the foregoing
would have a material adverse effect on our business, financial condition, results of operations, and cash flows.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Our business involves the use of hazardous
materials, and we must comply with environmental, health and safety laws and regulations, which can be expensive and restrict how we do
business, and if we fail to comply with such laws and regulations, we could become subject to fines or penalties or incur costs that could
have a material adverse effect on the success of our business.</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our business involves the
blending, controlled storage, use and disposal of hazardous materials. We are subject to numerous environmental, health and safety laws,
regulations and permitting requirements, currently mainly in Israel, including those governing the emission and discharge of hazardous
materials into ground, air or water; the manufacture, storage, use, management, handling and disposal of hazardous waste; the registration
of chemicals and in the future also import and export of chemicals; the clean-up of contaminated sites; and the health and safety of our
employees. We expect to be subject to similar regulations in any other jurisdictions in which we may establish manufacturing operations
in the future. Although we believe the safety procedures we utilized for handling and disposing of these materials comply with the standards
prescribed by these laws and regulations, we cannot eliminate the risk of accidental contamination or injury from these materials. Some
of these laws and regulations require us to obtain licenses or permits to conduct our operations. Environmental laws and regulations are
complex, change frequently and have tended to become more stringent over time. If we violate or fail to comply with these laws, regulations,
licenses or permits, we could be fined or otherwise sanctioned by regulators. We cannot predict the impact on our business of new or amended
laws or regulations or any changes in the way existing and future laws and regulations are interpreted or enforced, nor can we ensure
we will be able to obtain or maintain any required licenses or permits. In the event of an accident, local or foreign authorities may
curtail the use of these materials and interrupt our business operations. If we are subject to any liability as a result of activities
involving hazardous materials, our business and financial condition may be adversely affected and our reputation may be harmed.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>We face competition in the markets in which
we operate and the possibility that our competitors may develop products that are similar to, more advanced than, or more effective than
ours, which may adversely affect our financial condition and our ability to successfully commercialize our products and technologies.</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We are currently aware of
various existing products in the market and in development that may compete with our products and technologies, directly and indirectly.
To our knowledge, other companies are currently developing and selling silver-based inkjet inks and pastes for printed electronics (&#8220;PE&#8221;),
digital electronic inkjet printing applications.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We are aware of several companies seeking to develop
copper-based inks and pastes for printing, however, to our knowledge, none of our competitors has copper-based low viscosity inks in mass
production and at a commercially viable price and quantity to be used in digital printing, and some are using copper oxide as a precursor
in their inks instead of copper. Copper precursors are less effective for thick patterns and high throughput. To our knowledge, we are
the only company offering as much as a 50% copper inkjet low viscosity ink; however, we have not yet proven our ability to mass produce
the product.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 11; Value: 3 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->7<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Many of our competitors have
substantially greater financial, technical, and other resources, such as larger research and development staff and experienced marketing
and manufacturing organizations. Mergers and acquisitions in the conductive ink industry may result in even more resources being concentrated
in our competitors. As a result, these companies may be more effective in selling and marketing their products. Smaller or early-stage
companies may also prove to be significant competitors, particularly through collaborative arrangements with large, established companies.
Competition may increase further as a result of advances in the commercial applicability of technologies and greater availability of capital
for investment in this industry. Our competitors may succeed in developing, acquiring, or licensing on an exclusive basis, products that
are more effective or less costly than our current or future products or technologies, or achieve earlier patent protection, product commercialization,
and market penetration than we do. Additionally, technologies developed by our competitors may render our potential products and technologies
uneconomical or obsolete, and we may not be successful in marketing our products and technologies against competitors.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>International expansion of our business
exposes us to business, regulatory, political, operational, financial, and economic risks associated with doing business outside of Israel.
</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our headquarters are located
in Israel. Nevertheless, our business strategy incorporates potentially significant international expansion. Doing business internationally
involves a number of risks, including but not limited to:</p><div>

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

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">multiple, conflicting, and changing
laws and regulations such as privacy regulations, tax laws, export and import restrictions, employment laws, regulatory requirements,
and other governmental approvals, permits, and licenses;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">complexities and difficulties
in obtaining protection for and enforcing our intellectual property rights;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">difficulties in staffing and
managing foreign operations;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">limitations in our ability to
penetrate international markets;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">financial risks, such as longer
payment cycles, difficulty collecting accounts receivable, the impact of local and regional financial crises on demand and payment for
our products, and exposure to foreign currency exchange rate fluctuations;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">changes in foreign regulations
and customs;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">changes in currency exchange
rates and currency controls;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">changes in a specific country&#8217;s
or region&#8217;s political or economic environment;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">natural disasters, wars, terrorism,
outbreak of disease, boycotts, curtailment of trade, and other business restrictions;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">certain expenses including,
among others, expenses for travel, translation, and insurance; and</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">certain countries&#8217; regulations
may make it difficult for us to import our inks and pastes into such countries.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Any of these factors could
significantly harm our future international expansion and operations and, consequently, our results of operations.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>The health effects of nanotechnology are
unknown.</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">There is no scientific agreement
on the health effects of nanomaterials, but some scientists believe that, in some cases, nanomaterials may be hazardous to an individual&#8217;s
health or the environment. The science of nanotechnology is based on arranging atoms in such a way as to modify or build materials. Depending
on the nanomaterials used, the resulting material may not be found in nature; therefore, the effects are unknown. Our technologies are
based on nanometals that are, at most times, dispersed in a liquid minimizing the exposures risks. Moreover, once the metal particles
have been printed and sintered they are no longer nanometals, therefore lowering exposure risks. Although, we take appropriate precautions
for employees working with our materials and believe that any health risks related to the nanometals used in potential products can be
minimized, we cannot assure that such precautions will be effective. Future research in the field of nanomaterials, in general, on health
and environmental issues may have an adverse effect on products using our technology.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 12; Value: 3 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->8<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Our future success depends in part on our
ability to retain our key management personnel and to attract, retain, and motivate other qualified personnel. </i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We are highly dependent on
our key management personnel, and the loss of their services without proper replacements would adversely impact the achievement of our
objectives. Recruiting and retaining additional key personnel and other qualified employees, consultants, and advisors for our business,
including scientific and technical personnel, will also be critical to our success. We may not be able to attract and retain personnel
on acceptable terms given the competition among numerous high-tech companies for individuals with similar skill sets. The inability to
recruit and retain qualified personnel, or the loss of the services of our key management personnel without proper replacement, may impede
the progress of our research, development, and commercialization objectives.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>We may not be successful in our efforts
to identify, license, or discover additional products and technologies.</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Although we intend to focus
a substantial amount of our research and development efforts on the continued development and commercialization of our existing products
and technologies, the success of our business also depends upon our ability to identify, license, or discover additional products and
technologies. Given our limited resources it would be difficult to license or otherwise begin development of additional products. Our
research programs or licensing efforts may fail to yield additional products and technologies for development for a number of reasons,
including but not limited to the following:</p><div>

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

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">our research or business development
methodology or search criteria and process may be unsuccessful in identifying potential products and technologies;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">we may not be able or willing
to assemble sufficient resources to acquire or discover additional products and technologies;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">products and technologies we
develop may be covered by third parties&#8217; patents or other exclusive rights;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">our products and technologies
may not succeed in testing;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">our potential products and technologies
may have characteristics that make them unmarketable;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">competitors may develop alternatives
that render our products and technologies obsolete or less attractive;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">the market for a product may
change during our program so that such a product becomes unreasonable to continue to develop;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">a product may not be capable
of being produced in commercial quantities at an acceptable cost, or at all; and</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">our products and technologies
may not succeed in testing.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If any of these events occurs,
we may be forced to abandon our development efforts for a program or programs, or we may not be able to identify, license, or discover
additional products and technologies, which would have a material adverse effect on our business. Research programs to identify new products
and technologies require substantial technical, financial, and human resources. We may focus our efforts and resources on potential programs
or products and technologies that ultimately prove to be unsuccessful.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Environmental, social and corporate governance
(&#8220;ESG&#8221;) issues, including those related to climate change and sustainability, may have an adverse effect on our business,
financial condition and results of operations and damage our reputation. </i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 7.15pt 0pt 7.4pt; text-align: justify; text-indent: 0.35in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">There is an increasing focus
from certain investors, customers, consumers, employees and other stakeholders concerning ESG matters. Additionally, public interest and
legislative pressure related to public companies&#8217; ESG practices continue to grow. If our ESG practices fail to meet regulatory requirements
or investor, employee or other stakeholders&#8217; evolving expectations and standards for responsible corporate citizenship in areas
including environmental stewardship, support for local communities, Board of Director and employee diversity, human capital management,
employee health and safety practices, product quality, supply chain management, corporate governance and transparency, our reputation
and employee retention may be negatively impacted, and our suppliers may be unwilling to continue to do business with us.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p><div>

</div><!-- Field: Page; Sequence: 13; Value: 3 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->9<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Investors and other stakeholders
are increasingly focusing on environmental issues, including climate change, energy and water use, plastic waste and other sustainability
concerns. Concern over climate change may result in new or increased legal and regulatory requirements to reduce or mitigate impacts to
the environment. Increased regulatory requirements may result in increased demands or requirements regarding components of our products
and their environmental impact on sustainability. Complying with these demands or requirements could cause us to incur additional manufacturing,
operating or product development costs.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, new sustainability
rules and regulations have been adopted and may continue to be introduced in various states and other jurisdictions. For example, the
SEC has published proposed rules that would require companies to provide significantly expanded climate-related disclosures in their periodic
reporting, which may require us to incur significant additional costs to comply and impose increased oversight obligations on our management
and board of directors.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If we do not adapt to or comply
with new regulations, or fail to meet evolving investor, industry or stakeholder expectations and concerns regarding ESG issues, investors
may reconsider their capital investment in our Company, which could have a material adverse effect on our business or financial condition.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Our business, operating results and growth
rates may be adversely affected by current or future unfavorable economic and market conditions and adverse developments with respect
to financial institutions and associated liquidity risk. </i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our business depends on the
economic health of the global economies. If the conditions in the global economies remain uncertain or continue to be volatile, or if
they deteriorate, including as a result of the impact of military conflict, such as the war between Russia and Ukraine, terrorism or other
geopolitical events, our business, operating results and financial condition may be materially adversely affected. Economic weakness,
inflation and increases in interest rates, limited availability of credit, liquidity shortages and constrained capital spending have at
times in the past resulted, and may in the future result, in challenging and delayed sales cycles, slower adoption of new technologies
and increased price competition, and could negatively affect our ability to forecast future periods. In addition, the military conflict
may affect the ability to purchase materials sourced in Russia.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, increases in
inflation raise our costs for commodities, labor, materials and services and other costs required to operate our business, and failure
to secure these on reasonable terms may adversely impact our financial condition. Additionally, increases in inflation, along with the
uncertainties surrounding COVID-19, geopolitical developments and global supply chain disruptions, have caused, and may in the future
cause, global economic uncertainty and uncertainty about the interest rate environment, which may make it more difficult, costly or dilutive
for us to secure additional financing. A failure to adequately respond to these risks could have a material adverse impact on our financial
condition, results of operations or cash flows.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">More recently, the closures of SVB and Signature
Bank and their placement into receivership with the FDIC created bank-specific and broader financial institution liquidity risk and concerns.
Although the Department of the Treasury, the Federal Reserve and the FDIC jointly released a statement that depositors at SVB and Signature
Bank would have access to their funds, even those in excess of the standard FDIC insurance limits, under a systemic risk exception, future
adverse developments with respect to specific financial institutions or the broader financial services industry may lead to market-wide
liquidity shortages, impair the ability of companies to access near-term working capital needs, and create additional market and economic
uncertainty. There can be no assurance that future credit and financial market instability and a deterioration in confidence in economic
conditions will not occur. Our general business strategy may be adversely affected by any such economic downturn, liquidity shortages,
volatile business environment or continued unpredictable and unstable market conditions. If the current equity and credit markets deteriorate,
or if adverse developments are experienced by financial institutions, it may cause short-term liquidity risk and also make any necessary
debt or equity financing more difficult, more costly, more onerous with respect to financial and operating covenants and more dilutive.
Failure to secure any necessary financing in a timely manner and on favorable terms could have a material adverse effect on our strategy,
our financial condition, results of operations or cash flows and stock price and could require us to alter our plans. In addition, there
is a risk that one or more of our service providers<b><i>,</i></b> financial institutions, manufacturers, suppliers and other partners
may be adversely affected by the foregoing risks, which could directly affect our ability to attain our operating goals on schedule and
on budget.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p><div>

</div><!-- Field: Page; Sequence: 14; Value: 3 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->10<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>A pandemic, epidemic or outbreak of an infectious
disease, such as COVID-19, may materially and adversely affect our business, financial condition and operating results.</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Public health crises such
as pandemics or similar outbreaks could adversely impact our business. Beginning in 2019, a novel strain of a virus named SARS-CoV-2 (severe
acute respiratory syndrome coronavirus 2), or coronavirus, which causes COVID-19, spread to most countries across the world, including
Israel. The COVID-19 pandemic led to the implementation of various responses, including government-imposed quarantines, travel restrictions
and other public health safety measures. In early 2020, the World Health Organization declared the rapidly spreading coronavirus disease
(COVID-19) outbreak a pandemic. We experienced disruptions to our operations as a result of the COVID-19 pandemic, including disruptions
to the Company&#8217;s clinical studies.&#160; The extent to which the COVID-19 pandemic may in the future impact our operations or those
of our third-party partners will depend on future developments, which are highly uncertain and cannot be predicted with confidence. In
particular, any future spread of COVID-19 globally or the reinstatement of restrictions or other actions that may be required to contain
COVID-19 or treat its impact could materially adversely impact our operations and workforce, including our research and development activities
and could result in the inability of our suppliers to deliver components or raw materials on a timely basis or at all, each of which in
turn could have a material adverse impact on our business, financial condition and results of operation. Further, uncertainty around the
COVID-19 pandemic and related issues could lead to adverse effects on the economy of Israel, the United States and other economies, which
could impact our ability to raise the necessary capital needed to develop and commercialize our products.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Risks Related to Our Intellectual Property
</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>If we are unable to obtain and maintain
effective patent rights for our products and technologies or any future products and technologies, we may not be able to compete effectively
in our markets.</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We rely upon a combination
of patents, trade secret protection, and confidentiality agreements to protect the intellectual property related to our products and technologies.
Our success depends in large part on our and our licensors&#8217; ability to obtain and maintain patent and other intellectual property
protection in the United States and in other countries with respect to our proprietary technology and products.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We have sought to protect
our proprietary position by filing patent applications in the United States and in other countries, as well as related to our novel technologies
and products that are important to our business. The silver ink and dispersions-related patent applications based on PCT/US2011/063459,
have been granted in several countries, including China, Russia, Japan, India, Israel, Korea, Brazil, France, Germany, the United Kingdom,
the Netherlands, the U.S. and the European Union and we currently have additional patent applications pending in the U.S. supporting our
silver-based inks, dispersions and some pastes. Our patent application based on PCT/IB2015/051536, relating to copper-based inks and dispersions,
has been granted in several countries, including Europe, Russia, the United Kingdom, Belgium, Germany, Finland, France, Ireland, the Netherlands,
Israel, Brazil, India and the United States. Additionally, we have patent applications based on PCT/IB2015/051536, relating to copper-based
ink, which have been submitted to national phase in South Korea, Japan and China. This process is expensive and time consuming, and we
may not be able to file and prosecute all necessary or desirable patent applications at a reasonable cost or in a timely manner. It is
also possible that we will fail to identify patentable aspects of our research and development output before it is too late to obtain
patent protection.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The patent position of technology
companies generally is highly uncertain and involves complex legal and factual questions for which legal principles remain unsolved. The
patents or patent applications that we own or in-license may fail to result in issued patents with claims that cover our products and
technologies in the United States or in other foreign countries. There is no assurance that all potentially relevant prior art relating
to our patents and patent applications has been found. The discovery of relevant prior art can invalidate a patent or prevent a patent
from issuing from a pending patent application. Even if patents do successfully issue, and even if such patents cover our products and
technologies, 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, our patents and patent applications may not adequately protect
our intellectual property, provide exclusivity for our products and technologies, or prevent others from designing around our claims.
Any of these outcomes could impair our ability to prevent competition from third parties, which may have an adverse impact on our business.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p><div>

</div><!-- Field: Page; Sequence: 15; Value: 3 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->11<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We, independently or together
with our licensors, have filed several patent applications covering various aspects of our products and technologies. Even though some
have already been granted, we cannot provide any assurances about which, if any, additional patents will issue, the breadth of any such
patent or whether any issued patents will be found invalid and unenforceable or will be threatened by third parties. Any successful opposition
to these patents or any other patents owned by or licensed to us after patent issuance could deprive us of rights necessary for the successful
commercialization of any products and technologies that we may develop. Further, if we encounter delays in regulatory approvals, the period
of time during which we could market a product under patent protection could be reduced.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If we cannot obtain and maintain
effective patent rights for our products and technologies, we may not be able to compete effectively and our business and results of operations
would be harmed.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>If we are unable to maintain effective proprietary
rights for our products and technologies or any future products and technologies, we may not be able to compete effectively in our markets.</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition to the protection
afforded by patents, we rely on trade secret protection and confidentiality agreements to protect proprietary knowhow that is not patentable
or that we elect not to patent, processes for which patents are difficult to enforce and any other elements of our product candidate discovery
and development processes that involve proprietary knowhow, information or technology that is not covered by patents. However, trade secrets
can be difficult to protect. We seek to protect our proprietary technology and processes, in part, by entering into confidentiality agreements
with our employees, consultants, scientific advisors, and contractors. We also seek to preserve the integrity and confidentiality of our
data and trade secrets by maintaining physical security of our premises and physical security of our information technology systems. While
we have confidence in these individuals, organizations and systems, agreements or security measures may be breached, and we may not have
adequate remedies for any breach. In addition, our trade secrets may otherwise become known or be independently discovered by competitors.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Although we expect all of
our employees and consultants to assign their inventions to us, and all of our employees, consultants, advisors, and any third parties
who have access to our proprietary knowhow, information, or technology to enter into confidentiality agreements, we cannot provide any
assurances that all such agreements have been duly executed or that our trade secrets and other confidential proprietary information will
not be disclosed or that competitors will not otherwise gain access to our trade secrets or independently develop substantially equivalent
information and techniques. Misappropriation or unauthorized disclosure of our trade secrets could impair our competitive position and
may have a material adverse effect on our business. Additionally, if the steps taken to maintain our trade secrets are deemed inadequate,
we may have insufficient recourse against third parties for misappropriating the trade secret.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Third-party claims of intellectual property
infringement may prevent or delay our development and commercialization efforts.</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">There have been many lawsuits
and other proceedings involving patent and other intellectual property rights in the high-technology industries, including patent infringement
lawsuits, interferences, oppositions, and reexamination proceedings before the USPTO and corresponding foreign patent offices. Numerous
U.S. and foreign issued patents and pending patent applications, which are owned by third parties, exist in the fields in which we are
developing products and technologies. As the conductive ink and paste industry expands and more patents are issued, the risk increases
that our products and technologies may be subject to claims of infringement of the patent rights of third parties. We have never conducted
a freedom to operate study.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p><div>

</div><!-- Field: Page; Sequence: 16; Value: 3 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->12<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Third parties may assert that
we are employing their proprietary technology without authorization. There may be third-party patents or patent applications with claims
to materials, formulations, or methods of manufacture related to the use or manufacture of our products and technologies. Because patent
applications can take many years to issue, there may be currently pending patent applications that may later result in issued patents
that our products and technologies may infringe. In addition, third parties may obtain patents in the future and claim that use of our
technologies infringes upon these patents. If any third-party patents were held by a court of competent jurisdiction to cover the manufacturing
process of any of our products and technologies, the holders of any such patents may be able to block our ability to commercialize such
product or technology unless we obtained a license under the applicable patents, or until such patents expire or are finally determined
to be invalid or unenforceable.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Similarly, if any third-party
patents were held by a court of competent jurisdiction to cover aspects of our formulations, processes for manufacture, or methods of
use, the holders of any such patents may be able to block our ability to develop and commercialize the applicable product or technology
unless we obtained a license or until such patent expires or is finally determined to be invalid or unenforceable. In either case, such
a license may not be available on commercially reasonable terms or at all.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Parties making claims against
us may obtain injunctive or other equitable relief, which could effectively block our ability to further develop and commercialize one
or more of our products and technologies. Defense of these claims, regardless of their merit, would involve substantial litigation expense
and would be a substantial diversion of employee resources from our business. In the event of a successful claim of infringement against
us, we may have to pay substantial damages (including treble damages and attorneys&#8217; fees for willful infringement), pay royalties,
redesign our infringing products or obtain one or more licenses from third parties, which may be impossible or require substantial time
and monetary expenditure.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>We may become subject to claims of intellectual
property infringement by third parties or may be required to indemnify our distributors or other third parties against such claims, which,
regardless of their merit, could result in litigation, distract our management and materially adversely affect our business, results of
operations or financial condition.</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We have in the past and may
in the future become subject to third-party claims that assert that our solutions, services and intellectual property infringe, misappropriate
or otherwise violate third-party intellectual property or other proprietary rights.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Intellectual property disputes
can be costly and disruptive to our business operations by diverting the attention and energies of management and key technical personnel,
and by increasing our costs of doing business. Even if a claim is not directly against us, our agreements with distributors generally
require us to indemnify them against losses from claims that our products infringe third-party intellectual property rights and entitle
us to assume the defense of any claim as part of the indemnification undertaking. Our assumption of the defense of such a claim may result
in similar costs, disruption and diversion of management attention to that of a claim that is asserted directly against us. We may not
prevail in any such dispute or litigation, and an adverse decision in any legal action involving intellectual property rights could harm
our intellectual property rights and the value of any related technology or limit our ability to execute our business.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Adverse outcomes in intellectual
property disputes could:</p><div>

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

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">require us to redesign our technology
or force us to enter into costly settlement or license agreements on terms that are unfavorable to us;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">prevent us from manufacturing,
importing, using, or selling some or all of our solutions;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">disrupt our operations or the
markets in which we compete;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 17; Value: 3 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->13<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">impose costly damage awards;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">require us to indemnify our
distributors and customers; and</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">require us to pay royalties.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>We may not be successful in obtaining or
maintaining necessary rights to our products and technologies through intellectual property rights in-licenses.</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We currently have rights to
the intellectual property, through licenses from third parties and under patents that we own, to develop our products and technologies.
Because our programs may require the use of proprietary rights held by third parties, the growth of our business will likely depend in
part on our ability to in-license, or use these proprietary rights. In addition, our products and technologies may require specific formulations
to work effectively and efficiently and the rights to these formulations may be held by others. We may be unable to acquire or in-license
any compositions, methods of use, processes, or other third-party intellectual property rights from third parties that we identify as
necessary for our products and technologies. The licensing and acquisition of third-party intellectual property rights is a competitive
area, and a number of more established companies are also pursuing strategies to license or acquire third-party intellectual property
rights that we may consider attractive. These established companies may have a competitive advantage over us due to their size, cash resources,
and greater development and commercialization capabilities.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, companies that
perceive us to be a competitor may be unwilling to assign or license rights to us. We also may be unable to license or acquire third-party
intellectual property rights on terms that would allow us to make an appropriate return on our investment. If we are unable to successfully
obtain rights to required third-party intellectual property rights, we may have to abandon development of that program and our business
and financial condition could suffer.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>We may not be able to fully enforce covenants
not to compete with our key employees, and therefore we may be unable to prevent our competitors from benefiting from the expertise of
such employees.</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our employment agreements
with our key employees contain non-compete provisions. These provisions prohibit our key employees, if they cease working for us, from
competing directly with us or working for our competitors for a limited period of time. We may be unable to enforce these provisions under
applicable laws in Israel where all of our key employees reside. In Israel, the Basic Law: Freedom of Occupation, as interpreted by binding
case law, may restrict our ability to enforce non-compete provisions against our employees. If we cannot enforce our non-compete provisions
against our employees, we may be unable to prevent our competitors from benefiting from the expertise of such employees. Even if these
provisions are enforceable, they may not adequately protect our interests. As a result, if one or more of our employees leaves our employment
and subsequently becomes employed by one of our competitors, our business, results of operations and ability to capitalize on our proprietary
information may be materially adversely affected.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>We may not be able to protect our intellectual
property rights throughout the world.</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Filing, prosecuting, and defending
patents on products and technologies in all countries throughout the world would be prohibitively expensive, and our intellectual property
rights in some countries outside the United States can be less extensive than those in the United States. In addition, the laws of some
foreign countries do not protect intellectual property rights to the same extent as federal and state laws in the United States.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Competitors may use our technologies
in jurisdictions where we have not obtained patent protection to develop their own products and may also export otherwise infringing products
to territories where we have patent protection, but enforcement is not as strong as that in the United States. These products may compete
with our products and our patents or other intellectual property rights may not be effective or sufficient to prevent them from competing.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p><div>

</div><!-- Field: Page; Sequence: 18; Value: 3 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->14<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Many companies have encountered
significant problems in protecting and defending intellectual property rights in foreign jurisdictions. The legal systems of certain countries,
particularly certain developing countries, do not favor the enforcement of patents, trade secrets, and other intellectual property protection,
which could make it difficult for us to stop the infringement of our patents or marketing of competing products in violation of our proprietary
rights generally. Proceedings to enforce our patent rights in foreign jurisdictions, whether or not successful, could result in substantial
costs and divert our efforts and attention from other aspects of our business, could put our patents at risk of being invalidated or interpreted
narrowly and our patent applications at risk of not issuing and could provoke third parties to assert claims against us. We may not prevail
in any lawsuits that we initiate and the damages or other remedies awarded, if any, may not be commercially meaningful. Accordingly, our
efforts to enforce our intellectual property rights around the world may be inadequate to obtain a significant commercial advantage from
the intellectual property that we develop or license.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Risks Related to Our Operations in Israel</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Our headquarters and other significant operations
are located in Israel and, therefore, our results may be adversely affected by political, economic and military instability in Israel.</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our executive offices, application
department, labs, production site and warehouse are located in Migdal Ha&#8217;Emek, Israel. In addition, all of our officers and directors
are residents of Israel. Accordingly, political, economic and military conditions in Israel may directly affect our business. Since the
establishment of the State of Israel in 1948, a number of armed conflicts have taken place between Israel and its neighboring countries
and militia groups. In recent years, Israel has been engaged in sporadic armed conflicts with Hamas, 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. Certain of these conflicts involved missile strikes against civilian targets in various parts of Israel, including
the city in which our headquarters are located as well as areas in which our employees and some of our consultants are located, and negatively
affected business conditions in Israel. In addition, Iran has threatened to attack Israel, may be developing nuclear weapons and has targeted
cyber attacks against Israeli entities.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Popular uprisings in various
countries in the Middle East and North Africa have affected the political stability of those countries. Such instability may lead to deterioration
in the political and trade relationships that exist between the State of Israel and these countries. Furthermore, several countries, principally
in the Middle East, still restrict doing business with Israel and Israeli companies, while some of these countries are eliminating these
constrains, additional countries may impose restrictions on doing business with Israel and Israeli companies if hostilities in Israel
or political instability in the region continues or increases. These restrictions may limit materially our ability to obtain raw materials
from these countries or sell our products to companies or persons in these countries. Any armed conflicts, terrorist activities or political
instability in the region could adversely affect business conditions and could harm our results of operations and could make it more difficult
for us to raise capital. Parties with whom we do business may sometimes decline to travel to Israel during periods of heightened unrest
or tension, forcing us to make alternative arrangements when necessary in order to meet our business partners face to face. In addition,
the political and security situation in Israel may result in parties with whom we have agreements involving performance in Israel claiming
that they are not obligated to perform their commitments under those agreements pursuant to force majeure provisions in such agreements.
Any hostilities involving Israel or the interruption or curtailment of trade between Israel and its present trading partners, or significant
downturn in the economic or financial condition of Israel, could adversely affect our operations and product development, cause our sales
to decrease and, if our securities become publicly traded, adversely affect the share price of our securities.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our commercial insurance does
not cover losses that may occur as a result of an event associated with the security situation in the Middle East. Although the Israeli
government is currently committed to covering the reinstatement value of direct damages that are caused by terrorist attacks or acts of
war, we cannot assure you that this government coverage will be maintained, or if maintained, will be sufficient to compensate us fully
for damages incurred. Any losses or damages incurred by us could have a material adverse effect on our business. Any armed conflicts or
political instability in the region would likely negatively affect business conditions generally and could harm our results of operations.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p><div>

</div><!-- Field: Page; Sequence: 19; Value: 3 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->15<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Furthermore, the Israeli government
is currently pursuing extensive changes to Israel&#8217;s judicial system. In response to the foregoing developments, individuals, organizations
and 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, they may have an adverse effect on our business, our
results of operations and our ability to raise additional funds.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-size: 10pt">In
addition, our operations could also be disrupted by the obligations of personnel to perform military service. As of December 31, 2022,
we had 11 employees and independent contractors, all of whom were based in Israel. Some of these Israeli employees and independent contractors
may be called upon to perform up to 54 days in each three year period (and in the case of military officers, up to 84 days in each three
year period) of military reserve duty until they reach the age of 40 (and in some cases, depending on their specific military profession
up to 45 or even 49 years of age) and, in certain emergency circumstances, may be called to immediate and unlimited active duty. In response
to increases in terrorist activity, there have been periods of significant call-ups of military reservists and it is possible that there
will be similar large-scale military reserve duty call-ups in the future. Our operations could be disrupted by the absence of a significant
number of employees related to military service, which could materially adversely affect our business and results of operations</span>.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>The Israeli government grants we have received
for research and development expenditures restrict our ability to manufacture products and transfer technologies outside of Israel and
require us to satisfy specified conditions. If we fail to satisfy these conditions, we may be required to refund grants previously received
together with interest and penalties. </i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We have received grants from
the Israel Innovation Authority (the &#8220;IIA&#8221;), for research and development programs and may apply for further grants in the
future. In order to maintain our eligibility for these grants, we must comply with the requirements of the Encouragement of Research,
Development and Technological Innovation in the Industry Law 5744-1984 (formerly known as the Law for the Encouragement of Research and
Development in Industry 5744-1984), and the regulations and guidelines promulgated thereunder (the &#8220;Innovation Law&#8221;). U<span>nder
the terms of the Innovation Law, in exchange for the research and development grants we received, we are required to pay the IIA royalties
at the rate of 3% from our revenues up to an aggregate of 100% (which may be increased under certain circumstances, as described below)
of the U.S. dollar-linked value of the grant, plus interest at the rate of 12-month LIBOR. </span>As of December 31, 2022, we and our
wholly-owned subsidiaries had received funding from the IIA in the aggregate amount of approximately $3.7 million. As of December 31,
2022, we and our wholly-owned subsidiaries had paid royalties to the IIA in the aggregate amount of approximately $1.1 million and had
an obligation to the IIA with respect to such funding (including interest) in the amount of approximately $3.2 million (approximately
$2.0 million out of such amount are contingent liabilities and therefore, not recorded in our liabilities).</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Innovation Law generally
requires that the products developed as part of the programs under which the grants were given be manufactured in Israel and that the
know-how developed thereunder may not be transferred outside of Israel, unless a prior written approval is received from IIA (such approval
is not required for the transfer of a portion of the manufacturing capacity which does not exceed, in the aggregate, 10% of the portion
declared to be manufactured outside of Israel in the applications for funding, in which case only notification is required) and additional
payments are required to be made to IIA. The export of products that incorporate the funded know-how is not restricted. As of the date
of this annual report on Form 20-F, we have not sought to obtain such approvals, as we do not have immediate plans to manufacture outside
of Israel. We may not receive the required approvals for any transfer of manufacturing activities, if such transfer will be contemplated
in the future. Even if we do receive approval to manufacture products developed with IIA grants outside of Israel, the royalty rate may
be increased and we may be required to pay up to 300% of some or all of the grant amounts requiring repayment plus interest, depending
on the manufacturing volume that is performed outside of Israel. This restriction may impair our ability to outsource manufacturing or
engage in our own manufacturing operations for those products or technologies.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p><div>

</div><!-- Field: Page; Sequence: 20; Value: 3 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->16<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Additionally, under the Innovation
Law, we are prohibited from transferring, including by way of license, the IIA-financed technologies and related intellectual property
rights and knowhow outside of the State of Israel, except under limited circumstances and only with the prior approval of the IIA. As
of the date of this annual report on Form 20-F, we have not sought to obtain such approvals, as we do not have immediate plans to transfer
the IIA-funded technologies and related intellectual property rights and knowhow outside of Israel. We may not receive the required approvals
for any proposed transfer, if any, and even if received, we may be required to pay the IIA a portion of the consideration that we receive
upon any sale of such technology to a non-Israeli entity up to 600% of the grant amounts plus interest. The scope of the support received,
the royalties that we have already paid to the IIA, the amount of time that has elapsed between the date on which the knowhow or the related
intellectual property rights were transferred and the date on which the IIA grants were received and the sale price and the form of transaction
will be taken into account in order to calculate the amount of the payment to the IIA. Approval of the transfer of technology to residents
of the State of Israel is required, and may be granted in specific circumstances only if the recipient abides by the provisions of applicable
laws, including the restrictions on the transfer of knowhow and the obligation to pay royalties. No assurance can be made that approval
to any such transfer, if requested, will be granted.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">These restrictions may impair
our ability to sell our technology assets or to perform or outsource manufacturing outside of Israel, engage in change of control transactions
or otherwise transfer our knowhow outside of Israel and may require us to obtain the approval of the IIA for certain actions and transactions
and pay additional royalties and other amounts to the IIA.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">These restrictions will continue
to apply even after we have repaid the full amount of royalties on the grants. If we fail to satisfy the conditions of the Innovation
Law, we may be required to refund certain grants previously received together with interest and penalties, and may become subject to criminal
charges.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Government of Israel has
reduced the grants available under the IIA&#8217;s program in recent years, and this program may be discontinued or curtailed in the future.
If we do not receive additional grants in the future, we will be required to allocate other funds to product development at the expense
of other operational costs.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We have also received a grant
from the Israeli Ministry of Energy (the &#8220;Ministry&#8221;) for one of our research and development programs. In order to maintain
our eligibility for this grant, we must meet specified conditions, including the payment of royalties of 5% (plus interest) of any revenues
generated from the intellectual property generated under the program. As of December 31, 2022, we had received funding from the Ministry
in the aggregate amount of approximately NIS 585,119 ($168,574, based on the NIS/US$ exchange rate published by the Bank of Israel on
December 31, 2013 of $1.00 = NIS 3.471). As of December 31, 2022, we had a contingent obligation to the Ministry with respect to such
funding (including interest), following the payment of royalties up to that date, in the amount of NIS 576,773 (approximately $163,903).
If we fail to comply with these conditions in the future, sanctions (such as the cancellation of the grant) might be imposed on us, and
we could be required to refund any payments previously received. The terms of the Ministry&#8217;s grant require us, among other things,
to obtain the Ministry&#8217;s approval prior to any assignment of know-how developed under the research and development program funded
with its grant and we must continue to comply with the grant requirements of our agreement with the Ministry regarding intellectual property
even following full repayment of any Ministry grant. The Ministry also has a right to receive a nonexclusive royalty free license to the
know-how developed under any such program to the extent necessary for national needs. Pursuant to the terms of the grant, until the later
of (i) full repayment of our contingent liability to the Ministry, or (ii) finalization of the research and development program, we are
required to notify the Ministry of any new funding offered to us, including by the State of Israel, and the Ministry has a right to negotiate
with such investor(s) for the repayment by us of the grant provided to us by the Ministry.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><!-- Field: Page; Sequence: 21; Value: 3 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->17<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Exchange rate fluctuations, primarily between
the U.S. dollar and the NIS currencies, and inflation may negatively affect our results of operations.</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We incur expenses both in
U.S. dollars and NIS, but our consolidated financial statements are denominated in U.S. dollars. As a result, we are exposed to the risks
that the NIS may appreciate relative to the U.S. dollar, or, if the NIS instead depreciates relative to the U.S. dollar, that the inflation
rate in Israel may exceed such rate of depreciation of the NIS, or that the timing of such depreciation may lag behind inflation in Israel.
In any such event, the U.S. dollar cost of our operations in Israel would increase and our U.S. dollar-denominated results of operations
would be adversely affected. We cannot predict any future trends in the rate of inflation in Israel or the rate of depreciation (if any)
of the NIS against the U.S. dollar. In addition, we may incur operating expenses denominated in Euros, and therefore, our operating results
may also be subject to fluctuations due to changes in the U.S. dollar/Euro exchange rate. We cannot predict any future trends in the rate
of inflation in Israel or the rate of depreciation (if any) of the NIS, the Euro and other foreign currencies against the U.S. dollar.
Given our general lack of currency hedging arrangements to protect us from fluctuations in the exchange rates of the NIS and Euro and
other foreign currencies in relation to the U.S. dollar (and/or from inflation of such foreign currencies), we may be exposed to adverse
effects from such movements. The rate of inflation in Israel or Europe or in currency exchange rates may materially change and we might
not be able to effectively mitigate these risks.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Provisions of Israeli law and our Amended
and Restated Articles of Association (&#8220;Articles of Association&#8221;), may delay, prevent or make undesirable an acquisition of
all or a significant portion of our shares or assets.</i></b></p><div>

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

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

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

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">Israeli corporate law regulates
mergers and requires that a tender offer be effected when more than a specified percentage of shares in a company are purchased;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">our Articles of Association
generally require a vote of the holders of a majority of our outstanding ordinary shares entitled to vote and present at a general meeting
of shareholders; however, the amendment of a limited number of provisions related to the board of directors, proceedings of the board
of directors, and business combinations require a vote of the holders of 60% of our outstanding ordinary shares entitled to vote and
present at a general meeting (excluding abstentions);</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">our Articles of Association
require a vote of the holders of 60% of our outstanding ordinary shares entitled to vote and present at a general meeting (excluding
abstentions) for the removal of directors prior to the expiration of his or her term of office;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">our Articles of Association
provide that director vacancies may only be filled by our board of directors; and</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">our Articles of Association
prevent &#8220;business combinations&#8221; with &#8220;interested shareholders&#8221; for a period of three years after the date of
the transaction in which the person became an interested shareholder, unless the business combination is approved in accordance with
our Articles of Association by a general meeting of our shareholders or satisfies other requirements specified in our Articles of Association.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 22; Value: 3 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->18<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our Articles of Association
provide for a board of directors consisting of no less than three and no more than seven directors, with all directors (other than the
external directors, whose appointment is required under the Israeli Companies Law, 1999 (the &#8220;Companies Law&#8221;), as described
below) divided into three classes with staggered three-year terms with each class of directors to consist, as nearly as possible, of one-third
of the total number of directors other than the external directors. This provision may make it more difficult for our shareholders to
elect different individuals to our board of directors, even if doing so would be considered to be beneficial by some of our shareholders,
may limit the price that investors may be willing to pay in the future for our ordinary shares, and may make it more difficult for a potential
acquiror to effect a change of control of our Company or may deter potential acquirors from seeking to effect a change of control.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, under our Articles
of Association, as approved by our shareholders on November 29, 2018, GTRIMG Investments Ltd. (&#8220;GTRIMG&#8221;), our controlling
shareholder, has the right, so long it holds at least 5% of our issued and outstanding share capital, conditioned upon a $2.0 million
investment by GTRIMG following such date, to appoint a director to the Board who shall also serve as the chairman of the Board, provided
that such nominee has the required qualifications under applicable laws, including the stock exchange rules then applicable. In April
2020, following completion of GTRIMG&#8217;s $2.0 million investment, GTRIMG appointed Mr. Dov Farkash to serve as a member of our Board
as Active Chairman.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Furthermore, under an agreement
dated October 27, 2021, entered into in connection with a <span>private placement of our securities, certain
of the investors, including GTRIMG, Messrs. Leon and Lenny Recanati, Dan Vilenski and Teuza, have the right to appoint three directors
to our Board. Accordingly, Mr. Ofer Greenberger and Mr. David Boas were appointed to our Board as of May 19, 2022. Mr. Boas resigned from
our Board as of January 1, 2023, and was replaced by Mr. Keinan Maman, who was appointed </span>as a director as of March 6, 2023<span>.
</span></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Further, Israeli tax considerations
may make potential transactions undesirable to us or to some of our shareholders whose country of residence does not have a tax treaty
with Israel granting tax relief to such shareholders from Israeli tax. With respect to mergers, Israeli tax law allows for tax deferral
in certain circumstances but makes the deferral contingent on the fulfillment of various 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 actual disposition of the shares has occurred.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>The tax benefits that are available to us
as a preferred enterprise require us to continue to meet various conditions and may be terminated or reduced in the future, which could
increase our costs and taxes.</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We have not yet elected to
be treated as a preferred enterprise for Israeli tax purposes, a designation which would allow us to receive certain tax benefits, since
we are still not at a stage where we have to pay tax due to carry forward losses. Once we are liable for tax payments, we may be entitled
to reduced tax rates and other tax benefits. If these tax benefits were reduced or eliminated or if we no longer comply with the various
pre-conditions required, the amount of taxes that we pay would consequently be subject to corporate tax at the standard rate, which could
adversely affect our results of operations.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 23; Value: 3 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->19<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>It may be difficult to enforce a judgment
of a United States court against us and our officers and directors and the Israeli experts named in this annual report on Form 20-F located
in Israel or the United States, to assert United States securities laws claims in Israel or to serve process on our officers and directors
and these experts.</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We were incorporated in Israel.
Our executive officers and all of our directors reside outside of the United States, and all of our assets and most of the assets of these
persons are located outside of the United States. Therefore, a judgment obtained against us, or any of these persons, including a judgment
based on the civil liability provisions of the U.S. federal securities laws, may not be collectible in the United States and may not necessarily
be enforced by an Israeli court. It also may be difficult for you to effect service of process on these persons in the United States or
to assert U.S. securities law claims in original actions instituted in Israel. Additionally, it may be difficult for an investor, or any
other person or entity, to initiate an action with respect to United States securities laws in Israel. Israeli courts may refuse to hear
a claim based on an alleged violation of United States securities laws, reasoning that Israel is not the most appropriate forum in which
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 United
States law is applicable to the claim. If United States law is found to be applicable, the content of applicable United States law must
be proven as a fact by expert witnesses, 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 that addresses the matters described above. As a result of the difficulty associated
with enforcing a judgment against us in Israel, you may not be able to collect any damages awarded by either a United States or foreign
court.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Risks Related to Our Ordinary Shares</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Our U.S. investors may suffer adverse tax
consequences if we are characterized as a passive foreign investment company.</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Generally, if for any taxable
year 75% or more of our gross income is passive income, or at least 50% of our assets are held for the production of, or produce, passive
income, we would be characterized as a passive foreign investment company (&#8220;PFIC&#8221;), for U.S. federal income tax purposes.
We have not determined whether we have been a PFIC for 2022 or any previous year, or whether we will be a PFIC in any future year. Because
PFIC status is determined annually and is based on our income, assets and activities for the entire taxable year, there can be no assurance
that we will not be classified as a PFIC in any year. If we were to be characterized as a PFIC for U.S. federal income tax purposes in
any taxable year during which a U.S. Investor owns ordinary shares, such U.S. Investor could face adverse U.S. federal income tax consequences,
including having gains realized on the sale of our ordinary shares classified as ordinary income, rather than as capital gain, the loss
of the preferential rate applicable to dividends received on our ordinary shares by individuals who are U.S. Investors, and having interest
charges apply to distributions by us and the proceeds of share sales. A &#8220;qualified electing fund&#8221; election may alleviate some
of the adverse consequences of PFIC status; however, we do not intend to provide the information necessary for U.S. Investors to make
qualified electing fund elections if we are classified as a PFIC.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Your rights and responsibilities as a shareholder
will be governed by Israeli law which differs in some material respects from the rights and responsibilities of shareholders of U.S. companies.</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The rights and responsibilities
of our shareholders are governed by Israeli law and our Articles of Association. These rights and responsibilities differ in some material
respects from the rights and responsibilities of shareholders in typical U.S.-based 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 general
meetings 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. However, Israeli law does not define the substance
of this duty of fairness. There is limited case law available to assist us in understanding the nature of this duty or the implications
of these provisions. These provisions may be interpreted to impose additional obligations and liabilities on our shareholders that are
not typically imposed on shareholders of U.S. corporations.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 24; Value: 3 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->20<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>We have never paid cash dividends on our
share capital, and we do not anticipate paying any cash dividends in the foreseeable future.</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We have never declared or
paid cash dividends on our share capital, nor do we anticipate paying any cash dividends on our share capital in the foreseeable future.
We currently intend to retain all available funds and any future earnings to fund the development and growth of our business. As a result,
capital appreciation, if any, of our ordinary shares will be investors&#8217; sole source of gain for the foreseeable future. In addition,
Israeli law limits our ability to declare and pay dividends, and may subject our dividends to Israeli withholding taxes. Furthermore,
our payment of dividends (out of tax-exempt income) may retroactively subject us to certain Israeli corporate income taxes, to which we
would not otherwise be subject.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Our major shareholders, directors and officers
as a group have significant voting power and may take actions that may not be in the best interest of shareholders.</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our major shareholders, GTRIMG,
<span>Messrs. Leon and Lenny Recanati or companies under their control</span> and <span>Teuza
&#8211; A Fairchild Technology Venture Ltd. (&#8220;Teuza&#8221;), and our </span>directors and officers as a group beneficially owned
approximately 81.05% of our outstanding ordinary shares as of May 15, 2023. As a result, they will have the ability to exert substantial
influence over all matters requiring approval by our shareholders, including the election and removal of directors and any proposed merger,
consolidation or sale of all or substantially all of our assets. <span>Their interests may not be consistent
with those of our other shareholders.</span> In addition, due to their share ownership, our major shareholders, the directors appointed
by them, our other directors and executive officers could dictate the management of our business and affairs. As of May 15, 2023, GTRIMG
beneficially owned in the aggregate approximately 40.23% of our outstanding ordinary shares. This concentration of ownership <span>may
discourage third parties from seeking to acquire control of us and</span> could have the effect of delaying, deferring or preventing a
change in control, or impeding a merger or consolidation, takeover or other business combination that could be favorable to you. This
significant concentration of share ownership may also adversely affect the trading price for our ordinary shares, if a public market further
develops for such securities, because investors may perceive disadvantages in owning stock in a company with controlling affiliated shareholders.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>We incur significant costs as a result of
operating as a public company, and our management is required to devote substantial time to new compliance initiatives.</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We are subject to the requirements
to file periodic and annual reports under Section 15(d) of the Exchange Act, and are otherwise subject to laws applicable to public reporting
companies in the United States. As a public reporting company, we incur significant legal, accounting, and other expenses. In addition,
the Sarbanes-Oxley Act, as amended, and the rules and regulations of the SEC thereunder, have imposed various requirements on public companies.
Shareholder activism, the current political environment, and the current high level of government intervention and regulatory reform may
lead to substantial new regulations and disclosure obligations, which may lead to additional compliance costs and impact the manner in
which we operate our business in ways we cannot currently anticipate. Our management and other personnel need to devote a substantial
amount of time to these compliance initiatives. Moreover, these rules and regulations increase our legal and financial compliance costs
and will make some activities more time consuming and costly.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>We are a &#8220;foreign private issuer&#8221;
and have disclosure obligations that are different from those of U.S. domestic reporting companies.</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We are a foreign private issuer
and are not subject to the same requirements that are imposed upon U.S. domestic issuers by the SEC. Under the Exchange Act, we are subject
to reporting obligations that, in certain respects, are less detailed and less frequent than those of U.S. domestic reporting companies.
For example, we are not required to issue quarterly reports and proxy statements that comply with the requirements applicable to U.S.
domestic reporting companies. Furthermore, although as an Israeli public company listed outside of Israel we are required to disclose
the compensation of our five most highly compensated officers on an individual basis, this disclosure is not as extensive as that required
of U.S. domestic reporting companies. We also have four months and an automatic extension of 15 days after the end of each fiscal year
to file our annual reports with the SEC and are not required to file current reports as frequently or promptly as U.S. domestic reporting
companies. Furthermore, our officers, directors and principal shareholders are exempt from the requirements to report short-swing profit
recovery contained in Section 16 of the Exchange Act. Also, 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. These exemptions and leniencies will reduce the frequency
and scope of information and protections available to you in comparison to those applicable to U.S. domestic reporting companies.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 25; Value: 3 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->21<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Offers or availability for sale of a substantial
number of our ordinary shares may cause the price of our ordinary shares to decline.</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If our major shareholders
sell substantial amounts of our ordinary shares in the public market (if one develops) or if there is a perception in the market that
substantial sales may occur in the future upon the expiration of any statutory holding period, under Rule 144, or upon the exercise of
outstanding options held by our director and officers or warrants held by investors, the market price of our ordinary shares could fall.
The occurrence of such substantial sales or the perception that substantial sales of our ordinary shares may occur in the future could
<span>put downward pressure on the market price of our ordinary shares and</span> may make it more difficult
for us to raise additional financing through the sale of equity or equity related securities in the future at a time and price that we
deem reasonable or appropriate.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Furthermore, we issued a significant
number of warrants to certain investors, which, if exercised, may have a material dilutive effect on our share capital. For more information
see &#8220;Item 7 A. Major Shareholders and Related Party Transactions &#8212; Major Shareholders&#8221;.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Our management conducted an evaluation of
the effectiveness of our internal control over financial reporting and concluded that our internal control over financial reporting was
not effective as of December 31, 2022. If we fail to maintain an effective system of internal control over financial reporting, we may
not be able to accurately report our financial results or prevent fraud. As a result, shareholders could lose confidence in our financial
and other public reporting. </i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Effective internal controls
over financial reporting are necessary for us to provide reliable financial reports and, together with adequate disclosure controls and
procedures are designed to prevent fraud. Our management is required to assess the effectiveness of our internal controls and procedures
and disclose changes in these controls on an annual basis. Any failure to implement required new or improved controls, or difficulties
encountered in their implementation could cause us to fail to meet our reporting obligations. In addition, any testing by us of our internal
controls and procedures may reveal deficiencies in our internal controls over financial reporting that are deemed to be material weaknesses
or that may require prospective or retroactive changes to our financial statements or identify other areas for further attention or improvement.
Inferior internal controls could also cause investors to lose confidence in our reported financial information.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our management conducted an
evaluation of the effectiveness of our internal control over financial reporting and concluded that our internal control over financial
reporting was not effective as of December 31, 2022, and also concluded that our disclosure controls and procedures were not effective
as of December 31, 2022, due to material weaknesses in our internal control over financial reporting, all as described in Item 15, &#8220;Controls
and Procedures&#8221; of this annual report. As defined in Regulation&#160;12b-2 under the Exchange Act, a &#8220;material weakness&#8221;
is a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility
that a material misstatement of our annual financial statements will not be prevented or detected on a timely basis.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The material weaknesses in
internal control over financial reporting that were identified (among other things) were: (i) significant parts of entity level controls
are missing, (ii) lack of segregation of duties, (iii) controls&#8217; effectiveness testing was predominantly not performed, among other
things due to nonperformance of controls or absence of evidence for controls&#8217; performance, and (iv) non-remediation of material
weaknesses identified in prior years. Based on such assessment, management has concluded that, as of December 31, 2022, our internal control
over financial reporting is ineffective based on those criteria.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 26; Value: 3 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->22<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We have made, and will continue
to make, changes in these and other areas. In any event, the process of determining whether our existing internal controls are compliant
with applicable requirements and sufficiently effective will require the investment of substantial time and resources, including by our
chief financial officer and other members of our senior management. As a result, this process may divert internal resources and take a
significant amount of time and effort to complete. In addition, we cannot predict the outcome of this process and whether we will need
to implement remedial actions in order to implement effective controls over financial reporting. The determination of whether or not our
internal controls are sufficient and any remedial actions required could result in us incurring additional costs that we did not anticipate.
We may also fail to complete our evaluation, testing and any required remediation needed to comply with applicable requirements in a timely
fashion. Irrespective of compliance with applicable requirements, any additional failure of our internal controls could have a material
adverse effect on our stated results of operations and harm our reputation. As a result, we may experience higher than anticipated operating
expenses, as well as higher independent auditor fees during and after the implementation of these changes. If we are unable to implement
any of the required changes to our internal control over financial reporting effectively or efficiently or are required to do so earlier
than anticipated, it could adversely affect our operations, financial reporting or results of operations.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Furthermore, if we are unable
to certify that our internal control over financial reporting is effective and in compliance with applicable requirements, we may be subject
to sanctions or investigations by regulatory authorities, such as the SEC, and we could lose investor confidence in the accuracy and completeness
of our financial reports, which could hurt our business and our ability to access the capital markets.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>The market price of our ordinary shares
may fluctuate significantly.</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If a public trading market
further develops for our ordinary shares, the market price of the ordinary shares may fluctuate significantly in response to numerous
factors, some of which are beyond our control, such as:</p><div>

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

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">the announcement of new products
or product enhancements by us or our competitors;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">developments concerning intellectual
property rights and regulatory approvals;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">variations in our and our competitors&#8217;
results of operations;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">changes in earnings estimates
or recommendations by securities analysts, if the ordinary shares are covered by analysts;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">developments in the nanotechnology
and alternative energy industries;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">the results of product liability
or intellectual property lawsuits;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">future issuances of ordinary
shares or other securities;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">the addition or departure of
key personnel;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">announcements by us or our competitors
of acquisitions, investments or strategic alliances; and</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">general market conditions and
other factors, including factors unrelated to our operating performance, such as natural disasters and political and economic instability,
including wars, terrorism, political unrest, results of certain elections and votes, emergence of a pandemic or other widespread health
emergencies (or concerns over the possibility of such an emergency, including for example, the COVID-19 pandemic), boycotts, adoption
or expansion of government trade restrictions, and other business restrictions.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Further, in recent years,
the stock market has experienced extreme price and volume fluctuations. Continued or renewed market fluctuations could result in extreme
volatility in the price of our ordinary shares, which could cause a decline in the value of the ordinary shares. Price volatility of our
ordinary shares might be significant if the trading volume of the ordinary shares is low, which often occurs with respect to securities
quoted on the OTCQB or the OTC Pink.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 27; Value: 3 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->23<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Because our ordinary shares are traded as
a &#8220;penny stock,&#8221; it may be more difficult for investors to sell our ordinary shares, and the market price of our ordinary
shares may be adversely affected.</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our ordinary shares are deemed
a &#8220;penny stock&#8221; since, among other things, the stock price is currently trading below $5.0 per share. Broker-dealers who sell
penny stocks must provide purchasers of these stocks with a standardized risk-disclosure document prepared by the SEC. This document provides
information about penny stocks and the nature and level of risks involved in investing in the penny-stock market. A broker must also give
a purchaser, orally or in writing, bid and offer quotations and information regarding broker and salesperson compensation, make a written
determination that the penny stock is a suitable investment for the purchaser and obtain the purchaser&#8217;s written agreement to the
purchase. Broker-dealers must also provide customers that hold penny stock in their accounts with such broker-dealer a monthly statement
containing price and market information relating to the penny stock. If a penny stock is sold to an investor in violation of the penny
stock rules, the investor may be able to cancel its purchase and get its money back.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The penny stock rules may
make it difficult for investors to sell their ordinary shares. Because of the rules and restrictions applicable to a penny stock, there
is less trading in penny stocks and the market price of the ordinary shares may be adversely affected. Also, many brokers choose not to
participate in penny stock transactions. Accordingly, investors may not always be able to resell their ordinary shares publicly at times
and prices that they feel are appropriate.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Compliance with changing regulations concerning
corporate governance and public disclosure may result in additional expenses.</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">There have been changing laws,
regulations and standards relating to corporate governance and public disclosure, including the Sarbanes-Oxley Act, new regulations promulgated
by the SEC and rules promulgated by the national securities exchanges. These new or changed laws, regulations and standards are subject
to varying interpretations in many cases due to their lack of specificity, and, as a result, their application in practice may evolve
over time as new guidance is provided by regulatory and governing bodies, which could result in continuing uncertainty regarding compliance
matters and higher costs necessitated by ongoing revisions to disclosure and governance practices. As a result, our efforts to comply
with evolving laws, regulations and standards are likely to continue to result in increased general and administrative expenses and a
diversion of management time and attention from revenue-generating activities to compliance activities. Our directors and executive officers
could face an increased risk of personal liability in connection with the performance of their duties. As a result, we may have difficulty
attracting and retaining qualified directors and executive officers, which could harm our business. If our efforts to comply with new
or changed laws, regulations and standards differ from the activities intended by regulatory or governing bodies, we could be subject
to liability under applicable laws or our reputation may be harmed.</p><div>

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

</div><div><a id="a_005"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>ITEM 4. Information on the Company</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>A. History and development of the company</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">P.V. Nano Cell Ltd. was incorporated in Israel on June 24, 2009 as
a private limited liability company, organized under the laws of State of Israel. We have three wholly-owned subsidiaries, all of which
are private companies organized under the laws of the State of Israel: (i) Nano Size Ltd. (&#8220;Nano Size&#8221;), which we acquired
on December 31, 2009; (ii) Digiflex Ltd. (&#8220;Digiflex&#8221;), which we acquired on December 3, 2017; and (iii) Jet CU P.C.B. Ltd.
(&#8220;Jet CU&#8221;), which we acquired on July 26, 2020. Additionally, Digiflex wholly-owns one subsidiary based in the US: Digiflex
Inc., incorporated under the laws of the State of Delaware.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our Registration Statement
on Form F-1 was declared effective by the SEC on September 30, 2015, and a FINRA-registered market maker subsequently filed an application
on Form 211 with FINRA to quote the ordinary shares on the OTCQB. On March 31, 2016, the application on Form 211 with FINRA to make a
market in our ordinary shares was approved by FINRA, and on December 15, 2016, quotation of our ordinary shares began on the OTCQB under
the ticker symbol &#8220;PVNNF&#8221;. On December 18, 2019, our ordinary shares began to be quoted on the OTC Pink. However, due to lack
of available resources, we have not been able to comply in a timely manner with our SEC periodic filing obligations for the years ended
December 31, 2020 and 2021. Accordingly, as of September 29, 2021, the public quote for our stock was removed from the OTC Pink. Depending
on market and other conditions and the continued development of our products, we will consider applying to have our ordinary shares quoted
on the OTC Pink.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 28; Value: 3 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->24<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our principal offices are
located at 8 Hamasger Street, Migdal Ha&#8217;Emek, Israel 2310102. Our telephone number is (972) 4-654-6881. Our website address is www.pvnanocell.com.
This website address is included in this annual report on Form 20-F as an inactive textual reference only. The information and other content
appearing on our website are not part of this annual report on Form 20-F. The Company does not have a registered agent in the United States.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>B. Business Overview </b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We are a conductive ink and
pastes manufacturing company focused on developing, manufacturing, marketing and commercializing conductive inks and pastes for digital
conductive printing applications (mainly inkjet and aerosol printing technologies). We have developed the Sicrys&#8482; family of single
crystal nano-metric conductive inks and pastes, which we believe is significantly more effective alternative to other current printing
processes, such as screen printing photolithography and etching processes, for photovoltaic heterojunction technology (PV-HJT) and digital
printed electronics (PE) applications. We adapt our basic inks and pastes to specific customer requirements. We currently sell our Sicrys&#8482;
silver-based inks and pastes for PV and PE applications in low volumes and are in the process of seeking to expand our sales efforts to
include sales of Sicrys&#8482; inks and pastes for a wider range of applications, such as solar, automotive and digitally printed electronics.
We have also developed what we believe is the first available commercially viable copper-based nano-metric low viscosity stable ink for
mass-production of printed electronics. We believe that copper inks and pastes represent a significant improvement over silver-based inks
and pastes given copper&#8217;s significantly lower cost and nearly identical electrical and conductive properties.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Background</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Photovoltaic Cell Metallization</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">PV cells (commonly known as
solar cells) are the building blocks of solar module arrays that convert energy from sunlight into electricity. Multiple PV cells in an
integrated group, all oriented in one plane, constitute a solar photovoltaic panel or module, and a group of connected modules make up
an array. An array of PV cells is capable of converting solar energy into a usable amount of direct current electricity.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Most modern solar cells are
made from either crystalline silicon or thin-film semiconductor material. Crystalline silicon cells are more efficient at converting sunlight
to electricity, but generally have higher manufacturing costs. Thin-film materials are typically less efficient at converting sunlight
into electricity, but can be cheaper to manufacture.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A key part of the PV crystalline
silicon cell manufacturing process is the metallization of the cell &#8211; i.e., laying down metal electrodes to collect the electricity
generated by the cell when exposed to sunlight. Typically, the metallization process is completed by the application of a silver paste
to the front side and aluminum-silver pastes on the rear side of the cell using a screen-printing process. This process is one of the
main bottlenecks to reducing the costs of the cells and the cost of electricity produced by the cells due to: high usage of metal (expensive
silver), loss of paste in the process (some paste stays in the screens), cell breakage in the printing process (contact printing), wide
printed patterns (higher shading of cells, less surface exposed to the light) and limited electrical properties of the pastes.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Silicon crystalline solar cells are being replaced by different types
of cells like thin film, HJT, CIGS, perovskite solar cells and others. Some of these cells are sensitive to high temperatures, therefore,
the potential to increase such cells&#8217; efficiencies and lower costs utilizing the screen printing process is limited. Inkjet printing
and other non-contact printing processes utilizing our low temperature sintering inks and pastes has been demonstrated to increase cell
efficiency and lower production costs. Therefore, we believe that temperature sensitive cells (such as HJT cells) would benefit from our
technologies.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We believe that a significant
market opportunity exists for a non-contact metallization low temperature sintering solution that is competitive with traditional screen
printing process, does not break silicon cells, allows for thinner PV cell wafers (thus reducing silicon costs, which we believe to be
a major obstacle to the wider proliferation of solar cell technologies), increases the active area of the cell by printing narrower conductors,
and yields better electrical performance than screen-printed conductors. We believe that the market for inks and pastes to be used in
inkjet printing for PV applications is a small subset of the market for silver pastes and inks in PV cell production generally, as described
above. We further believe that such market has a potential to grow over time given the benefits of inkjet printing technologies and the
benefits of our silver and copper based Sycris&#8482; inks and pastes, which, among others, may apply to a range of printing technologies,
and have lower costs and simpler operating procedures when compared to screen-printing processes commonly used.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p><div>

</div><!-- Field: Page; Sequence: 29; Value: 3 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->25<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Printed Electronics</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Digital printed electronics
is a set of methodologies by which electrical devices are digitally printed onto various substrates (i.e., base material) by depositing
electrically functional inks and pastes (and possibly other additional functional inks and pastes such as insulating materials) on the
substrate, creating active or passive devices, such as conductors, capacitors or resistors. The use of digital printed electronics presents
an opportunity to facilitate widespread, production of new electronics, more efficient electronics, new electronic designs and customized
and personalized electronics while keeping production costs low.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We believe that the current
analog printing and etching methods have inherent limitations when implemented in flexible electronics, 3D (three dimensional) electronics
and in customized and small-scale printing. Furthermore, these processes currently utilize expensive materials and produce toxic byproducts
which must be disposed of, which increases overall production costs. We believe that a significant market opportunity exists for inks
and pastes, such as ours, that enable digital inkjet conductive printing, enabling printing on flexible substrates, three-dimensional
printing and customized and small-scale printing at a lower price.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Digitally printing electronics present many advantages
over the traditional analog method, including:</p><div>

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

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify">It is an additive process, no etching, or no dangerous waste are involved
or generated;</td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">Digital process will allow printing
of passive components (resistors &amp; capacitors) embedded in the layers;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 72px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">a.</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">Free mounting area on the outer surfaces (will allow minimizing the surface area and thickness).</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 72px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">b.</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">Saving component mounting costs and complexity.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">While there are quite a few
companies that have silver conductive inks and pastes (which are not compatible with mass production processes), there are very few companies
offering copper nano particle dispersions, which, to our knowledge, are not inks or pastes. The Company offers silver and copper-based
inks and pastes.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Our Solutions </b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Photovoltaic Cell Metallization </i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our Sicrys&#8482; family of
inks are low viscosity, nano-particle inks optimized for inkjet printing. We believe that PV HJT utilizing our Sicrys&#8482; inks results
in the following benefits relative to traditional screen-printing processes:</p><div>

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

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">A more efficient solar cell;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">Immediate cost savings due to
substantially lower metallization costs and increased cell efficiency (lower sintering temperatures);</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">Potential future cost savings
due to the ability to utilize thinner wafers for PV cells, thus reducing silicon costs and potentially further increasing cell efficiency;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">Enhanced performance due to
improved conductive properties enabling printing of contact lines that are significantly thinner than the lines that can be produced
with screen printing;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">Improve performance of temperature
sensitive solar cells (CIGS, CdTe, HTJ, thin films and others); and</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">Potential future costs savings
with copper inks and pastes that we are currently investigating to penetrate the new technologies.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 30; Value: 3 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->26<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Printed Electronics</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We currently offer silver-based
Sicrys&#8482; inks and pastes and our developed copper-based Sicrys&#8482; for use in the production of PE utilizing inkjet printing technologies.
We believe that inkjet production of PE utilizing our Sicrys&#8482; inks and pastes results in the following benefits relative to traditional
screen printing and photolithography processes:</p><div>

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

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">Applications for flexible and
customized electronics and three-dimensional (3D) printed device manufacturing, due to digital (non-contact) printing and the lower sintering
temperatures required for nano-based inks and pastes;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">Significant cost reductions,
as we estimate that we will be able to market our copper-based inks and pastes at a lower price than silver inks and pastes currently
used in screen printing or etch and photolithography processes; and</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">Significant reductions in the
generation of hazardous waste by products.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Our Strategy </b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our goal is to become a leading
producer of conductive inks and pastes for the solar industry and PE applications. Our strategy is to concentrate our efforts on mass
production application opportunities by selling inks and pastes to be used in mass production printing technologies with high throughputs
and high consumption of inks and pastes per year. We are currently focusing our efforts on demonstrating the advantages of our Sicrys&#8482;
technology primarily to dedicated customers. We also intend to work with our customers to develop the production processes suitable to
the relevant applications and their needs (including printing strategy, printing temperature, sintering temperatures and time).</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, we are continuing
our efforts to:</p><div>

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

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><i>Develop
                                            copper based digital printing inks and pastes for solar cells applications</i>. We are working
                                            to develop a copper-based ink and paste and process (printing and sintering) which will be
                                            compatible with HJT type solar cells. This printing process would replace the silver and
                                            the wet plating chemistry used today to build the conductive patterns.</td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt"><i>Increase market awareness
of our products and technologies</i>. We are attempting to raise our profile in the relevant markets, as well as raise awareness of our
product and technology offerings, by attending conferences, exhibitions and trade shows when this is feasible.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt"><i>Partner with leading printing
technology manufacturers to supply our solutions to potential customers.</i></span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt"><i>Explore application of our
technologies to other fields</i>. We are currently exploring opportunities with several potential customers (worldwide) to implement
our technologies in their processes.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We have several development
consortiums in the framework of the European Horizon 2020, R&amp;D support programs in Europe and Israel, which provide grants for research
and development, including to companies in Israel. The grants are used to expand our know-how and network through research and development
that we commit to, the costs of which is reimbursed in part by European Horizon 2020 and local financing entities. One consortium program
for <span>the inkjet-based fabrication of multilayer printed circuit boards with embedded printed passive
elements</span> was recently concluded.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p><div>

</div><!-- Field: Page; Sequence: 31; Value: 3 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->27<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following additional projects
were approved for financing in 2019 and 2021:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">RolaFlex &#8211; A project financed
by the Horizon 2020 framework. The project&#8217;s vision is to combine high-resolution laser printing and laser patterning and new materials
with high throughput R-2-R process. The technology will be demonstrated in the high-speed fabrication of OLED and OPV components. The
partners in this project are TNO (The Netherlands), Armor (France), Golem (Germany), Seqens (France), FlexEnable (UK), NTUA (Greece),
Imperial Collage (UK), Avantama (Switzerland). The project was initially for a period of three years, commencing May 1, 2020, and was
extended for an additional six-month period, until October 31, 2023.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">Tinker&#160;&#8211; A project
financed by the Horizon 2020 framework (a ~$12 million budget, of which PVN has a budget of $0.79 million). The project&#8217;s vision
is to provide a new cost and resource-efficient pathway for RADAR and LIDAR sensor package fabrication with high throughput of up to
250 units/min. Partners in this project are: Bosch (Germany), Infineon (Germany), Profactor (Austria), Ibeo (Germany), Marelli (Italy),
Leti (France), Notion (Germany), Tiger (Austria), EVG (Austria), Inkron (Finland), Sentech (Germany), Forth (Greece), Austrian Standards
(Austria), Besi (The Netherlands), and Amires (Switzerland). The project was initially for a period of three years commencing October
1, 2020, and was extended for an additional six-month period, until March 31, 2024.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">Bussard&#160;&#8211; A project
financed by the Solar EraNet (through the Israeli Ministry of Infrastructure) framework (a ~&#8364;4.4 million budget, of which PVN has
a budget of $0.33 million). The project&#8217;s vision is to develop solar cell metallization methods that can show substantially narrower
patterns than the state of the art. Partners in this project are: Fraunhofer ISE, HighLine, Tempress Janoschka, ContiTech, JB Ecotech,
Energetica and KAU (all in Germany). The project was initially for a period of two years commencing February 1, 2021, and was extended
for an additional 12-month period, until January 31, 2024.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Research and Development</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The conductive inks and pastes
we manufacture for digital conductive printing applications&#160;are based on either silver or copper. Our Application and Research and
Development (&#8220;R&amp;D&#8221;), team&#8217;s efforts are focused primarily on the following two goals:</p><div>

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

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left">&#9679;</td><td style="text-align: justify"><span style="font-size: 10pt">Continuous improvement and
optimization of our inks and pastes:</span></td>
</tr></table><div>


</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 60pt"></td><td style="width: 20pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">o</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Adapting
the inks to the different available and emerging printing technologies in the market;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 60pt"></td><td style="width: 20pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">o</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Optimizing
inks and pastes for new and emerging applications; and</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 60pt"></td><td style="width: 20pt; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">o</span></td><td style="text-align: justify"><span style="font-size: 10pt">Reducing the sintering temperature,
or the process that physically connects between the nano metal particles to produce a continuous conductive layer.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">Process development (engineering):
We offer our customers a solution approach, comprised of inks, pastes and process know-how. In this framework we are developing for our
customers the printing process for their specific applications, including printing samples and prototypes.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We have and our wholly-owned
subsidiaries have received grants from the Government of Israel through the IIA for the financing of a portion of our research and development
expenditures pursuant to the Innovation Law. As of December 31, 2022, we and our wholly-owned subsidiaries had received funding from the
IIA in the aggregate amount of approximately $3.7 million. As of December 31, 2022, we and our wholly-owned subsidiaries had paid royalties
to the IIA in the aggregate amount of approximately $1.1 million and had an obligation to the IIA with respect to such funding (including
interest) in the amount of approximately $3.2 million (approximately $2.0 million out of such amount are contingent liabilities and therefore,
not recorded in our liabilities). We may apply for additional IIA grants in the future; however, there is no assurance that such applications
will be approved in the amount requested or at all. We have also received a grant from the Ministry for one of our research and development
programs. As of December 31, 2022, we had received funding from the Ministry in the aggregate amount of approximately NIS 585,119 ($168,574,
based on the NIS/US$ exchange rate published by the Bank of Israel on December 31, 2013, of $1.00 = NIS 3.471). As of December 31, 2022,
we had a contingent obligation to the Ministry with respect to such funding (including interest), following the payment of royalties up
to that date, in the amount of NIS 576,773 (approximately $163,903). See &#8220;Item 3 D &#8211;Risk Factors &#8211;&#160;Risks Related
to Our Operations in Israel &#8211; <i>The Israeli government grants we have received for research and development expenditures restrict
our ability to manufacture products and transfer technologies outside of Israel and require us to satisfy specified conditions. If we
fail to satisfy these conditions, we may be required to refund grants previously received together with interest and penalties.&#8221;</i></p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 32; Value: 3 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->28<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Competition </b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The digital electronic printing
and inkjet conductive ink and paste manufacturing industries are extremely competitive. We are currently aware of various existing products
in the market and in development that may compete with our products and technologies. To our knowledge, several other companies are currently
developing silver-based inkjet inks for PE digital electronic inkjet printing applications. Some of these companies already sell conductive
inkjet inks and pastes for PE applications. We also see a trend of bigger companies buying out some of the smaller players, and still
not been able to supply products for mass production. We are aware of companies seeking to develop copper-based inks and pastes for inkjet
printing; however, to our knowledge none of our competitors has copper based low viscosity inks compatible with digital printing in mass
production and at a commercially viable price and quantity.&#160;</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We believe that our inks have
the following competitive advantages, relative to those currently being sold by our competitors, especially when aiming to print on mass
production applications and throughputs:</p><div>

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

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">Higher metal load at low viscosities,
which results in a more cost-efficient printing process;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">Higher stability and for a longer
period of time (over one year for Sicrys&#8482; at room temperature as compared to less than six months for our competitors, some of
which require their inks to be stored at low temperatures to remain stable for an extended period of time);</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">Copper inks with a similar stability
profile as our silver inks (including its chemical stability), which is difficult to achieve due to the low oxidation point for copper,
which results in certain of our competitors offering copper oxide inks as opposed to pure copper inks;</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">Low resistivity. (&#961; &lt;
2.5 x bulk. Laser and thermal sintering);</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">Low sintering temperature (&lt;
200 &#176;C);</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">Silver inks suitable for solar
cells metallization which can show higher efficiency due to enhanced electrical properties after firing the cells (low contact resistance
and resistivity); and</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-size: 10pt">Compatibility with high throughput
industrial printing (high jetting frequencies for long periods of time).</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Based on the advantages of
our inks, we are developing a paste for solar applications.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Furthermore, we believe that
there is a high barrier to entry for competitors to develop and successfully bring competing inks to market due to the long lead times
required to develop nano particles of an appropriate size to formulate inks compatible with inkjet printing and the difficulty in producing
nano-based inks in large-scale quantities.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Notwithstanding the foregoing,
many of our competitors have substantially greater financial, technical, and other resources, such as larger research and development
staff and experienced marketing and manufacturing organizations. Mergers and acquisitions in the conductive ink and paste industry may
result in even more resources being concentrated in our competitors. As a result, these companies may be more effective in selling and
marketing their products. Smaller or early-stage companies may also prove to be significant competitors, particularly through collaborative
arrangements with large, established companies. Competition may increase further as a result of advances in the commercial applicability
of technologies and greater availability of capital for investment in this industry. Our competitors may succeed in developing, acquiring,
or licensing on an exclusive basis, products that are more effective or less costly than our current or future products or technologies,
or achieve earlier patent protection, product commercialization, and market penetration than we do. Additionally, technologies developed
by our competitors may render our potential products and technologies uneconomical or obsolete, and we may not be successful in marketing
our products and technologies against competitors.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 33; Value: 3 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->29<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Intellectual Property </b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">An important part of our business
and product development strategy is to seek, when appropriate, protection for our products and proprietary technology through the use
of various United States and foreign patents. Our patent application based on PCT/US2011/063459 covering silver single crystal particle
inks, dispersions and some pastes and dispersions have been granted in several countries, including China, Russia, Japan, India, Israel,
Korea, Brazil, Germany, France, UK, Netherlands, the U.S. and the European Union and we currently have additional patent applications
pending in the U.S. supporting our silver-based inks, dispersions and some pastes. Our patent application based on PCT/IB2015/051536,
relating to copper-based ink, has been granted in several countries, including Russia, Europe, the United Kingdom, Belgium, Germany, Finland,
France, Ireland, the Netherlands, Israel, Brazil, India and the United States. Additionally, we have patent applications based on PCT/IB2015/051536,
relating to copper-based ink, which have been submitted to national phase in South Korea, Japan and China.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The silver family main claims
are on the concentrated dispersions and inks made of a majority of single crystal Nano silver particles and the method for producing them.
Patent applications are in different stages of qualification in additional countries. The single crystal particles are easy to police
against infringement. The priority date for the silver family is December 6, 2010.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The copper family relates
to nano-metric copper formulations and stable dispersions containing single-crystal metallic copper particles, and to the method of producing
such formulations and dispersions. The priority date for the copper family is March 3, 2015.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We have a granted joint patent
with Ramot (Tel Aviv University) for &#8220;Conductive Nanowire Films&#8221; (WO 2013/128458, US 9,373,515 B2), which Ramot maintains
pursuant to the termination settlement of the Magneton Program.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our wholly-owned subsidiary,
Nano Size, has been granted several patents in the field of ultrasonic manufacturing of nano materials (7,157,058 (US); 7,504,075 (US);
144638 (IL); 149932 (IL)).</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Digiflex has been granted
several patents for inks, primers and primer lamination in the field of graphic arts in several countries, including, but not limited
to, the United States, European Union, Canada, China, France, Germany, United Kingdom, Germany, India and Israel. These include: Process
for Producing a Photomask on a Photopolymeric Surface; USA 9,513,551 and 12 countries and Process for Dry-coating of Flexographic Surfaces;
USA 9,352,544.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We intend to continue to seek
patent protection for our products that we may develop in the future. The patenting of technology-related products and processes involves
uncertain and complex legal and factual questions. To date, no consistent policy has emerged regarding the breadth of claims of such technology
patents. Therefore, there is no assurance that our pending applications will issue, or what scope of protection any issued patents will
provide, or whether any such patents ultimately will be upheld as valid by a court of competent jurisdiction in the event of a legal challenge.
The costs of such proceedings would be significant and an unfavorable outcome could result in the loss of rights to the invention at issue
in the proceedings. If we fail to obtain patents for our technology and are required to rely on unpatented proprietary technology, there
is no assurance that we can protect our rights in such unpatented proprietary technology, or that others will not independently develop
substantially equivalent proprietary products and techniques, or otherwise gain access to our proprietary technology.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Competitors have filed applications
for, or have been issued patents, and may obtain additional patents and proprietary rights relating to products or processes used in,
necessary to, competitive with, or otherwise related to, our patents. The scope and validity of these patents, and the extent to which
we may be required to obtain licenses under these patents or under other proprietary rights and the cost and availability of licenses
is unknown. This may limit our ability to license our technology. Litigation concerning these or other patents could be protracted and
expensive. If suit were brought against us for patent infringement, a challenge in the suit by us as to the validity of the other patent
would have to overcome a legal presumption of validity. There can be no assurance that the validity of the patent would not be upheld
by the court or that, in such event, a license of the patent to us would be available. Moreover, even if a license were available, the
payments that would be required are unknown and could materially reduce the value of our interest in the affected products.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p><div>

</div><!-- Field: Page; Sequence: 34; Value: 3 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->30<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We also rely upon unpatented
trade secrets. No assurances can be given that others will not independently develop substantially equivalent proprietary information
and techniques or otherwise gain access to our trade secrets or disclose such technology or that we can meaningfully protect our rights
to our unpatented trade secrets. We require our employees, consultants, advisors, and any third parties who have access to our proprietary
know-how, information, or technology to enter into confidentiality agreements with us, which provide that all confidential information
developed or made known to the individual during the course of the relationship is to be kept confidential and not disclosed to third
parties except in specific circumstances. In the case of employees and consultants, the agreements provide that all inventions conceived
by the individual will be our exclusive property or will be assigned to us. There is no assurance, however, that these agreements will
provide meaningful protection for our trade secrets and other confidential proprietary information in the event of unauthorized use or
disclosure of such information.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Marketing and Sales </b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We offer and sell several
conductive inks and pastes based on either silver or copper, which are sold through our website as well as directly to customers or through
distributors. We are focused on providing more efficient ink and paste solutions for the growing solar market segment and we work with
our customers in the development of our solutions as part of our go-to-market strategy.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Seasonality</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our business and operations
are generally not affected by seasonal fluctuations or factors.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Raw Materials and Suppliers</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We believe that the raw materials
that we require to manufacture our inks and pastes are readily available in adequate quantities from multiple sources. In addition, the
manufacturing process for our silver-based inks and pastes utilizes a silver salt the price of which is linked to the price of silver.
The price of silver as well as the price of other raw materials used in the manufacturing process for our inks and pastes, is affected
by numerous factors beyond our control, including inflation, fluctuation of the United States dollar and foreign currencies, global and
regional demand, speculative activities by commodities traders and others and the political and economic conditions of major silver producing
countries throughout the world. The volatility of mineral prices represents a substantial risk which no amount of planning or technical
expertise can fully eliminate. In the event the prices of silver or other raw materials used in our manufacturing process increase and
remain high for prolonged periods of time, we may not be able to produce inks and pastes at a cost effective and competitive price. See
&#8220;Item 3 D. &#8212; Risk Factors &#8212; <i>We are subject to risks resulting from fluctuations in the price of silver and other
raw materials</i>.&#8221;</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Manufacturing</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We manufacture our inks and
pastes at our Migdal Ha&#8217;Emek facilities. We currently have capacity to produce an estimated one ton of ink per year, and plan to
upgrade our facilities to increase production capacity to 20 tons per year (estimated capital cost of at least $2.5 million), if and when
demand for our inks and pastes is projected to surpass our production capabilities and we have sufficient available capital to do so.
In the event that demand for our inks outgrows our internal manufacturing capacity, we intend to engage third-party manufacturers to produce
additional inks and pastes. There can be no assurance that we will be able to enter into agreements with qualified manufacturers on terms
acceptable to us, or at all, or that, once contracted, such manufacturers will perform as expected.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 35; Value: 3 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->31<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Government Regulation</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We are subject to various
environmental, health and safety laws, regulations and permitting requirements, including those governing the emission and discharge of
hazardous materials into ground, air or water; noise emissions, the generation, storage, use, management and disposal of hazardous waste;
the registration of chemicals and in the future also import and export; the clean-up of contaminated sites; and the health and safety
of our employees. Under such laws and regulations, we are required to obtain environmental permits from governmental authorities for certain
operations. The manufacture of our products requires storing or using certain hazardous materials. Pursuant to the Israeli Dangerous Substances
Law - 1993, we are required to (and did) obtain a toxin permit from the Ministry of Environmental Protection. Our permit is valid until
May 10, 2025.</p><div>

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

</div><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Other than applicable local laws in Israel
relating to the handling and disposal of hazardous materials and waste, there are no government regulations that are material to the conduct
of our business. If we establish manufacturing operations in other jurisdictions, we expect to become subject to environmental, health
and safety laws, regulations and permitting requirements in those jurisdictions, which may be similar to or more onerous than those described
above.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>C. Organizational structure</b></p><div>

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

</div><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">P.V. Nano Cell Ltd. was incorporated in Israel on June 24, 2009, as
a private limited liability company, organized under the laws of State of Israel. We have three wholly-owned subsidiaries, all of which
are private companies organized under the laws of the State of Israel: (i) Nano Size, which we acquired on December 31, 2009; (ii) Digiflex,
which we acquired on December 3, 2017; and (iii) Jet CU, which we acquired on July 26, 2020. Additionally, Digiflex wholly-owns one subsidiary
based in the US: Digiflex Inc., incorporated under the laws of the State of Delaware. &#160;</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>D. Property, plants and equipment</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We currently lease, through
Nano Size, approximately 678 square meters (approximately 7,300 square feet) of space in Migdal Ha&#8217;Emek, Israel for our principal
offices and manufacturing facilities at a monthly cost of approximately NIS 18,000 (approximately $5,115). This lease agreement expires
on June 30, 2025, and we have an option to extend the lease for an additional three years.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Additionally, Digiflex currently
leases approximately 110 square meters (approximately 1,200 square feet) of space in Migdal Ha&#8217;Emek, Israel for its principal office
and laboratory at a monthly cost of approximately NIS 5,000 (approximately $1,420). This lease agreement, which was scheduled to expire
on March 14, 2023, was renewed in February 2023 for a period until March 15, 2024, and we have an option to extend the lease for an additional
period of one year.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We currently own production
equipment, housed in our Migdal Ha&#8217;Emek facilities, capable of producing up to one ton of ink per year. We intend to upgrade our
facilities to increase production capacity to 20 tons per year (estimated capital cost of at least $2.5 million), if and when demand for
our inks and pastes is projected to surpass our production capabilities and we have sufficient available capital to do so.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;&#160;</p><div>

</div><p style="margin: 0"></p><div>

</div><!-- Field: Page; Sequence: 36; Value: 3 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->32<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="margin: 0">&#160;</p><div>

</div><div><a id="a_006"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>ITEM 4A. Unresolved Staff Comments.</b></p><div>

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

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

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

</div><div><a id="a_007"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>ITEM 5. Operating and Financial Review and
Prospects. </b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>A. Operating results</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following discussion
and analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements
and related notes that appear elsewhere in this annual report on Form 20-F. In addition to historical financial information, the following
discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially
from those discussed in the forward-looking statements. Factors that could cause or contribute to these differences include those discussed
below and elsewhere in this annual report on Form 20-F, particularly in the sections titled &#8220;Item 3 D. &#8212; Risk Factors&#8221;
and &#8220;Cautionary Note Regarding Forward-Looking Statements.&#8221;</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Overview </b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We are a conductive ink and
pastes manufacturing company focused on developing, manufacturing, marketing and commercializing conductive inks and pastes for digital
conductive printing applications (mainly inkjet and aerosol printing technologies). We have developed the Sicrys&#8482; family of single
crystal nano-metric conductive inks and pastes, which we believe is significantly a more effective alternative to other current printing
processes, such as screen printing photolithography and etching processes, for photovoltaic heterojunction technology (PV-HJT) and digital
printed electronics (PE) applications. We adapt our basic inks and pastes to specific customer requirements. We currently sell a low
volume of our Sicrys&#8482; silver-based inks and pastes for PV and PE applications and are in the process of seeking to expand our sales
efforts to include sales of Sicrys&#8482; inks and pastes for a wider range of applications, such as solar, automotive and digitally
printed electronics. We have also developed what we believe is the first available commercially viable copper-based nano-metric low viscosity
stable ink for mass-production of printed electronics. We believe that copper inks and pastes represent a significant improvement over
silver-based inks and pastes given copper&#8217;s significantly lower cost and nearly identical electrical and conductive properties.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Financial Overview</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We have incurred net losses
since our inception in 2009, including a net loss of approximately $4.5 million for the year ended December 31, 2022. As of December 31,
2022, we had an accumulated deficit of approximately $40.6 million. We are in default in repayment of our convertible notes which as of
December 31, 2022 aggregated to approximately $1.5 million (including principal and interest). We have devoted substantially all of our
financial resources to identifying, acquiring, licensing, and developing our products and technologies and providing general and administrative
support for these operations. To date, we have financed our operations primarily through the sale of equity and convertible securities
and government grants. The amount of our future net losses will depend, in part, on the rate of our future expenditures and our ability
to generate significant revenues via commercialization of our products or technologies. We are dependent upon external sources to finance
our operations and there can be no assurance that we will succeed in obtaining the necessary financing to continue our operations. As
a result, our independent registered public accounting firm has expressed substantial doubt about our ability to continue as a going concern.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; "><b>Key Components of
our Statements of Comprehensive Loss</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; "><b><i>Revenues</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; ">Sources
of revenues -&#160;we derive revenues primarily from sales of inks and pastes.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; "></p><div>

</div><!-- Field: Page; Sequence: 37; Value: 3 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->33<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; "><b><i>Cost of Revenues</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; ">Our
total cost of revenues includes expenses for the manufacturing of inks and pastes, including: the cost of raw materials; employee-related
expenses, including salaries, equity-based compensation and other benefits and related expenses, lease payments, utility payments, depreciation,
changes in inventory of&#160;finished products, royalties and other manufacturing expenses. These expenses are partially reduced by an
allotment of manufacturing costs associated with research and development activities to research and development expenses.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; "><b><i>Operating Expenses</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; "><b><i>Research and Development
Expenses, net</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; ">Research
and development activities are central to our business model. However, we do not believe that it is possible at this time to accurately
project total program-specific expenses.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; ">Research
and development expenses consist primarily of&#160;compensation for employees engaged in research and development activities, including
salaries, equity-based compensation, benefits and related expenses,&#160;clinical trials, contract research organization sub-contractors,
development materials, external advisors and the allotted cost of our manufacturing facility for research and development purposes.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our research and development
expenses, net, are net of grants for the research and development that we have received grants from the government of the State of Israel,
through the IIA, pursuant to the Innovation Law, for the financing of a portion of our research and development expenditures. As of December
31, 2022, we and our wholly-owned subsidiaries had received funding from the IIA in the aggregate amount of approximately $3.7 million.
As of December 31, 2022, we and our wholly-owned subsidiaries had paid royalties to the IIA in the aggregate amount of approximately $1.1
million and had an obligation to the IIA with respect to such funding (including interest) in the amount of approximately $3.2 million
(approximately $2.0 million out of such amount are contingent liabilities and therefore, not recorded in our liabilities). We may apply
for additional IIA grants in the future; however, there is no assurance that such applications will be approved in the amount requested
or at all.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We have also received a grant from the Ministry for one of our research
and development programs. In order to maintain our eligibility for this grant, we must meet specified conditions, including the payment
of royalties with respect to the grant received. As of December 31, 2022, we had received funding from the Ministry in the aggregate amount
of approximately NIS 585,119 ($168,574, based on the NIS/US$ exchange rate published by the Bank of Israel on December 31, 2013 of $1.00
= NIS 3.471). As of December 31, 2022, we had a contingent obligation to the Ministry with respect to such funding (including interest),
following the payment of royalties up to that date, in the amount of NIS 576,773 (approximately $163,903).</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For additional information
regarding grants from the Israeli government, see &#8220;Item 3 D &#8211;Risk Factors &#8211;&#160;Risks Related to Our Operations in
Israel &#8211; <i>The Israeli government grants we have received for research and development expenditures restrict our ability to manufacture
products and transfer technologies outside of Israel and require us to satisfy specified conditions. If we fail to satisfy these conditions,
we may be required to refund grants previously received together with interest and penalties.&#8221;</i></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; ">In
addition, from time to time, we participate in several development consortiums European Horizon 2020 and others in which we receive supporting
grants which we record as a deduction to the research and development expenses. The grants are used to expand our knowhow and network
through research and development that we commit to, the costs of which will be reimbursed in part by European Horizon 2020 and local
financing entities.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; "><b><i>Selling and Marketing
Expenses</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; ">Selling
and marketing expenses consist primarily of compensation expenses for personnel engaged in sales and marketing, including salaries, equity-based
compensation and benefits and related expenses, as well as promotion, marketing, market access and sales and distribution activities.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; "></p><div>

</div><!-- Field: Page; Sequence: 38; Value: 3 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->34<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; "><b><i>General and Administrative
Expenses</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; ">General
and administrative expenses consist principally of compensation for employees in executive and administrative functions, including salaries,
equity-based compensation, benefits and other related expenses, professional consulting services, including legal and audit fees, as
well as costs of office and overhead.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; "><b><i>Financial Income/Financial
Expense</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; ">Financial
income/expenses includes primarily change in fair value of warrants and capital note presented at fair value, Interest and accretion
back in connection with convertible loans and exchange rate differences.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Results of Operations</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following table sets
forth a summary of our operating results:</p><div>

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

</div><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="font-weight: bold; text-align: left">US $</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="10" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Year ended December&#160;31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="font-weight: bold"></td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="font-weight: bold">Consolidated Statement of Operations Data:</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">&#160;</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">&#160;</td><td style="font-weight: bold">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">&#160;</td><td style="font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 64%; text-indent: -9pt; padding-left: 9pt">Revenues</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">603,359</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">568,704</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">761,319</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -9pt; padding-left: 9pt">Cost of Revenues</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">375,877</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">271,817</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">307,713</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; text-indent: -9pt; padding-left: 9pt">Amortization of intangible 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">428,431</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">428,431</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">428,434</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Gross loss (income)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">200,949</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">131,544</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(25,172</td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Research and development, net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">268,601</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">467,698</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">400,859</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Sales and marketing</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">566,896</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">625,031</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">673,986</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; text-indent: -9pt; padding-left: 9pt">General and administrative</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,893,179</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,345,495</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,414,370</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Goodwill impairment</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">265,089</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 1.5pt; text-align: left; text-indent: -9pt; padding-left: 9pt">Intangible asset impairment</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">2,108,117</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">&#8212;</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">&#8212;</td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Total operating 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">4,836,793</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">2,438,224</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">2,754,304</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; text-indent: -9pt; padding-left: 9pt">Operating loss</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">5,037,742</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">2,569,768</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">2,729,132</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt">Financial expenses (income), 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">(528,195</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">(50,904</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">9,814,605</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: 4pt; text-indent: -9pt; padding-left: 9pt">Net loss</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">4,509,547</td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">2,518,864</td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">12,543,737</td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Year ended December 31, 2022, compared to year ended December
31, 2021:</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Revenues</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">With respect to the years
ended December 31, 2022 and December 31, 2021, total revenues amounted to $603,359 and $568,704, respectively, an increase of $34,655
or 6%. No significant change year over year.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Cost of revenues</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">With respect to the
years ended December 31, 2022 and December 31, 2021, total cost of revenues amounted to $375,877 and $271,817, respectively, an
increase of $104,060 or 38%. The increase related primarily to an additional employee joined and the increase of salary of another
employee.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Amortization of intangible assets</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">With respect to the years
ended December 31, 2022 and December 31, 2021, total amortization of intangible assets amounted to an aggregate amount of $428,431 for
both years. The amortization of intangible assets expense in both years related to amortization of technology we recorded as part of
the Digiflex purchase as of December 3, 2017.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Gross loss</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">With respect to the years
ended December 31, 2022 and December 31, 2021, total gross loss amounted to $200,949 and $131,544, respectively, an increase of $69,405
or 53%. The increase related to an increase of $104,060 in cost of revenues, offset in part by an increase of $34,655 in revenues.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 39; Value: 3 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->35<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Research and development expenses, net</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">With respect to the years
ended December 31, 2022 and December 31, 2021, net research and development expenses, net were $268,601, net of $437,045 grants recorded
and $467,698, net of $315,697 grants recorded, respectively, a decrease of $199,097 or 43%. The decrease in research and development,
net related primarily to higher research and development grants recorded in 2022.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Sales and marketing expenses</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">With respect to the years
ended December 31, 2022 and December 31, 2021, sales and marketing expenses amounted to $566,896 and $625,031, respectively, a decrease
of $58,135 or 9%. No significant change year over year.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>General and administrative expenses</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">With respect to the years
ended December 31, 2022 and December 31, 2021, general and administrative expenses amounted to $1,893,179 and $1,345,495, respectively,
an increase of $547,684 or 41%. The increase related primarily to additional management salaries and fees, professional services fees
and legal fees.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Intangible asset impairment</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; ">With respect to the years ended December 31, 2022 and December 31,
2021, intangible asset impairment amounted to $2,108,117 and $0, respectively. As of December 31, 2022, we recorded an impairment charge
of $2,108,117, which is equal to the technology, net amount that we recorded as part of the Digiflex purchase in 2017. We have ceased
the marketing activities associated with this technology and expect a negative cash-flow throughout its life, which led to such impairment
charge of the remaining asset, net as of December 31, 2022.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Operating expenses</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">With respect to the years
ended December 31, 2022 and December 31, 2021, operating expenses amounted to $4,836,793 and $2,438,224, respectively, an increase of
$2,398,569 or 98%. The increase related to an increase of $2,108,117 and $547,684 in intangible asset impairment and general and administrative
expenses, respectively, offset in part by a decrease of $199,097 and $58,135 in research and development, net and sales and marketing
expenses, respectively.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Operating loss</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">With respect to the years
ended December 31, 2022 and December 31, 2021, operating loss amounted to $5,037,742 and $2,569,768, respectively, an increase of $2,467,974
or 96%. The increase in operating loss related to an increase of $2,398,569 and $69,405 in operating expenses and gross loss, respectively.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Financial income, net</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">With respect to the years
ended December 31, 2022 and December 31, 2021, financial income, net, amounted to $528,195 and $50,904, respectively, an increase of
$477,291 or 938%. The increase in financial income, net, related primarily to a change in interest and accretion back in connection with
convertible loans and foreign exchange income, net of $8,059,996 and $398,995, respectively, offset in part by a change in fair value
of warrants and capital note presented at fair value of $8,020,602.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Net loss</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">With respect to the years
ended December 31, 2022 and December 31, 2021, net loss amounted to $4,509,547 and $2,518,864, respectively, an increase of $1,990,683
or 79%. The increase in operating loss related to an increase of $2,467,974 and $477,291 in operating loss and financial income, net,
respectively.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 40; Value: 3 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->36<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Year ended December 31, 2021, compared to year ended December
31, 2020:</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>&#160;</i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Revenues</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">With respect to the years ended December 31, 2021 and December 31,
2020, total revenues amounted to $568,704 and $761,319, respectively, a decrease of $192,615 or 25%. The decrease in revenues relates
primarily to lower sales of inks and pastes. We believe that our lack of resources for marketing efforts contributed to that decrease.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Cost of revenues</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">With respect to the years
ended December 31, 2021 and December 31, 2020, total cost of revenues amounted to $271,817 and $307,713, respectively, a decrease of
$35,896 or 12%. The decrease in cost of revenues is consistent with the decrease in revenues as mentioned above.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Amortization of intangible assets</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">With respect to the years
ended December 31, 2021 and December 31, 2020, total amortization of intangible assets amounted to $428,431 and $428,434, respectively.
The amortization in both years (which is basically the same) related to amortization of technology we recorded as part of the Digiflex
purchase as of December 3, 2017.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Gross loss (income)</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">With respect to the years
ended December 31, 2021 and December 31, 2020, total gross loss (income) amounted to $131,544 and $(25,172), respectively, a decrease
of $156,716. The decrease related to a decrease of $192,615 in revenues, partially offset by a decrease of $35,896 in cost of revenues
and decrease of $3 in amortization of intangible assets.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Research and development expenses, net</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">With respect to the years
ended December 31, 2021 and December 31, 2020, research and development expenses, net were $467,698, net of $315,697 grants recorded,
and $400,859, net of $525,838 grants recorded, respectively, an increase of $66,839 or 17%, respectively. The increase in research and
development, net related primarily to lower grants recorded year over year.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Sales and marketing expenses</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">With respect to the years
ended December 31, 2021 and December 31, 2020, sales and marketing expenses amounted to $625,031 and $673,986, respectively, a decrease
of $48,955 or 7%. No significant change year over year.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>General and administrative expenses</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">With respect to the years
ended December 31, 2021 and December 31, 2020, general and administrative expenses amounted to $1,345,495 and $1,414,370, respectively,
a decrease of $68,875 or 5%. No significant change year over year.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Goodwill impairment</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">With respect to the years
ended December 31, 2021 and December 31, 2020, goodwill impairment amounted to $0 and $265,089, respectively. The goodwill impairment
for the year ended December 31, 2020 was recorded following the purchase of Jet CU since that company has no activity.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Operating expenses</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">With respect to the years
ended December 31, 2021 and December 31, 2020, operating expenses amounted to $2,438,224 and $2,754,304 respectively, a decrease of $316,080
or 11%. The decrease related to a decrease of $265,089 in goodwill impairment, $68,875 in general and administrative expenses and $48,955
in sales and marketing expenses, such decrease was partially offset by an increase of $66,839 in research and development, net.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p><div>

</div><!-- Field: Page; Sequence: 41; Value: 3 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->37<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Operating loss</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">With respect to the years
ended December 31, 2021 and December 31, 2020, operating loss amounted to $2,569,768 and $2,729,132, respectively, a decrease of $159,364
or 6%. The decrease in operating loss related to a decrease of $316,080 in operating expenses, such decrease was partially offset by
a decrease of $156,716 in gross loss (income).</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Financial expenses (income), net</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">With respect to the years
ended December 31, 2021 and December 31, 2020, financial expenses (income), net, amounted to $(50,904) and 9,814,605, a decrease of $9,865,509.
The decrease in financial expenses, net related primarily to a change in fair value of warrants and capital note presented at fair value
of $15,123,555, partially offset by an increase of $5,295,156 in interest and accretion back in connection with convertible loans.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Net loss</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">With respect to the years
ended December 31, 2021 and December 31, 2020, net loss amounted to $2,518,864 and $12,543,737, respectively, a decrease of $10,024,873
or 80%. The decrease in net loss related to a decrease of $9,865,509 in financial expenses, net and a decrease of $159,364 in operating
loss.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 42; Value: 3 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->38<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Share-Based Compensation and Liabilities Presented
at Fair Value</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Ordinary Share Valuations</i></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The fair value of the ordinary
shares was used to determine the value of the warrants presented as a liability and share-based compensation. The following table sets
forth the fair value of our ordinary shares as of the following dates:</p><div>

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

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: bottom">
    <td style="text-align: center; padding-bottom: 1.5pt">&#160;</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Date</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&#160;</td>
    <td colspan="2" style="text-align: center; border-bottom: Black 1.5pt solid; font-weight: bold">Fair Value</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 70%">Ordinary share</td><td style="width: 1%">&#160;</td>
    <td style="text-align: center; width: 17%">December 31, 2020</td><td style="font-weight: bold; width: 1%">&#160;</td>
    <td style="font-weight: bold; text-align: left; width: 1%">$</td><td style="font-weight: bold; text-align: right; width: 9%">0.24</td><td style="font-weight: bold; text-align: left; width: 1%">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>Ordinary share</td><td>&#160;</td>
    <td style="text-align: center">December 31, 2021</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">0.09</td><td style="font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>Ordinary share</td><td>&#160;</td>
    <td style="text-align: center">December 31, 2022</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">0.03</td><td style="font-weight: bold; text-align: left">&#160;</td></tr>
  </table><div>


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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Option Valuations</i></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under U.S. GAAP, we account for share-based compensation for employees
and others in accordance with the provisions of the FASB&#8217;s ASC Topic 718 &#8220;Compensation&#8212;Stock Based Compensation,&#8221;
or ASC 718, which requires us to measure the cost of equity-based awards based on the fair value of the award on the grant date.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We selected the Black-Scholes option pricing model as the most appropriate
method for determining the estimated fair value of option awards. The resulting cost of an equity incentive award is recognized as an
expense over the requisite service period of the award, which is usually the vesting period. We recognize compensation expense over the
vesting period using the straight-line method and classify these amounts in the consolidated financial statements based on the department
to which the related employee reports.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The determination of the
grant date fair value of options using the Black-Scholes option pricing model is affected by estimates and assumptions regarding a number
of complex and subjective variables. These variables are estimated as follows:&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px">&#160;</td>
    <td style="width: 24px"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><i>Fair Value of our ordinary shares</i>. Discussed in the above &#8220;Ordinary
    Share Valuations&#8221;.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px">&#160;</td>
    <td style="width: 24px"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><i>Risk-free Interest Rate</i>. The risk-free interest rate is based
    on the yield from U.S. Treasury zero-coupon bonds with a term equivalent to the contractual life of the options.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px">&#160;</td>
    <td style="width: 24px"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><i>Volatility</i>. The expected share price volatility derived from
    sample of similar companies.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px">&#160;</td>
    <td style="width: 24px"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><i>Dividend Yield</i>. We have never declared or paid any cash dividends
    and do not presently plan to pay cash dividends in the foreseeable future. Consequently, we used an expected dividend yield of zero.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px">&#160;</td>
    <td style="width: 24px"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><i>Expected Life.&#160;</i>We used the &#8220;simplified&#8221; method,
    meaning the expected life is set as the average of the vesting period for each vested tranche of options and the contractual term
    for those options.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If any of the assumptions
used in the Black-Scholes option pricing model change significantly, share-based compensation for future awards may differ materially
compared with the awards previously granted.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following table presents
the weighted-average assumptions used to estimate the fair value of options granted to employees, officers and consultants during the
periods presented.</p><div>

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

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <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="10" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Year Ended December
    31,</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; 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-size: 10pt"><b>2022</b></span></td>
    <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-size: 10pt"><b>2021</b></span></td>
    <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-size: 10pt"><b>2020</b></span></td>
    <td style="padding-bottom: 1.5pt; text-align: center">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="width: 58%"><span style="font-size: 10pt">Dividend yield</span></td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 11%; text-align: right">0</td>
    <td style="width: 1%"><span style="font-size: 10pt">%</span></td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 11%; text-align: right"><span style="font-size: 10pt">0</span></td>
    <td style="width: 1%"><span style="font-size: 10pt">%</span></td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 11%; text-align: right"><span style="font-size: 10pt">0</span></td>
    <td style="width: 1%"><span style="font-size: 10pt">%</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td><span style="font-size: 10pt">Expected volatility</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">80</span></td>
    <td><span style="font-size: 10pt">%</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">80</span></td>
    <td><span style="font-size: 10pt">%</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">80</span></td>
    <td><span style="font-size: 10pt">%</span></td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td><span style="font-size: 10pt">Risk-free interest</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">3.00</span></td>
    <td><span style="font-size: 10pt">%</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">0.81</span></td>
    <td><span style="font-size: 10pt">%</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">0.36%-1.62</span></td>
    <td><span style="font-size: 10pt">%</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td><span style="font-size: 10pt">Expected life (in years)</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">5</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">5</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt">5</span></td>
    <td>&#160;</td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Liabilities Presented at Fair Value</i></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Some of our warrants are classified as liabilities in accordance with
ASC No. 815-40, &#8220;Distinguishing Liabilities From Equity.&#8221; Accordingly, these warrants are required to be marked to market
at each reporting date.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p><div>

</div><!-- Field: Page; Sequence: 43; Value: 3 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->39<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We estimated the fair value
of these warrants and such conversion feature using a Black-Scholes option pricing model, which is affected by estimates and assumptions
regarding a number of complex and subjective variables. These variables are estimated as follows:&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px">&#160;</td>
    <td style="width: 24px"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><i>Fair Value of our ordinary shares</i>. Discussed in the above &#8220;Ordinary
    Share Valuations&#8221;.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px">&#160;</td>
    <td style="width: 24px"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><i>Risk-free Interest Rate</i>. The risk-free interest rate is based
    on the yield from U.S. Treasury zero-coupon bonds with a term equivalent to the contractual life of the warrants.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px">&#160;</td>
    <td style="width: 24px"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><i>Volatility</i>. The expected share price volatility derived from
    sample of similar companies.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px">&#160;</td>
    <td style="width: 24px"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><i>Dividend Yield</i>. We have never declared or paid any cash dividends
    and do not presently plan to pay cash dividends in the foreseeable future. Consequently, we used an expected dividend yield of zero.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, the conversion feature of the capital note issued to a
shareholder, is required to be marked to market at each reporting date. We estimated the fair value of the capital note by taking into
account the expected occurrence of certain trigger events (such as public offering or M&amp;A), multiplied by the value in a probability
that the event will occur (based on our subjective assumptions) and discounting the value in an appropriate discount factor (based on
the weighted average cost of capital of the Company) for a period of one year.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Reporting Currency</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our functional currency is
the U.S. Dollar, although substantial portion of our costs are incurred in NIS. We finance our operations mainly in U.S. dollars and
a substantial portion of our costs and revenues from its primary markets are anticipated to be incurred and generated in U.S. dollars.
As such, we believe that the U.S. dollar is the currency of the primary economic environment in which we operate.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Transactions and balances
that are denominated in dollars are presented at their original amounts. Non-dollar transactions and balances have been re-measured to
dollars in accordance with Accounting Standards Codification (&#8220;ASC&#8221;) No. 830, &#8220;Foreign Currency Matters&#8221;. All
foreign currency transaction gains and losses are reflected in the statements of operations as financial income or expenses, as appropriate.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>B. Liquidity and Capital Resources</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We currently have limited
liquidity. As of December 31, 2022 and 2021, our cash on hand was $362,609 and $19,437, respectively. We are in default in repayment of
our convertible notes which as of December 31, 2022 aggregated to approximately $1.5 million (including principal and interest). Based
on our current cash burn rate, strategy and operating plan, we believe that our cash reserves as of the date of this report will enable
us to operate through June 2023. In order to fund our anticipated liquidity needs beyond such period (or possibly earlier if our current
cash burn rate, strategy or operating plan change in a way that accelerates or increases our liquidity needs), we will need to raise additional
capital.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Significant recent financing activities:</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">To date, we have financed
our operations primarily through the sale of equity and convertible securities as well as through government grants.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">At the annual shareholders&#8217;
meeting held on September 19, 2021, the shareholders approved (i) a capital raise at a per share purchase price of $0.07 and (ii) an
adjustment to the conversion price of the Company&#8217;s outstanding convertible loans (collectively, the &#8220;CLAs&#8221;) from $0.17
to $0.07 per Ordinary Share, subject to the holders&#8217; agreement to cancel the outstanding related warrants that were issued in connection
with the CLAs.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On September 23, 2021, the
Company entered into agreements with the holders of approximately $3,521,748 in principal amount and accrued interest of CLAs for the
conversion of the Company&#8217;s indebtedness into an aggregate of 57,291,838 Ordinary Shares (at the rate of $0.07 per share). Furthermore,
all the warrants that were issued previously in connection with those CLAs were cancelled and no longer have any force or effect.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p><div>

</div><!-- Field: Page; Sequence: 44; Value: 3 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->40<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Commencing July 2021 and through July 2022, we and certain existing
Company shareholders, namely GTRIMG, Teuza, entities controlled by each of Leon Recanati and Lenny Recanati and Dan Vilenski, entered
into definitive agreements relating to a private placement of the Company&#8217;s ordinary shares for aggregate gross proceeds to the
Company of $3.0 million (including approximately $230,000 plus interest thereon upon conversion of CLAs), at a price of $0.07 per ordinary
share. The Company issued to such investors an aggregate of 42,926,031 ordinary shares in respect of the definitive agreements mentioned
above.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In October 2022, certain existing Company shareholders, including GTRIMG,
Teuza, entities controlled by each of Leon and Lenny Recanati and Dan Vilenski (collectively, the &#8220;Investors&#8221;), entered into
subscription agreements pursuant to which they agreed to invest in our securities by way of a private placement, under the following terms:</p><div>

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

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company offered, issued and sold to the Investors units of its securities for aggregate gross proceeds to the Company of $1.0 million
(the &#8220;Initial Offering&#8221;), each unit comprised of (each, a &#8220;Unit&#8221; and, collectively, the &#8220;Units&#8221;)
(i) one Ordinary Share, and (ii) a warrant to purchase an additional two Ordinary Shares, exercisable through the earlier of (a) the
closing of a subsequent offering of Company securities by the Company to qualified investors with an effective price per Ordinary Share
of at least $0.20 and (b) the second anniversary of the issuance of such warrant, in each case at a per share exercise price of $0.07,
subject to adjustment (the &#8220;Warrant&#8221;), at a per Unit purchase price of $0.07 (the &#8220;Purchase Price&#8221;).</span></td>
</tr></table><div>

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

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top">
<td style="text-align: justify; width: 0.5in"></td><td style="width: 0.25in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company undertook to offer, issue and sell to the Investors, following the closing of the Initial Offering, additional Ordinary Shares
for aggregate gross proceeds to the Company of up to an additional $1.0 million (the &#8220;Follow on Offering&#8221;), at a price per
share equal to the Purchase Price, which offering was subject to the achievement by the Company of certain pre-defined milestones on
or before December 31, 2022, subject to a further extension at the discretion of the Company, to a date on or before February 28, 2023.
Following the partial fulfillment of the milestones, the Company initially raised from certain of the Investors $705,000 in the Follow
on Offering. In April 2023, pursuant to the terms of the subscription agreement, Teuza joined the Follow-on Offering, as extended, in
the amount of $295,000, resulting in aggregate proceeds to the Company of $1.0 million in the Follow-on Offering, which completed the
Follow-on Offering.</span></td>
</tr></table><div>

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

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top">
<td style="text-align: justify; width: 0.5in"></td><td style="width: 0.25in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company undertook to offer, issue and sell to the Investors, following the initial closing of the Follow on Offering, additional Ordinary
Shares for aggregate gross proceeds to the Company of up to an additional $800,000 (the &#8220;Final Offering&#8221;), at a price per
share equal to the Purchase Price, which offering was subject to the achievement by the Company of a certain additional milestone set
forth in the subscription agreement and any additional milestones to be agreed upon in good faith negotiations (the &#8220;Second Level
Milestones&#8221;). The Final Offering shall be closed by no later than the close of business on the 30<sup>th</sup> business day after
the delivery of notice by the Company to the Investors that the Second Level Milestones have been achieved. Two of the Investors undertook
to invest $300,000 each in the Final Offering ($600,000 in total), if the Second Level Milestones are achieved.&#160;&#160;Notwithstanding
that the Second Level Milestones have not yet been fulfilled, in April 2023, Teuza waived such condition and pursuant to the terms of
the agreement, invested in this round in the amount of $105,000, resulting in aggregate proceeds to the Company of $105,000 in the Final
Offering to date.</span></td>
</tr></table><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company expects to issue to the Investors an aggregate of 14,285,712
Ordinary Shares and warrants to purchase an aggregate 28,571,425 Ordinary Shares in the Initial Offering in respect of the $1.0 million
raised, an additional aggregate 14,285,713 Ordinary Shares to the Investors that participated in the Follow on Offering in respect of
the $1.0 million raised, and an additional 1,500,000 Ordinary Shares to Teuza in respect of the $105,000 raised to date in the Final Offering.
If the&#160;Second Level Milestones are achieved and an additional&#160;$695,000 will be fully raised in the Final Offering, the Company
would issue an additional aggregate 9,928,571 Ordinary Shares to such Investors participating in the Final Offering.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For additional information
regarding how we financed our operations, please refer to Note 8, Note 11 and Note 17 to our consolidated financial statements for the
year ended December 31, 2022 that appear elsewhere in this annual report on Form 20-F.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p><div>

</div><!-- Field: Page; Sequence: 45; Value: 3 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->41<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We expect to continue to
fund our operations through equity or debt financings, strategic collaborations, grants and, to the extent our marketing and commercialization
efforts are successful, sales of our products or technologies.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We have incurred cumulative
losses of $40.6 million from inception through December 31, 2022. In addition, we have not yet established a stable recurring source
of revenues sufficient to cover our operating costs and expect to continue to generate losses for the foreseeable future. There is no
assurance that we will be able to obtain an adequate level of financing needed for our near-term requirements or the long-term development
and commercialization of our product. These conditions raise substantial doubt about our ability to continue as a &#8220;going concern&#8221;.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Cash Flows</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; ">The
following table summarizes our consolidated statement of cash flows for the periods presented:</p><div>

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

</div><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="font-weight: bold; text-align: left">US $</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="10" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Year ended December&#160;31,</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="font-weight: bold"></td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">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="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</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; border-bottom: Black 1.5pt solid"><span style="font-size: 10pt">&#160;<b>2020</b>&#160;</span></td><td style="padding-bottom: 1.5pt">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="font-weight: bold">Consolidated Statement of cash flows:</td><td style="font-weight: bold">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center">&#160;</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">&#160;</td><td style="font-weight: bold">&#160;</td><td>&#160;</td>
    <td colspan="2" style="text-align: center">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>Net cash provided by (used in):</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 style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 64%; text-align: left">Operating activities</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">(2,889,426</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">(853,426</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">(793,757</td><td style="width: 1%; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Investing activities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(93,168</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(1,869</td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">808,913</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">Financing activities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">3,325,123</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">849,032</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(34,126</td><td style="text-align: left">)</td></tr>
  </table><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Net cash used in operating activities for the years ended December
31, 2022, 2021 and 2020 was $2,889,426, $853,426 and $793,757, respectively, an increase of $2,036,000 or 238% (from 2021 to 2022) and
an increase of $59,669 or 8% (from 2020 to 2021). The increase in net cash used in operating activities in 2022 relative to 2021 was primarily
attributable to payments of past liabilities in early 2022 and higher operating expenses during 2022. No significant change in net cash
used in operating activities in 2021 relative to 2020.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Net cash provided by (used
in) investing activities for the years ended December 31, 2022, 2021, and 2020 was $(93,168), $(1,869) and $808,913, respectively, an
increase of $91,299 (from 2021 to 2022) and a decrease of 810,782 (from 2020 to 2021). The increase in net cash used in investing activities
in 2022 relative to 2022 was attributable to higher purchase of property and equipment. The decrease in net cash provided by (used in)
investing activities in 2021 relative to 2020 was attributable to the acquisition of Jet CU.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Net cash provided by (used
in) financing activities for the years ended December 31, 2022, 2021 and 2020 was $3,325,123, $849,032 and $(34,126), respectively, an
increase of $2,476,091 or 292% (from 2021 to 2022) and an increase of $883,158 (from 2020 to 2021). The increase in net cash provided
by financing activities in 2022 relative to 2021 was primarily attributable to proceeds in connection with issuance of ordinary shares.
The increase in net cash provided by (used in) financing activities in 2021 relative to 2020 was primarily attributable to advance payment
on the account of issuing ordinary shares, proceeds from convertible loans and related warrants and change in short term loans.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>&#160;</b>&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>C. Research and Development, patents and licenses,
etc.</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For information regarding
our research and development activities and expenses, see &#8220;Item 4 B. &#8212; Business Overview&#8221; and &#8220;Item 5A. &#8212;
Operating Results&#8221;.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>D. Trend Information</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We are a development stage
company with limited sales, and it is not possible for us to predict with any degree of accuracy the outcome of our research, development
or commercialization efforts. As such, we cannot predict with any degree of accuracy any significant trends, uncertainties, demands,
commitments or events that are reasonably likely to have a material effect on our net loss, liquidity or capital resources, or that would
cause financial information to not be indicative of future operating results or financial condition. However, to the extent possible,
certain trends, uncertainties, demands, commitments and events are described in Item 3D &#8220;Key Information&#8212;Risk Factors,&#8221;
Item 4A &#8220;Information on the Company&#8221; in this &#8220;Item 5. Operating and Financial Review and Prospects.&#8221;</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; "></p><div>

</div><!-- Field: Page; Sequence: 46; Value: 3 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->42<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>E. Critical Accounting Estimates</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We prepare our consolidated
financial statements in accordance with U.S. GAAP, which requires our management to make estimates that affect the reported amounts of
assets, liabilities and disclosures of contingent liabilities at the balance sheet dates, as well as the reported amounts of revenues
and expenses during the reporting periods. To the extent that there are material differences between these estimates and actual results,
our financial condition or results of operations would be affected. We base our estimates on our own historical experience and other assumptions
that we believe are reasonable after taking into account our circumstances and expectations for the future based on available information.
We evaluate these estimates on an ongoing basis.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our expectations regarding
the future are based on available information and assumptions that we believe to be reasonable, which together form our basis for making
judgments about matters that are not readily apparent from other sources. Since the use of estimates is an integral component of the financial
reporting process, our actual results could differ from those estimates. Some of our accounting policies require a higher degree of judgment
than others in their application.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We consider an accounting
estimate to be critical if: (i) the accounting estimate requires us to make assumptions about matters that were highly uncertain at the
time the accounting estimate was made, and (ii) changes in the estimate that are reasonably likely to occur from period to period or use
of different estimates that we reasonably could have used in the current period, would have a material impact on our financial condition
or results of operations.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">When reading our consolidated
financial statements, you should consider our selection of critical accounting policies, the judgment and other uncertainties affecting
the application of such policies and the sensitivity of reported results to changes in conditions and assumptions. For summary information
regarding these accounting policies, see Note 2 to the audited consolidated financial statements for the year ended December 31, 2022
included elsewhere in this annual report on Form 20-F. We believe the following accounting estimates involve the most significant judgments
used in the preparation of our financial statements.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">While management believes
its judgments, estimates and assumptions are reasonable, they are based on information presently available and actual results may differ
significantly from those estimates under different assumptions and conditions. We believe that the following critical accounting estimates
involve the most significant judgments used in the preparation of our financial statements.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0in; "><i>Going Concern Assessment</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; ">We
assess liquidity and going concern uncertainty in our consolidated financial statements to determine whether there is sufficient
cash on hand and working capital, including available borrowings on loans, to operate for a period of at least one year from the
date the consolidated financial statements are issued or available to be issued, which is referred to as the &#8220;look-forward
period&#8221;, as defined in GAAP. As part of this assessment, based on conditions that are known and reasonably knowable to us, we
consider various scenarios, forecasts, projections, estimates and make certain key assumptions, including timing and nature of
projected cash expenditures or programs, our ability to delay or curtail expenditures or programs and our ability to raise
additional capital, if necessary, among other factors. Based on this assessment, as necessary or applicable, we make certain
assumptions around implementing curtailments or delays in the nature and timing of programs and expenditures to the extent we deem
it probable that those implementations can be achieved and we have the proper authority to execute them within the look-forward
period.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; ">As of December 31, 2022, we had cash balance of $362,609. We are in
default in repayment of our convertible notes which as of December 31, 2022 aggregated to approximately $1.5 million (including principal
and interest). As of the date of this annual report, we had sufficient cash to fund operations as presently maintained through June 2023.
We will need to raise additional capital to continue our operations beyond such period.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; ">These
factors raise substantial doubt about our ability to continue as a going concern. Our evaluation of the events and conditions and our
plans regarding these matters are also described in Note 1.b to our consolidated financial statements for the year ended December 31,
2022 that appear elsewhere in this annual report on Form 20-F. The consolidated financial statements do not include any adjustments that
might result from the outcome of this uncertainty.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0in; "><i>Impairment of long-lived assets</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; ">&#160;</p><div>

</div><p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; ">We review our long-lived
assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable.
When these events occur, we measure impairment by comparing the carrying value of the long-lived assets to the estimated undiscounted
future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted
cash flow is less than the carrying amount of the assets, we will recognize an impairment loss based on the fair value of the assets,
using the expected future discounted cash flows.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; "></p><div>

</div><!-- Field: Page; Sequence: 47; Options: NewSection; Value: 43 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->43<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; "><i>Warrant Liabilities</i></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; ">We
account for our warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant&#8217;s
specific terms and applicable authoritative guidance in ASC 480, Distinguishing Liabilities from Equity (&#8220;ASC 480&#8221;) and ASC
815, Derivatives and Hedging (&#8220;ASC 815&#8221;). The assessment considers whether the warrants are freestanding financial instruments
pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants meet all of the requirements for
liability classification under ASC 815, including whether the warrants are indexed to our ordinary shares, among other conditions for
equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance
and as of each cut-off end date while the warrants are outstanding.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; ">Some
of our warrants meet the criteria as liability classified derivative instruments and are recorded at fair value on the grant date and
re-valued at each reporting date, with changes in the fair value reported in the consolidated statements of comprehensive loss. Warrant
liabilities are classified on the balance sheet as current or non-current based on whether or not net-cash settlement or conversion of
the instrument could be required within 12 months of the balance sheet date. Volatility in our ordinary shares may result in significant
changes in the value of the warrant liabilities and resulting gains and losses on our consolidated statement of comprehensive loss.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Recent Accounting Pronouncements</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For information with respect
to recent accounting pronouncements, see Note 2.u. to the audited consolidated financial statements for the year ended December 31, 2022
included elsewhere in this annual report on Form 20-F.</p><div>

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

</div><div><a id="a_008"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>ITEM 6. Directors, Senior Management and Employees.</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>A. Directors and Senior Management</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following table sets
forth information regarding our directors and senior management team as of May 15, 2023.</p><div>

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

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr>
    <td style="vertical-align: bottom; width: 30%; border-bottom: Black 1.5pt solid"><span style="font-size: 10pt"><b>Name</b></span></td>
    <td style="vertical-align: top; width: 1%">&#160;</td>
    <td style="vertical-align: top; width: 5%; border-bottom: Black 1.5pt solid"><span style="font-size: 10pt"><b>Age</b></span></td>
    <td style="vertical-align: bottom; width: 1%; padding-bottom: 1.5pt">&#160;</td>
    <td style="vertical-align: bottom; width: 63%; border-bottom: Black 1.5pt solid"><span style="font-size: 10pt"><b>Position</b></span></td></tr>
  <tr style="background-color: #CCEEFF">
    <td style="vertical-align: bottom"><span style="font-size: 10pt">Dov Farkash</span></td>
    <td style="vertical-align: top">&#160;</td>
    <td style="vertical-align: top"><span style="font-size: 10pt">63</span></td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom"><span style="font-size: 10pt">Active Chairman of the Board</span></td></tr>
  <tr>
    <td style="vertical-align: bottom"><span style="font-size: 10pt">Avi Magid<sup>(1)</sup></span></td>
    <td style="vertical-align: top">&#160;</td>
    <td style="vertical-align: top"><span style="font-size: 10pt">62</span></td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom"><span style="font-size: 10pt">Chief Executive Officer and Director</span></td></tr>
  <tr style="background-color: #CCEEFF">
    <td style="vertical-align: bottom"><span style="font-size: 10pt">Dr. Fernando de la Vega</span></td>
    <td style="vertical-align: top">&#160;</td>
    <td style="vertical-align: top"><span style="font-size: 10pt">65</span></td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom"><span style="font-size: 10pt">Chief Technology Officer and Director</span></td></tr>
  <tr>
    <td style="vertical-align: bottom"><span style="font-size: 10pt">Ofer Greenberger <sup>(2)</sup></span></td>
    <td style="vertical-align: top">&#160;</td>
    <td style="vertical-align: bottom"><span style="font-size: 10pt">61</span></td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom"><span style="font-size: 10pt">Director</span></td></tr>
  <tr style="background-color: #CCEEFF">
    <td style="vertical-align: bottom"><span style="font-size: 10pt">Keinan Maman<sup>(3)(4)</sup></span></td>
    <td style="vertical-align: top">&#160;</td>
    <td style="vertical-align: bottom"><span style="font-size: 10pt">46</span></td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom"><span style="font-size: 10pt">Director </span></td></tr>
  <tr>
    <td style="vertical-align: bottom"><span style="font-size: 10pt">Orly Solomon <sup>(2)(3)</sup></span></td>
    <td style="vertical-align: top">&#160;</td>
    <td style="vertical-align: bottom"><span style="font-size: 10pt">54&#160;</span></td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom"><span style="font-size: 10pt">External Director</span></td></tr>
  <tr style="background-color: #CCEEFF">
    <td style="vertical-align: bottom"><span style="font-size: 10pt">Ido Lapidot <sup>(2)(3)</sup></span></td>
    <td style="vertical-align: top">&#160;</td>
    <td style="vertical-align: bottom"><span style="font-size: 10pt">59&#160;</span></td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom"><span style="font-size: 10pt">External Director</span></td></tr>
  <tr>
    <td style="vertical-align: bottom"><span style="font-size: 10pt">Evyatar Cohen</span></td>
    <td style="vertical-align: top">&#160;</td>
    <td style="vertical-align: bottom"><span style="font-size: 10pt">50</span></td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom"><span style="font-size: 10pt">Chief Financial Officer</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">(1)</span></td><td style="text-align: justify"><span style="font-size: 10pt">Joined
                                            the Board of Directors on March 2, 2023.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">(2)</span></td><td style="text-align: justify"><span style="font-size: 10pt">Member
                                            of our Compensation Committee.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">(3)</span></td><td style="text-align: justify"><span style="font-size: 10pt">Member
                                            of our Audit Committee.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">(4)</span></td><td style="text-align: justify"><span style="font-size: 10pt">Joined
                                            the Board of Directors on March 6, 2023.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The address of each of our
directors and executive officers is c/o P.V. Nano Cell Ltd., 8 Hamasger Street Migdal Ha&#8217;Emek 2310102, Israel.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>Dov Farkash</i>&#160;has
served as our Active Chairman since April 2020. Mr. Farkash has more than 25 years of experience in business leadership and technology
development in the electronics industry. From January 2000 to September 2019, Mr. Farkash served in a range of senior business leadership
and technology development positions at Nova Measuring Instruments Ltd., including Senior Vice President Strategic Development, Senior
Corporate Vice President Modeling Software Division, Vice President Sales and Vice President Business Development. Prior to joining Nova,
Mr. Farkash served as worldwide Sales and Marketing Manager of AFCON Ltd., and AFCON Inc. in the United States. Prior to that, Mr. Farkash
served in various software development managerial positions at various hi-tech companies. Mr. Farkash holds a B.Sc. degree in Computer
Engineering and an MBA degree from the Technion &#8211; Israel Institute of Technology, Haifa, Israel.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>Avi Magid</i> has served
as our Chief Executive Officer since July 17, 2022 and as a director since March 2, 2023. Mr. Magid has wide and varied managerial experience
in the semiconductor and electronics industries in both startups and established companies. From October 2017 to July 2022, Mr. Magid
served as president of Pointer and Cellocator, an Israel based company engaged in IOT and telematics, which was acquired in November
2019 by Powerfleet, Inc., a Nasdaq traded company. Mr. Magid oversaw and successfully managed multiple business units and spearheaded
M&amp;A activities at Pointer and Cellocator. From January 2016 to September 2017, Mr. Magid was chief executive officer of Micro Point
Pro,&#160;which operates in the semiconductor marketplace in both the back and front end. At Micro Point, Mr. Magid expanded its business
by penetrating strategic accounts and establishing new sales channels. From&#160;July&#160;2015 to&#160;Dec&#160;2015, Mr. Magid served
as Vice President, Industrial Division and Business Development, at Amiad Water Systems. Prior to that position, from&#160;August&#160;2014
to&#160;June&#160;2016, Mr. Magid served as the chief executive officer and a drector of Goji Ltd.,&#160;which develops a paradigm-changing
RF-based energy delivery technology. From July 2010 to July 2014, Mr. Magid served as the chief executive officer of Margan Ltd., which
was engaged in ultrasonic sensing systems, where he transformed a small founder-based company into a business with multi-year contractual
engagements. From October 2006 to October 2010, Mr. Magid served as the Executive Vice President Global Business Group at Nova Measuring
Instruments Ltd., where he managed 110 employees and led the company from a non-profitable OEM position to a cutting-edge segment leader.
From 1993 to 2006, Mr. Magid served as the in various managerial position with Kulick and Soffa Industries in both Israel and the United
States. Mr. Magid received his B.Sc. degree in industrial engineering from Pomona Polytechnic University in California in 1992 and graduated
the AeA program at Stanford University in 1999.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p><div>

</div><!-- Field: Page; Sequence: 48; Value: 43 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->44<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>Dr. Fernando de la Vega</i>&#160;co-founded
PV Nano Cell Ltd. in 2009 and has served as a member of our board of directors since that time (as Chairman of the Board until April
2020), and served as our Chief Executive Officer from our inception until June 2021 and since such time has served as our Chief Technology
Officer. Dr. de la Vega has more than 35 years industrial and entrepreneurial experience, having served in managerial positions with
responsibility over research and development, quality and operations and has founded or co-founded several businesses in the fields of
nano technology and functional materials. From 2001 to early 2009, Dr. de la Vega served as General Manager and a Director of Cima Nanotech
Israel, a company focused on the development of innovative technologies in the field of flexible printed electronics. Dr. de la Vega
also co-founded and, from 2003 through 2009, served as Chairman of the Nano Functional Materials Consortium, a five-year, $25 million
research consortium which performed general research on nanotechnology, sponsored by the IIA (the former Office of the Chief Scientist)
as part of the MAGNET program, a special program intended to encourage cooperation between industry and academia. Dr. de la Vega has
also co-founded three European research and development consortiums. He is a co-inventor of more than 11 patent families in the fields
of nanomaterials and nanotechnology and author and co-author of many scientific and technical publications (including sections on two
books on conductive inks for inkjet printing). Dr. de la Vega holds a Ph.D. in Applied Chemistry from the Casali Institute at the Hebrew
University of Jerusalem, as well as a M.Sc. degree in Applied Chemistry and a B.Sc. degree in Chemistry from the Hebrew University of
Jerusalem.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>Ofer Greenberger</i> has
served as a director since May 2022. Mr. Greenberger is an experienced executive with an international proven track record in turnaround
management in the technology sector. Since February 2017, Mr. Greenberger has served as President and General Manager of Applied Materials
(Israel), a subsidiary of a Nasdaq-listed company and a global leader in materials engineering solutions for semiconductors, flat panel
display and photo voltaic industries. Prior to his position at Applied Materials, from March 2012 through September 2015, Mr. Greenberger
served as the chief executive officer of Orbit Communications Systems, an Israel-based&#160;local provider of airborne&#160;communications&#160;and
satellite- tracking maritime and ground-station and new space solutions. Prior thereto, from 2003 to 2011, Mr. Greenberger served as
President and General Manager of KLA-Tencor (Israel), a subsidiary of a leading worldwide capital equipment company based that supplies
process control and yield management systems for the semiconductor industry and other related nanoelectronics industries. From 1993 to
2003, Mr. Greenberger served as Vice President and General Manager for Kulicke &amp; Soffa, a leading provider of semiconductor packaging
and electronic assembly solutions supporting the global automotive, consumer, communications, computing and industrial segments. Mr.
Greenberger holds a B.Sc. degree in mechanical engineering and an M.B.A. degree from the Technion &#8211; Israel Institute of Technology
and is a graduate of the AEA Stanford Executive Program.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; "><i>Keinan
Maman</i> has served as a director since March 2023. Mr. Maman is an experienced executive with proven track record in financial and
business performance optimization. Since 2022, Mr. Maman has served as chief financial officer of Keshet-Teamim, an Israeli supermarket
chain. Prior to this position, from 2019 to 2022, Mr. Maman is served as chief financial officer of Fibernet, an Israeli company that
designs, develops and implements cybersecurity, multimedia and fiber optic-based solutions. Prior thereto, from 2014 to 2019, Mr. Maman
served as General Manager of Greenland, an Israeli retail chain. Mr. Maman holds a BA degree in accounting from Haifa University and
a M.B.A. degree in business administration from Tel-Aviv University.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>Orly Solomon&#160;</i>has
served as an external director (with proficiency in accounting and
finance) of the Company (within the meaning of the Companies Law) since December 2017. Ms. Solomon serves as Chief Financial Officer of
Radview Software Ltd. (RDVWF) since November 2021. Ms. Solomon currently serves as a director of Next Era Ltd. Ms. Solomon served as Financial
Director and Advisor to the board of directors of Med and Beyond Ltd. in the years 2019-2021. Ms. Solomon served on the board of directors
of Shikmona, a governmental and city owned corporation in Haifa from 2014 to 2017, as a director with financial expertise. Ms. Solomon
served as Chief Financial Officer of Inuitive Ltd from 2017 to 2021. From 2014 to 2016, Ms. Solomon served as Chief Financial Officer
of Future Values Ltd. During 2013, Ms. Solomon served as Chief Executive Officer of D. Medical Industries Ltd. (NASDAQ /TASE: DMED). Ms.
Solomon was also the chairman of the board of directors of RSL Electronics Ltd. (TASE: RSL) from 2011 to 2012. From 2010 to 2012, Ms.
Solomon served as Chief Financial Officer and Deputy to the Chief Executive Officer of Lito Group Ltd. (TASE: LTGR-M). From 2009 to 2010,
Ms. Solomon served as co-founder and Chief Financial Officer of Atid Team, Israel. From 2006 to 2010, Ms. Solomon served as co-founder
and a director of Altshare (formerly known as Altshuler Shacham Benefits Israel), a subsidiary of the Altshuler Shacham Investment House.
Ms. Solomon holds an MBA degree in Finance and Economics from the Hebrew University of Jerusalem, and a BSc. degree in Accounting, with
honors, from Rutgers University, Newark, New Jersey.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p><div>

</div><!-- Field: Page; Sequence: 49; Value: 43 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->45<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>Ido Lapidot</i> has served
as an external director of the Company (within the meaning of the Companies Law) since December 2017. Mr. Lapidot is a systematic innovation
consultant and strategic planner, with over two decades of experience in driving innovation and sustainable growth across diverse industries.
Ido is a partner at Next Leap Ventures, an investment club comprising former Intel employees, where he is in charge of identifying and
nurturing groundbreaking technologies and startups and serving as NextLeap Ventures representative on the boards of directors at Sanolla,
Wadis, and Marine Edge. Previously, Mr. Lapidot held several key positions at Intel R&amp;D, Intel Labs, and Intel Corporate Services-EMEA,
where he led LEAN manufacturing and TRIZ programs, and served as a strategic technologies&#8217; planner and TRIZ program leader. Mr.
Lapidot also served as an external teacher for TRIZ and systematic innovation at Afeka College of Engineering, at Azrieli College of
Engineering, and Hadassah Academic College. Mr. Lapidot holds an MA degree in Environmental Science, a BA degree in Chemistry, and a
B.A. degree in Atmospheric Science from the Hebrew University of Jerusalem. Mr. Lapidot also holds a TRIZ L3 certification from MA-TRIZ,
a testament to his deep understanding of innovation theory and practice.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>Evyatar Cohen&#160;</i>has
served as our Chief Financial Officer since November 2017. Currently and prior to his appointment as our Chief Financial Officer, Mr.
Cohen serves and has served as a Chief Financial Officer and financial consultant for several public companies traded in the United States,
Israel and Europe as well as privately held companies. Mr. Cohen worked at PricewaterhouseCoopers in both Tel-Aviv and New York. Mr.
Cohen has gained vast experience in many industries such as high-tech, bio-tech, oil and gas, entertainment and media, and venture capital.
Mr. Cohen holds a B.A. degree in Business Management from the College of Management and a Masters of Law degree from Bar Ilan University,
Israel. Mr. Cohen is a licensed and certified public accountant in both the United States and Israel.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Appointments to the Board </b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under our Articles of Association,
as approved by our shareholders on November 29, 2018, GTRIMG, our controlling shareholder, has the right, so long it holds at least 5%
of our issued and outstanding share capital, to: (i) designate one non-voting observer to our Board, provided that the observer shall
not be a competitor of ours, or employed by a competitor of ours; and (ii) conditioned upon a $2.0 million investment by GTRIMG following
such date, to appoint a director to the Board who shall also serve as the chairman of the Board, provided that such nominee has the required
qualifications under applicable laws, including the stock exchange rules then applicable. In October 2018, Ram Zeevi, the son of Gad Zeevi,
who is the controlling shareholder of GTRIMG, was appointed as an observer to our Board. In April 2020, following completion of GTRIMG&#8217;s
$2.0 million investment, GTRIMG appointed Mr. Dov Farkash to server as a member of our Board as Active Chairman.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under an agreement dated
October 27, 2021, entered into in connection with a private placement of our securities, certain of the investors, including GTRIMG,
Messrs. Leon and Lenny Recanati, Dan Vilenski and Teuza, have the right to appoint three directors to our Board. Accordingly, Mr. Ofer
Greenberger and Mr. David Boas were appointed to our Board as of May 19, 2022. Mr. Boas resigned from our Board as of January 1, 2023,
and was replaced by Mr. Keinan Maman, who was appointed as a director as of March 6, 2023. </p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Family Relationships</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">There are no family relationships
between any members of our executive management and our directors.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 50; Value: 43 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->46<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>B. Compensation</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The table below reflects
the compensation granted to our five most highly compensated office holders (as defined in the Companies Law) during or with respect
to the year ended December 31, 2022. We refer to the five individuals for whom disclosure is provided herein as our &#8220;Covered Executives&#8221;.
For purposes of the table below, &#8220;compensation&#8221; includes amounts accrued or paid in connection with salary cost, consultancy
fees, bonuses, share-based compensation, retirement or termination payments, benefits and perquisites (as applicable) to provide such
compensation. All amounts reported in the table are in terms of cost to the Company, as recognized in our consolidated financial statements
for the year ended December 31, 2022, plus compensation accrued or paid to such Covered Executives following the end of the year in respect
of services provided during the year.</p><div>

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

</div><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold">Individual Covered Executive Compensation Name and Principal Position</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"><span style="font-size: 10pt"><b>Salary<sup>(1)</sup></b></span></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"><span style="font-size: 10pt"><b>Share-based<br/>
    Compensation&#160;<sup>(2)</sup></b></span></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</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">US $</td><td style="font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 64%; text-align: left">Fernando de la Vega, Chief Technology Officer and Director</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">246,190</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">111,754</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">357,944</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left"><span style="font-size: 10pt">Hanan Markovich, Former Chief Business Development Officer<sup>(3)</sup></span></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">213,211</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">21,758</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">234,969</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"><span style="font-size: 10pt">Ran Eisenberg, Former Chief Executive Officer and Director<sup>(4)</sup></span></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">141,802</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">89,717</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">231,519</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Evyatar Cohen, Chief Financial Officer</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">160,824</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">46,171</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">206,995</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">Dov Farkash, Active Chairman</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">142,955</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">35,894</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right">178,849</td><td style="text-align: left">&#160;</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.25in; text-align: justify"><span style="font-size: 10pt">(1)</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">Salary includes the Covered Executive&#8217;s gross salary plus payment
    of social benefits made by us on behalf of such Covered Executive. Such benefits may include, to the extent applicable to the Covered
    Executive, payments, contributions and/or allocations for savings funds (e.g., managers&#8217; life insurance policy), education
    funds (referred to in Hebrew as &#8220;keren hishtalmut&#8221;), pension, severance, risk insurances (e.g., life, or work disability
    insurance), payments for social security and tax gross-up payments, vacation, medical insurance and benefits, convalescence or recreation
    pay and other benefits and perquisites consistent with our policies.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.25in; text-align: justify"><span style="font-size: 10pt">(2)</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">Represents the share-based compensation expenses recorded in the Company&#8217;s
    consolidated financial statements for the year ended December 31, 2022, based on the option&#8217;s grant date fair value, calculated
    in accordance with accounting guidance for share-based compensation.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.25in; text-align: justify"><span style="font-size: 10pt">(3)</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">Mr. Markovich ceased to serve as our Chief Business Development Officer
    on February 22, 2023. </span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.25in; text-align: justify"><span style="font-size: 10pt">(4)</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">Mr. Eisenberg ceased to serve as a director on May 15,
    2022, and ceased to serve as our Chief Executive Officer on July 1, 2022. </span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Compensation of Executive Officers and Directors
as a Group</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The aggregate compensation
paid by us to our executive officers and directors for the year ended December 31, 2022, was approximately $1,210,276, including share-based
compensation expenses of approximately $305,294. This amount does not include business travel, relocation, professional and business
association dues and expenses reimbursed to officers, and other benefits commonly reimbursed or paid by companies in Israel. We did not
set aside or accrue any amounts to provide pension, retirement or similar benefits to any officers or directors of the Company in the
year ended December 31, 2022.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In connection with their
appointments as directors effective May 19, 2022 and March 6, 2023, respectively, each of Mr. Ofer Greenberger and Mr. Keinan Maman was
awarded under the Company&#8217;s 2010 Option Plan options to purchase up to 1,300,000 shares of the Company&#8217;s Ordinary Shares,
which options are scheduled to vest as follows: 25% of the options vest on the first anniversary of the appointment to the Board (i.e.,
325,000 options shares) and the balance are to vest over the next three years in equal instalments on a quarterly basis at the end of
each three month period following the first anniversary of appointment to the Board (i.e., 81.250 option share per three month period).
</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We do not have any written
agreements with any director providing benefits upon the termination of such director&#8217;s relationship with our company, other than
our consulting agreement with our chief technology officer as described below.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our officers are employed
under the terms and conditions prescribed in personal contracts. See below &#8220;Employment or Service Agreements with our Active Chairman,
Chief Executive Officer, Chief Technology Officer and Chief Financial Officer.&#8221; These personal contracts provide for notice periods
of varying duration for termination of the agreement by us or by the relevant executive officer, during which time the executive officer
will continue to receive base salary and benefits. These agreements also contain acceleration provisions upon material events such as
a change of control or entry into a material agreement, customary provisions regarding non-competition, confidentiality of information
and assignment of inventions. However, the enforceability of provisions regarding non-competition and assignment of inventions may be
limited under applicable law. See &#8220;Item 3 D. &#8212; Risk Factors &#8212; Risks Related to Our Intellectual Property&#8221;. Under
current Israeli law, we may not be able to enforce office holders&#8217; covenants not to&#160;compete and therefore may be unable to
prevent our competitors from benefiting from the&#160;expertise of some of our former officer holders.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p><div>

</div><!-- Field: Page; Sequence: 51; Value: 43 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->47<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our other employees are employed
under the terms prescribed in their respective personal contracts, in accordance with the decisions of our management. Under these employment
contracts, the employees are entitled to the social benefits prescribed by law and as otherwise provided in their personal contracts.
Each of these employment contracts contains provisions standard for a company in our industry regarding non-competition, confidentiality
of information and assignment of inventions. Under current applicable employment laws, we may not be able to enforce covenants not to
compete and therefore may be unable to prevent our competitors from benefiting from the expertise of some of our former employees. See
&#8220;Item 3 D. &#8212; Risk Factors &#8212; Risks Related to Our Intellectual Property&#8221; for a further description of the enforceability
of non-competition clauses. We also provide certain of our employees with a company car, which is leased from a leasing company.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Compensation of Non-Executive Directors</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our non-executive directors,
other than our external directors (within the meaning of the Companies Law), do not receive any cash compensation.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We pay our external directors
(an annual fee and per-meeting fees in an amount between the minimum and maximum amounts payable from time to time for such fees by us
under the Israeli Companies Regulations (Rules Regarding Compensation and Expense Reimbursement of External Directors), 2000 (the &#8220;Compensation
Regulations&#8221;). In March 2022, a temporary amendment to the Compensation Regulations was adopted, which was adopted retroactively
as of March 2020, allowing boards of directors to adopt criteria for purposes of classifying the participation of directors in meetings
held electronically as attendance in person for purposes of the payment of per meeting fees, during such period that a &#8220;public
health emergency situation&#8221; has been declared due to the COVID-19 pandemic. Our Board of Directors adopted a resolution classifying
the participation of directors in meetings held electronically as attendance in person for purposes of the payment of per meeting fees
in consideration of the COVID-19 pandemic and the preparation required of Board members for such meetings. In accordance with the Compensation
Regulations, we currently pay our external directors an annual fee of NIS 25,000 (approximately $7,104) as well as a fee of NIS 3,300
(approximately $938) for each board or committee meeting attended in person, via telephone or videoconference and NIS 1,650 (approximately
$469) for participation by written consent.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Directors and Officers Equity-Based Compensation</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of December 31, 2022, a
total of options to purchase 16,700,377 of our ordinary shares were outstanding and held by certain current directors and executive officers
(consisting of eight persons), of which options to purchase 10,425,377 of our ordinary shares were exercisable or exercisable within 60
days of May 15, 2023. For&#160;information&#160;regarding the beneficial ownership of our ordinary shares by our directors and executive
officers, see &#8220;Item 7 A. Major Shareholders and Related Party Transactions &#8212; Major Shareholders&#8221;..</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Employment or Service Agreements with our
Active Chairman, Chief Executive Officer, Chief Technology Officer and Chief Financial Officer&#160;</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>Dov Farkash</i>. On April 19, 2020, we entered into an Active Chairman
Agreement (the &#8220;Chairman Agreement&#8221;), with Exoro Ltd. (&#8220;Exoro&#8221;), a company wholly-owned by Mr. Dov Farkash. The
Chairman Agreement provided that Exoro, through Mr. Farkash is to provide certain services to us as active chairman, focusing on go-to-market
strategy. We agreed to enter into an indemnification agreement with Mr. Farkash and to include him in our directors&#8217; and officers&#8217;
liability insurance. Mr. Farkash agreed not to provide any services that would conflict with or complete with ours. We agreed to pay to
Exoro a monthly service fee of NIS 40,000 (approximately $11,366) plus Value Added Tax (&#8220;VAT&#8221;). Exoro was entitled to reimbursement
of expenses in connection with the provision of the services and was provided a budget of $10,000/month for travel. The term of the Chairman
Agreement was for four months, with our right to renew the agreement for an additional nine months, which was utilized. Either party could
terminate upon 45 days prior written notice. The Chairman Agreement could also be terminated by us for Cause (as defined in the Chairman
Agreement). Notwithstanding the expiration of the Chairman Agreement, Mr. Farkash has continued to serve as Active Chairman in accordance
with the terms thereof, and we intend to present such continued engagement to the approval of our shareholders at the next general meeting
of shareholders.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p><div>

</div><!-- Field: Page; Sequence: 52; Value: 43 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->48<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>Avi Magid</i>. On November
7, 2022, we entered into an employment agreement with Mr. Magid in connection with his appointment as our Chief Executive Officer,&#160;which
was in effect through&#160;the close of business December 19, 2022 (the &#8220;Initial CEO Agreement&#8221;), at which time our annual
general meeting of shareholders approved the terms and conditions of Mr. Magid&#8217;s new employment agreement in such capacity, effective
as of such date (the &#8220;CEO Agreement&#8221;). The primary difference between the Initial CEO Agreement and the CEO Agreement was
that under the Initial CEO Agreement, Mr. Magid was entitled to a gross monthly salary in such amount as consistent with an&#160;aggregate
monthly cost to the Company of NIS 60,000, retroactive to August 1, 2022 (his employment start date), whereas under the CEO Agreement,
he is entitled to a gross monthly salary of NIS 60,000 (approximately $17,050).&#160;In addition, under the terms of the CEO Agreement,
Mr. Magid is entitled to a leased vehicle or, alternatively, at his option, to receive an additional amount equal to the leasing cost
as salary, provided that the total payroll will be in accordance with the limitation of our Compensation Policy. Under both agreements,
Mr. Magid is also entitled to the following: (i)&#160;manager&#8217;s&#160;insurance&#160;under Israeli law to which the Company contributes
amounts equal to (a) 8.33% for severance payments, and 6.5%, or up to 7.5% (including disability insurance) designated for premium payment
(and Mr. Magid contributes an additional 6%) of each monthly salary payment, and (b) 7.5% of his salary (with Mr. Magid contributing
an additional 2.5%) to an education fund, a form of deferred compensation program established under Israeli law. Both employment agreements
contain (i) customary confidentiality obligations which are not limited by the term of the agreement, (ii) certain non-compete provisions
during the term of the agreement and 12 months thereafter and (iii) certain non-solicitation provisions during the term of the agreement
and for one year thereafter. Either party may terminate the CEO Agreement at any time upon one month&#8217;s prior written notice.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, pursuant to the approval of our shareholders at the annual
general meeting held in December 2022, Mr. Magid was awarded options to purchase 5,249,758&#160;ordinary shares, exercisable at a per
share exercise price of $0.07 and scheduled to vest over three years as follows: one-third on August 1, 2023, the first anniversary of
the employment start date, and the balance thereafter in equal monthly instalments at the end of each month, subject to his continued
employment with the Company; provided, that as the number of reserved shares under the Company&#8217;s 2010 Option Plan is not sufficient
to support the grant in its totality at the time of the shareholder approval, options for only 4,000,000 shares were awarded and the balance
of the grant (i.e., 1,249,758 options) shall be completed at such time as the number shares available for issuance under the Company&#8217;s
2010 Option Plan shall have been increased (and such remaining options, once granted, will vest according to the vesting schedule referenced
above).</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>Dr. Fernando de la Vega</i>.
On September 9, 2009, we entered into a services agreement (the &#8220;DBG Services Agreement&#8221;), as amended in November 2018, with
Dr. de la Vega&#8217;s wholly-owned service company, Dolev Bar-Guy Consulting and Management Ltd. (&#8220;DBG Services Agreement&#8221;),
pursuant to which Dr. de la Vega provided us management services as our Chief Executive Officer through June 1, 2021, at which time he
resigned from such position and assumed the position as Chief Technology Officer, under the same terms and conditions according to the
DBG Services Agreement. Pursuant to the terms of the DBG Services Agreement, Dr. de la Vega is currently entitled to a monthly consultancy
fee in the amount of 65,000 (approximately $18,471) plus VAT and car allowance in the amount of NIS 2,500 (approximately $710) plus VAT
per month plus reimbursement for fuel expenses and tolls. Dr. de la Vega may, at any time, terminate the DBG Services Agreement by three
months&#8217; prior written notice. If we wish to terminate the DBG Services Agreement, other than as a result of Dr. de la Vega&#8217;s
breach of his terms of office, we are required to provide six months&#8217; prior written notice (provided that if the termination is
up to 12 months following an exit event, 24 months&#8217; prior written notice is required; between 12 and up to 24 months following an
exit event, 12 months&#8217; prior written notice is required and between 24 months and up to 36 months following an exit event, 6 months&#8217;
prior written notice is required).</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, Dr. de la Vega
is entitled to receive:</p><div>

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

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.5in; text-align: justify">&#160;</td>
    <td style="width: 0.25in; text-align: justify"><span style="font-size: 10pt">(a)</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">An annual cash bonus in an amount equivalent to up to four times his
    monthly service fee, plus VAT, subject to achievement of certain performance targets which are determined by our compensation committee
    and the board of directors on an annual basis.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.5in; text-align: justify">&#160;</td>
    <td style="width: 0.25in; text-align: justify"><span style="font-size: 10pt">(b)</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">A special one-time bonus in an amount equivalent to six times his monthly
    service fee, plus VAT upon the occurrence of an Exit Event (as described below), provided that our pre-money valuation shall be at
    least $50,000,000 at the closing of such transaction or within 12 months following such closing.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.5in; text-align: justify">&#160;</td>
    <td style="width: 0.25in; text-align: justify"><span style="font-size: 10pt">(c)</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">An equity-based award upon the occurrence of an Exit Event, in accordance
    with the following calculation:</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in">&#160;</td>
    <td style="width: 0.25in"><span style="font-size: 10pt">(i)</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">0.5% of the Company&#8217;s share capital on a fully diluted basis,
    if the Company&#8217;s pre-money valuation shall be equal to or higher than $30,000,000 but less than $40,000,000;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 53; Value: 43 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->49<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in">&#160;</td>
    <td style="width: 0.25in"><span style="font-size: 10pt">(ii)</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">1.25% of the Company&#8217;s share capital on a fully diluted basis,
    if the Company&#8217;s pre-money valuation shall be equal to or higher than $40,000,000 but less than $50,000,000;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in">&#160;</td>
    <td style="width: 0.25in"><span style="font-size: 10pt">(iii)</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">2.0% of the Company&#8217;s share capital on a fully diluted basis, if
    the Company&#8217;s pre-money valuation shall be equal to or higher than $50,000,000.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">An &#8216;Exit Event&#8217;
is defined as: (i) the consummation of an initial public offering of ordinary shares of the Company on a recognized stock exchange; or
(ii) a sale of all or substantially all of the share capital of the Company to any individual, firm, corporation, partnership, trust,
incorporated or unincorporated association, joint venture, joint stock company, governmental authority or other entity of any kind, and
shall include any successor (by merger or otherwise) of such entity (a &#8220;Person&#8221;); (iii) a sale, lease, conveyance or disposition
of all or substantially all of the assets of the Company; (iv) a merger of the Company with or into another entity in which the shareholders
of the Company immediately prior to such merger do not hold a majority of the share capital and voting rights of the surviving entity
held by them by virtue of their holdings in the Company prior to the consummation of the transaction or a transaction or series of transactions
in which a Person or group of Persons acquire more than 50% of the issued and outstanding share capital of the Company (other than an
acquisition of such share capital from the Company); or (v) an up-listing to a higher exchange.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>Evyatar Cohen.&#160; </i>On
November 12, 2017, we entered into a consultancy agreement with Mr. Cohen to serve as our Chief Financial Officer. Mr. Cohen&#8217;s
services include, among others, the services of Ms. Moran Cohen as our controller. Pursuant to the terms of the agreement, Mr. Cohen
is entitled to a monthly fee of NIS 45,000 (approximately $12,787) plus VAT. Either we or Mr. Cohen may terminate the agreement by providing
45-days prior notice.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We have not paid our Active Chairman and certain executive officers all amounts due to them under their respective agreements due to financial
difficulties and have recorded a liability in our consolidated financial statements with respect to such amounts.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Share Option Plan</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During 2010, we adopted our
2010 Option Plan (the &#8220;Plan&#8221;). The purpose of the Plan is to serve as an incentive to attract new employees, directors, consultants
and service providers, and to retain persons of training, experience and ability by providing them with opportunities to purchase securities,
including shares of the Company, pursuant to the Plan, as approved by the board of directors of the Company. As of December 31, 2022,
a total of 1,515,516 ordinary shares were reserved for issuance under the Plan. The number of ordinary shares reserved for issuance under
the Plan may be changed from time to time at the sole discretion of the board of directors.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Plan is administered
by our board of directors, provided that the board of directors may delegate responsibility for the administration of the Plan to a committee
designated by the board of directors. The board of directors has authority to designate grantees of awards under the Plan and the terms
of any award granted, including the type of securities to be granted, the vesting terms of any securities granted, and any restrictions
on transfer of any securities granted under the Plan.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to the Plan, the Company may (1) grant awards of securities
under the Plan under the capital gains track pursuant to Section 102 of the Israeli Income Tax Ordinance [New Version], 1961 (the &#8220;Ordinance&#8221;),
to our directors, officers and employees who are not holders of 10% or more of our total share capital and are not otherwise controlling
shareholders, and (2) grant awards pursuant to Section 3(i) of the Ordinance to non-employee Israeli service providers, consultants and
shareholders who hold 10% or more of our total share capital or are otherwise controlling shareholders.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 102 of the Ordinance
allows employees, directors and officers, who are not controlling shareholders and are considered Israeli residents, to receive favorable
tax treatment for compensation in the form of shares or options. Our non-employee Israeli service providers, consultants and controlling
shareholders, which includes any shareholder holding 10% or more of the Company&#8217;s ordinary shares on a fully diluted basis, may
only be granted options under Section 3(i) of the Ordinance, which does not provide for similar tax benefits. Section 102 of the Ordinance
includes two alternatives for tax treatment involving the issuance of options or shares to a trustee for the benefit of the grantees
and also includes an additional alternative for the issuance of options or shares directly to the grantee. Section 102(b)(2) of the Ordinance,
the most favorable tax treatment for grantees, permits the issuance to a trustee under the &#8220;capital gains&#8221; track. However,
under this track we are not allowed to deduct any expense with respect to the issuance of the options or shares. In order to comply with
the terms of the capital gains track, all options granted under the Plan pursuant and subject to the provisions of Section 102 of the
Ordinance, as well as the ordinary shares issued upon exercise of these options and other shares received subsequently following any
realization of rights with respect to such options, such as share dividends and share splits, must be granted to a trustee for the benefit
of the relevant employee, director or officer and should be held by the trustee for at least two years after the date of the grant. If
such options or shares are sold by the trustee or are transferred to the grantee before the end of the two-year period, then the grantee
would be taxed at top marginal rates upon selling the shares.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p><div>

</div><!-- Field: Page; Sequence: 54; Value: 43 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->50<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Options granted under the
Plan will vest in accordance with the vesting dates determined by the board of directors with respect to each grant. Options that are
not exercised within seven years of the grant date will expire, unless a shorter or longer term is provided for by the board of directors.
Generally, if we terminate a grantee&#8217;s employment or services to the Company, all options granted to such grantee that are then
vested will be exercisable for a period of six months after the termination date (unless a shorter period is determined by the board
of directors) or, if earlier, the expiration date of such options if we terminate a grantee&#8217;s employment or service for cause,
all of the grantee&#8217;s vested and unvested unexercised options will expire and terminate on the date of termination. In case of termination
for reasons of disability or death, the grantee or his legal successor may exercise options that have vested prior to termination within
a period of twelve months from the date of disability or death.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In the event of a merger
or consolidation of our Company subsequent to which we would no longer exist as a legal entity, or a sale of all, or substantially all,
of our ordinary shares or assets or other transaction having a similar effect on us, the Company will seek to cause the acquirer in such
transaction to substitute all outstanding and unexercised options under the Plan for an appropriate number of the same type of shares
or other securities of the successor company as were distributed to the Company or the shareholders in connection with such transaction.
If the acquirer refuses to substitute the options, unvested options held by any grantee will vest in accordance with the following formula:
X+Y*X/Z, where X = the number of vested options held by the grantee, Y = the number of unvested options held by the grantee, and Z =
the number of options held by the grantee.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>C. Board Practices </b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Board of Directors</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Companies Law,
the management of our business, including strategy and policies, is vested in our board of directors. Our board of directors may exercise
all powers and may take all actions that are not specifically granted to our shareholders or to management. Our Chief Executive Officer
and other executive officers are responsible for our day-to-day management and have responsibilities established by our board of directors.
Our Chief Executive Officer is appointed by, and serves at the discretion of, our board of directors, subject to the terms of an employment
agreement that we have entered into with him. All other executive officers are appointed by our chief executive officer, and are subject
to the terms of any applicable employment agreements that we may enter into with them.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Election and Removal of Directors</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our Articles of Association
provide for a board of directors consisting of no less than three and no more than seven directors, with all directors (other than the
external directors, whose appointment is required under the Companies Law, as described below) divided into three classes with staggered
three-year terms, designated as Class I, Class II and Class III, with each class of directors to consist, as nearly as possible, of one-third
of the total number of directors other than the external directors. At each annual general meeting of our shareholders thereafter, the
election or re-election of directors following the expiration of the term of office of the directors of that class of directors will
be for a term of office that expires on the third annual general meeting following such election or re-election. Each director so elected
will hold office until the annual general meeting of our shareholders for the year in which his or her term expires, unless the tenure
of such director expires earlier pursuant to the Companies Law or unless he or she is removed from office as described below. Our board
of directors is divided among the three classes of directors (except for the external directors) as follows:</p><div>

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

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">The Class I director is Mr. Dov Farkash, our Active Chairman, for a
    term expiring at the 2023 annual meeting of shareholders.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 55; Value: 43 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->51<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">The Class II directors are Mr. Ofer Greenberger and Mr. Keinan Maman,
    for a term expiring at the 2024 annual general meeting of shareholders. </span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">The Class III director is Dr. Fernando de la Vega, for a term expiring
    at the 2025 annual general meeting of shareholders. </span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under our Articles of Association
our Chief Executive Officer, currently Mr. Avi Magid, serves as an ex-officio member of our Board of Directors. In addition, Ms. Orly
Solomon and Mr. Ido Lapidot serve as our external directors in accordance with Israeli law, as described further below.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our Articles of Association
allow our board of directors to appoint directors (other than the external directors) to fill vacancies on our board of directors, however
created, for a term of office equal to the remaining period of the term of office of the director(s) whose office(s) have been vacated,
and to appoint any person to be a Director in addition to the existing Board, so long as the total number of Directors shall not at any
time exceed the maximum number prescribed by our Articles of Association. Any such director appointed by the Board of Directors shall
be placed in a class of directors so that all classes are as nearly equal as possible. A director, appointed by the Board of Directors,
shall be deemed, for all intents and purposes, as having been appointed by the Annual General Meeting, and, without derogating from the
generality of the aforesaid, shall serve as a Director until the expiry of the term of office of the class to which he or she was appointed.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Observer </i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under our Articles of Association,
as approved by our shareholders on November 29, 2018, GTRIMG, our controlling shareholder, has the right, so long it holds at least 5%
of our issued and outstanding share capital, to designate one non-voting observer to our Board, provided that the observer shall not be
a competitor of ours or employed by a competitor of ours. In October 2018, Ram Zeevi, the son of Gad Zeevi, who is the controlling shareholder
of GTRIMG, was appointed as an observer to our Board.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Chairman of the Board</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under our Articles of Association,
as approved by our shareholders on November 29, 2018, GTRIMG, our controlling shareholder, has the right, so long it holds at least 5%
of our issued and outstanding share capital, conditioned upon a $2.0 million investment by GTRIMG following such date, to appoint a director
to the Board who shall also serve as the chairman of the Board, provided that such nominee has the required qualifications under applicable
laws, including the stock exchange rules then applicable. In April 2020, following completion of GTRIMG&#8217;s $2.0 million investment,
GTRIMG appointed Mr. Dov Farkash to server as a member of our Board as Active Chairman.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Companies Law, the chief executive officer (referred to as
a &#8220;general manager&#8221; under the Companies Law) or a relative of the chief executive officer may not serve as the chairman of
the board of directors, and the chairman of the board of directors or a relative of the chairman may not be vested with authorities of
the chief executive officer unless approved by our shareholders by a special majority consisting of a majority vote of the shares present
and voting at a shareholders meeting,&#160;<i>provided</i>&#160;that either:&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">at least a majority of the shares of non-controlling shareholders and
    shareholders that do not have a personal interest in the approval voted at the meeting are voted in favor (disregarding abstentions);
    or</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">the total number of shares of non-controlling shareholders and shareholders
    who do not have a personal interest in such appointment voting against such appointment does not exceed two percent of the aggregate
    voting rights in the company.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A person subordinated, directly
or indirectly, to the chief executive officer may not serve as the chairman of the board of directors; the chairman of the board of directors
may not be vested with authorities that are granted to those subordinated to the chief executive officer; and the chairman of the board
of directors may not serve in any other position in the company or a controlled company, but he or she may serve as a director or chairman
of the board of directors of a controlled subsidiary.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">There are no family relationships among any of
our officers and directors.&#160;</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 56; Value: 43 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->52<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>External Directors</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Companies Law,
companies incorporated under the laws of the State of Israel whose shares are publicly traded are required to appoint at least two external
directors who meet the qualification requirements set forth in the Companies Law within three months of the closing of the initial public
offering.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">At our general meeting of
shareholders held in 2017, we appointed Ms. Orly Solomon and Mr. Ido Lapidot as our external directors for an initial term of three years
and they were re-elected at our general meeting of shareholders held in December 2020 for an additional three-year term.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Companies Law provides
for special approval requirements for the election of external directors. External directors must be elected by a majority vote of the
shares present and voting at a shareholders meeting, provided that either (which we refer to as the &#8220;Special Majority&#8221;):</p><div>

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

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">such
majority includes at least a majority of the shares held by all shareholders who are not controlling shareholders and do not have a personal
interest in such election (other than a personal interest which is not derived from a relationship with a controlling shareholder), present
and voting at such meeting, excluding abstainers; or</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
total number of shares of non-controlling shareholders and shareholders who do not have a personal interest in such election (other than
a personal interest which is not derived from a relationship with a controlling shareholder) voting against the election of an external
director does not exceed 2% of the aggregate voting rights in the company.</span></td>
</tr></table><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">After an initial term of
three years, an external director may be re-elected to serve in that capacity for up to two additional terms of three years each under
one of two alternatives. Under the first alternative, the external director may be nominated by the board of directors, and such external
director&#8217;s re-election is approved by a majority of the shareholders that was required to elect such external director in such
director&#8217;s initial election. Under the second alternative, the external director may be nominated by a shareholder(s) holding 1%
or more of the voting power and at the general meeting of shareholders such re-election is approved by a majority of those shares present
and voting that are held by shareholders who are non-controlling shareholders and do not have a personal interest in the re-election,
provided that such shares represent at least 2% of the total voting power in the company.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Companies Law, an external director cannot be dismissed from
office unless the board of directors has learned there is a concern that: (i) the external director no longer meets the statutory requirements
for his appointment as an external director; or (ii) the external director is in breach of his or her duty of loyalty to the company.
The board of directors shall discuss the matter no later than in the first board of directors meeting convened after the board becomes
aware of such circumstances. In the event the board of directors determines that an external director ceased to comply with the requirements
set forth under the Companies Law, or that he or she breached his or her duty of loyalty to the company, the board of directors shall
convene a general meeting of the shareholders that shall include on the agenda a resolution for the removal from office of such external
director. The removal of an external director from office by the shareholders is subject to the same Special Majority requirements for
the appointment of external directors (as described above); provided, however, that the external director has been given the opportunity
to present his or her position. In addition, a court of law may determine, upon a request by a director or a shareholder, to dismiss the
external director after finding that such external director no longer meets the statutory requirements of an external director set forth
in the Companies Law or that the external director is in breach of his or her duty of loyalty to the company.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Any committee of the board
of directors that is authorized to exercise powers of the board of directors is required to include at least one external director, and
the audit and compensation committees are required to all of such company&#8217;s external directors.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Companies Law,
external directors of a company are prohibited from receiving, directly or indirectly, any compensation from the company other than for
their services as external directors pursuant to the provisions and limitations set forth in regulations promulgated under the Companies
Law (the &#8220;Regulations&#8221;), which compensation is determined prior to their appointment and may not be changed throughout the
term of their service as external directors (except for certain exceptions set forth in the regulations).</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Companies Law provides
that a person is not qualified to serve as an external director if, as of the appointment date or at any time during the two years preceding
his or her appointment, that person or a relative, partner or employer of that person, any person to whom that person is subordinate
(whether directly or indirectly), or any entity under that person&#8217;s control, had any affiliation or business relationship with
the company, any controlling shareholder or relative of a controlling shareholder or an entity that, as of the appointment date is, or
at any time during the two years preceding that date was, controlled by the company or by any entity controlling the company.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p><div>

</div><!-- Field: Page; Sequence: 57; Value: 43 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->53<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The term affiliation for
this purpose includes (subject to certain exceptions):</p><div>

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

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">an employment relationship;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">a business or professional relationship maintained on a regular basis;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">control; and</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">service as an office holder, excluding service as a director in a private
    company prior to the first offering of its shares to the public if such director was appointed as a director of the private company
    in order to serve as an external director following the public offering.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Companies Law defines
the term &#8220;office holder&#8221; of a company to include a general manager, chief business manager, deputy general manager, vice
general manager, any other person assuming the responsibilities of any of these positions regardless of such person&#8217;s title, a
director and any other manager directly subordinate to the general manager.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following additional
qualifications apply to an external director:</p><div>

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

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">a person may not be elected as an external director if he or she is
    a relative of a controlling shareholder;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">if a company does not have a controlling shareholder or a holder of
    25% or more of the voting power, then a person may not be elected as an external director if he or she (or his or her relative, partner,
    employer or any entity under his or her control) has, as of the date of the person&#8217;s election to serve as an external director,
    any affiliation with the then chairman of the board of directors, Chief Executive Officer, a holder of 5% or more of the issued share
    capital or voting power, or the most senior financial officer of the company;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">a person may not serve as an external director if he or she (or his
    or her relative, partner, employer, a person to whom he or she is subordinated or any entity under his or her control) has business
    or professional relations with anyone with whom affiliation is prohibited as described above, and even if these relations are not
    on a regular basis (other than immaterial relations); and</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">a person may not continue to serve as an external director if he or
    she accepts, during his or her tenure as an external director, direct or indirect compensation from the company for his or her role
    as a director, other than the amounts prescribed under the Regulations, indemnification, the company&#8217;s undertaking to indemnify
    such person and insurance coverage.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Furthermore, no person may
serve as an external director if that person&#8217;s professional or other activities create, or may create, a conflict of interest with
that person&#8217;s responsibilities as a director or otherwise interfere with that person&#8217;s ability to serve as an external director
or if such person is an employee of the Israel Securities Authority or of an Israeli stock exchange. Following the termination of an
external director&#8217;s membership on the board of directors, such former external director and his or her spouse and children may
not be provided a direct or indirect benefit by the company, its controlling shareholder or any entity under its controlling shareholder&#8217;s
control, including serving as an executive officer or director of the company or a company controlled by its controlling shareholder
and cannot be employed by or provide professional services to the company for pay, either directly or indirectly, including through a
corporation controlled by that former external director, for a period of two years (the prohibition also applies to relatives of the
former external director who are not his or her spouse or children, but only for a period of one year).</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If at the time an external
director is appointed, all members of the board of directors who are not controlling shareholders or their relatives are of the same
gender, the external director must be of the other gender. A director of one company may not be appointed as an external director of
another company if a director of the other company is acting as an external director of the first company at such time.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p><div>

</div><!-- Field: Page; Sequence: 58; Value: 43 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->54<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, under the Companies
Law, our board of directors must determine the minimum number of directors who are required to have financial and accounting expertise
and a person may be appointed as an external director only if he or she either has professional qualifications or has accounting and
financial expertise, provided, at least one of the external directors must be determined by our board of directors to have accounting
and financial expertise. A director with financial and accounting expertise is a director who, by reason of his or her education, professional
experience and skill, has a high level of proficiency in and understanding of business accounting matters and financial statements. He
or she must be able to thoroughly comprehend the financial statements of the company and initiate debate regarding the manner in which
financial information is presented. In determining the number of directors required to have such expertise, the board of directors must
consider, among other things, the type and size of the company and the scope and complexity of its operations.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A director with accounting
and financial expertise is a director who, due to his or her education, experience and skills, possesses a high degree of proficiency
in, and an understanding of, business-accounting matters and financial statements, such that he or she is able to understand the financial
statements of the company, in depth, and initiate a discussion about the manner of presentation of the financial data. A director is
deemed to have professional qualifications if he or she has any of (i) an academic degree in economics, business management, accounting,
law or public administration, (ii) an academic degree or has completed another form of higher education in the primary field of business
of the company or in a field which is relevant to his/her position in the company, or (iii) at least five years of experience serving
in one of the following capacities, or at least five years of cumulative experience serving in two or more of the following capacities:
(a) a senior business management position in a company with a significant volume of business; (b) a senior position in the company&#8217;s
primary field of business; or (c) a senior position in public administration or service. Our board of directors is charged with determining
whether a director possesses financial and accounting expertise or professional qualifications.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our board of directors has
determined that the minimum number of directors with financial and accounting expertise is one and that Ms. Orly Solomon (an external
director) qualifies as such. In addition, our Board has determined that Ms. Orly Solomon qualifies as an audit committee financial expert
pursuant to the applicable SEC rules.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Audit Committee</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our Audit Committee is comprised
of the following members: Ms. Solomon (external director), Mr. Lapidot (external director) and Mr. Maman. Ms. Solomon is the Chairwoman
of the Audit Committee.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to the Companies
Law, the audit committee must be comprised of at least three directors, including all of the external directors, and a majority of its
members must be unaffiliated directors. An unaffiliated director is an external director or a director who is appointed or classified
as such, and who meets the qualifications of an external director (other than the professional qualifications/accounting and financial
expertise requirement), whom the audit committee has confirmed to meet the external director qualifications, and who has not served as
a director of the company for more than nine consecutive years (with any period of up to two years during which such person does not
serve as a director not being viewed as interrupting a nine-year period).</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Such person must meet the
non-affiliation requirements as to relationships with the controlling shareholder (and any entity controlled by the controlling shareholder,
other than the company and other entities controlled by the company) and must meet the nine-year requirement described above. Following
the nine-year period, a director of an Israeli company traded on such foreign stock exchange may continue to be considered an unaffiliated
director for unlimited additional periods of three years each, provided the audit committee and the board of directors of the company
confirm that, in light of the director&#8217;s expertise and special contribution to the work of the board of directors and its committees,
the re-election for such additional period is beneficial to the company.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Companies Law,
the audit committee may not include the chairman of the board, any director employed by the company or who regularly provides services
to the company (other than as a board member), a controlling shareholder or any relative of the controlling shareholder, as each term
is defined in the Companies Law. In addition, the audit committee may not include any director employed by the company&#8217;s controlling
shareholder or by a company controlled by such controlling shareholder, or who provides services to the company&#8217;s controlling shareholder,
or a company controlled by such controlling shareholder, on a regular basis, or a director whose main livelihood is from the controlling
shareholder. The chairman of the audit committee is required to be an external director.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 59; Value: 43 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->55<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Audit Committee Role</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our board of directors adopted
an audit committee charter that sets forth the responsibilities of the audit committee consistent with the rules of the U.S. Securities
and Exchange Commission as well as the requirements for such committee under the Companies Law, including the following:</p><div>

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

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">oversight of our independent registered public accounting firm and
    recommending the engagement, compensation or termination of engagement of our independent registered public accounting firm to the
    board of directors in accordance with Israeli law;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">recommending the engagement or termination of the person filling the
    office of our internal auditor; and</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">recommending the terms of audit and non-audit services provided by
    the independent registered public accounting firm for pre-approval by our board of directors.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our audit committee provides
assistance to our board of directors in fulfilling its legal and fiduciary obligations in matters involving our accounting, auditing,
financial reporting, internal control and legal compliance functions by pre-approving the services performed by our independent auditors
and reviewing their reports regarding our accounting practices and systems of internal control over financial reporting. Our audit committee
also oversees the audit efforts of our independent auditors and takes those actions that it deems necessary to satisfy itself that the
auditors are independent of management.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Companies Law,
our audit committee is responsible for:</p><div>

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

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">determining whether there are deficiencies in the business management
    practices of our company, including in consultation with our internal auditor or the independent auditor, and making recommendations
    to the board of directors to improve such practices;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">determining whether a competitive process must be implemented for the
    approval of certain transactions with controlling shareholders or its relative or in which a controlling shareholder has a personal
    interest (whether or not the transaction is an extraordinary transaction), under the supervision of the audit committee or other
    party determined by the audit committee and in accordance with standards to be determined by the audit committee, or whether a different
    process determined by the audit committee should be implemented for the approval of such transactions (see &#8220;&#8212;Fiduciary
    duties and Approval of Related Party Transactions under Israeli law&#8221;);</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">determining the process for the approval of certain transactions with
    controlling shareholders or in which a controlling shareholder has a personal interest that the audit committee has determined are
    not extraordinary transactions but are not immaterial transactions;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">where the board of directors approves the working plan of the internal
    auditor, examining such working plan before its submission to the board of directors and proposing amendments thereto;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">examining our internal controls and internal auditor&#8217;s performance,
    including whether the internal auditor has sufficient resources and tools to dispose of its responsibilities;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">examining the scope of our auditor&#8217;s work and compensation and
    submitting a recommendation with respect thereto to our board of directors or shareholders, depending on which of them is considering
    the appointment of our auditor; and</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">establishing procedures for the handling of employees&#8217; complaints
    as to deficiencies in the management of our business and the protection to be provided to such employees.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 60; Value: 43 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->56<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Companies Law a
quorum of the audit committee for discussion and approval requires the presence of a majority of the committee&#8217;s members are present,
which majority consists of unaffiliated directors including at least one external director.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Compensation Committee</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our Compensation Committee
currently consists of Ms. Solomon (external director), Mr. Lapidot (external director) and Mr. Ofer Greenberger.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Ms. Solomon is the chairwoman
of the compensation committee. Our board of directors adopted an audit committee charter that sets forth the responsibilities of the
audit committee.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Companies Law,
the compensation committee is required to be comprised of at least three directors, including all of the external directors. The additional
members of the Compensation Committee must be directors that receive compensation subject to the provisions and limitations set forth
in the Regulations. Under the Companies Law, an external director must serve as the chairman of the Compensation Committee and the external
directors shall constitute a majority of our compensation committee.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our compensation committee&#8217;s
duties include, among other things:</p><div>

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

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.5in; text-align: justify">&#160;</td>
    <td style="width: 0.25in; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">recommending to the board of directors for its approval (i) a compensation
    policy; (ii) whether a compensation policy should continue in effect, if the then-current policy has a term of greater than three
    years (approval of either a new compensation policy or the continuation of an existing compensation policy must in any case occur
    every three years); and (iii) periodic updates to the compensation policy. See &#8220;&#8212;Compensation Policy under the Companies
    Law.&#8221; In addition, the compensation committee is required to periodically examine the implementation of the compensation policy;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.5in; text-align: justify">&#160;</td>
    <td style="width: 0.25in; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">the approval of the terms of employment and service of office holders
    (including determining whether the compensation terms of a candidate for chief executive officer of the company need not be brought
    to approval of the shareholders); and</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.5in; text-align: justify">&#160;</td>
    <td style="width: 0.25in; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">reviewing and approving grants of options and other incentive
    awards to persons other than office holders to the extent such authority is delegated by our board of directors, subject to the limitations
    on such delegation as provided in the Israeli Companies Law.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i><span style="text-decoration:underline">Compensation Policy under the Companies
Law</span></i></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In general, under the Companies
Law, a public company must have a compensation policy that applies to its office holders approved by the board of directors after receiving
and considering the recommendations of the compensation committee. In addition, the compensation policy, which must be approved at least
once every three years, or five years after a company&#8217;s initial public offering, requires the approval of the general meeting of
the shareholders. In public companies such as our company, shareholder approval by a majority vote of the ordinary shares present and
voting at a meeting of shareholders called for such purpose is required, provided that either: (i)&#160;such majority includes the majority
of the votes of those shareholders who are non-controlling shareholders and shareholders who do not have a personal interest in the approval
of the compensation policy, who voted at the meeting (excluding abstentions) or (ii)&#160;the total number of votes against the proposal
among the shareholders mentioned in clause (i)&#160;does exceed 2% of the 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 arguments and after discussing again the compensation policy,
that approval of the compensation policy, despite the objection of the meeting of shareholders, is in the best interests of the company.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p><div>

</div><!-- Field: Page; Sequence: 61; Value: 43 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->57<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our current compensation
policy was approved by our shareholders at our annual general meeting held on December 19, 2022.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The compensation policy serves
as the basis for decisions concerning the financial terms of employment or engagement of executive officers and directors, including
exculpation, insurance, indemnification or any monetary payment or obligation of payment in respect of employment or engagement. The
compensation policy relates to certain factors, including advancement of the company&#8217;s objectives, the company&#8217;s business
and its long-term strategy, and creation of appropriate incentives for executives. It also considers, among other things, the Company&#8217;s
risk management, size and the nature of its operations. The compensation policy furthermore considers the following additional factors:&#160;</p><div>

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

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">the knowledge, skills, expertise and accomplishments of the relevant
    director or executive;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">the director&#8217;s or executive&#8217;s roles and responsibilities
    and prior compensation agreements with him or her;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">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, in particular the ratio between such cost, the average and median salary of the employees of the company,
    as well as the impact of such disparities on the work relationships in the company;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">if the terms of employment include variable components &#8212; the
    possibility of reducing variable compensation at the discretion of the board of directors, and the possibility of setting a limit
    on the exercise value of non-cash variable compensation; and</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">if the terms of employment include severance compensation &#8212; the
    term of employment or office of the office holder, the terms of his or her compensation during such service period, the Company&#8217;s
    performance during that period of service, the person&#8217;s contribution towards the Company&#8217;s achievement of its goals and
    the maximization of its profits, and the circumstances under which the person is leaving the company.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, in according
with the Companies Law, our Compensation Policy includes the following principles:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 25.15pt"></p><div>

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

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">the link between variable compensation (e.g., bonuses) and long-term
    performance and measurable criteria (i.e., variable compensation must be determined based on long-term performance and measurable
    criteria). Only &#8220;non-material&#8221; portion of variable compensation may be determined based on criteria that is not measurable,
    taking into account office holders&#8217; contribution to the company;; </span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">the ratio of variable to fixed compensation, and the ceiling for the
    value of variable compensation, which is determined at the time of payment, except that the ceiling for equity-based compensation
    is determined at the time of grant;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">the conditions under which a director or executive would be required
    to repay compensation paid to him or her if it was later shown that the data upon which such compensation was based was inaccurate
    and was required to be restated in the company&#8217;s financial statements;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px">&#160;</td>
    <td style="width: 24px"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">the minimum holding or vesting period for variable, equity-based compensation
    while referring to appropriate a long-term perspective based incentives; and</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">maximum limits for severance compensation.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 62; Value: 43 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->58<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i><span style="text-decoration:underline">Compensation of Directors</span></i></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Companies Law, the compensation of our directors requires
the approval of our Compensation Committee, the subsequent approval of the board of directors and, unless exempted under the Regulations,
the approval of the shareholders at a general meeting. Where the director is also a controlling shareholder, the requirements for approval
of transactions with controlling shareholders apply, as described below under &#8220;&#8212;Fiduciary duties and approval of specified
related party transactions under Israeli law&#8212;Disclosure of Personal Interests of a Controlling Shareholder and Approval of Acts
and Transactions.&#8221;</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The directors are also entitled
to be paid reasonable travel, hotel and other expenses expended by them in attending board meetings and performing their functions as
directors of the Company, all of which is to be determined by the board of directors.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">External directors are entitled
to remuneration subject to the provisions and limitations set forth in the Regulations.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Internal Auditor</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Companies Law,
the board of directors of an Israeli public company must appoint an internal auditor recommended by the audit committee. The role of
the internal auditor is, among other things, to examine our compliance with applicable law and orderly business procedures.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Companies Law,
the internal auditor cannot be an interested party or an office holder or a relative of an interested party or an office holder, nor
may the internal auditor be the company&#8217;s independent auditor or its representative. An &#8220;interested party&#8221; is defined
in the Companies Law as: (i) a holder of 5% or more of the issued share capital or voting power in a company, (ii) any person or entity
who has the right to designate one or more directors or to designate the chief executive officer of the company, or (iii) any person
who serves as a director or as a chief executive officer of the company. As of the date of this annual report on Form 20-F, the board
of directors has not appointed an internal auditor, and the Company is therefore not currently in compliance with the requirements of
the Companies Law. Due to such non-compliance with the Companies Law, the Company may be subject to third parties&#8217; and/or shareholders&#8217;
claims under the Israeli Torts Ordinance New Version) 5728-1968.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Fiduciary duties and Approval of Related Party
Transactions under Israeli law</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Fiduciary duties of office holders</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Companies Law imposes
a duty of care and a duty of loyalty on all office holders of a company. Each person listed in the table under &#8220;Directors and Senior
Management&#8221; is an office holder under the Companies Law. The duty of care requires an office holder to act with the level of care
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, in light of the circumstances, to (i) obtain information on the advisability of a given action brought
for his or her approval or performed by virtue of his or her position and (ii) all other important information pertaining to these actions.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The duty of care includes
a duty to use reasonable means to obtain:</p><div>

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

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">information on the appropriateness of a given action submitted for
    his or her approval or performed by virtue of his or her position; and</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">all other important information pertaining to such action.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The duty of loyalty requires
an office holder to act in good faith and in the best interests of the company, and includes, among other things, the duty to:</p><div>

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

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">refrain from any conflict of interest between the performance of his
    or her duties in the company and his or her other duties or personal affairs;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 63; Value: 43 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->59<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">refrain from any activity that is competitive with the business of
    the company;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">refrain from exploiting any business opportunity of the company for
    the purpose of gaining a personal advantage for himself or herself or others; and</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">disclose to the company any information or documents relating to the
    company&#8217;s affairs which the office holder received as a result of his or her position as an office holder.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We may approve an act performed
in breach of the duty of loyalty of an office holder provided that the office holder acted in good faith, the act or its approval does
not harm the company, and the office holder discloses his or her personal interest a sufficient amount of time before the date for discussion
of approval of such act.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Disclosure of Personal Interests of an
Office Holder and Approval Certain Transactions</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Companies Law requires
that an office holder promptly disclose to the company any &#8220;personal interest&#8221; that he or she may have and all related material
information or documents relating to any existing or proposed transaction by the company. An interested office holder&#8217;s disclosure
must be made promptly and in any event no later than the first meeting of the board of directors at which the transaction is considered.
A personal interest includes an interest of any person in an act or transaction of a company, including a personal interest of one&#8217;s
relative or of a corporate body in which such person or a relative of such person is a 5% or greater shareholder, director or general
manager or in which he or she has the right to appoint at least one director or the general manager, but excluding a personal interest
stemming solely from one&#8217;s ownership of shares in the company. A personal interest includes the personal interest of a person for
whom the office holder holds a voting proxy or the personal interest of the office holder with respect to his or her vote on behalf of
a person for whom he or she holds a proxy, discretionary or otherwise, even if such shareholder has no personal interest in the matter.
An office holder is not, however, obliged to disclose a personal interest if it derives solely from the personal interest of his or her
relative in a transaction that is not considered an extraordinary transaction.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Companies Law,
extraordinary transactions that require approval are defined as any of the following: a transaction other than in the ordinary course
of business; a transaction that is not on market terms; or a transaction that may have a material impact on a company&#8217;s profitability,
assets or liabilities.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 25.15pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Generally, a person who
has a personal interest in a matter which is considered at a meeting of the board of directors or the audit committee shall not be present
at such a meeting or vote on that matter unless, with respect to an office holder, the chairman of the audit committee or board of directors
(as applicable) determines that the office holder should be present during the discussions in order to present the transaction that is
subject to approval (provided that the office holder may not vote on the matter). If a majority of the members of the audit committee
or the board of directors (as applicable) has a personal interest in the approval of a transaction, then all directors may participate
in discussions of the audit committee or the board of directors (as applicable) on such transaction and the voting on approval thereof.
If a majority of the members of the board of directors has a personal interest in the approval of a transaction, shareholder approval
is also required for such transaction.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 25.15pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The amendment of an existing related-party transaction requires only
the approval of the audit committee, provided the committee determines that the amendment is not material in relation to the existing
arrangement.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Approval of Transactions with Officer Holders</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 25.15pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If it is determined that
an office holder has a personal interest in a transaction that is not an extraordinary transaction, approval by the board of directors
is required for the transaction, unless the company&#8217;s articles of association provide for a different method of approval. Further,
so long as an office holder has disclosed his or her personal interest in a transaction, the board of directors may approve an act by
the office holder that would otherwise be deemed a breach of his or her duty of loyalty, provided that the transaction is in the company&#8217;s
best interest and the office holder acted in good faith. An extraordinary transaction in which an office holder has a personal interest
requires approval first by the company&#8217;s audit committee and subsequently by the board of directors.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 25.15pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 25.15pt"></p><div>

</div><!-- Field: Page; Sequence: 64; Value: 43 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->60<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 25.15pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><i>Compensation of Officers Other than the Chief Executive Officer</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to the Companies Law, compensation arrangements such as insurance,
indemnification or exculpation arrangements with office holders (other than the chief executive officer) or directors require approval
first by the compensation committee, then by the board of directors, according to the company&#8217;s compensation policy.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In special circumstances, the compensation committee and the board
of directors may approve compensation arrangements inconsistent with the company&#8217;s compensation policy, subject to the approval
of a majority vote of the shares present and voting at a shareholders meeting, provided that provided that they have considered the same
considerations and matters required for the approval of a compensation policy in accordance with the Israeli Companies Law and such arrangement
must be approved by a majority vote of the shares present and voting at a shareholders meeting on the matter, provided that either: (a)
such majority includes at least a majority of the shares held by all shareholders who are not controlling shareholders and shareholders
who do not have a personal interest in such compensation arrangement; or (b) the total number of shares of non-controlling shareholders
and shareholders who do not have a personal interest in the compensation arrangement and who vote against the arrangement does not exceed
two percent of the company&#8217;s aggregate voting rights (&#8220;Special Majority Vote for Compensation&#8221;). However, if the shareholders
of the company do not approve a compensation arrangement with an executive officer that is inconsistent with the company&#8217;s compensation
policy by the Special Majority Vote for Compensation, the compensation committee and board of directors may, in special circumstances,
override the shareholders&#8217; decision if each of the compensation committee and the board of directors discuss the arrangement again,
analyze the shareholders&#8217; objection and provide detailed reasons for their decision.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 25.15pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">An amendment to an existing
arrangement with an office holder (other than the chief executive officer) who is not a director requires only the approval of the compensation
committee, if the compensation committee determines that the amendment is not material in comparison to the existing arrangement. However,
according to Regulations, an amendment to an existing arrangement with an office holder (who is not a director) who is subordinate to
the chief executive officer shall not require the approval of the compensation committee, if (i) the amendment is approved by the chief
executive officer and the company&#8217;s compensation policy determines that a non-material amendment to the terms of service of an
office holder (other than the chief executive officer) may be approved by the chief executive officer and (ii) the engagement terms are
consistent with the company&#8217;s compensation policy.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 25.15pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><i>Compensation of Chief Executive Officer</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to the Companies
Law, compensation of a public company&#8217;s chief executive officer generally requires the approval of first, the company&#8217;s compensation
committee, second, the company&#8217;s board of directors and third (except for a number of exceptions), the company&#8217;s shareholders
by the Special Majority for Compensation. Compensation arrangements with the Chief Executive Officer must comply with the company&#8217;s
compensation policy. However, if the shareholders of the company do not approve a compensation arrangement with a chief executive officer
by the Special Majority Vote for Compensation, the compensation committee and the board of directors may in special circumstances, override
the shareholders&#8217; decision if each of the compensation committee and the board of directors discuss the arrangement again, analyze
the shareholders&#8217; objection and provide detailed reasons for their decision. Notwithstanding the above, the compensation committee
is authorized to refrain from submitting a proposed compensation arrangement with a Chief Executive Officer candidate for shareholder
approval, if (a) doing so would jeopardize the company&#8217;s engagement of the candidate and (b) the proposed arrangement complies
with the company&#8217;s compensation policy.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 25.15pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">According to regulations
promulgated under the Companies Law, the renewal or extension of an existing arrangement with a chief executive officer shall not require
shareholder approval if (i) the renewal or extension is not beneficial to the chief executive officer as compared to the prior arrangement
or there is no substantial change in the terms and other relevant circumstances; and (ii) the engagement terms are consistent with the
company&#8217;s compensation policy and the prior arrangement was approved by the shareholders by the Special Approval for Compensation.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 25.15pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 25.15pt"></p><div>

</div><!-- Field: Page; Sequence: 65; Value: 43 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->61<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 25.15pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><i>Compensation of Directors</i></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Arrangements regarding
the compensation of a director require the approval of the compensation committee, board of directors and (except for a number of exceptions)
shareholders by ordinary majority, in that order. The approval of the compensation committee and board of directors must be in accordance
with the compensation policy. In special circumstances, the compensation committee and board of directors may approve a compensation
arrangement that is inconsistent with the company&#8217;s compensation policy, provided that they have considered the same considerations
and matters required for the approval of a compensation policy in accordance with the Israeli Companies Law and that shareholder approval
was obtained by the Special Approval for Compensation.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 25.15pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">With respect to compensation
of an officer (including chief executive officer) or director who is also a controlling shareholder, see &#8220;&#8212; Disclosure of
Personal Interests of Controlling Shareholders and Approval of Certain Transactions.&#8221;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 25.15pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Disclosure of Personal Interests of a Controlling
Shareholder and Approval of Certain Transactions</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to the Companies Law, the disclosure requirements regarding
personal interests that apply to directors and executive officers also apply to a controlling shareholder of a public company. A controlling
shareholder is a shareholder who has the ability to direct the activities of a company, and in the context of a transaction involving
a shareholder of the company, includes also a shareholder who holds 25% or more of the voting rights in the company if no other shareholder
holds more than 50% of the voting rights. For this purpose, the holdings of all shareholders who have a personal interest in the same
transaction will be aggregated. Extraordinary transactions with a controlling shareholder or in which a controlling shareholder has a
personal interest, including a private placement in which a controlling shareholder has a personal interest, and the terms of engagement
with a controlling shareholder or a relative thereof, directly or indirectly (including through a corporation controlled by a controlling
shareholder), for the provision of services to the company and his or her terms of employment or service as an office holder or employment
as other than an office holder, require the approval of each of (i) the audit committee or the compensation committee with respect to
the terms of service or employment by the company as an office holder, an employee or service provider; (ii) the board of directors; and
(iii)&#160;the shareholders, in that order. The shareholder approval requires one of the following:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 25.15pt">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">at least a majority of the voting rights in the company held by shareholders
    who have no personal interest in the transaction and who are present and voting at the general meeting, must be voted in favor of
    approving the transaction (for this purpose, abstentions are disregarded); or</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">the voting rights held by shareholders who have no personal interest
    in the transaction and who are present and voting at the general meeting, and who vote against the transaction, do not exceed 2%
    of the voting rights in the company.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Each shareholder voting
on the approval of an extraordinary transaction with a controlling shareholder must inform the company prior to voting whether or not
he or she has a personal interest in the approval of the transaction, otherwise, the shareholder is not eligible to vote on the proposal
and his or her vote will not be counted for purposes of the proposal.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 25.15pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">To the extent that any such
transaction with a controlling shareholder or his relative is for a period extending beyond three years, shareholder approval is required
once every three years, unless, in respect to certain transactions, the audit committee determines that the duration of the transaction
is reasonable under the circumstances.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The compensation committee and board approval for arrangements regarding
the terms of service or employment of a controlling shareholder must be in accordance with the company&#8217;s compensation policy. In
special circumstances the compensation committee and board of directors may approve a compensation arrangement that is inconsistent with
the company&#8217;s compensation policy, provided that they have considered the same considerations and matters required for the approval
of a compensation policy in accordance with the Israeli Companies Law and that shareholder approval was obtained by the Special Majority
Vote for Compensation.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 25.15pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 25.15pt"></p><div>

</div><!-- Field: Page; Sequence: 66; Value: 43 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->62<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 25.15pt"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to regulations
promulgated under the Israeli Companies Law, certain transactions with a controlling shareholder or his or her relative, or with directors,
relating to terms of service or employment that would otherwise require approval of a company&#8217;s shareholders may be exempt from
shareholder approval upon certain determinations of the audit committee and board of directors. In addition, disclosure of a personal
interest in a private placement of a public company (including disclosure of any material fact or document) is required by (i) a shareholder
holding 5% or more of the company&#8217;s issued and outstanding capital or its voting rights whose holdings will increase as result
of the private placement and a shareholder who will hold 5% or more of the company&#8217;s issued and outstanding capital or its voting
rights as a result of the private placement, if 20% or more of the company&#8217;s outstanding share capital prior to the private placement
is issued in the private placement and the payment for which is not only in cash or listed securities or the transaction is not on market
terms; and (ii) a person or entity that will become a controlling shareholder as a result of the private placement.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 25.15pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Duties of Shareholders</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Companies Law,
a shareholder has a duty to to act in good faith and in a customary manner toward the company and other shareholders and to refrain from
abusing its power in the company, including, among other things, voting at general meetings of shareholders on the following matters:</p><div>

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

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">an amendment to the company&#8217;s articles of association;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">an increase in the company&#8217;s authorized share capital;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">a merger; and</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">the approval of related party transactions and acts of office holders
    that require shareholder approval.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A shareholder also has a
general duty to refrain from discriminating against other shareholders.&#160;</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, certain shareholders
have a duty of fairness toward the company, including any shareholder that knows that its vote can determine the outcome of a shareholder
vote and any shareholder that, under a company&#8217;s articles of association, has the power to appoint or prevent the appointment of
an office holder, or has another power with respect to a company. The Companies Law does not define the substance of the duty of fairness,
except to state that the remedies generally available upon a breach of contract will also apply in the event of a breach of the duty
to act with fairness.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Exculpation, Insurance and Indemnification
of Office Holders</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Companies Law,
a company may not exculpate an office holder from liability for a breach of the duty of loyalty. A company may exculpate an office holder
in advance from liability to the company, in whole or in part, for damages caused to the company as a result of a breach of the duty
of care but only if a provision authorizing such exculpation is included in its articles of association. Our amended and restated articles
of association include such a provision. An Israeli company may not exculpate a director from liability arising out of a breach of the
duty of care with respect to a dividend or distribution to shareholders.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Companies Law and
the Securities Law, 5738&#8212;1968 (the &#8220;Securities Law&#8221;), a company may indemnify an office holder in respect of the following
liabilities, payments and expenses incurred for acts performed as an office holder, either pursuant to an undertaking made in advance
of an event or following an event, provided a provision authorizing such indemnification is contained in its articles of association:</p><div>

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

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">a financial liability incurred by or imposed on him or her in favor
    of another person pursuant to a judgment, including a settlement or arbitrator&#8217;s award approved by a court. However, if an
    undertaking to indemnify an office holder with respect to such liability is provided in advance, then such undertaking must be limited
    to certain events which, in the opinion of the board of directors, can be foreseen based on the company&#8217;s activities when the
    undertaking to indemnify is given, and to an amount or according to criteria determined by the board of directors as reasonable under
    the circumstances, and such undertaking shall detail the foreseen events and described above amount or criteria;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 67; Value: 43 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->63<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">reasonable litigation expenses, including reasonable attorneys&#8217;
    fees, incurred by the office holder (1) as a result of an investigation or proceeding instituted against him or her by an authority
    authorized to conduct such investigation or proceeding, provided that (i) no indictment was filed against such office holder as a
    result of such investigation or proceeding; and (ii) no financial liability was imposed upon him or her as a substitute for the criminal
    proceeding as a result of such investigation or proceeding or, if such financial liability was imposed, it was imposed with respect
    to an offense that does not require proof of criminal intent; and (2) in connection with a monetary sanction;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">expenses, including reasonable litigation expenses and legal fees,
    incurred by an office holder in relation to an administrative proceeding instituted against such office holder, or certain compensation
    payments made to an injured party imposed on an office holder in connection with an administrative procedure under the Securities
    Law; and</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">reasonable litigation expenses, including attorneys&#8217; fees, incurred
    by the office holder or imposed by a court in proceedings instituted against him or her by the company, on its behalf or by a third
    party or in connection with criminal proceedings in which the office holder was acquitted or as a result of a conviction for an offense
    that does not require proof of criminal intent.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Companies Law and
the Securities Law, a company may insure an office holder against the following liabilities incurred for acts performed by him or her
as an office holder if and to the extent provided in the company&#8217;s articles of association:</p><div>

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

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">a breach of duty of care to the company or to a third party, to the
    extent such a breach arises out of the negligent conduct of the office holder;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">a breach of duty of loyalty to the company, provided that the office
    holder acted in good faith and had a reasonable basis to believe that the act would not harm the company;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">a financial liability imposed on the office holder in favor of a third
    party;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">expenses, including reasonable litigation expenses and legal fees,
    incurred by an office holder in relation to an administrative proceeding instituted against such office holder or certain compensation
    payments to an injured party imposed on an office holder by an administrative proceeding, pursuant to certain provisions of the Securities
    Law.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Companies Law,
a company may not indemnify, exculpate or insure an office holder against any of the following:</p><div>

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

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">a breach of duty of loyalty, except for indemnification and insurance
    for a breach of the duty of loyalty to the company to the extent that the office holder acted in good faith and had a reasonable
    basis to believe that the act would not harm the company;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">a breach of the duty of care committed intentionally or recklessly,
    excluding a breach arising out of the negligent conduct of the office holder;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">an act or omission committed with intent to derive illegal personal
    benefit; or</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">a fine, monetary sanction or forfeit levied against the office holder.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Companies Law,
exculpation, indemnification and insurance of office holders must be approved by the compensation committee and the board of directors
and, with respect to certain office holders or under certain circumstances, also by the shareholders. See &#8220;&#8212; Fiduciary duties
and Approval of Related Party Transactions under Israeli law.&#8221; However, the insurance of office holders shall not require shareholder
approval and may be approved only by the compensation committee, if the engagement terms are determined in the company&#8217;s compensation
policy and that policy was approved by the shareholders by the Special Approval for Compensation, provided that the policy is on market
terms and is not likely to materially impact the company&#8217;s profitability, assets or obligations.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 25.15pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 25.15pt"></p><div>

</div><!-- Field: Page; Sequence: 68; Value: 43 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->64<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 25.15pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our amended and restated
articles of association permit us to exculpate, indemnify and insure our office holders as permitted under the Companies Law and the
Israeli Securities Law. Our office holders are currently covered by a directors and officers&#8217; liability insurance policy. As of
the date of this annual report on Form 20-F, no claims for directors&#8217; and officers&#8217; liability insurance have been filed under
this policy, we are not aware of any pending or threatened litigation or proceeding involving any of our directors or officers in which
indemnification is sought, nor are we aware of any pending or threatened litigation that may result in claims for indemnification by
any director or officer.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We&#160;have&#160;entered
into agreements with our directors and executive officers exculpating them from liability to us for damages caused to us as a result
of a breach of duty of care and undertaking to indemnify them, in each case, to the fullest extent permitted by&#160;law and&#160;our
Articles of Association,&#160;to the extent that these liabilities are not covered by insurance, all subject to limited exceptions.&#160;
Indemnification for any monetary liability incurred by or imposed on a director or officer in favor of a third party is limited to certain
events that were determined as foreseeable by our Board of Directors based on&#160;our operations, as set forth in the indemnification
agreements. Under such indemnification agreements, the maximum aggregate amount of indemnification that we may pay to all of our directors
and offices&#160;together based on&#160;such indemnification agreements is $5,000,000. However, in the opinion of the SEC, indemnification
of office holders for liabilities arising under the Securities Act is against public policy and therefore unenforceable.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>D. Employees</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of December 31, 2022,
we had 11 full time employees in PVN and one full time employee in Digiflex, all of whom were located in Israel. Israeli labor laws govern
the length of the workday, minimum wages for employees, procedures for hiring and dismissing employees, determination of severance pay,
annual leave, sick days, advance notice of termination of employment, equal opportunity and anti-discrimination laws and other conditions
of employment of our Israeli employees. Subject to certain exceptions, Israeli law generally requires severance pay upon the retirement,
death or dismissal of an employee, and requires us and our employees to make payments to the National Insurance Institute, which is similar
to the U.S. Social Security Administration. Our Israeli employees have pension plans in accordance with the applicable Israeli legal
requirements.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">While none of our employees
are party to any collective bargaining agreements, certain provisions of the collective bargaining agreements between the Histadrut (General
Federation of Labor in Israel) and the Coordination Bureau of Economic Organizations (including the Industrialists&#8217; Associations)
are applicable to our employees by extension orders issued by the Israeli Ministry of Industry, Trade and Labor. These provisions primarily
concern the length of the workday, minimum daily wages for professional workers, pension fund benefits for all employees, insurance for
work-related accidents, procedures for dismissing employees, determination of severance pay and other conditions of employment. We generally
provide our employees with benefits and working conditions beyond the required minimums.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>E. Share Ownership</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Share Ownership by Directors and Executive
Officers</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For&#160;information&#160;regarding
beneficial ownership of our ordinary shares by our directors and executive officers, see &#8220;Item 7 A. Major Shareholders and Related
Party Transactions &#8212; Major Shareholders&#8221;.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Share Option Plan</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For information on our share
option plan, see &#8220;Item 6 B. &#8212; Compensation &#8212; Incentive Compensation Plan&#8221;.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p><div>

</div><!-- Field: Page; Sequence: 69; Value: 43 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->65<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><div><a id="a_009"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>ITEM 7. Major Shareholders and Related Party
Transactions</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>A. Major Shareholders.</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following table sets
forth certain information regarding the beneficial ownership of our ordinary shares as of May 15, 2023, by:</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">each person (or group of affiliated persons) known by us to be the
    beneficial owner of more than 5% of the outstanding ordinary shares.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">each of our directors and executive officers; </span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">all of our directors and executive officers as a group. </span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The beneficial ownership
of our ordinary shares is determined in accordance with the rules of the SEC. Under these rules, a person is deemed to be a beneficial
owner of a security if that person has or shares voting power, which includes the power to vote or to direct the voting of the security,
or investment power, which includes the power to dispose of or to direct the&#160;disposition&#160;of the security. For purposes of the
table below, we deem ordinary shares issuable pursuant to options that are currently exercisable or exercisable within 60 days as of&#160;
May 15, 2023, if any, to be outstanding and to be beneficially owned by the person holding the options or warrants for the purposes of
computing the percentage ownership of that person, but we do not treat them as outstanding for the purpose of computing the percentage
ownership of any other person. The percentage of ordinary shares beneficially owned is based on 163,277,647 ordinary shares outstanding
as of&#160;May 15, 2023.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Except where otherwise indicated,
we believe, based on information furnished to us by such owners and based on public information, that the beneficial owners of the&#160;ordinary&#160;shares
listed below have sole investment and voting power with respect to such shares. In addition, none of our shareholders have different
voting rights from other shareholders.</p><div>

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

</div><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">No.&#160;of&#160;Shares<br/> Beneficially<br/>
    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="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Percentage<br/> Owned</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="font-weight: bold">Holders of more than 5% of our voting securities:</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 style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%; text-align: left">GTRIMG Investments Ltd.</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">69,129,160</td><td style="width: 1%; text-align: left"><sup>(1)</sup></td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">40.24</td><td style="width: 1%; text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Legov Ltd.</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">38,370,282</td><td style="text-align: left"><sup>(2)</sup></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">22.75</td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Teuza &#8211; A Fairchild Technology Venture Ltd.</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">29,838,107</td><td style="text-align: left"><sup>(3)</sup></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">17.84</td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Y.T.Y. Lenny Investments Ltd.</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">13,695,182</td><td style="text-align: left"><sup>(4)</sup></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">8.21</td><td style="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></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: left">Directors and executive officers who are not 5% holders:</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: rgb(204,238,255)">
    <td style="text-align: left">Dov Farkash, Chairman of the Board</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">939,164</td><td style="text-align: left"><sup>(5)</sup></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="font-size: 10pt">*</span></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Avi Magid, Chief Executive Officer and Director</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left"></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Fernando de la Vega, Chief Technology Officer and Director</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">5,801,534</td><td style="text-align: left"><sup>(6)</sup></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">3.46</td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Ofer Greenberger, Director</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">325,000</td><td style="text-align: left"><sup>(7)</sup></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="font-size: 10pt">*</span></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">Keinan Maman, Director</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Orly Solomon, External Director</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,408,746</td><td style="text-align: left"><sup>(8)</sup></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="font-size: 10pt">*</span></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">Ido Lapidot, External Director</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,408,746</td><td style="text-align: left"><sup>(9)</sup></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><span style="font-size: 10pt">*</span></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Evyatar Cohen, Chief Financial Officer</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1,878,327</td><td style="text-align: left"><sup>(10)</sup></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">1.14</td><td style="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></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: left">Directors and executive officers as a group (8 persons)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">11,761,517</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">7.08</td><td style="text-align: left">%</td></tr>
  </table><div>

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

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">*</span></td><td style="text-align: justify"><span style="font-size: 10pt">Represents
                                            less than 1.0% beneficially held.</span></td>
</tr></table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 31px; text-align: justify"><span style="font-size: 10pt">(1)</span></td>
    <td style="text-align: justify">Includes (i) 60,557,732 ordinary shares beneficially owned by GTRIMG
Investments Ltd., a company incorporated under the laws of the State of Israel (&#8220;GTRIMG&#8221;), which is wholly-owned by TRIMG
Communication International Ltd., a company incorporated under the laws of the State of Israel, (&#8220;GTRIMG Communication&#8221;),
which itself is wholly-owned by GTRIMG Ltd., a company incorporated under the laws of the British Virgin Islands (&#8220;GTRIMG Ltd.&#8221;
and together with GTRIMG and GTRIMG Communication, the &#8220;GTRIMG Entities&#8221;), which itself is wholly-owned by GTRIMG Foundation,
a foundation incorporated under the laws of the Principality of Liechtenstein, the beneficiaries of which are Messrs. Talia Zeevi, Rami
Zeevi, Yael Zeevi Shoer, Michal Zeevi Bender and Gur Zeevi, and (ii) 8,571,428 ordinary shares issuable upon exercise of outstanding warrants
held by GTRIMG currently exercisable or exercisable within 60 days as of May 15, 2023.</td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 70; Value: 43 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->66<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 31px; text-align: justify"><span style="font-size: 10pt">(2)</span></td>
    <td style="text-align: justify">Includes (i) an aggregate 29,798,854 ordinary shares held by Legov
Ltd, GlenRock Israel Ltd, Insight Capital Ltd (collectively, the &#8220;LR Entities&#8221;) and Leon Recanati, and (ii) 8,571,428 ordinary
shares issuable upon exercise of outstanding warrants held by Insight Capital Ltd. currently exercisable or exercisable within 60 days
as of May 15, 2023. Leon Recanati is the beneficial owner of the ordinary shares held by the LR Entities and underlying the warrants held
by Insight Capital Ltd.</td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 31px; text-align: justify"><span style="font-size: 10pt">(3)</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">Includes (i) 25,552,393 ordinary shares beneficially owned, and (ii)
    4,285,714 ordinary shares issuable upon exercise of outstanding warrants currently exercisable or exercisable within 60 days as of
    May 15, 2023.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 31px; text-align: justify"><span style="font-size: 10pt">(4)</span></td>
    <td style="text-align: justify">Includes (i) an aggregate 7,980,897 ordinary shares held by Y.T.Y.
Lenny Investments Ltd. and Sullam Holdings L.R Ltd., and (ii) 5,714,285 ordinary shares issuable upon exercise of outstanding warrants
held by Sullam Holdings L.R Ltd. currently exercisable or exercisable within 60 days as of May 15, 2023. Lenny Recanati is the beneficial
owner of the ordinary shares held by Y.T.Y. Lenny Investments Ltd. and Sullam Holdings L.R Ltd. and the ordinary shares underlying the
warrants held by Sullam Holdings L.R. Ltd.</td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 31px; text-align: justify"><span style="font-size: 10pt">(5)</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">Represents options to purchase 939,164 ordinary shares currently exercisable
    or exercisable within 60 days as of May 15, 2023.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 31px; text-align: justify"><span style="font-size: 10pt">(6)</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">Includes (i) 1,336,140 ordinary shares beneficially owned, and (ii)
    options to purchase 4,465,394 ordinary shares currently exercisable or exercisable within 60 days as of May 15, 2023.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 36px; text-align: justify"><span style="font-size: 10pt">(7)</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">Represents options to purchase 325,000 ordinary shares currently exercisable
    or exercisable within 60 days as of May 15, 2023.&#160;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 36px; text-align: justify"><span style="font-size: 10pt">(8)</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">Represents options to purchase 1,408,746 ordinary shares currently
    exercisable or exercisable within 60 days as of May 15, 2023.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 36px; text-align: justify"><span style="font-size: 10pt">(9)</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">Represents options to purchase 1,408,746 ordinary shares currently
    exercisable or exercisable within 60 days as of May 15, 2023.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 36px; text-align: justify"><span style="font-size: 10pt">(10)</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">Represents options to purchase 1,878,327 ordinary shares currently
    exercisable or exercisable within 60 days as of May 15, 2023.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Record Holders</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Based on the information
provided to us by our transfer agent, as of May 15,&#160;2023, 18 registered holders (holding approximately 3.63% of our ordinary shares)
were U.S. domiciled holders (including CEDE &amp; Co. as nominee for the Depository Trust Company, which held approximately 2.13% of
our outstanding ordinary shares as of said date).&#160;&#160;</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Significant Changes in Ownership of Major
Shareholders</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">To our knowledge, in 2022
(i) each of the following ceased to be the beneficial owner of more than 5% of our outstanding shares: Slobel NV, Terra Venture Partners
and Fineline PCB (Cyprus) Ltd.; and (ii) Y.T.Y. Lenny Investments Ltd. became a beneficial owner of more than 5% of our outstanding shares.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">To our knowledge, there were
no significant changes in the percentage of beneficial ownership held by our major shareholders during 2021.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">To our knowledge, each of
the following ceased to be the beneficial owner of more than 5% of our outstanding shares in 2020: Hypermarketing Inc.; Y.T.Y. Lenny
Investments Ltd.; Fernando de la Vega; Amnon Mandelbaum; Bio Rad Laboratories Inc.; Ariel Lijtenstein; and ProSeed - Venture Capital
Fund.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p><div>

</div><!-- Field: Page; Sequence: 71; Value: 43 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->67<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0pt"><b>B. Related Party Transactions
</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following is a description
of our related party transactions since January 1, 2022:</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>Employment and Services
Agreements</i>. Employment and services agreements entered into with our executive officers and our Active Chairman, as described above
under &#8220;Item 6 B. &#8212; Compensation &#8212; Employment or Service Agreements with Senior Managers.&#8221;</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>Indemnification and Exculpation
Agreements with Directors and Executive Officers.</i> Customary indemnification and exculpation agreements entered into with our directors
and executive officers, as described above under &#8220;Item 6 C. &#8212; Board Practices &#8212; Exculpation, Insurance and Indemnification
of Office Holders.&#8221;</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>Option Agreements with
Directors and Executive Officers</i>. Option Agreements entered into with our directors and executive officers, as described above under
&#8220;Item 6 E. &#8212; Share Ownership &#8212; Incentive Compensation Plan&#8221;.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>Consultancy Agreement
with Ram Zeevi. </i>On May 15, 2018, the Company entered into a consultancy agreement with RINC Green Ltd. (&#8220;RINC Green&#8221;),
as amended on April 30, 2019 (the &#8220;Ram Zeevi Consultancy Agreement&#8221;), pursuant to which Mr. Zeevi provides the Company with
services in the field of business development in accordance with pre-approved monthly work plans, which include introduction of potential
business partners and investors as well as assistance in negotiations of business and investment terms. Pursuant to the terms of the
Ram Zeevi Consultancy Agreement, RINC Green is currently entitled to a gross monthly fee in the amount of $5,000 (25 hours per month
at $200 per hour rate) plus VAT and to reimbursement of out-of-pocket expenses related directly to the provision of the consultancy services
subject to prior written approval of the chief executive officer, to reimbursement of travel international travel and board expenses
at the same standard as our chief executive officer and to an additional per-day fee equivalent to four hours per day abroad plus VAT.
Either the Company or RINC Green may terminate the agreement at any time for any reason by providing a 30-day prior written notice. RINC
Green ceased providing the above monthly service in January 2019. Ram Zeevi is the son of Gad Zeevi, who is the controlling shareholder
of GTRIMG, our controlling shareholder.&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 82pt; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition to the foregoing,
RINC Green is entitled to receive (none of which were received so far):</p><div>

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

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt" width="100%"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in">&#9679;</td><td style="text-align: justify">A
                                            one-time payment in the amount of $25,000 (plus VAT) upon an equity investment exceeding
                                            $500,000 by an investor that was introduced to the Company by Mr. Zeevi;</td></tr></table><div>

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


</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px">&#160;</td>
    <td style="width: 24px; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$150,000 in cash (plus VAT) and options to purchase the Company&#8217;s ordinary shares upon an equity investment or execution of business contract resulting in at least&#160; $2,000,000 in proceeds (or revenues) by an entity introduced to the Company by Mr. Zeevi, whereby the number of options will be calculated by dividing $150,000 by the average ordinary share price during the period of 90 days prior to the date upon which the Investment is actually made with an exercise price per share of NIS 0.01; and</span></td></tr>
  </table><div>

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


</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px">&#160;</td>
    <td style="width: 24px; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">An equity based award to be granted upon of an Exit Event, in accordance with the following calculation:(i) 0.4% of the Company&#8217;s share capital on a fully diluted basis, if the Company&#8217;s pre-money valuation shall be equal to or higher than $30,000,000 but less than $50,000,000, or (ii) 1.0% of the Company&#8217;s share capital on a fully diluted basis, if the Company&#8217;s pre-money valuation shall be equal to or higher than $50,000,000. In the event that the Company terminates the Ram Zeevi Consultancy Agreement other than for Cause, and the Exit Event occurs within a period of six months of said termination, RINC Green will be entitled to the foregoing equity-based award. For the definition of Exit Event, see &#8220;Item 6 B &#8211; Compensation of Executive Officers and Directors as a Group &#8211; <i>Employment or Service Agreements with our Active Chairman, Chief Executive Officer, Chief Technology Officer and, Chief Financial Officer</i>.&#8221;</span></td></tr>
  </table><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On October 2, 2018, we granted
to RINC Green options to purchase up to 120,000 of our ordinary shares, at an exercise price per share of $0.27. The options vested over
a period of three years, with one third of the options vesting on September 30, 2019, and the remaining two thirds of the options vesting
on a quarterly basis over the remaining two years.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 72; Value: 43 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->68<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>Financing Agreements with
Existing Shareholders. </i>Agreements entered into with <span>certain existing shareholders in connection
with private placements of our securities, as described above under &#8220;</span>Item 5 B. &#8212; Operating and Financial Review and
Prospects &#8212; Liquidity and Capital Resources&#8221;.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span>For
additional information, see Note 13 to our consolidated financial statements</span> for the year ended December 31, 2022, <span>included
elsewhere </span>in this annual report on Form 20-F.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>C. Interests of Experts and Counsel.</b></p><div>

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

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

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

</div><div><a id="a_010"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>ITEM 8. Financial Information.</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>A. Consolidated Financial Statements and Other
Financial Information.</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">See &#8220;Item 18. Financial
Statements&#8221; for the consolidated financial statements filed as part of this annual report on Form 20-F.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Legal Proceedings</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0in; text-align: justify; text-indent: 0.5in">From time to time, we may
be involved in various claims and legal proceedings that arise through the normal course of business. As of the date of this filing, we
are not a party to any material legal proceedings nor are we aware of any such pending or threatened legal proceedings.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 25.15pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We are not aware of any
material legal proceedings in which any of our directors, officers or affiliates is either a party adverse to us or our subsidiaries or
has a material interest adverse to ours or our subsidiaries.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 25.15pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For information regarding
prior legal proceedings, see Note 9.b. to our consolidated financial statements that appear elsewhere in this annual report on Form 20-F.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Dividend Policy</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We have never declared or
paid any cash dividends on our ordinary shares and do not anticipate paying any cash dividends in the foreseeable future. Payment of cash
dividends, if any, in the future will be at the discretion of our board of directors and will depend on then-existing conditions, including
our financial condition, operating results, contractual restrictions, capital requirements, business prospects and other factors our board
of directors may deem relevant.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our ability to distribute
dividends also may be limited by Israeli law. The Companies Law restricts our ability to declare dividends. Unless otherwise approved
by a court, we can distribute dividends only from &#8220;profits&#8221; (as defined by the Companies Law), and only if there is no reasonable
concern that the dividend distribution will prevent us from meeting our existing and foreseeable obligations as they become due. Payment
of dividends may also be subject to Israeli withholding taxes. See &#8220;Item 10 &#8211; Additional Information - Memorandum and Articles
of Association&#8221;.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>B. Significant Changes.</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Except as disclosed elsewhere
in this annual report, there have been no other significant changes since December 31, 2022, until the date of the filing of this annual
report.</p><div>

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

</div><div><a id="a_011"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>ITEM 9. The Offer and Listing.</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>9.A Offer and Listing Details</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our ordinary shares were quoted
on the OTC Pink under the symbol &#8220;PVNNF.&#8221; However, due to lack of available resources, we were not able to comply with our
SEC periodic filing obligations for the years ended December 31, 2020 and 2021. Accordingly, as of September 29, 2021, the public quote
for our ordinary shares was removed from the OTC Pink. Depending on market and other conditions and the continued development of our products,
we will consider applying to have our ordinary shares quoted on the OTC Pink.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 73; Value: 43 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->69<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>9.B. Plan of distribution</b></p><div>

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

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

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>9.C. Market for ordinary shares</b></p><div>

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

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

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>9.D. Selling shareholders</b></p><div>

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

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

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>9.E. Dilution</b></p><div>

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

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

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>9.F. Expenses of the issue</b></p><div>

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

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

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

</div><div><a id="a_012"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>ITEM 10. Additional Information.</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>A. Share Capital.</b></p><div>

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

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

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>B. Memorandum and Articles of Association.</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A copy of our amended and restated articles of association is incorporated
by reference attached as Exhibit 1.1 to this annual report. As of December 31, 2022, our authorized share capital consists of 1,200,000,000
ordinary shares, par value NIS 0.01 per share, of which 147,134,792 were issued and outstanding. <span>Other
than as disclosed below, 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><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">All of our outstanding ordinary
shares are validly issued, fully paid and non-assessable. Our ordinary shares do not have any preemptive rights.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Registration Number and Purposes of the Company</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our registration number with
the Israeli Companies Registrar is 514287093. Our purpose is set forth in our Articles of Association and includes any lawful activity.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Voting Rights and Conversion</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">All ordinary shares will have
identical voting and other rights in all respects.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Holders of our ordinary shares
have one vote for each ordinary share held on all matters submitted to a vote before the shareholders at a general meeting.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 74; Value: 43 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->70<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Transfer of shares</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our fully paid ordinary shares
are issued in registered form and may be freely transferred under our amended and restated articles of association, unless the transfer
is restricted or prohibited by another instrument, applicable law or the rules of a stock exchange on which the shares are listed for
trade. The ownership or voting of our ordinary shares by non-residents of Israel is not restricted in any way by our amended and restated
articles of association or the laws of the State of Israel, except for ownership by nationals of some countries that are, or have been,
in a state of war with Israel.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Board of directors</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">See &#8220;Item 6 C. Directors,
Senior Management and Employees&#8212;Board Practices.&#8221;</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Dividend and Liquidation Rights</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We have never declared or
paid any cash dividends on our ordinary shares and do not anticipate paying any cash dividends in the foreseeable future.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We may declare a dividend
to be paid to the holders of our ordinary shares in proportion to their respective shareholdings. Under the Companies Law, dividend distributions
are determined by the board of directors and do not require the approval of the shareholders of a company unless the company&#8217;s articles
of association provide otherwise. Our Articles of Association do not require shareholder approval of a dividend distribution and provide
that dividend distributions may be determined by our board of directors.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to the Companies
Law, the distribution amount is limited to the greater of retained earnings or earnings generated over the two most recent fiscal years,
according to our then last reviewed or audited financial statements, provided that the end of the period to which the financial statements
relate is not more than six months prior to the date of the distribution. If we do not meet such criteria, then we may distribute dividends
only with court approval. In each case, we are only permitted to distribute a dividend if our board of directors and the court, if applicable,
determines that there is no reasonable concern that payment of the dividend will prevent us from satisfying our existing and foreseeable
obligations as they become due.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In the event of our liquidation,
after satisfaction of liabilities to creditors, our assets will be distributed to the holders of our ordinary shares in proportion to
their shareholdings. This right, as well as the right to receive dividends, may be affected by the grant of preferential dividend or distribution
rights to the holders of a class of shares with preferential rights that may be authorized in the future.&#160;</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>General Meetings of Shareholders and Shareholder
Proposals</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; text-indent: 0.5in; text-align: justify; margin: 0pt 0">Under Israeli law, we are required to hold an annual general meeting
of our shareholders once every calendar year that must be held no later than 15 months after the date of the previous annual general meeting.
All meetings other than the annual general meeting of shareholders are referred to in Articles of Association as special general meetings.
Our board of directors may call special general meetings whenever it sees fit, at such time and place, within or outside of Israel, as
it may determine. In addition, the Companies Law provides that our board of directors is required to convene a special general meeting
upon the written request of (i) any two or more of our directors or one-quarter or more of the members of our board of directors or (ii)
one or more shareholders holding, in the aggregate, either (a) 5% or more of our outstanding issued shares and 1% or more of our outstanding
voting power or (b) 5% or more of our outstanding voting power. Our Articles of Association contain procedural guidelines and disclosure
items with respect to the submission of shareholder proposals for shareholder meetings.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Subject to the provisions
of the Companies Law and the regulations promulgated thereunder, shareholders entitled to participate and vote at general meetings are
the shareholders of record on a date to be decided by the board of directors, which may generally be between four and 21 days prior to
the date of the meeting, and in certain circumstances, between four and 40 days prior to the date of the meeting. Furthermore, the Companies
Law requires that resolutions regarding the following matters must be passed at a general meeting of our shareholders:</p><div>

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

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">amendments to our articles of association;</span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">appointment or termination of our auditors;</span></td></tr>
</table><div>

</div><p style="margin: 0">&#160;</p><div>

</div><p style="margin: 0"></p><div>

</div><!-- Field: Page; Sequence: 75; Value: 43 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->71<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="margin: 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="text-align: justify; width: 48px">&#160;</td>
    <td style="text-align: justify; width: 24px"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">appointment of external directors;</span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">approval of certain related party transactions;</span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">increases or reductions of our authorized share capital;</span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">a merger; and</span></td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td style="text-align: justify">&#160;</td>
    <td style="text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">the exercise of our board of director&#8217;s powers by a general meeting, if our board of directors is unable to exercise its powers and the exercise of any of its powers is required for our proper management.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Companies Law requires
that a notice of any annual general meeting or special general meeting be provided to shareholders at least 21 days prior to the meeting
and if the agenda of the meeting includes the appointment or removal of directors, the approval of transactions with office holders or
interested or related parties, or an approval of a merger, notice must be provided at least 35 days prior to the meeting. Under the Companies
Law and our amended and restated articles of association, shareholders are not permitted to take action by way of written consent in lieu
of a meeting.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Quorum</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to our amended and
restated articles of association, holders of our ordinary shares have one vote for each ordinary share held on all matters submitted to
a vote before the shareholders at a general meeting. The quorum required for our general meetings of shareholders consists of at least
two shareholders (not in default in payment of any sum) present in person, by proxy or written ballot who hold or represent between or
among them at least 25% of the total our issued share capital. If within thirty minutes from the time appointed for the general meeting
the requisite quorum is not present, the meeting shall be dissolved, but shall stand adjourned&#160;to the same day in the next week at
the same time the following week and at the same place or to a later date, if so specified in advance in the notice of the general meeting.
All matters for which the general meeting was summoned shall be discussed at the adjourned meeting, and subject to a limited exception,
any number of shareholders present in person or by proxy shall constitute a lawful quorum.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Vote Requirements</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our Articles of Association
provide that all resolutions of our shareholders require a simple majority vote, unless otherwise required by the Companies Law or by
our amended and restated articles of association. For special majority requirements under the Companies Law see &#8220;Item 6 C. &#8212;
Board Practices&#8221;. Under our Articles of Association, the alteration of the rights, privileges, preferences or obligations of any
class of our shares requires a simple majority of the class so affected (or such other percentage of the relevant class that may be set
forth in the governing documents relevant to such class), in addition to the ordinary majority vote of all classes of shares voting together
as a single class at a shareholder meeting. Our Articles of Association also provide that a change to the provisions related to the committees
of our board of directors, the number of directors, the election or removal of any director from office, the proceedings of our board
of directors, mergers and business combinations, the winding up of the Company, and the amendment of our Articles of Association, require
the vote of at least 60% of our outstanding share capital having the right to vote, voting in person or by proxy at such general meeting.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Access to corporate records</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Companies Law, all
shareholders generally have the right to review minutes of our general meetings, our shareholder register, including with respect to material
shareholders, our articles of association, our financial statements, other documents as provided in the Companies Law, and any document
we are required by law to file publicly with the Israeli Companies Registrar or the Israeli Securities Authority. Any shareholder who
specifies the purpose of its request may request to review any document in our possession that relates to any action or transaction with
a related party which requires shareholder approval under the Companies Law. We may deny a request to review a document if we determine
that the request was not made in good faith, that the document contains a commercial secret or a patent or that the document&#8217;s disclosure
may otherwise impair our interests.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 76; Value: 43 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->72<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Exchange Controls</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">There are currently no Israeli
currency control restrictions on remittances of dividends on our ordinary shares, proceeds from the sale of the shares or interest or
other payments to non-residents of Israel, except for shareholders who are subjects of countries that are, or have been, in a state of
war with Israel.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Acquisitions under Israeli law</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Merger</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; ">The
Companies Law permits merger transactions if approved by each party&#8217;s board of directors and, unless certain requirements described
under the Companies Law are met, by a majority vote of each party&#8217;s shares, and, in the case of the target company, a majority vote
of each class of its shares, voted on the proposed merger at a shareholders meeting. The board of directors of a merging company is required
pursuant to the Companies Law to discuss and determine whether in its opinion there exists a reasonable concern that as a result of a
proposed merger, the surviving company will not be able to satisfy its obligations towards its creditors, such determination taking into
account the financial status of the merging companies. If the board of directors has determined that such a concern exists, it may not
approve a proposed merger. Following the approval of the board of directors of each of the merging companies, the boards of directors
must jointly prepare a merger proposal for submission to the Israeli Registrar of Companies.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For purposes of the shareholder
vote, unless a court rules otherwise, the merger will not be deemed approved if a majority of the shares represented at the shareholders
meeting that are held by parties other than the other party to the merger, or by any person (or group of persons acting in concert) who
holds (or hold, as the case may be) 25% or more of the outstanding shares or the right to appoint 25% or more of the directors of the
other party, vote against the merger. If the transaction would have been approved but for the separate approval of each class or the exclusion
of the votes of certain shareholders as provided above, a court may still approve the merger upon the request of holders of at least 25%
of the voting rights of a company, if the court holds that the merger is fair and reasonable, taking into account the value of the parties
to the merger and the consideration offered to the shareholders. Pursuant to the Companies Law, if a merger is with a company&#8217;s
controlling shareholder or if the controlling shareholder has a personal interest in the merger, then the merger is instead subject to
the same special majority approval that governs all extraordinary transactions with controlling shareholders (as described above under
&#8220;Board Practices &#8212; Fiduciary duties and Approval of Related Party Transactions under Israeli law.&#8221;).</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, under our Articles
of Association, the Company shall not engage in any Business Combination with any Interested Shareholder for a period of three years following
the time that such shareholder became an Interested Shareholder, unless either prior to such time the Board of Directors approved either
the Business Combination or the transaction which resulted in the shareholder becoming an Interested Shareholder; or upon consummation
of the transaction which resulted in the shareholder becoming an Interested Shareholder, the Interested Shareholder owned at least 85%
of the Voting Shares of the Company outstanding at the time the transaction commenced.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Companies Law, each
merging company must send a copy of the proposed merger plan to its secured creditors. Unsecured creditors are entitled to receive notice
of the merger pursuant to regulations promulgated under the Companies Law. Upon the request of a creditor of either party to the proposed
merger, the court may delay or prevent the merger if it concludes that there exists a reasonable concern that, as a result of the merger,
the surviving company will be unable to satisfy the obligations the target company. The court may further give instructions to secure
the rights of creditors.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, a merger may
not be completed unless at least fifty days have passed from the date that a proposal for approval of the merger was filed with the Israeli
Companies Registrar and thirty days from the date on which the merger was approved by the shareholders of each party.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 77; Value: 43 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->73<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Full tender offer</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A person wishing to acquire
shares of a public Israeli company and who would as a result hold over 90% of the target company&#8217;s issued and outstanding share
capital, or of a certain class of shares, is required by the Companies Law to make a tender offer to all of the company&#8217;s shareholders
or the shareholders who holds shares of the same class for the purchase of all of the issued and outstanding shares of the company or
of the same class, as applicable.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If the shareholders who do
not respond to or accept the offer hold less than 5% of the issued and outstanding share capital of the company or of the applicable class
of the shares, and more than half of the shareholders who do not have a personal interest in the offer accept the offer, all of the shares
that the acquirer offered to purchase will be transferred to the acquirer by operation of law. However, a tender offer will also be accepted
if the shareholders who do not accept the offer hold less than 2% of the issued and outstanding share capital of the company or of the
applicable class of shares.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Upon a successful completion
of such a full tender offer, any shareholder that was an offeree in such tender offer, whether the shareholder accepted the tender offer
or not, may, within six months from the date of acceptance of the tender offer, petition the Israeli court to determine whether the tender
offer was for less than fair value and that the fair value should be paid as determined by the court. However, under certain conditions,
the offeror may include in the terms of the tender offer that an offeree who accepted the offer will not be entitled to petition the Israeli
court as described above.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If the full tender offer was
not accepted in accordance with the above alternatives, the acquirer may not acquire shares of the company that will increase its holdings
to more than 90% of the company&#8217;s voting rights or issued and outstanding share capital or of the applicable class from shareholders
who accepted the tender offer.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Special tender offer</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Companies Law provides
that an acquisition of shares of a public Israeli company must be made by means of a special tender offer if as a result of the acquisition
the purchaser would become a holder of at least 25% of the voting rights in the company. This rule does not apply if there is already
another holder of at least 25% of the voting rights in the company. Similarly, the Companies Law provides that an acquisition of shares
in a public company must be made by means of a tender offer if as a result of the acquisition the purchaser would become a holder of more
than 45% of the voting rights in the company, if there is no other shareholder of the company who holds more than 45% of the voting rights
in the company, subject to certain exceptions.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A special tender offer must
be extended to all shareholders of a company but the offeror is not required to purchase shares representing more than 5% of the voting
power attached to the company&#8217;s outstanding shares, regardless of how many shares are tendered by shareholders. A special tender
offer may be consummated only if (i) at least 5% of the voting power attached to the company&#8217;s outstanding shares will be acquired
by the offeror and (ii) the number of shares tendered by shareholders who accept the offer exceeds the number of shares whose holders
objected to the offer (excluding the purchaser and its controlling shareholders, holders of 25% or more of the voting rights in the company
or any person having a personal interest in the acceptance of the tender offer or any other person acting on their behalf, including relatives
and entities under such person&#8217;s control). If a special tender offer is accepted, then (i) shareholders who did not respond to or
that had objected to the offer may accept the offer within four days of the last date set for the acceptance of the offer and they will
be considered to have accepted the offer from the first day it was made, and (ii) the purchaser or any person or entity controlling it
or under common control with the purchaser or such controlling person or entity may not make a subsequent tender offer for the purchase
of shares of the target company and may not enter into a merger with the target company for a period of one year from the date of the
offer, unless the purchaser or such person or entity undertook to effect such an offer or merger in the initial special tender offer.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In the event that a special
tender offer is made, a company&#8217;s board of directors is required to express its opinion on the advisability of the offer, or shall
abstain from expressing any opinion if it is unable to do so, provided that it gives the reasons for its abstention. In addition, the
board of directors must disclose any personal interest each member of the board of directors has in the offer or stems therefrom. An office
holder in a target company who, in his or her capacity as an office holder, performs an action the purpose of which is to cause the failure
of an existing or foreseeable special tender offer or is to impair the chances of its acceptance, is liable to the potential purchaser
and shareholders for damages resulting from his or her acts, unless such office holder acted in good faith and had reasonable grounds
to believe he or she was acting for the benefit of the company. However, office holders of the target company may negotiate with the potential
purchaser in order to improve the terms of the special tender offer, and may further negotiate with third parties in order to obtain a
competing offer.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p><div>

</div><!-- Field: Page; Sequence: 78; Value: 43 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->74<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Shares purchased in contradiction
to the tender offer rules under the Companies Law, as described above, will have no rights and will become dormant shares.&#160;</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Borrowing Powers</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to the Israeli
Companies Law and our amended articles of association, our board of directors may exercise all powers and take all actions that are not
required under law or under our amended articles of association to be exercised or taken by our shareholders, including the power to borrow
money for company purposes.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 25.15pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For details regarding the
approvals required under the Israeli Companies Law for the approval of director compensation, see &#8220;Item 6 C &#8220;Directors, Senior
Management and Employees &#8212; Board Practices &#8211; Fiduciary Duties and Approval of Related Party Transactions under Israeli Law.&#8221;</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 25.15pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Changes in Capital</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our amended and restated articles
of association enable us to increase or reduce our share capital. Any such changes are subject to Israeli law and must be approved by
a resolution duly passed by our shareholders at a general meeting by voting on such change in the capital. In addition, transactions that
have the effect of reducing capital, such as the declaration and payment of dividends in the absence of sufficient retained earnings or
profits, require the approval of both our board of directors and an Israeli court.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Transfer Agent and Registrar</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The transfer agent and registrar
for our ordinary shares is Vstock Transfer, LLC. Its address is 18 Lafayette Place Woodmere, New York 11598, and its telephone number
is (212) 828-8436.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>C. Material Contracts </b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We have not entered into any material contracts other than in the ordinary
course of business and other than those described below and in Item 4. &#8220;Information on Our Company&#8221;, &#8220;Item 5 B. &#8212;
Operating and Financial Review and Prospects &#8212; Liquidity and Capital Resources&#8221;, &#8220;Item 6 B. &#8212; Directors, Senior
Management and Employees&#8212; Compensation,&#8221; &#8220;Item 7B. Major Shareholders and Related Party Transactions &#8212; Related
Party Transactions&#8221; or elsewhere in this annual report.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 25.15pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Convertible Loan Agreements </i></b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 25.15pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For information regarding
certain convertible loan agreements we entered into, all of which convertible loans have matured and (to the extent not converted) were
not timely repaid by us due to financial difficulties, see Note 8 to our consolidated financial statements for the year ended December
31, 2022 that appear elsewhere in this annual report on Form 20-F.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 25.15pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>D. Exchange Controls.</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">There are no Israeli government
laws, decrees or regulations that restrict or that affect our export or import of capital or the remittance of dividends, interest or
other payments to non-resident holders of our securities, including the availability of cash and cash equivalents for use by us and our
wholly-owned subsidiaries, except for ownership by nationals of certain countries that are, or have been, declared as enemies of Israel.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 79; Value: 43 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->75<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>E. Taxation</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span>The
following description is not intended to constitute a complete analysis of all tax consequences relating to the acquisition, ownership
and disposition of our ordinary shares. You should consult your own tax advisor concerning the tax consequences of your particular situation,
as well as any tax consequences that may arise under the laws of any state, local, foreign or other taxing jurisdiction.</span></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Certain Israeli Tax Considerations</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following is a brief summary
of the material Israeli income tax laws applicable to us. This summary does not discuss all the aspects of Israeli tax law that may be
relevant to a particular investor in light of his or her personal investment circumstances or to some types of investors subject to special
treatment under Israeli law. Examples of this kind of investor include residents of Israel or investors in securities who are subject
to special tax regimes not covered in this discussion. To the extent that the discussion is based on new tax legislation that has not
yet been subject to judicial or administrative interpretation, we cannot assure you that the appropriate tax authorities or the courts
will accept the views expressed in this discussion. This summary is based on laws and regulations in effect as of the date hereof and
does not take into account possible future amendments which may be under consideration.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>General Corporate Tax Structure in Israel</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Israeli resident companies
are generally subject to corporate tax. In 2018 and thereafter the corporate tax rate is 23% of their taxable income. However, the effective
tax rate payable by a company that derives income from an Approved Enterprise, a Preferred Enterprise, a Beneficiary Enterprise or a Technology
Enterprise (as discussed below) may be considerably less.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Capital gains derived by an
Israeli resident company are generally subject to corporate tax rate.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Law for the Encouragement of Industry (Taxes),
5729-1969</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Law for the Encouragement
of Industry (Taxes), 5729-1969, which we refer to as the Industry Encouragement Law, provides several tax benefits for &#8220;Industrial
Company,&#8221; which is defined as Israeli resident-company incorporated in Israel, of which 90% or more of its income in any tax year,
other than income from certain government loans, is derived from an &#8220;Industrial Enterprise&#8221; that it owns and located in Israel
or in the &#8220;Area&#8221;, in accordance with the definition in section 3a of the Ordinance. An &#8220;Industrial Enterprise&#8221;
is defined as an enterprise which is held by an Industrial Company whose principal activity in a given tax year is industrial production.
Eligibility for benefits under the Industry Encouragement Law is not contingent upon approval of any governmental authority.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following corporate tax
benefits, among others, are available to Industrial Companies:</p><div>

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

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px">&#160;</td>
    <td style="width: 24px"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">amortization over an eight-year period of the cost of purchased patent, rights to use a patent and rights to know-how, which are used for the development or advancement of the Industrial Enterprise, commencing in the year in which such rights were first exercised;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px">&#160;</td>
    <td style="width: 24px"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">under limited conditions, an election to file consolidated tax returns with related Industrial Companies; and</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px">&#160;</td>
    <td style="width: 24px"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">expenses related to a public offering are deductible in equal amounts over three years commencing on the year of the offering.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We believe that we currently
qualify as an &#8220;Industrial Company&#8221; within the meaning of the Industry Encouragement Law. There can be no assurance that we
will qualify as an industrial company or that the benefits described above will be available in the future.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Law for the Encouragement of Capital Investments,
5719-1959</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Law for the Encouragement
of Capital Investments, 5719-1959, generally referred to as the Investment Law, provides certain incentives for capital investments in
production facilities (or other eligible assets). Generally, an investment program that is implemented in accordance with the provisions
of the Investment Law, is entitled to benefits. These benefits may include cash grants from the Israeli government and tax benefits, based
upon, among other things, the geographic location in Israel of the facility in which the investment and manufacture activity are made.
In order to qualify for these incentives, an Approved Enterprise, a Beneficiary Enterprise, a Preferred Enterprise or a Technology Enterprise
is required to comply with the requirements of the Investment Law.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p><div>

</div><!-- Field: Page; Sequence: 80; Value: 43 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->76<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Investment Law was significantly
amended effective as of April 1, 2005 (the &#8220;2005 Amendment&#8221;), as of January 1, 2011 (the &#8220;2011 Amendment&#8221;) and
as of January 1, 2017 (the &#8220;2017 Amendment&#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 elect instead, irrevocably, to forego such benefits and have the benefits of the 2011 Amendment apply.
The 2017 Amendment introduces new benefits for Technological Enterprises, alongside the existing tax benefits.&#160;&#160;&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The following discussion is a summary
of the Investment Law following its recent amendments:</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Tax Benefits under the 2011 Amendment</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">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 a specified development zone, 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 a certain development zone. As of January 1, 2017, the definition for &#8217;Special Preferred Enterprise&#8217; includes less stringent
conditions. The tax benefits under the 2011 Amendment also include accelerated depreciation and amortization for tax purposes.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of January 1, 2014, dividends
distributed from income which is attributed to a &#8220;Preferred Enterprise&#8221; or to a Special Preferred Enterprise 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, withholding tax at a rate of 20% or such lower rate as may be provided in an applicable
tax treaty will apply (subject to the receipt in advance of a valid certificate from the Israel Tax Authority allowing for a reduced tax
rate)) (ii) Israeli resident individuals &#8211; 20% (iii) non-Israeli residents (individuals and corporations) - 20%, subject to a reduced
tax rate under the provisions of an applicable double tax treaty (subject to the receipt in advance of a valid certificate from the Israel
Tax Authority allowing for a reduced tax rate). In 2017-2019 dividends paid out of preferred income attributed to a Special Preferred
Enterprise, directly to a foreign parent company, are subject to withholding tax at source at the rate of 5% (temporary provisions).</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Currently, we are not entitled
to receive the tax benefits described above and there can be no assurance that we will be entitled to receive such benefits at any time
in the future. Furthermore, there can be no assurance that even if in the future we meet the relevant requirements for such tax benefits,
that such tax benefits will be available to us at all.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>New Tax benefits under the 2017 Amendment
that became effective on January 1, 2017</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">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;Technology Enterprises&#8221;, as described below, and is in addition to the other existing
tax beneficial programs under the Investment Law.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 81; Value: 43 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->77<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The 2017 Amendment provides
that a technology company satisfying certain conditions will qualify as a &#8220;Preferred Technology 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 Technology Enterprise located in development zone &#8220;A&#8221;. In addition,
a Preferred Technology Company 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 (approximately $64 million), and the sale receives prior
approval from the IIA.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The 2017 Amendment further
provides that a technology company satisfying certain conditions will qualify as a &#8220;Special Preferred Technology Enterprise&#8221;
and will thereby enjoy a reduced corporate tax rate of 6% on &#8220;Preferred Technology Income&#8221; regardless of the company&#8217;s
geographic location within Israel. In addition, a Special Preferred Technology 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 Technology 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 Technology Enterprise that acquires Benefitted
Intangible Assets from a foreign company for more than NIS 500 million (approximately $161 million) will be eligible for these benefits
for at least ten years, subject to certain approvals as specified in the Investment Law.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Dividends distributed by a
Preferred Technology Enterprise or a Special Preferred Technology Enterprise, paid out of Preferred Technology 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 Israel Tax Authority allowing for a reduced tax rate). However, if such dividends are paid
to an Israeli company, no tax is required to be withheld (although, if such dividends are subsequently distributed from such Israeli company
to individuals or a non-Israeli company, withholding tax at a rate of 20% or such lower rate as may be provided in an applicable tax treaty
will apply). If such dividends are distributed to a foreign company and other conditions are met, the withholding tax rate will be 4%
(or a lower rate under a tax treaty, if applicable, subject to the receipt in advance of a valid certificate from the Israel Tax Authority
allowing for a reduced tax rate).</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Currently, we are not entitled
to receive the tax benefits described above and there can be no assurance that we will be entitled to receive such benefits at any time
in the future. Furthermore, there can be no assurance that even if in the future we meet the relevant requirements for such tax benefits,
that such tax benefits will be available to us at all.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Capital Gains Taxes Applicable to Non-Israeli
Resident Shareholders.</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Israeli capital gains tax
is imposed on the disposal of capital assets by a non-Israeli resident if such assets are either (i) located in Israel; (ii)&#160;shares
or rights to shares in an Israeli resident company, or (iii) represent, directly or indirectly, rights to assets located in Israel, unless
a specific exemption is available or unless a tax treaty between Israel and the seller&#8217;s country of residence provides otherwise.
Capital gain is generally subject to tax at the corporate tax rate (23% in 2018 and thereafter), if generated by a company, or at the
rate of 25% if generated by an individual, or 30% in the case of sale of shares by a Substantial Shareholder (i.e.,&#160;a person who
holds, directly or indirectly, alone or together with such person&#8217;s relative or another person who collaborates with such person
on a permanent basis, 10% or more of any of the company&#8217;s &#8220;means of control&#8221; (including, among other things, the right
to receive profits of the company, voting rights, the right to receive proceeds upon liquidation and the right to appoint a director))
at the time of sale or at any time during the preceding 12-month period. Individual and corporate shareholders dealing in securities in
Israel are taxed at the tax rates applicable to business income (a corporate tax rate for a corporation and a marginal tax rate of up
to 47% for an individual in 2021) unless the benefiting provisions of an applicable treaty applies.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Notwithstanding the foregoing,
a non-Israeli resident (individual or corporation) who 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 recognized stock exchange in Israel or outside of Israel will generally be
exempt from Israeli tax so long as the shares were not held through a permanent establishment that the non-resident maintains in Israel
(and with respect to shares listed on a recognized stock exchange outside of Israel, so long as neither the shareholder nor the particular
capital gain is otherwise subject to the Israeli Income Tax Law (Inflationary Adjustments) 5745-1985). However, non-Israeli corporations
will not be entitled to the foregoing exemption if Israeli residents: (i) have a controlling interest of more than 25% 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. These provisions dealing with capital gain are not applicable to a person whose gains from selling or
otherwise disposing of the shares are deemed to be business income.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p><div>

</div><!-- Field: Page; Sequence: 82; Value: 43 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->78<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Additionally, a sale of shares
by a non-Israeli resident may be exempt from Israeli capital gains tax under the provisions of an applicable tax treaty. For example,
under the United States-Israel Tax Treaty, the sale, exchange or other disposition of shares of an Israeli company by a shareholder who
(i) is a U.S. resident (for purposes of the treaty), (ii) holds the shares as a capital asset, and (iii) is entitled to claim the benefits
afforded to such person by the treaty, is generally exempt from Israeli capital gains tax. Such exemption will not apply if: (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 the sale, exchange or disposition that
can be attributed to a permanent establishment of the shareholder that is maintained in Israel under certain terms; (iv) the shareholder
holds, directly or indirectly, shares representing 10% or more of the voting rights during any part of the 12-month period preceding such
sale exchange or other disposition, subject to certain conditions; or (v) such U.S. resident is an individual and was present in Israel
for a period or periods aggregating to 183 days or more during the relevant taxable year. In any such case, the sale, exchange or disposition
of our ordinary shares would be subject to Israeli tax, to the extent applicable; however, under the United States-Israel Tax Treaty,
a U.S. resident would be permitted to claim a credit for such taxes against the U.S. federal income tax imposed with respect to such sale,
exchange or disposition, subject to the limitations under U.S. law applicable to foreign tax credits. The United States-Israel Tax Treaty
does not relate to U.S. state or local taxes.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">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. Specifically, in transactions involving a sale of all of the shares of an
Israeli resident company, such as a merger or other transaction, the Israel Tax Authority may require from shareholders who are not liable
for Israeli tax to sign declarations in forms specified by that authority or obtain a specific exemption from the Israel Tax Authority
to confirm their status as non-Israeli residents, and, in the absence of such declarations or exemptions, may require the purchaser of
the shares to withhold taxes at source.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Taxation of Non-Israeli Shareholders on Receipt
of Dividends.</i></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Non-Israeli residents (whether
individuals or corporations) are generally subject to Israeli income tax on the receipt of dividends paid on our ordinary shares at the
rate of 25% or 30% (if the recipient is a Substantial Shareholder at the time of receiving the dividend or at any time during the preceding
12 months) or 15% if the dividend is distributed from income attributed to a Benefited Enterprise and 20% with respect to a Preferred
Enterprise, subject to certain conditions. Such dividends are generally subject to Israeli withholding tax at a rate of 25% so long as
the shares are registered with a nominee company (whether the recipient is a Substantial Shareholder or not) and 15% if the dividend is
distributed from income attributed to a Benefited Enterprise or 20% if the dividend is distributed from income attributed to an Preferred
Enterprise, unless a reduced rate is provided under an applicable tax treaty (subject to the receipt of a valid certificate from the Israel
Tax Authority allowing for a reduced tax rate).</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">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 (for purposes of the United States-Israel Tax Treaty) is 25%. However, generally, the maximum rate of withholding tax
for dividends not generated by a Benefited Enterprise and paid to a U.S. corporation holding 10% or more of the outstanding voting rights
from the start of the tax year preceding the distribution of the dividend through (and including) the distribution of the dividend, 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, a distribution of dividends to non-Israeli residents is subject to withholding tax at source at a rate
of 15% if the dividend is distributed from income attributed to a Benefited Enterprise for such U.S. corporation shareholder, provided
that the condition related to our gross income for the previous year (as set forth in the previous sentence) is met. U.S. residents who
are subject to Israeli withholding tax on a dividend may be entitled to a credit or deduction for United States federal income tax purposes
in the amount of the taxes withheld, subject to detailed rules contained in U.S. tax legislation.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p><div>

</div><!-- Field: Page; Sequence: 83; Value: 43 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->79<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If the dividend is attributable
partly to income derived from a Benefited Enterprise or a Preferred Enterprise, and partly from other sources of income, the withholding
rate will be a blended rate reflecting the relative portions of the two types of income.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Estate and Gift Tax.</i></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Israeli law presently does
not impose estate or gift taxes.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><i>Excess Tax.</i></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Beginning on January&#160;1,
2013, an additional tax liability at the rate of 2% was added to the applicable tax rate on the annual taxable income of individuals (whether
any such individual is an Israeli resident or non-Israeli resident) exceeding a certain level, including, but not limited to, dividends,
interest and capital gain. Pursuant to new legislation enacted recently, such tax rate was increased to 3% on annual income exceeding
NIS 698,280 in 2023.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>U.S. Federal Income Taxation</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following is a description
of the material U.S. federal income tax consequences to U.S. Holders (as defined below) of the acquisition, ownership and disposition
of our ordinary shares. This description addresses only the U.S. federal income tax consequences to purchasers of our ordinary shares
and that will hold such ordinary shares as capital assets. This description does not address tax considerations applicable to holders
that may be subject to special tax rules, including, without limitation:&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px">&#160;</td>
    <td style="width: 24px"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">banks, financial institutions or insurance companies;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">real estate investment trusts, regulated investment companies or grantor trusts;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">dealers or traders in securities, commodities or currencies;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">tax-exempt entities;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">certain former citizens or long-term residents of the United States;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">persons that received our ordinary shares as compensation for the performance of services;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">persons that will hold our ordinary shares as part of a &#8220;hedging,&#8221; &#8220;integrated&#8221; or &#8220;conversion&#8221; transaction or as a position in a &#8220;straddle&#8221; for U.S. federal income tax purposes;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">partnerships (including entities classified as partnerships for U.S. federal income tax purposes) or other pass-through entities, or holders that will hold our ordinary shares through such an entity;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">U.S. Holders (as defined below) whose &#8220;functional currency&#8221; is not the U.S. dollar; or</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">holders that own directly, indirectly or through attribution 10.0% or more of the voting power or value of our ordinary shares.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Moreover, this description
does not address the United States federal estate, gift, alternative minimum tax or net investment income tax consequences, or any state,
local or non-U.S. tax consequences, of the acquisition, ownership and disposition of our ordinary shares.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This description is based
on the U.S. Internal Revenue Code of 1986, as amended (the &#8220;Code&#8221;), existing, proposed and temporary U.S. Treasury Regulations
and judicial and administrative interpretations thereof, in each case as in effect and available on the date hereof. Each of the foregoing
is subject to change, which change could apply retroactively and could affect the tax consequences described below. There can be no assurances
that the U.S. Internal Revenue Service will not take a different position concerning the tax consequences of the acquisition, ownership
and disposition of our ordinary shares or that such a position would not be sustained.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 84; Value: 43 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->80<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For purposes of this description,
a &#8220;U.S. Holder&#8221; is a beneficial owner of our ordinary shares that, for U.S. federal income tax purposes, is:&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px">&#160;</td>
    <td style="width: 24px"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">a citizen or resident of the United States;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">a corporation (or other entity treated as a corporation for U.S. federal income tax purposes) created or organized in or under the laws of the United States or any state thereof, including the District of Columbia;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">an estate the income of which is subject to U.S. federal income taxation regardless of its source; or</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px; text-align: justify">&#160;</td>
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">a trust if such trust has validly elected to be treated as a U.S. person for U.S. federal income tax purposes or if (1) a court within the United States is able to exercise primary supervision over its administration and (2) one or more U.S. persons have the authority to control all of the substantial decisions of such trust.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If a partnership (or any other
entity treated as a partnership for U.S. federal income tax purposes) holds ordinary shares, the tax treatment of a partner in such partnership
will generally depend on the status of the partner and the activities of the partnership. Such a partner or partnership should consult
its tax advisor as to its tax consequences.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><b>You should consult your
tax advisor with respect to the U.S. federal, state, local and foreign tax consequences of acquiring, owning and disposing of our ordinary
shares.</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Distributions</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Subject to the discussion
below under &#8220;&#8212; Passive Foreign Investment Company Considerations,&#8221; if you are a U.S. Holder, the gross amount of any
distribution that we pay you with respect to our ordinary shares before reduction for any non-U.S. taxes withheld therefrom generally
will be includible in your income as dividend income to the extent such distribution is paid out of our current or accumulated earnings
and profits as determined under U.S. federal income tax principles. To the extent that the amount of any cash distribution exceeds our
current and accumulated earnings and profits as determined under U.S. federal income tax principles, it will be treated first as a tax
free return of your adjusted tax basis in our ordinary shares and thereafter as capital gain. We do not expect to maintain calculations
of our earnings and profits under U.S. federal income tax principles. Therefore, if you are a U.S. Holder, you should expect that the
entire amount of any cash distribution generally will be reported as dividend income to you; provided, however, that distributions of
ordinary shares to U.S. Holders that are part of a pro rata distribution to all of our shareholders generally will not be subject to U.S.
federal income tax. Non-corporate U.S. Holders may qualify for the lower rates of taxation with respect to dividends on ordinary shares
applicable to long term capital gains (i.e., gains from the sale of capital assets held for more than one year), provided that certain
conditions are met, including certain holding period requirements and the absence of certain risk reduction transactions. Moreover, such
reduced rate shall not apply if we are a PFIC for the taxable year in which it pays a dividend or were a PFIC for the preceding taxable
year. Dividends will not be eligible for the dividends received deduction generally allowed to corporate U.S. Holders.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If you are a U.S. Holder,
subject to the discussion below, dividends that we pay you with respect to our ordinary shares will be treated as foreign source income,
which may be relevant in calculating your foreign tax credit limitation. Subject to certain conditions and limitations, non-U.S. tax withheld
on dividends may be deducted from your taxable income or credited against your U.S. federal income tax liability. The limitation on foreign
taxes eligible for credit is calculated separately with respect to specific classes of income. For this purpose, dividends that we distribute
generally should constitute &#8220;passive category income,&#8221; or, in the case of certain U.S. Holders, &#8220;general category income.&#8221;
A foreign tax credit for foreign taxes imposed on distributions may be denied if you do not satisfy certain minimum holding period requirements.
The rules relating to the determination of the foreign tax credit are complex, and you should consult your tax advisor to determine whether
and to what extent you will be entitled to this credit.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p><div>

</div><!-- Field: Page; Sequence: 85; Value: 43 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->81<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Although, as discussed above,
dividends that we pay to a U.S. Holder will generally be treated as foreign source income, for periods in which we are a &#8220;United
States-owned foreign corporation,&#8221; a portion of dividends paid by us may be treated as U.S. source income solely for purposes of
the foreign tax credit. We would be treated as a United States-owned foreign corporation if 50% or more of the total value or total voting
power of our stock is owned, directly, indirectly or by attribution, by United States persons. To the extent any portion of our dividends
is treated as U.S. source income pursuant to this rule, the ability of a U.S. Holder to claim a foreign tax credit for any Israeli withholding
taxes payable in respect of our dividends may be limited. A U.S. Holder entitled to benefits under the United States-Israel Tax Treaty
may, however, elect to treat any dividends as foreign source income for foreign tax credit purposes if the dividend income is separated
from other income items for purposes of calculating the U.S. Holder&#8217;s foreign tax credit. U.S. Holders should consult their own
tax advisors about the impact of, and any exception available to, the special sourcing rule described in this paragraph, and the desirability
of making, and the method of making, such an election.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The amount of any dividend
income paid in NIS will be the U.S. dollar amount calculated by reference to the exchange rate in effect on the date of receipt, regardless
of whether the payment is in fact converted into U.S. dollars. If the dividend is converted into U.S. dollars on the date of receipt,
you should not be required to recognize exchange gain or loss in respect of the dividend income. You may have exchange gain or loss if
the dividend is converted into U.S. dollars after the date of receipt. Exchange gain or loss will be treated as U.S.-source ordinary income
or loss.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Sale, Exchange or Other Disposition of Ordinary
Shares</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Subject to the discussion
below under &#8220;&#8212; Passive Foreign Investment Company Considerations,&#8221; if you are a U.S. Holder, you generally will recognize
an amount of gain or loss on the sale, exchange or other disposition of our ordinary shares equal to the difference between the amount
realized on such sale, exchange or other disposition and your tax basis in our ordinary shares, and such gain or loss will be capital
gain or loss. The tax basis in an ordinary share generally will equal the U.S. dollar cost of such ordinary share. If you are a non-corporate
U.S. Holder, capital gain from the sale, exchange or other disposition of ordinary shares generally will be eligible for a preferential
rate of taxation applicable to capital gains, if your holding period for such ordinary shares exceeds one year. The deductibility of capital
losses for U.S. federal income tax purposes is subject to limitations under the Code. Any such gain or loss that a U.S. Holder recognizes
generally will be treated as U.S. source income or loss for foreign tax credit limitation purposes.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If an Israeli tax is imposed
on the sale or other disposition of our ordinary shares, your amount realized will include the gross amount of the proceeds of the sale
or other disposition before deduction of the Israeli tax. Because your gain from the sale or other disposition of our ordinary shares
will generally be U.S.-source gain, and you may use foreign tax credits to offset only the portion of U.S. federal income tax liability
that is attributable to foreign source income, you may be unable to claim a foreign tax credit with respect to the Israeli tax, if any,
on gains. You should consult your tax adviser as to whether the Israeli tax on gains may be creditable against your U.S. federal income
tax on foreign-source income from other sources.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Passive Foreign Investment Company</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In general, a non-U.S. corporation
will be treated as a PFIC for U.S. federal income tax purposes in any taxable year in which either (i) at least 75% of its gross income
is &#8220;passive income,&#8221; or (ii) on average at least 50% of its assets by value produce passive income or are held for the production
of passive income. Passive income for this purpose generally includes, among other things, certain dividends, interest, royalties, rents
and gains from commodities and securities transactions and from the sale or exchange of property that gives rise to passive income. Passive
income also includes amounts derived by reason of the temporary investment of funds, including those raised in a public offering. Assets
that produce or are held for the production of passive income include cash, even if held as working capital or raised in a public offering,
marketable securities and other assets that may produce passive income. In determining whether a non-U.S. corporation is a PFIC, a proportionate
share of the income and assets of each corporation in which it owns, directly or indirectly, at least a 25% interest (by value) is taken
into account.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p><div>

</div><!-- Field: Page; Sequence: 86; Value: 43 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->82<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A foreign corporation&#8217;s
PFIC status is an annual determination that is based on tests that are factual in nature, and our status for any year will depend on the
corporation&#8217;s income, assets, and activities for such year. We have not determined whether we have been a PFIC for any previous
year prior to 2021. Also we cannot assure that we will not be considered a PFIC for 2021, based on our estimation, we do not expect to
be a PFIC for the 2021 tax year. We did not conduct an analysis whether we will be a PFIC in 2022 or in any future years.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">U.S. Holders should be aware
of certain tax consequences of investing directly or indirectly in us due to our classification as a PFIC. A U.S. Holder is subject to
different rules depending on whether the U.S. Holder makes an election to treat us as a &#8220;qualified electing fund,&#8221; referred
to herein as a &#8220;QEF election,&#8221; for the first taxable year that the U.S. Holder holds ordinary shares makes a &#8220;mark-to-market&#8221;
election with respect to the ordinary shares, or makes neither election.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>QEF Election</i>. One way
in which certain of the adverse consequences of PFIC status can be mitigated is for a U.S. Holder make a QEF election. Generally, a shareholder
making the QEF election is required for each taxable year to include in income a pro rata share of the ordinary earnings and net capital
gain of the QEF, subject to a separate election to defer payment of taxes, which deferral is subject to an interest charge. An election
to treat us as a QEF will not be available if we do not provide the information necessary to make such an election. It is not expected
that a U.S. Holder will be able to make a QEF election because we do not intend to provide U.S. Holders with the information necessary
to make a QEF election.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>Mark-to-Market Election</i>.
Alternatively, if our ordinary shares are treated as &#8220;marketable stock,&#8221; a U.S. Holder would be allowed to make a &#8220;mark-to-market&#8221;
election with respect to our ordinary shares, provided the U.S. Holder completes and files IRS Form 8621 in accordance with the relevant
instructions and related Treasury Regulations. If that election is made, the U.S. Holder generally would include as ordinary income in
each taxable year the excess, if any, of the fair market value of our ordinary shares at the end of the taxable year over such holder&#8217;s
adjusted tax basis in such ordinary shares. The U.S. Holder would also be permitted an ordinary loss in respect of the excess, if any,
of the U.S. Holder&#8217;s adjusted tax basis in our ordinary shares over their fair market value at the end of the taxable year, but
only to the extent of the net amount previously included in income as a result of the mark-to-market election. A U.S. Holder&#8217;s tax
basis in our ordinary shares would be adjusted to reflect any such income or loss amount. Gain realized on the sale, exchange or other
disposition of our ordinary shares would be treated as ordinary income, and any loss realized on the sale, exchange or other disposition
of our ordinary shares would be treated as ordinary loss to the extent that such loss does not exceed the net mark-to-market gains previously
included in income by the U.S. Holder, and any loss in excess of such amount will be treated as capital loss. Amounts treated as ordinary
income will not be eligible for the favorable tax rates applicable to qualified dividend income or long-term capital gains.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A mark-to-market election
will not apply to our ordinary shares held by a U.S. Holder for any taxable year during which we are not a PFIC, but will remain in effect
with respect to any subsequent taxable year in which we become a PFIC. Such election will not apply to any PFIC subsidiary that we own.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Generally, stock will be considered
marketable stock if it is &#8220;regularly traded&#8221; on a &#8220;qualified exchange&#8221; within the meaning of applicable Treasury
Regulations. A class of stock is regularly traded on an exchange during any calendar year during which such class of stock is traded,
other than in de minimis quantities, on at least 15 days during each calendar quarter. To be marketable stock, our ordinary shares must
be regularly traded on a qualifying exchange (i) in the United States that is registered with the SEC or a national market system established
pursuant to the Exchange Act or (ii) outside the United States that is properly regulated and meets certain trading, listing, financial
disclosure and other requirements. Since our ordinary shares are quoted only on the OTC Pink, they may not currently qualify as marketable
stock for purposes of the election and therefore the election may not be available to a U.S. Holder. U.S. Holders should consult their
own tax advisors regarding the availability and tax consequences of a mark-to-market election in respect to our ordinary shares under
their particular circumstances.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Each U.S. Holder should consult
its own tax adviser with respect to the applicability of the &#8220;net investment income tax&#8221; (discussed below) where a mark-to-market
election is in effect.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p><div>

</div><!-- Field: Page; Sequence: 87; Value: 43 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->83<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>Default PFIC Rules</i>.
A U.S. Holder who does not make a timely QEF election (we do not currently intend to prepare or provide the information that would enable
a U.S. Holder to make a QEF election) or a mark-to-market election, referred to in this summary as a &#8220;Non-Electing U.S. Holder,&#8221;
will be subject to special rules with respect to (i) any &#8220;excess distribution&#8221; (generally, the portion of any distributions
received by the Non-Electing U.S. Holder on the ordinary shares in a taxable year in excess of 125% of the average annual distributions
received by the Non-Electing U.S. Holder in the three preceding taxable years, or, if shorter, the Non-Electing U.S. Holder&#8217;s holding
period for the ordinary shares), and (ii) any gain realized on the sale or other disposition of such ordinary shares. Under these rules:</p><div>

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

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px">&#160;</td>
    <td style="width: 24px"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">the excess distribution or gain would be allocated ratably over the Non-Electing U.S. Holder&#8217;s holding period for such ordinary shares;</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px">&#160;</td>
    <td style="width: 24px"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">the amount allocated to the current taxable year and any year prior to us becoming a PFIC would be taxed as ordinary income; and</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 48px">&#160;</td>
    <td style="width: 24px"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">the amount allocated to each of the other taxable years would be subject to tax at the highest rate of tax in effect for the applicable class of taxpayer for that year, and an interest charge for the deemed deferral benefit would be imposed with respect to the resulting tax attributable to each such other taxable year.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If a Non-Electing U.S. Holder
who is an individual dies while owning our ordinary shares, the Non-Electing U.S. Holder&#8217;s successor would be ineligible to receive
a step-up in tax basis of such ordinary shares. Non-Electing U.S. Holders should consult their tax advisors regarding the application
of the &#8220;net investment income tax&#8221; (described below) to their specific situation.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">To the extent a distribution
on our ordinary shares does not constitute an excess distribution to a Non-Electing U.S. Holder, such Non-Electing U.S. Holder generally
will be required to include the amount of such distribution in gross income as a dividend to the extent of our current or accumulated
earnings and profits (as determined for U.S. federal income tax purposes) that are not allocated to excess distributions. Each U.S. Holder
is encouraged to consult its own tax advisor with respect to the appropriate U.S. federal income tax treatment of any distribution on
our ordinary shares.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If we are treated as a PFIC
for any taxable year during the holding period of a Non-Electing U.S. Holder, we will continue to be treated as a PFIC for all succeeding
years during which the Non-Electing U.S. Holder is treated as a direct or indirect Non-Electing U.S. Holder even if we are not a PFIC
for such years. A U.S. Holder is encouraged to consult its tax advisor with respect to any available elections that may be applicable
in such a situation, including the &#8220;deemed sale&#8221; election of Code Section 1298(b)(1) (which will be taxed under the adverse
tax rules described above).</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We may invest in the equity
of foreign corporations that are PFICs or may own subsidiaries that own PFICs. If we are classified as a PFIC, under attribution rules,
U.S. Holders will be subject to the PFIC rules with respect to their indirect ownership interests in such PFICs, such that a disposition
of the ordinary shares of the PFIC or receipt by us of a distribution from the PFIC generally will be treated as a deemed disposition
of such ordinary shares or the deemed receipt of such distribution by the U.S. Holder, subject to taxation under the PFIC rules. There
can be no assurance that a U.S. Holder will be able to make a QEF election, and a U.S. Holder may not make a mark-to-market election,
with respect to PFICs in which we invest. Each U.S. Holder is encouraged to consult its own tax advisor with respect to tax consequences
of an investment by us in a corporation that is a PFIC.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, U.S. Holders
should consult their tax advisors regarding the IRS information reporting and filing obligations that may arise as a result of the ownership
of ordinary shares in a PFIC, including IRS Form 8621, Information Return by a Shareholder of a Passive Foreign Investment Company or
Qualified Electing Fund.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><b>The U.S. federal income
tax rules relating to PFICs elections are complex. U.S. Holders are urged to consult their own tax advisors with respect to the purchase,
ownership and disposition of our ordinary shares, any elections available with respect to such ordinary shares and the IRS information
reporting obligations with respect to the purchase, ownership and disposition of our ordinary shares.</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p><div>

</div><!-- Field: Page; Sequence: 88; Value: 43 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->84<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Certain Reporting Requirements</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Certain U.S. Investors are
required to file IRS Form 926, Return by U.S. Transferor of Property to a Foreign Corporation, and certain U.S. Investors may be required
to file IRS Form 5471, Information Return of U.S. Persons With Respect to Certain Foreign Corporations, reporting transfers of cash or
other property to us and information relating to the U.S. Investor and us. Substantial penalties may be imposed upon a U.S. Investor that
fails to comply.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, certain U.S.
Investors are required to report information on IRS Form 8938 with respect to their investments in certain &#8220;foreign financial assets,&#8221;
which would include an investment in our ordinary shares, to the IRS.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Investors who fail to report
required information could become subject to substantial civil and criminal penalties. U.S. Investors should consult their tax advisors
regarding the possible implications of these reporting requirements and any other applicable reporting requirement with respect to their
investment in and ownership of our ordinary shares.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Disclosure of Reportable Transactions</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If a U.S. Investor sells or
disposes of the ordinary shares at a loss or otherwise incurs certain losses that meet certain thresholds, such U.S. Investor may be required
to file a disclosure statement with the IRS. Failure to comply with these and other reporting requirements could result in the imposition
of significant penalties.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Backup Withholding Tax and Information Reporting
Requirements</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><span>U.S.
backup withholding tax and information reporting requirements may apply to certain payments to certain holders of stock. Information reporting
generally will apply to payments of dividends on, and to proceeds from the sale, exchange or redemption of, our ordinary shares made within
the United States, or by a United States payor or United States middleman, to a holder of our ordinary shares, other than an exempt recipient
(including a payee that is not a United States person that provides an appropriate certification and certain other persons). Payments
made (and sales or other dispositions effected at an office) outside the U.S. will be subject to information reporting in limited circumstances.
A payor will be required to withhold backup withholding tax from any payments of dividends on, or the proceeds from the sale or redemption
of, ordinary shares within the United States, or by a United States payor or United States middleman, to a holder, other than an exempt
recipient, if such holder fails to furnish its correct taxpayer identification number or otherwise fails to comply with, or establish
an exemption from, such backup withholding tax requirements, or to report dividends required to be shown on the holder&#8217;s U.S. federal
income tax returns. Back up withholding is not an additional tax. Any amounts withheld under the backup withholding rules will be allowed
as a credit against the beneficial owner&#8217;s U.S. federal income tax liability, if any, and any excess amounts withheld under the
backup withholding rules may be refunded, provided that the required information is timely furnished to the IRS.</span></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Medicare Tax on Investment Income</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Certain U.S. persons, including
individuals, estates and trusts, will be subject to an additional 3.8% Medicare tax, or &#8220;net investment income tax,&#8221; on unearned
income. For individuals, the additional net investment income tax applies to the lesser of (i) &#8220;net investment income&#8221; or
(ii) the excess of &#8220;modified adjusted gross income&#8221; over $200,000 ($250,000 if married and filing jointly or $125,000 if married
and filing separately). &#8220;Net investment income&#8221; generally equals the taxpayer&#8217;s gross investment income reduced by the
deductions that are allocable to such income. Investment income generally includes passive income such as interest, dividends, annuities,
royalties, rents, and capital gains. U.S. Investors are urged to consult their own tax advisors regarding the implications of the additional
net investment income tax resulting from their ownership and disposition of our ordinary shares.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><b>THIS SUMMARY OF MATERIAL
U.S. FEDERAL INCOME TAX CONSEQUENCES IS NOT TAX ADVICE. THE DETERMINATION OF THE ACTUAL TAX CONSEQUENCES FOR A U.S. HOLDER WILL DEPEND
ON THE U.S. HOLDER&#8217;S SPECIFIC SITUATION. U.S. HOLDERS OF ORDINARY SHARES SHOULD CONSULT THEIR OWN TAX ADVISORS AS TO THE TAX CONSEQUENCES
OF ACQUIRING, OWNING AND DISPOSING OF OUR ORDINARY SHARES, INCLUDING THE APPLICABILITY AND EFFECT OF THE ALTERNATIVE MINIMUM TAX AND ANY
STATE, LOCAL, FOREIGN OR OTHER TAX LAWS AND OF CHANGES IN THOSE LAWS.</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 89; Value: 43 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->85<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>F. Dividends and Paying Agents.</b></p><div>

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

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

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>G. Statements by Experts.</b></p><div>

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

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

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>H. Documents on Display.</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We are subject to the informational
requirements of the Exchange Act. Accordingly, we are required to file reports and other information with the SEC, including annual reports
on Form 20-F and reports on Form 6-K. As a foreign private issuer, we are exempt from the rules under the Exchange Act related to 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 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. In addition, we are not required under the
Exchange Act to file annual or other reports and consolidated financial statements with the SEC as frequently or as promptly as U.S. companies
whose securities are registered under the Exchange Act. Instead, we must file with the SEC, within 120 days after the end of each fiscal
year, or such other applicable time as required by the SEC, an annual report on Form 20-F containing consolidated financial statements
audited by an independent registered public accounting firm. The SEC maintains a website at www.sec.gov that contains reports, proxy and
information statements and other information regarding registrants like us that file electronically with the SEC. You can also inspect
this annual report on such website.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 25.15pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We maintain a corporate website
at&#160;www.pvnanocell.com.&#160;Information contained on, or that can be accessed through, our website does not constitute a part of
this annual report on Form 20-F. We have included our website address in this annual report on Form 20-F solely as an inactive textual
reference.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>I. Subsidiary Information.</b></p><div>

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

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

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>J. Annual Report to Security Holders.</b></p><div>

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

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

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

</div><div><a id="a_013"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>ITEM 11. Quantitative
and Qualitative Disclosures about Market Risk.</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Quantitative and Qualitative Disclosure
about Market Risk</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We are exposed to market risks
in the ordinary course of our business. Market risk represents the risk of loss that may impact our financial position, results of operations
or cash flows due to adverse changes in financial market prices and rates, including interest rates and foreign exchange rates, of financial
instruments.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Foreign Currency Exchange Risk</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our foreign currency exposures
give rise to market risk associated with exchange rate movements of the NIS mainly against the U.S. dollar because a large portion of
our expenses are denominated in NIS. Our NIS expenses consist principally of payments made to employees, sub-contractors, professional
services, other research and development activities and general and administrative activities. We anticipate that a large portion of our
expenses will continue to be denominated in currencies other than the U.S. dollar. Our financial position, results of operations and cash
flow are, therefore, subject to fluctuations due to changes in foreign currency exchange rates and may be adversely affected in the future
due to changes in foreign exchange rates. The majority of our expenses are denominated in NIS. In addition, we may incur operating expenses
denominated in Euros, and therefore, our operating results may also be subject to fluctuations due to changes in the U.S. dollar/Euro
exchange rate. We cannot predict any future trends in the rate of inflation in Israel or the rate of depreciation (if any) of the NIS,
the Euro and other foreign currencies against the U.S. dollar. Given our general lack of currency hedging arrangements to protect us from
fluctuations in the exchange rates of the NIS and Euro and other foreign currencies in relation to the U.S. dollar (and/or from inflation
of such foreign currencies), we may be exposed to adverse effects from such movements. The rate of inflation in Israel or Europe or in
currency exchange rates may materially change and we might not be able to effectively mitigate these risks.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 90; Value: 43 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->86<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">To date, we have not engaged
in hedging our foreign currency exchange risk. In the future, we may enter into formal currency hedging transactions to decrease the risk
of financial exposure from fluctuations in the exchange rates of our principal operating currencies. These measures, however, may not
adequately protect us from the material adverse effects of such fluctuations.</p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Interest Rate Risk</i></b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our exposure to interest rate
risk for changes in interest rates relates primarily to the interest income generated by excess cash invested in bank deposits. We have
not used any derivative financial instruments in our investment portfolio or for cash management purposes. Interest-earning instruments
carry a degree of interest rate risk. We have not been exposed nor do we anticipate being exposed to material risks due to changes in
interest rates. However, our future interest income may fall short of expectations due to changes in interest rates.</p><div>

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

</div><div><a id="a_014"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>ITEM 12. Description of Securities Other Than
Equity Securities</b></p><div>

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>A. Debt Securities.</b></p><div>

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

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

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>B. Warrants and Rights.</b></p><div>

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

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

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>C. Other Securities.</b></p><div>

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

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

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>D. American Depositary Shares.</b></p><div>

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

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

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

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 91; Value: 43 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->87<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

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

</div><div><a id="a_015"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>PART II</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><div><a id="a_016"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>ITEM 13. Defaults, Dividend Arrearages and
Delinquencies.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Certain convertible loans
that we received from certain lenders during 2017 and onwards matured in accordance with their respective terms and such lenders did not
exercise their conversion rights in full prior to their maturity date and therefore, such loans became repayable by us in cash at such
time. We did not timely repay such loans due to financial difficulties and therefore, we are currently in default under those convertible
loan agreements. As of December 31, 2022, we have recorded a liability in the amount of approximately $1.5 million (including principal
and interest) with respect to such convertible loans. For additional information, see Note 8 to the audited consolidated financial statements
for the year ended December 31, 2022 included elsewhere in this annual report on Form 20-F.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><div><a id="a_017"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>ITEM 14. Material Modifications to the Rights
of Security Holders and Use of Proceeds.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Not applicable.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><div><a id="a_018"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>ITEM 15. Controls and Procedures </b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)&#160;<b><i>Disclosure
Controls and Procedures</i></b>. Our disclosure controls and procedures are designed to provide reasonable assurance that information
required to be disclosed by us in the reports that we file or submit under the Exchange Act is accumulated and communicated to our management,
including our principal executive officer and principal financial officer, as appropriate, to allow for timely decisions regarding required
disclosure, and that such information is recorded, processed, summarized and reported, within the time periods specified in the SEC&#8217;s
rules and forms.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our management, under the
supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of
our disclosure controls and procedures as of December 31, 2022, pursuant to Rule 13a-15 under the Exchange Act. Based upon this evaluation,
our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were not effective as of
December 31, 2022 as a result of the material weaknesses identified in our internal control over financial reporting. These material weaknesses
are discussed in &#8220;Report of Management on Internal Control over Financial Reporting&#8221; below. Our management considers our internal
control over financial reporting to be an integral part of our disclosure controls and procedures.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)&#160;<b><i>Report of Management
on Internal Control over Financial Reporting</i></b>. Our management is responsible for establishing and maintaining adequate internal
control over our financial reporting. Our management assessed the effectiveness of our internal control over financial reporting as of
December 31, 2022. In making our assessment, our management used the criteria established in Internal Control&#8212;Integrated Framework
(2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). A material weakness, as defined by SEC rules,
is a control deficiency, or combination of control deficiencies, such that there is a reasonable possibility that a material misstatement
of the annual or interim financial statements will not be prevented or detected on a timely basis.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Based on such assessment,
management has concluded that, as of December 31, 2022, our internal control over financial reporting is ineffective due to <span>(among
other things) </span>the following material weaknesses : (i) significant parts of entity level controls are missing, (ii) lack of segregation
of duties, (iii) controls&#8217; effectiveness testing was predominantly not performed, among other things due to nonperformance of controls
or absence of evidence for controls&#8217; performance, and (iv) non-remediation of material weaknesses identified in prior years.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Due to lack of resources,
during 2022, as in previous years, we were unable to implement in any material respect our remediation plans for the material weaknesses
identified in prior years. We intend to take appropriate and reasonable steps to make the necessary improvements to remediate these deficiencies,
provided that we have the resources to implement them.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(c)&#160;<b><i>Changes in
Internal Control over Financial Reporting</i></b>. There were no changes in our internal control over financial reporting that occurred
during the year ended December 31, 2022 that have materially affected, or are reasonably likely to materially affect, our internal control
over financial reporting.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><div><a id="a_019"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>ITEM 16. [RESERVED]</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><div><a id="a_020"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>ITEM 16A. Audit Committee Financial Expert.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our board has determined that
Ms. Orly Solomon, who serves as the chair of our audit committee, is an audit committee financial expert, as defined by the SEC rules,&#160;and
has the requisite financial sophistication as defined by the Nasdaq Listing Rules. Ms.&#160;Solomon is an independent director as such
term is defined in&#160;Rule&#160;10A-3(b)(1)&#160;under the Exchange Act and under the Nasdaq Listing Rules. For Ms.&#160;Solomon&#8217;s
relevant experience, see &#8220;Item&#160;6 A.&#160;&#8212;&#160;Directors and Senior Management&#8221;.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 92; Value: 43 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->88<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><div><a id="a_021"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>ITEM 16B. Code of Ethics.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We have adopted a Code of
Business Conduct and Ethics applicable to all of our directors and employees, including our Chief Executive Officer, Chief Technology
Officer, Chief Financial Officer, controller or principal accounting officer or other persons performing similar functions, which is a
&#8220;code of ethics&#8221; as defined in Item 16B of Form 20-F promulgated by the SEC. Section 406(c) of the Sarbanes-Oxley Act provides
that a &#8220;code of ethics&#8221; means such standards as are reasonably necessary to promote (i) honest and ethical conduct, including
the ethical handling of actual or apparent conflicts of interest between personal and professional relationships; (ii) full, fair, accurate,
timely and understandable disclosure in the periodic reports required to be filed by the issuer; and (iii) compliance with applicable
governmental rules and regulation.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The full text of the Code
of Business Conduct and Ethics is posted on our website at www.pvnanocell.com. Information contained on, or that can be accessed through,
our website does not constitute a part of this annual report on Form 20-F and is not incorporated by reference herein. We will provide
a copy of such Code of Business Conduct and Ethics without charge upon request by mail or by telephone. If we make any amendment to the
Code of Business Conduct and Ethics or grant any waivers, including any implicit waiver, from a provision of the Code of Business Conduct
and Ethics, we will disclose the nature of such amendment or waiver on our website to the extent required by the rules and regulations
of the SEC.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><div><a id="a_022"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>ITEM 16C. Principal Accountant Fees and Services.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On April 7, 2022, our shareholders
approved the appointment of Ilanit Halperin, CPA (&#8220;Halperin&#8221;) as our independent registered public accountants for the fiscal
years ended December 31, 2020 and 2021. On April 14, 2023, our shareholders approved the appointment of Ziv Haft (BDO Member Firm) (&#8220;BDO&#8221;)
as our independent registered public accounting firm for the year ended December 31, 2022.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following table presents
the aggregate fees by categories specified below for professional services rendered by Halperin as our independent registered public accountants
for the year ended December 31, 2021 and by BDO as our independent registered public accounting firm for the year ended December 31, 2022.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Year ended<br/> December&#160;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; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">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="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</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: 76%; text-align: left; text-indent: -9pt; padding-left: 9pt">Audit Fees</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">135,000</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">95,000</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Tax 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">20,000</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">20,000</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="padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Total</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">155,000</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">115,000</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>Audit fees</i>. Consist
of aggregate fees for the audit of our annual consolidated financial statements. This category also includes services that the independent
accountant generally provides, such as consents, assistance with, and review of documents filed with the SEC (as applicable).&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><i>Tax fees</i>. Consist of
aggregate fees for professional services to be rendered by our independent registered public accounting firm for tax compliance and tax
advice on actual or contemplated transactions.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Audit Committee Pre-Approval Policies and Procedures</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our audit committee provides
assistance to our board of directors in fulfilling its legal and fiduciary obligations in matters involving our accounting, auditing,
financial reporting, internal control and legal compliance functions by pre-approving the services performed by our independent accountants
and reviewing their reports regarding our accounting practices and systems of internal control over financial reporting. Our audit committee
also oversees the audit efforts of our independent accountants and takes those actions that it deems necessary to satisfy itself that
the accountants are independent of management. Our audit committee authorized all auditing and non-auditing services provided by Halperin
during 2021 and BDO during 2022 and the fees for such services.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><div><a id="a_023"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>ITEM 16D. Exemptions from the Listing Standards
for Audit Committees.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Not applicable.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 93; Value: 43 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->89<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><div><a id="a_024"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>ITEM 16E. Purchases of Equity Securities by
the Issuer and Affiliated Purchasers.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Not applicable.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><div><a id="a_025"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>ITEM 16F. Change in Registrant&#8217;s Certifying
Accountant.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">At the Company&#8217;s annual
general meeting of the shareholders held on April 7, 2022, the Company&#8217;s auditor, Halperin, was appointed to serve as the Company&#8217;s
independent auditor with respect to the audit of the Company&#8217;s financial statements for the years ended December 31, 2021 and 2020.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In February 2023, each of
our Audit Committee and Board of Directors approved the appointment of BDO as the Company&#8217;s independent auditors to audit our consolidated
financial statements for the year ended December 31, 2022 and for such additional period until the annual general meeting of shareholders
to be held on or prior to December 31, 2023. The approval of the appointment of BDO by our Audit Committee and Board of Directors was
made after an evaluation process and consideration by the Company. The Company&#8217;s decision to make this change was not the result
of any disagreement between the Company and Halperin on any matter of accounting principles or practices, financial statement disclosure,
or auditing scope or procedure. On April 14, 2023, the Company&#8217;s shareholders ratified and approved the appointment of BDO as the
Company&#8217;s independent auditors for the audit of our consolidated financial statements for the year ended December 31, 2022 and for
such additional period until the next annual general meeting of shareholders.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The reports of Halperin on
our consolidated financial statements as of and for the years ended December 31, 2021, and 2020 did not contain an adverse opinion or
a disclaimer of opinion, and were not qualified or modified as to uncertainty, audit scope or accounting principles, except that the audit
report on the consolidated financial statements of the Company for the years ended December 31, 2021 and 2020 contained an uncertainty
about the Company's ability to continue as a&#160;going&#160;concern.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During the years ended December
31, 2021, and 2020, there were no disagreements with Halperin on any matter of accounting principles or practices, financial statement
disclosure, or auditing scope or procedure, which disagreements, if not resolved to Halperin satisfaction, would have caused Halperin
make reference to the subject matter thereof in connection with its reports for such years.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We provided Halperin with
a copy of this annual report and requested a letter addressed to the SEC indicating whether or not it agrees with the above disclosures.
A copy of Halperin CPA&#8217;s letter dated May 15, 2023 is attached as Exhibit <span>4.18 to this annual
report</span>.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During the two fiscal years
ended December 31, 2021 and 2020, and through the subsequent interim period to April 14, 2023, neither the Company nor anyone on its behalf
consulted BDO with respect to either (i) the application of accounting principles to a specified transaction, either completed or proposed;
or the type of audit opinion that might be rendered on the Company&#8217;s consolidated financial statements, and neither a written report
nor oral advice was provided to the Company that BDO concluded was an important factor considered by the Company in reaching a decision
as to any accounting, auditing or financial reporting issue; or (ii) any matter that was either the subject of a disagreement with Halperin
(as described in Item 16F(a)(1)(iv) of Form 20-F and the related instructions to Item 16F) or a reportable event (as described in Item
16F(a)(1)(v) of Form 20-F).</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><div><a id="a_026"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>ITEM 16G. Corporate Governance.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Not applicable.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><div><a id="a_027"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>ITEM 16H. Mine Safety Disclosure.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Not applicable.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><div><a id="a_028"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>ITEM 16I. Disclosure Regarding Foreign Jurisdictions
That Prevent Inspections.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Not applicable.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><div><a id="m_001"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>ITEM 16J. Insider Trading Policy.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Not applicable.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 94; Value: 43 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->90<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><div><a id="a_030"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>PART III</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><div><a id="a_031"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>ITEM 17. Financial Statements</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Not Applicable.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><div><a id="a_032"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>ITEM 18. Financial Statements.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Please refer to the consolidated
financial statements beginning on page F-1. The following consolidated financial statements, its schedules and related notes are filed
as part of this annual report on Form 20-F.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p><div>

</div><!-- Field: Page; Sequence: 95; Value: 43 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->91<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>P.V. NANO CELL LTD. AND ITS SUBSIDIARIES </b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>CONSOLIDATED FINANCIAL STATEMENTS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>AS OF DECEMBER 31, 2022</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>IN U.S. DOLLARS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>INDEX</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>&#160;</b></p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: bottom">
    <td style="width: 89%">&#160;</td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 10%; border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Page</b></span></td></tr>
  <tr style="vertical-align: bottom">
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td><a href="#f_001"><span style="font-size: 10pt"><b>Report of Independent Registered Public Accounting Firm  (PCAOB ID#1185)</b></span></a></td>
    <td>&#160;</td>
    <td style="text-align: center"><span style="font-size: 10pt"><b>F-2</b></span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td><a href="#f_002"><span style="font-size: 10pt"><b>Report of Independent Registered Public Accounting Firm  (PCAOB ID#650100001)</b></span></a></td>
    <td>&#160;</td>
    <td style="text-align: center"><span style="font-size: 10pt"><b>F-3</b></span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td><a href="#f_003"><span style="font-size: 10pt"><b>Consolidated Balance Sheets</b></span></a></td>
    <td>&#160;</td>
    <td style="text-align: center"><span style="font-size: 10pt"><b>F-4</b></span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td><a href="#f_004"><span style="font-size: 10pt"><b>Consolidated Statements of Comprehensive loss</b></span></a></td>
    <td>&#160;</td>
    <td style="text-align: center"><span style="font-size: 10pt"><b>F-5</b></span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td><a href="#f_005"><span style="font-size: 10pt"><b>Consolidated Statements of Shareholders&#8217; Deficit</b></span></a></td>
    <td>&#160;</td>
    <td style="text-align: center"><span style="font-size: 10pt"><b>F-6</b></span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td><a href="#f_006"><span style="font-size: 10pt"><b>Consolidated Statements of Cash Flows</b></span></a></td>
    <td>&#160;</td>
    <td style="text-align: center"><span style="font-size: 10pt"><b>F-7</b></span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td><a href="#f_007"><span style="font-size: 10pt"><b>Notes to Consolidated Financial Statements</b></span></a></td>
    <td>&#160;</td>
    <td style="text-align: center"><span style="font-size: 10pt"><b>F-8</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">- - - - - - - - - - - - - -</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><!-- Field: Page; Sequence: 96; Options: NewSection --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->1<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><img alt="" src="image_002.jpg"/>&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><div><a id="f_001"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Shareholders and Board of Directors</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">P.V. Nano Cell Ltd,</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Migdal Ha&#8217;Emek, Israel.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Opinion on the Consolidated Financial Statements</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span>We have
audited the accompanying consolidated balance sheet of P.V. Nano Cell Ltd. (the &#8220;Group&#8221;) as of December 31, 2022 and the related
consolidated statements of comprehensive loss, stockholders&#8217; deficit, and cash flows for the year ended December 31, 2022 and 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, 2022 and the results of its operations
and its cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America</span>.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Substantial Doubt About the Group&#8217;s Ability
to Continue as a Going Concern</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span>The
accompanying consolidated financial statements have been prepared assuming that the Group will continue as a going concern. As
described in Note 1.b to the consolidated financial statements, the Group has suffered recurring losses, negative cash flows from
operations since inception and is in default in repayments of its convertible notes and does not have sufficient capital to repay
such obligations which are currently due. These factors raise substantial doubt about the Company&#8217;s ability to continue as a
going concern. Management&#8217;s evaluation of the events and conditions and management&#8217;s plans regarding these matters are
also described in Note 1.b. The consolidated financial statements do not include any adjustments that might result from the outcome
of this uncertainty. Our opinion is not modified with respect to this matter.</span></p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Basis for Opinion</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">These consolidated financial
statements are the responsibility of the Group&#8217;s management. Our responsibility is to express an opinion on the Group&#8217;s consolidated
financial statements based on our audits. We are a public accounting firm registered with the Public Group Accounting Oversight Board
(United States) (&#8220;PCAOB&#8221;) 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.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">We conducted our audit
in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Group is not
required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit, we
are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion
on the effectiveness of the Group&#8217;s internal control over financial reporting. Accordingly, we express no such opinion.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">Our audit 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 audit 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 audit
provides a reasonable basis for our opinion.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Critical Audit Matters&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span>Critical
audit matters are matters arising from the current period audit of the consolidated financial statements that were communicated or required
to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the consolidated financial
statements and (2) involved our especially challenging, subjective, or complex judgments. We determined that there are no critical audit
matters.</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">/s/ Ziv Haft</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Certified Public Accountants (Isr.)</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We have served as the Group&#8217;s auditor since 2023</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">PCAOB ID 1185</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Tel Aviv, Israel</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">May 15, 2023</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><img alt="" src="image_003.jpg"/>&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><!-- Field: Page; Sequence: 97 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->2<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"><img alt="" src="image_001.jpg" style="height: 136px; width: 300px"/>&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><div><a id="f_002"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: center; text-indent: -56.7pt"><b>REPORT OF INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: center; text-indent: -56.7pt"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: center; text-indent: -56.7pt"><b>To the Shareholders
and the Board of Directors of</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: center; text-indent: -56.7pt"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>P.V. NANO CELL LTD.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Opinion on the Financial Statements </b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span>We have
audited the accompanying consolidated balance sheet of P.V. Nano Cell Ltd. and its subsidiaries (the Company) as of December 31, 2021,
the related consolidated statements of comprehensive loss, shareholders&#8217; equity (deficit), and cash flows, for each of the two years
in the period ended December 31, 2021, and 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
at December 31, 2021, and the results of its operations and its cash flows for each of the two years in the period ended December 31,
2021, in conformity with U.S. generally accepted accounting principle</span>s.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>The Company&#8217;s Ability to Continue as
a Going Concern </b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span>The accompanying
consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note
1.b. to the financial statements, the Company has suffered recurring losses from operations, has a working capital deficiency, and has
stated that substantial doubt exists about the Company&#8217;s ability to continue as a going concern. Management&#8217;s evaluation of
the events and conditions and management&#8217;s plans regarding these matters are also described in Note 1.b. The consolidated financial
statements do not include any adjustments that might result from the outcome of this uncertainty</span>.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Basis for Opinion</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">These financial statements
are the responsibility of the <span>Company</span>&#8217;s management. Our&#160;responsibility is to express
an opinion on the&#160;<span>Company</span>&#8217;s 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 <span>Company</span> in accordance with the U.S. federal securities laws and the applicable
rules and regulations of the Securities and Exchange Commission and the PCAOB.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">We conducted our audits
in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement, whether due to error or fraud. The <span>Company</span>
is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits
we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion
on the effectiveness of the <span>Company</span>&#8217;s internal control over financial reporting. Accordingly,
we express no such opinion.</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; ">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">Our&#160;audits
included performing procedures to assess the risks of material misstatement of the 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 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 financial statements. We believe that our audits provide a reasonable
basis for our opinion.&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">/s/ <ix:nonNumeric contextRef="c0" name="dei:AuditorName">Halperin Ilanit</ix:nonNumeric>.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Certified Public Accountants (Isr.)</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span>PCAOB number&#160;<ix:nonNumeric contextRef="c0" name="dei:AuditorFirmId">650100001</ix:nonNumeric></span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><ix:nonNumeric contextRef="c0" name="dei:AuditorLocation">Tel Aviv, Israel</ix:nonNumeric></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">June 21, 2022</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We have served as the <span>Company</span>&#8217;s
auditor since 2022 to 2023</p><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><img alt="" src="image_004.jpg"/>&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><!-- Field: Page; Sequence: 98 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->3<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-size: 4pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><b>P.V. NANO CELL LTD. AND ITS SUBSIDIARIES</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><span style="font-size: 7pt">&#160;</span></p><div>

</div><div><a id="f_003"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; border-bottom: black 1.5pt solid"><b>CONSOLIDATED BALANCE SHEETS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>U.S. dollars</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-size: 7pt">&#160;</span></p><div>

</div><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">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="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">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="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="font-weight: bold; text-align: center">ASSETS</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 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 style="vertical-align: bottom">
    <td style="font-weight: bold">CURRENT ASSETS:</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 style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%; text-indent: -9pt; padding-left: 0.25in">Cash</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashEquivalentsAtCarryingValue" scale="0" unitRef="usd">362,609</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashEquivalentsAtCarryingValue" scale="0" unitRef="usd">19,437</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -9pt; padding-left: 0.25in">Restricted cash</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RestrictedCashAndCashEquivalents" scale="0" unitRef="usd">4,984</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 contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RestrictedCashAndCashEquivalents" scale="0" unitRef="usd">5,627</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; text-indent: -9pt; padding-left: 0.25in">Accounts receivable, net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccountsReceivableNetCurrent" scale="0" unitRef="usd">110,687</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 contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccountsReceivableNetCurrent" scale="0" unitRef="usd">46,613</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -9pt; padding-left: 0.25in">Other current assets</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherAssetsCurrent" scale="0" unitRef="usd">230,319</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 contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherAssetsCurrent" scale="0" unitRef="usd">252,790</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; text-indent: -9pt; padding-left: 0.25in">Inventory, 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 contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:InventoryNet" scale="0" unitRef="usd">38,730</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 contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:InventoryNet" scale="0" unitRef="usd">68,421</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -9pt; padding-left: 9pt">&#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: rgb(204,238,255)">
    <td style="font-weight: bold; text-decoration: underline; text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Total current assets</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 contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AssetsCurrent" scale="0" unitRef="usd">747,329</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 contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AssetsCurrent" scale="0" unitRef="usd">392,888</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -9pt; padding-left: 9pt">&#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: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left; text-indent: -9pt; padding-left: 9pt">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 style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -9pt; padding-left: 0.25in">Property and equipment, net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PropertyPlantAndEquipmentNet" scale="0" unitRef="usd">125,548</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 contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PropertyPlantAndEquipmentNet" scale="0" unitRef="usd">91,658</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; text-indent: -9pt; padding-left: 0.25in">Intangible asset, net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-1">&#8212;</div></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 contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IntangibleAssetsNetExcludingGoodwill" scale="0" unitRef="usd">2,536,548</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -9pt; padding-left: 0.25in">Goodwill</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Goodwill" scale="0" unitRef="usd">3,026,036</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 contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Goodwill" scale="0" unitRef="usd">3,026,036</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; text-indent: -9pt; padding-left: 0.25in">Right of use asset</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 contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FinanceLeaseRightOfUseAsset" scale="0" unitRef="usd">135,107</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"><div style="-sec-ix-hidden: hidden-fact-2">&#8212;</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -9pt; padding-left: 9pt">&#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: rgb(204,238,255)">
    <td style="font-weight: bold; text-decoration: underline; text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Total non-current assets</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 contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AssetsNoncurrent" scale="0" unitRef="usd">3,286,691</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 contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AssetsNoncurrent" scale="0" unitRef="usd">5,654,242</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -9pt; padding-left: 9pt">&#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: rgb(204,238,255)">
    <td style="font-weight: bold; text-decoration: underline; text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Total assets</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 contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Assets" scale="0" unitRef="usd">4,034,020</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 contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Assets" scale="0" unitRef="usd">6,047,130</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -9pt; padding-left: 9pt">&#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: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: center; text-indent: -9pt; padding-left: 9pt">LIABILITIES AND SHAREHOLDERS&#8217; DEFICIT</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; ">
    <td style="text-indent: -9pt; padding-left: 9pt">&#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: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left; text-indent: -9pt; padding-left: 9pt">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 style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -9pt; padding-left: 0.25in">Short term bank credit</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-3">&#8212;</div></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 contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ShortTermBankLoansAndNotesPayable" scale="0" unitRef="usd">69,877</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; text-indent: -9pt; padding-left: 0.25in">Short term loans</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-4">&#8212;</div></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 contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherShortTermBorrowings" scale="0" unitRef="usd">234,004</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -9pt; padding-left: 0.25in">Trade payables</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccountsPayableCurrent" scale="0" unitRef="usd">508,716</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 contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccountsPayableCurrent" scale="0" unitRef="usd">626,271</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; text-indent: -9pt; padding-left: 0.25in">Employees and payroll accruals</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:EmployeeRelatedLiabilitiesCurrent" scale="0" unitRef="usd">694,709</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 contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:EmployeeRelatedLiabilitiesCurrent" scale="0" unitRef="usd">1,184,185</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -9pt; padding-left: 0.25in">Accrued expenses and other current liabilities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccountsPayableAndOtherAccruedLiabilitiesCurrent" scale="0" unitRef="usd">2,577,711</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 contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccountsPayableAndOtherAccruedLiabilitiesCurrent" scale="0" unitRef="usd">2,782,888</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; text-indent: -9pt; padding-left: 0.25in">Convertible loans</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ConvertibleDebtCurrent" scale="0" unitRef="usd">1,470,213</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 contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ConvertibleDebtCurrent" scale="0" unitRef="usd">1,637,577</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -9pt; padding-left: 0.25in">Warrants presented at fair value</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-5">&#8212;</div></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 contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:WarrantsPresentedAtFairCurrent" scale="0" sign="-" unitRef="usd">17,296</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; text-indent: -9pt; padding-left: 0.25in">Current maturity of lease liability</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 contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingLeaseLiabilityCurrent" scale="0" unitRef="usd">60,071</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"><div style="-sec-ix-hidden: hidden-fact-6">&#8212;</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -9pt; padding-left: 9pt">&#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: rgb(204,238,255)">
    <td style="font-weight: bold; text-decoration: underline; text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Total current 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 contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LiabilitiesCurrent" scale="0" unitRef="usd">5,311,420</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 contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LiabilitiesCurrent" scale="0" unitRef="usd">6,552,098</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -9pt; padding-left: 9pt">&#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: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left; text-indent: -9pt; padding-left: 9pt">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 style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -9pt; padding-left: 0.25in">Capital note</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:CapitalNote" scale="0" unitRef="usd">40,000</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 contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:CapitalNote" scale="0" unitRef="usd">40,000</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; text-indent: -9pt; padding-left: 0.25in">Warrants presented at fair value</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:WarrantsPresentedAtFairValue" scale="0" unitRef="usd">15,459</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 contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:WarrantsPresentedAtFairValue" scale="0" unitRef="usd">89,679</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -9pt; padding-left: 0.25in">Israel Innovation Authority</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-7">&#8212;</div></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 contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:NationalAuthorityForTechnologyAndInnovations" scale="0" sign="-" unitRef="usd">381,216</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; text-indent: -9pt; padding-left: 0.25in">Lease liability, net of current maturity</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 contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingLeaseLiabilityNoncurrent" scale="0" unitRef="usd">75,036</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"><div style="-sec-ix-hidden: hidden-fact-8">&#8212;</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -9pt; padding-left: 9pt">&#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: rgb(204,238,255)">
    <td style="font-weight: bold; text-decoration: underline; text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Total non-current 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 contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LiabilitiesNoncurrent" scale="0" unitRef="usd">130,495</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 contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LiabilitiesNoncurrent" scale="0" unitRef="usd">510,895</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -9pt; padding-left: 9pt">&#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: rgb(204,238,255)">
    <td style="font-weight: bold; text-decoration: underline; text-align: left; text-indent: -9pt; padding-left: 9pt">Total liabilities</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 contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Liabilities" scale="0" unitRef="usd">5,441,915</ix:nonFraction></td><td style="font-weight: bold; text-align: left">&#160;</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 contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Liabilities" scale="0" unitRef="usd">7,062,993</ix:nonFraction></td><td style="font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -9pt; padding-left: 9pt">&#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: rgb(204,238,255)">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt"><b><span style="text-decoration:underline">Commitment and Contingencies (Note 9)</span></b></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-9">&#160;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-10">&#160;</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -9pt; padding-left: 9pt">&#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: rgb(204,238,255)">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">SHAREHOLDERS&#8217; DEFICIT:</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; ">
    <td style="text-indent: -9pt; padding-left: 0.25in">Ordinary shares of NIS <ix:nonFraction contextRef="c2" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:CommonStockParOrStatedValuePerShare" scale="0" unitRef="ilsPershares"><ix:nonFraction contextRef="c3" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:CommonStockParOrStatedValuePerShare" scale="0" unitRef="ilsPershares">0.01</ix:nonFraction></ix:nonFraction> par value - Authorized: <ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CommonStockSharesAuthorized" scale="0" unitRef="shares"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CommonStockSharesAuthorized" scale="0" unitRef="shares">1,200,000,000</ix:nonFraction></ix:nonFraction> as of December 31, 2022 and 2021, respectively; Issued and outstanding: <ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CommonStockSharesIssued" scale="0" unitRef="shares"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CommonStockSharesOutstanding" scale="0" unitRef="shares">147,134,792</ix:nonFraction></ix:nonFraction> and <ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CommonStockSharesIssued" scale="0" unitRef="shares"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CommonStockSharesOutstanding" scale="0" unitRef="shares">90,205,191</ix:nonFraction></ix:nonFraction> ordinary shares as of December 31, 2022 and 2021, respectively</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CommonStockValue" scale="0" unitRef="usd">441,590</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 contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CommonStockValue" scale="0" unitRef="usd">270,750</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; text-indent: -9pt; padding-left: 0.25in">Additional paid in capital</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdditionalPaidInCapital" scale="0" unitRef="usd">38,856,908</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 contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdditionalPaidInCapital" scale="0" unitRef="usd">34,910,233</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -9pt; padding-left: 0.25in">Treasury stocks</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:TreasuryStockValue" scale="0" unitRef="usd">122,482</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 contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:TreasuryStockValue" scale="0" unitRef="usd">122,482</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; text-indent: -9pt; padding-left: 0.25in">Accumulated deficit</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 contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RetainedEarningsAccumulatedDeficit" scale="0" sign="-" unitRef="usd">40,583,911</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 contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RetainedEarningsAccumulatedDeficit" scale="0" sign="-" unitRef="usd">36,074,364</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -9pt; padding-left: 9pt">&#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: rgb(204,238,255)">
    <td style="font-weight: bold; text-decoration: underline; text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Total shareholders&#8217; deficit</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 contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" sign="-" unitRef="usd">1,407,895</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</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 contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest" scale="0" sign="-" unitRef="usd">1,015,863</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -9pt; padding-left: 9pt">&#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: rgb(204,238,255)">
    <td style="font-weight: bold; text-decoration: underline; text-align: left; padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Total liabilities and shareholders&#8217; deficit</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LiabilitiesAndStockholdersEquity" scale="0" unitRef="usd">4,034,020</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LiabilitiesAndStockholdersEquity" scale="0" unitRef="usd">6,047,130</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td></tr>
  </table><div>


</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-size: 7pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>The accompanying notes are an integral part
of the consolidated financial statements.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><span style="font-size: 4pt">&#160;</span></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><!-- Field: Page; Sequence: 99 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->4<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><b>P.V. NANO CELL LTD. AND ITS SUBSIDIARIES</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><div><a id="f_004"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; border-bottom: black 1.5pt solid"><b>CONSOLIDATED STATEMENTS OF COMPREHENSIVE
LOSS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>U.S. dollars</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>&#160;</b></p><div>

</div><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="10" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">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="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">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="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</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="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</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" 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 style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 64%; text-indent: -9pt; padding-left: 9pt">Revenues</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RevenueFromContractWithCustomerIncludingAssessedTax" scale="0" unitRef="usd">603,359</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RevenueFromContractWithCustomerIncludingAssessedTax" scale="0" unitRef="usd">568,704</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RevenueFromContractWithCustomerIncludingAssessedTax" scale="0" unitRef="usd">761,319</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -9pt; padding-left: 9pt">&#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: rgb(204,238,255)">
    <td style="text-indent: -9pt; padding-left: 9pt">Cost of revenues</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CostOfRevenue" scale="0" unitRef="usd">375,877</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 contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CostOfRevenue" scale="0" unitRef="usd">271,817</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 contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CostOfRevenue" scale="0" unitRef="usd">307,713</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Amortization of intangible 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 contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:AmortizationOfIntangible" scale="0" unitRef="usd">428,431</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 contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:AmortizationOfIntangible" scale="0" unitRef="usd">428,431</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 contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:AmortizationOfIntangible" scale="0" unitRef="usd">428,434</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 style="text-indent: -9pt; padding-left: 9pt">&#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; ">
    <td style="font-weight: bold; text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Gross loss (profit)</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 contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:GrossProfit" scale="0" sign="-" unitRef="usd">200,949</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 contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:GrossProfit" scale="0" sign="-" unitRef="usd">131,544</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 contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:GrossProfit" scale="0" unitRef="usd">25,172</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -9pt; padding-left: 9pt">&#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; ">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Operating expenses:</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: rgb(204,238,255)">
    <td style="text-indent: -9pt; padding-left: 9pt">&#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; ">
    <td style="text-align: left; text-indent: -9pt; padding-left: 0.25in">Research and development</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ResearchAndDevelopmentInProcess" scale="0" unitRef="usd">705,646</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 contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ResearchAndDevelopmentInProcess" scale="0" unitRef="usd">783,665</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 contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ResearchAndDevelopmentInProcess" scale="0" unitRef="usd">926,697</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; text-indent: -9pt; padding-left: 0.25in">Less - research and development grants</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 contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:ResearchAndDevelopmentGrants" scale="0" unitRef="usd">437,045</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 contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:ResearchAndDevelopmentGrants" scale="0" unitRef="usd">315,967</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 contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:ResearchAndDevelopmentGrants" scale="0" unitRef="usd">525,838</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -9pt; padding-left: 0.25in">Research and development, net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ResearchAndDevelopmentExpense" scale="0" unitRef="usd">268,601</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 contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ResearchAndDevelopmentExpense" scale="0" unitRef="usd">467,698</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 contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ResearchAndDevelopmentExpense" scale="0" unitRef="usd">400,859</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; text-indent: -9pt; padding-left: 0.25in">Sales and marketing</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:SellingAndMarketingExpense" scale="0" unitRef="usd">566,896</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 contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:SellingAndMarketingExpense" scale="0" unitRef="usd">625,031</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 contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:SellingAndMarketingExpense" scale="0" unitRef="usd">673,986</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -9pt; padding-left: 0.25in">General and administrative</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:GeneralAndAdministrativeExpense" scale="0" unitRef="usd">1,893,179</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 contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:GeneralAndAdministrativeExpense" scale="0" unitRef="usd">1,345,495</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 contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:GeneralAndAdministrativeExpense" scale="0" unitRef="usd">1,414,370</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; text-indent: -9pt; padding-left: 0.25in">Goodwill impairment</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-11">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-12">&#8212;</div></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 contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:GoodwillAndIntangibleAssetImpairment" scale="0" unitRef="usd">265,089</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 0.25in">Intangible asset impairment</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 contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ImpairmentOfIntangibleAssetsIndefinitelivedExcludingGoodwill" scale="0" unitRef="usd">2,108,117</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"><div style="-sec-ix-hidden: hidden-fact-13">&#8212;</div></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"><div style="-sec-ix-hidden: hidden-fact-14">&#8212;</div></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-indent: -9pt; padding-left: 9pt">&#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; ">
    <td style="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Total operating
    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"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingExpenses" scale="0" unitRef="usd">4,836,793</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 contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingExpenses" scale="0" unitRef="usd">2,438,224</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 contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingExpenses" scale="0" unitRef="usd">2,754,304</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 style="text-indent: -9pt; padding-left: 9pt">&#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; ">
    <td style="font-weight: bold; text-align: left; text-indent: -9pt; padding-left: 9pt">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 contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingIncomeLoss" scale="0" unitRef="usd">5,037,742</ix:nonFraction></td><td style="font-weight: bold; text-align: left">&#160;</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 contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingIncomeLoss" scale="0" unitRef="usd">2,569,768</ix:nonFraction></td><td style="font-weight: bold; text-align: left">&#160;</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 contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingIncomeLoss" scale="0" unitRef="usd">2,729,132</ix:nonFraction></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: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Financial expenses (income), net (Note 14)</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 contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NonoperatingIncomeExpense" scale="0" sign="-" unitRef="usd">528,195</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 contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NonoperatingIncomeExpense" scale="0" sign="-" unitRef="usd">50,904</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 contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NonoperatingIncomeExpense" scale="0" unitRef="usd">9,814,605</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -9pt; padding-left: 9pt">&#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: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left; padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Net loss</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLoss" scale="0" unitRef="usd">4,509,547</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLoss" scale="0" unitRef="usd">2,518,864</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLoss" scale="0" unitRef="usd">12,543,737</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -9pt; padding-left: 9pt">&#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: rgb(204,238,255)">
    <td style="text-indent: -9pt; padding-left: 9pt">Net loss per ordinary share:</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; ">
    <td style="text-align: left; padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt"><div style="-sec-ix-hidden: hidden-fact-17; -sec-ix-hidden: hidden-fact-16; -sec-ix-hidden: hidden-fact-15">Basic and diluted net loss per ordinary share</div></td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c0" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:EarningsPerShareBasic" scale="0" unitRef="usdPershares">0.03</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c4" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:EarningsPerShareBasic" scale="0" unitRef="usdPershares">0.06</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c5" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:EarningsPerShareBasic" scale="0" unitRef="usdPershares">0.49</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -9pt; padding-left: 9pt">&#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; ">
    <td style="text-align: left; padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt"><div style="-sec-ix-hidden: hidden-fact-20; -sec-ix-hidden: hidden-fact-19; -sec-ix-hidden: hidden-fact-18">Weighted average number of ordinary shares used in computing basic and diluted net loss per ordinary share</div></td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:WeightedAverageNumberOfSharesOutstandingBasic" scale="0" unitRef="shares">129,144,562</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:WeightedAverageNumberOfSharesOutstandingBasic" scale="0" unitRef="shares">44,453,153</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:WeightedAverageNumberOfSharesOutstandingBasic" scale="0" unitRef="shares">25,581,000</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>The accompanying notes are an integral part
of the consolidated financial statements.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><!-- Field: Page; Sequence: 100 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->5<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><b>P.V. NANO CELL LTD. AND ITS SUBSIDIARIES</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><div><a id="f_005"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; border-bottom: black 1.5pt solid"><b>CONSOLIDATED
STATEMENTS OF SHAREHOLDERS&#8217; DEFICIT</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>U.S. dollars </b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: center">&#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">Ordinary shares</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" 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><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 style="text-indent: -0.125in; padding-left: 0.125in; text-align: center">&#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/> ordinary<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="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">Additional<br/> paid-in <br/> Capital</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 0; text-align: center"><b>Treasury</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>stocks</b>&#160;</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">Accumulated<br/> deficit</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 style="text-indent: -0.125in; padding-left: 0.125in">&#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" 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" 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 style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in; width: 49%; font-weight: bold">Balance as of January 1, 2020</td><td style="width: 0.5%; font-weight: bold">&#160;</td>
    <td style="width: 0.5%; font-weight: bold; text-align: left">&#160;</td><td style="width: 7%; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:SharesOutstanding" scale="0" unitRef="shares">24,393,218</ix:nonFraction></td><td style="width: 0.5%; font-weight: bold; text-align: left">&#160;</td><td style="width: 0.5%; font-weight: bold">&#160;</td>
    <td style="width: 0.5%; font-weight: bold; text-align: left">$</td><td style="width: 7%; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c6" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquity" scale="0" unitRef="usd">65,842</ix:nonFraction></td><td style="width: 0.5%; font-weight: bold; text-align: left">&#160;</td><td style="width: 0.5%; font-weight: bold">&#160;</td>
    <td style="width: 0.5%; font-weight: bold; text-align: left">$</td><td style="width: 7%; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c7" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquity" scale="0" unitRef="usd">19,951,632</ix:nonFraction></td><td style="width: 0.5%; font-weight: bold; text-align: left">&#160;</td><td style="width: 0.5%">&#160;</td>
    <td style="width: 0.5%; text-align: left">$</td><td style="width: 7%; text-align: right"><div style="-sec-ix-hidden: hidden-fact-21">&#8212;</div></td><td style="width: 0.5%; text-align: left">&#160;</td><td style="width: 0.5%; font-weight: bold">&#160;</td>
    <td style="width: 0.5%; font-weight: bold; text-align: left">$</td><td style="width: 7%; font-weight: bold; text-align: right">(<ix:nonFraction contextRef="c9" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquity" scale="0" sign="-" unitRef="usd">21,011,763</ix:nonFraction></td><td style="width: 0.5%; font-weight: bold; text-align: left">)</td><td style="width: 0.5%; font-weight: bold">&#160;</td>
    <td style="width: 0.5%; font-weight: bold; text-align: left">$</td><td style="width: 7%; font-weight: bold; text-align: right">(<ix:nonFraction contextRef="c10" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquity" scale="0" sign="-" unitRef="usd">994,289</ix:nonFraction></td><td style="width: 0.5%; font-weight: bold; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in">&#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 style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Issuance of ordinary shares in connection with conversion of convertible loans</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c11" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:StockIssuedDuringPeriodSharesOrdinarySharesInConnectionWithConversionOfConvertibleLoans" scale="0" unitRef="shares">386,735</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 contextRef="c11" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:StockIssuedDuringPeriodValueOrdinarySharesInConnectionWithConversionOfConvertibleLoans" scale="0" unitRef="usd">1,111</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 contextRef="c12" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:StockIssuedDuringPeriodValueOrdinarySharesInConnectionWithConversionOfConvertibleLoans" scale="0" unitRef="usd">64,634</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"><div style="-sec-ix-hidden: hidden-fact-22">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-23">&#8212;</div></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 contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:StockIssuedDuringPeriodValueOrdinarySharesInConnectionWithConversionOfConvertibleLoans" scale="0" unitRef="usd">65,745</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Issuance of ordinary shares in connection with Professional service rendered</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c11" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:StockIssuedDuringPeriodSharesOrdinarySharesInConnectionWithProfessionalServiceRendered" scale="0" unitRef="shares">206,250</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"><ix:nonFraction contextRef="c11" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:StockIssuedDuringPeriodValueOrdinarySharesInConnectionWithProfessionalServiceRendered" scale="0" unitRef="usd">602</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 contextRef="c12" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:StockIssuedDuringPeriodValueOrdinarySharesInConnectionWithProfessionalServiceRendered" scale="0" unitRef="usd">33,443</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"><div style="-sec-ix-hidden: hidden-fact-24">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-25">&#8212;</div></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 contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:StockIssuedDuringPeriodValueOrdinarySharesInConnectionWithProfessionalServiceRendered" scale="0" unitRef="usd">34,045</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-indent: -0.125in; padding-left: 0.125in; text-align: left">Issuance of Ordinary Shares as a consideration for the Jet CU purchase</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c11" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodSharesAcquisitions" scale="0" unitRef="shares">2,000,000</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 contextRef="c11" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:IssuanceOfOrdinarySharesAsAConsiderationForTheJetCUPurchase" scale="0" unitRef="usd">5,848</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 contextRef="c12" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:IssuanceOfOrdinarySharesAsAConsiderationForTheJetCUPurchase" scale="0" unitRef="usd">218,352</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"><div style="-sec-ix-hidden: hidden-fact-26">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-27">&#8212;</div></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 contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:IssuanceOfOrdinarySharesAsAConsiderationForTheJetCUPurchase" scale="0" unitRef="usd">224,200</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Treasury stocks</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</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 contextRef="c13" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:TreasuryStockValueAcquiredParValueMethod" scale="0" unitRef="usd">122,482</ix:nonFraction></td><td style="text-align: left">)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-28">&#8212;</div></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 contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:TreasuryStockValueAcquiredParValueMethod" scale="0" unitRef="usd">122,482</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Stock based compensation</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</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 contextRef="c12" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueShareBasedCompensationGross" scale="0" unitRef="usd">464,773</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"><div style="-sec-ix-hidden: hidden-fact-29">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-30">&#8212;</div></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 contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueShareBasedCompensationGross" scale="0" unitRef="usd">464,773</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt">Net 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">&#8212;</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"><div style="-sec-ix-hidden: hidden-fact-31">&#8212;</div></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"><div style="-sec-ix-hidden: hidden-fact-32">&#8212;</div></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"><div style="-sec-ix-hidden: hidden-fact-33">&#8212;</div></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 contextRef="c14" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLoss" scale="0" unitRef="usd">12,543,737</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 contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLoss" scale="0" unitRef="usd">12,543,737</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-indent: -0.125in; padding-left: 0.125in">&#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 style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; font-weight: bold">Balance as of December 31, 2020</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 contextRef="c15" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:SharesOutstanding" scale="0" unitRef="shares">26,986,203</ix:nonFraction></td><td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right"><ix:nonFraction contextRef="c15" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquity" scale="0" unitRef="usd">73,403</ix:nonFraction></td><td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right"><ix:nonFraction contextRef="c16" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquity" scale="0" unitRef="usd">20,732,834</ix:nonFraction></td><td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">(<ix:nonFraction contextRef="c17" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquity" scale="0" sign="-" unitRef="usd">122,482</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">$</td><td style="font-weight: bold; text-align: right">(<ix:nonFraction contextRef="c18" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquity" scale="0" sign="-" unitRef="usd">33,555,500</ix:nonFraction></td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">(<ix:nonFraction contextRef="c19" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquity" scale="0" sign="-" unitRef="usd">12,871,745</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 style="text-indent: -0.125in; padding-left: 0.125in">&#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 style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Issuance of ordinary shares in connection with conversion of convertible loans</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c20" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:StockIssuedDuringPeriodSharesOrdinarySharesInConnectionWithConversionOfConvertibleLoans" scale="0" unitRef="shares">57,790,416</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 contextRef="c20" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:StockIssuedDuringPeriodValueOrdinarySharesInConnectionWithConversionOfConvertibleLoans" scale="0" unitRef="usd">180,399</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 contextRef="c21" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:StockIssuedDuringPeriodValueOrdinarySharesInConnectionWithConversionOfConvertibleLoans" scale="0" unitRef="usd">12,897,067</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"><div style="-sec-ix-hidden: hidden-fact-34">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-35">&#8212;</div></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 contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:StockIssuedDuringPeriodValueOrdinarySharesInConnectionWithConversionOfConvertibleLoans" scale="0" unitRef="usd">13,077,466</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-indent: -0.125in; padding-left: 0.125in; text-align: left">Issuance of additional ordinary shares to former Jet CU shareholders in return for forfeiting their related warrants</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c20" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodSharesOther" scale="0" unitRef="shares">5,428,572</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 contextRef="c20" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:IssuanceOfWarrantsClassifiedAsEquity" scale="0" unitRef="usd">16,948</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 contextRef="c21" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:IssuanceOfWarrantsClassifiedAsEquity" scale="0" unitRef="usd">471,959</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"><div style="-sec-ix-hidden: hidden-fact-36">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-37">&#8212;</div></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 contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:IssuanceOfWarrantsClassifiedAsEquity" scale="0" unitRef="usd">488,907</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Advance payment on the account of issuing ordinary shares</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-38">&#8212;</div></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 contextRef="c21" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueOther" scale="0" unitRef="usd">350,000</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"><div style="-sec-ix-hidden: hidden-fact-39">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-40">&#8212;</div></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 contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueOther" scale="0" unitRef="usd">350,000</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-indent: -0.125in; padding-left: 0.125in; text-align: left">Stock based compensation</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</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 contextRef="c21" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueShareBasedCompensationGross" scale="0" unitRef="usd">458,373</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"><div style="-sec-ix-hidden: hidden-fact-41">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-42">&#8212;</div></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 contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueShareBasedCompensationGross" scale="0" unitRef="usd">458,373</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt">Net 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">&#8212;</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">&#8212;</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"><div style="-sec-ix-hidden: hidden-fact-43">&#8212;</div></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"><div style="-sec-ix-hidden: hidden-fact-44">&#8212;</div></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 contextRef="c23" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLoss" scale="0" unitRef="usd">2,518,864</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 contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLoss" scale="0" unitRef="usd">2,518,864</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-indent: -0.125in; padding-left: 0.125in">&#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 style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; font-weight: bold">Balance as of December 31, 2021</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 contextRef="c24" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:SharesOutstanding" scale="0" unitRef="shares">90,205,191</ix:nonFraction></td><td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right"><ix:nonFraction contextRef="c24" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquity" scale="0" unitRef="usd">270,750</ix:nonFraction></td><td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right"><ix:nonFraction contextRef="c25" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquity" scale="0" unitRef="usd">34,910,233</ix:nonFraction></td><td style="font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">(<ix:nonFraction contextRef="c26" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquity" scale="0" sign="-" unitRef="usd">122,482</ix:nonFraction></td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold">&#160;</td>
    <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">(<ix:nonFraction contextRef="c27" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquity" scale="0" sign="-" unitRef="usd">36,074,364</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">$</td><td style="font-weight: bold; text-align: right">(<ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquity" scale="0" sign="-" unitRef="usd">1,015,863</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 style="text-indent: -0.125in; padding-left: 0.125in">&#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 style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Issuance of ordinary shares in connection with Professional service rendered</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:StockIssuedDuringPeriodSharesOrdinarySharesInConnectionWithProfessionalServiceRendered" scale="0" unitRef="shares">75,000</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 contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:StockIssuedDuringPeriodValueOrdinarySharesInConnectionWithProfessionalServiceRendered" scale="0" unitRef="usd">229</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 contextRef="c29" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:StockIssuedDuringPeriodValueOrdinarySharesInConnectionWithProfessionalServiceRendered" scale="0" unitRef="usd">6,521</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">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</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 contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:StockIssuedDuringPeriodValueOrdinarySharesInConnectionWithProfessionalServiceRendered" scale="0" unitRef="usd">6,750</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-indent: -0.125in; padding-left: 0.125in">Issuance of Ordinary Shares</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodSharesNewIssues" scale="0" unitRef="shares">56,854,601</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 contextRef="c28" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueNewIssues" scale="0" unitRef="usd">170,611</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 contextRef="c29" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueNewIssues" scale="0" unitRef="usd">3,459,212</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">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</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 contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueNewIssues" scale="0" unitRef="usd">3,629,823</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Stock based compensation</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#8212;</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 contextRef="c29" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueShareBasedCompensationGross" scale="0" unitRef="usd">480,942</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"><div style="-sec-ix-hidden: hidden-fact-45">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-46">&#8212;</div></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 contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueShareBasedCompensationGross" scale="0" unitRef="usd">480,941</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-indent: -0.125in; padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt">Net 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">&#8212;</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">&#8212;</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"><div style="-sec-ix-hidden: hidden-fact-47">&#8212;</div></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"><div style="-sec-ix-hidden: hidden-fact-48">&#8212;</div></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 contextRef="c31" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLoss" scale="0" unitRef="usd">4,509,547</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 contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLoss" scale="0" unitRef="usd">4,509,547</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -0.125in; padding-left: 0.125in">&#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 style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -0.125in; padding-left: 0.125in; font-weight: bold; padding-bottom: 4pt">Balance as of December 31, 2022</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c32" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:SharesOutstanding" scale="0" unitRef="shares">147,134,792</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c32" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquity" scale="0" unitRef="usd">441,590</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c33" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquity" scale="0" unitRef="usd">38,856,908</ix:nonFraction></td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">(<ix:nonFraction contextRef="c34" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquity" scale="0" sign="-" unitRef="usd">122,482</ix:nonFraction></td><td style="padding-bottom: 2pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">(<ix:nonFraction contextRef="c35" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquity" scale="0" sign="-" unitRef="usd">40,583,911</ix:nonFraction></td><td style="padding-bottom: 2pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">(<ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockholdersEquity" scale="0" sign="-" unitRef="usd">1,407,895</ix:nonFraction></td><td style="padding-bottom: 2pt; font-weight: bold; text-align: left">)</td></tr>
  </table><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>The accompanying notes are an integral part
of the consolidated financial statements.</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><!-- Field: Page; Sequence: 101 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->6<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 7pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><b>P.V. NANO CELL LTD. AND ITS SUBSIDIARIES</b></p><div>

</div><p style="font: 7pt Times New Roman, Times, Serif; margin: 0pt 0"><b>&#160;</b></p><div>

</div><div><a id="f_006"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; border-bottom: black 1.5pt solid"><b>CONSOLIDATED
STATEMENTS OF CASH FLOWS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>U.S. dollars </b></p><div>

</div><p style="font: 7pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 7pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="10" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">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="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">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="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</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="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="font-weight: bold">CASH FLOWS FROM OPERATING ACTIVITIES:</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" style="text-align: right">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 64%; text-align: left; text-indent: -9pt; padding-left: 9pt">Net loss</td><td style="width: 1%; font-weight: bold">&#160;</td>
    <td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 9%; font-weight: bold; text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProfitLoss" scale="0" sign="-" unitRef="usd">4,509,547</ix:nonFraction></td><td style="width: 1%; font-weight: bold; text-align: left">)</td><td style="width: 1%; font-weight: bold">&#160;</td>
    <td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 9%; font-weight: bold; text-align: right">(<ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProfitLoss" scale="0" sign="-" unitRef="usd">2,518,864</ix:nonFraction></td><td style="width: 1%; font-weight: bold; text-align: left">)</td><td style="width: 1%; font-weight: bold">&#160;</td>
    <td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 9%; font-weight: bold; text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProfitLoss" scale="0" sign="-" unitRef="usd">12,543,737</ix:nonFraction></td><td style="width: 1%; font-weight: bold; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: left; text-indent: -9pt; padding-left: 9pt">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 style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -9pt; padding-left: 9pt">Depreciation</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Depreciation" scale="0" unitRef="usd">59,278</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 contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Depreciation" scale="0" unitRef="usd">55,076</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 contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Depreciation" scale="0" unitRef="usd">63,095</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -9pt; padding-left: 9pt">Amortization</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdjustmentForAmortization" scale="0" unitRef="usd">428,431</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 contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdjustmentForAmortization" scale="0" unitRef="usd">428,431</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 contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdjustmentForAmortization" scale="0" unitRef="usd">428,434</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; text-indent: -9pt; padding-left: 9pt">Financial expenses in connection with convertible loans</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:FinancialExpensesInConnectionWithConvertibleLoans" scale="0" sign="-" unitRef="usd">167,364</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 contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:FinancialExpensesInConnectionWithConvertibleLoans" scale="0" unitRef="usd">7,892,632</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 contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:FinancialExpensesInConnectionWithConvertibleLoans" scale="0" unitRef="usd">2,597,476</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Interest in connection with short term loans</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:InterestExpenseShortTermBorrowings" scale="0" unitRef="usd">819</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 contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:InterestExpenseShortTermBorrowings" scale="0" unitRef="usd">4,004</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"><div style="-sec-ix-hidden: hidden-fact-49">&#8212;</div></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; text-indent: -9pt; padding-left: 9pt">Share-based compensation</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AllocatedShareBasedCompensationExpense" scale="0" unitRef="usd">480,942</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 contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AllocatedShareBasedCompensationExpense" scale="0" unitRef="usd">458,373</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 contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AllocatedShareBasedCompensationExpense" scale="0" unitRef="usd">464,773</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Restricted shares issued for services</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:RestrictedSharesIssuedForServices" scale="0" unitRef="usd">6,750</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"><div style="-sec-ix-hidden: hidden-fact-50">&#8212;</div></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 contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:RestrictedSharesIssuedForServices" scale="0" unitRef="usd">34,045</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; text-indent: -9pt; padding-left: 9pt">Goodwill impairment</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-51">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-52">&#8212;</div></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 contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:GoodwillAndIntangibleAssetImpairment" scale="0" unitRef="usd">265,089</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Intangible asset impairment</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ImpairmentOfIntangibleAssetsFinitelived" scale="0" unitRef="usd">2,108,117</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"><div style="-sec-ix-hidden: hidden-fact-53">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-54">&#8212;</div></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; text-indent: -9pt; padding-left: 9pt">Capital loss</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-55">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-56">&#8212;</div></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 contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:CapitalLoss" scale="0" unitRef="usd">43,216</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Change in fair value of warrants and capital note</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInOtherCurrentAssetsAndLiabilitiesNet" scale="0" unitRef="usd">91,516</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 contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInOtherCurrentAssetsAndLiabilitiesNet" scale="0" unitRef="usd">8,112,118</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 contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInOtherCurrentAssetsAndLiabilitiesNet" scale="0" sign="-" unitRef="usd">7,011,437</ix:nonFraction></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: left; text-indent: -9pt; padding-left: 9pt">Change 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 style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Change in accounts receivable, net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInAccountsReceivable" scale="0" unitRef="usd">64,074</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 contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInAccountsReceivable" scale="0" sign="-" unitRef="usd">152,754</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 contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInAccountsReceivable" scale="0" unitRef="usd">112,873</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; text-indent: -9pt; padding-left: 9pt">Change in other current assets</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInOtherCurrentAssets" scale="0" sign="-" unitRef="usd">22,471</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 contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInOtherCurrentAssets" scale="0" unitRef="usd">162,681</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 contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInOtherCurrentAssets" scale="0" sign="-" unitRef="usd">156,041</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Change in inventory, net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInInventories" scale="0" sign="-" unitRef="usd">29,691</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 contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInInventories" scale="0" sign="-" unitRef="usd">16,822</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 contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInInventories" scale="0" sign="-" unitRef="usd">17,539</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; text-indent: -9pt; padding-left: 9pt">Change in trade payables</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInAccountsPayableTrade" scale="0" sign="-" unitRef="usd">117,555</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 contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInAccountsPayableTrade" scale="0" unitRef="usd">14,142</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 contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInAccountsPayableTrade" scale="0" sign="-" unitRef="usd">171,463</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Change in employees and payroll accruals</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInEmployeeRelatedLiabilities" scale="0" sign="-" unitRef="usd">489,476</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 contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInEmployeeRelatedLiabilities" scale="0" unitRef="usd">433,313</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 contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInEmployeeRelatedLiabilities" scale="0" unitRef="usd">70,582</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; text-indent: -9pt; padding-left: 9pt">Change in accrued expenses and other current liabilities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInOtherAccruedLiabilities" scale="0" sign="-" unitRef="usd">586,393</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 contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInOtherAccruedLiabilities" scale="0" unitRef="usd">484,690</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 contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncreaseDecreaseInOtherAccruedLiabilities" scale="0" unitRef="usd">882,589</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Net cash used in operating activities</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 contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInOperatingActivities" scale="0" sign="-" unitRef="usd">2,889,426</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</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 contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInOperatingActivities" scale="0" sign="-" unitRef="usd">853,426</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</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 contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInOperatingActivities" scale="0" sign="-" unitRef="usd">793,757</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -9pt; padding-left: 9pt">&#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; ">
    <td style="font-weight: bold; text-align: left; text-indent: -9pt; padding-left: 9pt">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 style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Net cash acquired in acquisition of Jet CU (see also Note 3)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-57">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-58">&#8212;</div></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 contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashAcquiredFromAcquisition" scale="0" unitRef="usd">811,773</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Purchase of property and equipment</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 contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PaymentsToAcquirePropertyPlantAndEquipment" scale="0" unitRef="usd">93,168</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 contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PaymentsToAcquirePropertyPlantAndEquipment" scale="0" unitRef="usd">1,869</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 contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PaymentsToAcquirePropertyPlantAndEquipment" scale="0" unitRef="usd">2,860</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; text-indent: -9pt; padding-left: 9pt">Net cash provided by (used in) investing activities</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 contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInInvestingActivities" scale="0" sign="-" unitRef="usd">93,168</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</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 contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInInvestingActivities" scale="0" sign="-" unitRef="usd">1,869</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</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 contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInInvestingActivities" scale="0" unitRef="usd">808,913</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -9pt; padding-left: 9pt">&#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: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left; text-indent: -9pt; padding-left: 9pt">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 style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Change in in short term bank credit</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:ChangeInInShortTermBankCredit" scale="0" sign="-" unitRef="usd">69,877</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 contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:ChangeInInShortTermBankCredit" scale="0" unitRef="usd">14,032</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 contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:ChangeInInShortTermBankCredit" scale="0" sign="-" unitRef="usd">36,385</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; text-indent: -9pt; padding-left: 9pt">Proceeds in connection with issuance of ordinary shares</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProceedsFromIssuanceOfCommonStock" scale="0" unitRef="usd">3,395,000</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"><div style="-sec-ix-hidden: hidden-fact-59">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-60">&#8212;</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Change in in short term loans</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-61">&#8212;</div></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 contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProceedsFromShortTermDebt" scale="0" unitRef="usd">230,000</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"><div style="-sec-ix-hidden: hidden-fact-62">&#8212;</div></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; text-indent: -9pt; padding-left: 9pt">Proceeds from convertible loans and related warrants</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-63">&#8212;</div></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 contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProceedsFromDebtNetOfIssuanceCosts" scale="0" unitRef="usd">255,000</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 contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProceedsFromDebtNetOfIssuanceCosts" scale="0" unitRef="usd">16,748</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Advance payment on the account of issuing ordinary shares</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-64">&#8212;</div></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 contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProceedsFromRepaymentsOfNotesPayable" scale="0" unitRef="usd">350,000</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"><div style="-sec-ix-hidden: hidden-fact-65">&#8212;</div></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; text-indent: -9pt; padding-left: 9pt">Proceeds (repayment) of short-tern bank loan</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"><div style="-sec-ix-hidden: hidden-fact-66">&#8212;</div></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"><div style="-sec-ix-hidden: hidden-fact-67">&#8212;</div></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 contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProceedsFromRepaymentsOfShortTermDebt" scale="0" sign="-" unitRef="usd">14,489</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Net cash provided by (used in) financing activities</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 contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInFinancingActivities" scale="0" unitRef="usd">3,325,123</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 contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInFinancingActivities" scale="0" unitRef="usd">849,032</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 contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInFinancingActivities" scale="0" sign="-" unitRef="usd">34,126</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-indent: -9pt; padding-left: 9pt">&#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; ">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Decrease in cash and restricted cash</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect" scale="0" unitRef="usd">342,529</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 contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect" scale="0" sign="-" unitRef="usd">6,263</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 contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect" scale="0" sign="-" unitRef="usd">18,970</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">CASH AND RESTRICTED CASH AT THE BEGINNING OF THE 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 contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents" scale="0" unitRef="usd">25,064</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 contextRef="c19" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents" scale="0" unitRef="usd">31,327</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 contextRef="c10" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents" scale="0" unitRef="usd">50,297</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -9pt; padding-left: 9pt">&#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: rgb(204,238,255)">
    <td style="font-weight: bold; text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">CASH AND RESTRICTED CASH AT THE END OF THE YEAR</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">$</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents" scale="0" unitRef="usd">367,593</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">$</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents" scale="0" unitRef="usd">25,064</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right"><ix:nonFraction contextRef="c19" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents" scale="0" unitRef="usd">31,327</ix:nonFraction></td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -9pt; padding-left: 9pt">&#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: rgb(204,238,255)">
    <td style="font-weight: bold; text-decoration: underline; text-align: left; text-indent: -9pt; padding-left: 9pt">SUPPLEMENTAL INFORMATION AND DISCLOSURE OF NON-CASH 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 style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Issuance of ordinary shares and warrants in connection with acquisition (see also Note 3)</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-68">&#8212;</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-69">&#8212;</div></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">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:IssuanceOfSharesInConnectionWithAcquisition" scale="0" unitRef="usd">411,781</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Conversion of convertible loans including interest to ordinary shares</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-70">&#8212;</div></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">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:ConversionOfConvertibleLoansIncludingInterestToOrdinaryShares" scale="0" unitRef="usd">13,077,466</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:ConversionOfConvertibleLoansIncludingInterestToOrdinaryShares" scale="0" unitRef="usd">65,745</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Conversion of short term loans including interest to ordinary shares</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 contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:ConversionOfShortTermLoansIncludingInterestToOrdinaryShares" scale="0" unitRef="usd">234,823</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"><div style="-sec-ix-hidden: hidden-fact-71">&#8212;</div></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"><div style="-sec-ix-hidden: hidden-fact-72">&#8212;</div></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; text-indent: -9pt; padding-left: 9pt">Right of use asset recognized with corresponding 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 contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RightOfUseAssetObtainedInExchangeForOperatingLeaseLiability" scale="0" unitRef="usd">135,107</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"><div style="-sec-ix-hidden: hidden-fact-73">&#8212;</div></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"><div style="-sec-ix-hidden: hidden-fact-74">&#8212;</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Allocation of the 8,000,000 warrants FV granted to former Jet CU shareholders to the consolidated statement of shareholders&#8217; equity (deficit) as of September 23, 2021 in exchange for 5,428,572 additional ordinary shares</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-75">&#8212;</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:PurchaseOfPropertyAndEquipmentOnCredit" scale="0" unitRef="usd">488,907</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">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><div style="-sec-ix-hidden: hidden-fact-76">&#8212;</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  </table><div>

</div><p style="font: 7pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="10" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">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="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">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="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</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="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</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 style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 64%; text-align: left">Cash</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:CashAndCashEquivalentsCarryingValue" scale="0" unitRef="usd">362,609</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:CashAndCashEquivalentsCarryingValue" scale="0" unitRef="usd">19,437</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:CashAndCashEquivalentsCarryingValue" scale="0" unitRef="usd">31,327</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt">Restricted cash</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 contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:RestrictedCashValue" scale="0" unitRef="usd">4,984</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 contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:RestrictedCashValue" scale="0" unitRef="usd">5,627</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"><div style="-sec-ix-hidden: hidden-fact-77">&#8212;</div></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="font-size: 7pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="font-size: 7pt">&#160;</td><td style="font-size: 7pt">&#160;</td>
    <td style="font-size: 7pt; text-align: left">&#160;</td><td style="font-size: 7pt; text-align: right">&#160;</td><td style="font-size: 7pt; text-align: left">&#160;</td><td style="font-size: 7pt">&#160;</td>
    <td style="font-size: 7pt; text-align: left">&#160;</td><td style="font-size: 7pt; text-align: right">&#160;</td><td style="font-size: 7pt; text-align: left">&#160;</td><td style="font-size: 7pt">&#160;</td>
    <td style="font-size: 7pt; text-align: left">&#160;</td><td style="font-size: 7pt; text-align: right">&#160;</td><td style="font-size: 7pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-bottom: 4pt">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:TotalRestrictedCashAndCashEquivalents" scale="0" unitRef="usd">367,593</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:TotalRestrictedCashAndCashEquivalents" scale="0" unitRef="usd">25,064</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:TotalRestrictedCashAndCashEquivalents" scale="0" unitRef="usd">31,327</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><div>

</div><p style="font: 7pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>The accompanying notes are an integral part
of the consolidated financial statements.</b></p><div>

</div><p style="font: 7pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></p><div>

</div><!-- Field: Page; Sequence: 102 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->7<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><b>P.V. NANO CELL LTD. AND ITS SUBSIDIARIES</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&#160;</p><div>

</div><div><a id="f_007"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; border-bottom: black 1.5pt solid"><b>NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>U.S. dollars</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock-c0_cont_1" escape="true" name="us-gaap:OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in"><span style="font-size: 10pt"><b>NOTE 1:</b></span></td>
    <td><span style="font-size: 10pt"><b>GENERAL</b></span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric><div>
</div><div>

</div><ix:continuation continuedAt="_OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock-c0_cont_2" id="_OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock-c0_cont_1"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in"><span style="font-family: Times New Roman, Times, Serif">&#160;</span></td>
    <td style="width: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>a.</b></span></td>
    <td style="text-align: justify"><p style="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">P.V. Nano Cell Ltd. (the &#8220;Company&#8221;) was incorporated in
June 2009 under the laws of Israel. The Company along with its three fully owned Israeli subsidiaries: Nano Size Ltd. (&#8220;Nano Size&#8221;),
Digiflex Ltd. (&#8220;Digiflex&#8221;) and JET CU P.C.B. Ltd. (&#8220;Jet CU&#8221;), and Digiflex&#8217;s fully owned US subsidiary Digiflex
Inc (&#8220;Inc&#8221;), are mainly engaged in developing, manufacturing, marketing and commercializing conductive inks for digital inkjet
conductive printing applications and manufacturing printing machines, which offer solutions for inkjet print-quality technologies. See
Note 3 for additional information regarding the acquisition of Jet CU on July 26, 2020. The Company, Nano Size, Digiflex, Jet CU and Inc
are jointly defined as the &#8220;Group&#8221;.</p></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock-c0_cont_3" id="_OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock-c0_cont_2"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.75in">&#160;</td> <td style="width: 0.5in"><span style="font-size: 10pt"><b>b.</b></span></td> <td style="text-align: justify"><p style="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">Since its inception, the Group has incurred operating losses, <span>negative
cash flows from operations since inception and is in default in repayments of its convertible notes and does not have sufficient capital
to repay such obligations which are currently due</span>. During the year ended December 31, 2022, the Group used cash in operating activities
of approximately $<ix:nonFraction contextRef="c0" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:NetCashProvidedByUsedInOperatingActivitiesContinuingOperations" scale="6" unitRef="usd">2.9</ix:nonFraction> million, incurred a net loss of approximately $<ix:nonFraction contextRef="c0" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLossAvailableToCommonStockholdersBasic" scale="6" unitRef="usd">4.5</ix:nonFraction> million and had a total accumulated deficit of approximately
$<ix:nonFraction contextRef="c2" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:RetainedEarningsUnappropriated" scale="6" unitRef="usd">40.6</ix:nonFraction> million as of December 31, 2022. The Group requires additional financing in order to continue to fund its current operations and
to pay existing and future liabilities.</p></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation><div>
</div><ix:continuation continuedAt="_OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock-c0_cont_4" id="_OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock-c0_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">The Group intends to finance operating
costs over the next twelve (12) months through issuance of equity securities or debt and by increasing its inflow from revenue. The Group
is currently negotiating with third parties in an attempt to obtain additional sources of funds. The satisfactory completion of these
negotiations is essential to provide sufficient cash flow to meet current operating requirements. However, the Group cannot give any assurance
that it will be able to achieve a level of profitability from the sale of its products to sustain its operations in the future. These
conditions raise substantial doubt about the Group&#8217;s ability to continue as a going concern.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">

</p></ix:continuation><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p><div>

</div><ix:continuation id="_OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock-c0_cont_4"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">The accompanying consolidated financial
statements do not include any adjustments to reflect the possible future effects on recoverability and reclassification of assets or the
amounts and classification of liabilities that may result from the outcome of this uncertainty.</p></ix:continuation><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_1" escape="true" name="us-gaap:SignificantAccountingPoliciesTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in; text-align: justify"><span style="font-size: 10pt"><b>NOTE 2:</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>SIGNIFICANT ACCOUNTING POLICIES</b></span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_2" id="_SignificantAccountingPoliciesTextBlock-c0_cont_1"><ix:nonNumeric contextRef="c0" continuedAt="_BasisOfAccountingPolicyPolicyTextBlock-c0_cont_1" escape="true" name="us-gaap:BasisOfAccountingPolicyPolicyTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.75in">&#160;</td> <td style="width: 0.5in"><span style="font-size: 10pt"><b>a.</b></span></td> <td style="text-align: justify"><span style="font-size: 10pt"><b>Basis of presentation:</b></span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_3" id="_SignificantAccountingPoliciesTextBlock-c0_cont_2"><ix:continuation id="_BasisOfAccountingPolicyPolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">The consolidated financial statements
are prepared according to United States generally accepted accounting principles (&#8220;U.S. GAAP&#8221;).</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_4" id="_SignificantAccountingPoliciesTextBlock-c0_cont_3"><ix:nonNumeric contextRef="c0" continuedAt="_UseOfEstimates-c0_cont_1" escape="true" name="us-gaap:UseOfEstimates"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.75in">&#160;</td> <td style="width: 0.5in"><span style="font-size: 10pt"><b>b.</b></span></td> <td style="text-align: justify"><span style="font-size: 10pt"><b>Use of estimates:</b></span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_5" id="_SignificantAccountingPoliciesTextBlock-c0_cont_4"><ix:continuation continuedAt="_UseOfEstimates-c0_cont_2" id="_UseOfEstimates-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">The preparation of the consolidated
financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the reported
amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements
and the reported amounts of revenues and expenses during the period. The Group&#8217;s management believes that the estimates, judgments
and assumptions used are reasonable based upon information available at the time they are made. Actual results could differ from those
estimates.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_6" id="_SignificantAccountingPoliciesTextBlock-c0_cont_5"><ix:continuation id="_UseOfEstimates-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">On an ongoing basis, the Group&#8217;s
management evaluates estimates, including those related to fair values of stock-based awards, warrants to purchase the Group&#8217;s ordinary
shares and capital note. Such estimates are based on historical experience and on various other assumptions that are believed to be reasonable,
the results of which form the basis for making judgments about the carrying values of assets and liabilities.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>
</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 103 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->8<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><b>P.V. NANO CELL LTD. AND ITS SUBSIDIARIES</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; border-bottom: black 1.5pt solid"><b>NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>U.S. dollars</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>&#160;</b></p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in; text-align: justify"><span style="font-size: 10pt"><b>NOTE 2:</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>SIGNIFICANT ACCOUNTING POLICIES (Cont.)</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_7" id="_SignificantAccountingPoliciesTextBlock-c0_cont_6"><ix:nonNumeric contextRef="c0" continuedAt="pvnnf_FinancialStatementsInUsDollarsPolicyTextBlock-c0_cont_1" escape="true" name="pvnnf:FinancialStatementsInUsDollarsPolicyTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.75in">&#160;</td> <td style="width: 0.5in"><span style="font-size: 10pt"><b>c.</b></span></td> <td style="text-align: justify"><span style="font-size: 10pt"><b>Consolidated financial statements in U.S. dollars:</b></span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_8" id="_SignificantAccountingPoliciesTextBlock-c0_cont_7"><ix:continuation continuedAt="pvnnf_FinancialStatementsInUsDollarsPolicyTextBlock-c0_cont_2" id="pvnnf_FinancialStatementsInUsDollarsPolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">The accompanying consolidated financial
statements have been prepared in U.S.&#160;dollars (&#8220;dollar&#8221; or &#8220;dollars&#8221;).</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_9" id="_SignificantAccountingPoliciesTextBlock-c0_cont_8"><ix:continuation continuedAt="pvnnf_FinancialStatementsInUsDollarsPolicyTextBlock-c0_cont_3" id="pvnnf_FinancialStatementsInUsDollarsPolicyTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">A substantial portion of the Group&#8217;s costs are incurred in New
Israeli Shekels (&#8220;NIS&#8221;). However, the Group finances its operations mainly in dollars and a majority of the Group&#8217;s
revenues are denominated in dollars. As such, the Group&#8217;s management believes that the dollar is the currency of the primary economic
environment in which the Group operates. Thus, the functional and reporting currency of the Group is the dollar.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_10" id="_SignificantAccountingPoliciesTextBlock-c0_cont_9"><ix:continuation id="pvnnf_FinancialStatementsInUsDollarsPolicyTextBlock-c0_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">Transactions and balances that are
denominated in dollars are presented at their original amounts. Non-dollar transactions and balances have been re-measured to dollars
in accordance with Accounting Standards Codification (&#8220;ASC&#8221;) No. 830, &#8220;Foreign Currency Matters&#8221;. All foreign
currency transaction gains and losses are reflected in the consolidated statements of operations as financial income or expenses, as appropriate.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_11" id="_SignificantAccountingPoliciesTextBlock-c0_cont_10"><ix:nonNumeric contextRef="c0" continuedAt="_ConsolidationPolicyTextBlock-c0_cont_1" escape="true" name="us-gaap:ConsolidationPolicyTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.75in">&#160;</td> <td style="width: 0.5in"><span style="font-size: 10pt"><b>d.</b></span></td> <td style="text-align: justify"><span style="font-size: 10pt"><b>Principles of consolidation:</b></span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.5pt; text-align: justify; text-indent: -0.5in">&#160;</p></ix:nonNumeric></ix:continuation><div>
</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_12" id="_SignificantAccountingPoliciesTextBlock-c0_cont_11"><ix:continuation id="_ConsolidationPolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">The consolidated financial statements
include the accounts of the Company and its subsidiaries, and intercompany transactions and balances have been eliminated upon consolidation.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">

</p></ix:continuation></ix:continuation><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_13" id="_SignificantAccountingPoliciesTextBlock-c0_cont_12"><ix:nonNumeric contextRef="c0" continuedAt="_InventoryPolicyTextBlock-c0_cont_1" escape="true" name="us-gaap:InventoryPolicyTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.75in">&#160;</td> <td style="width: 0.5in"><span style="font-size: 10pt"><b>e.</b></span></td> <td style="text-align: justify"><p style="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><b>Inventory, net:</b></p></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_14" id="_SignificantAccountingPoliciesTextBlock-c0_cont_13"><ix:continuation id="_InventoryPolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">Inventories are stated at the lower
of cost or net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably
predictable costs of completion, disposal, and transportation. Inventory write-offs are provided to cover risks arising from slow-moving
items, excess inventories, discontinued products, new products introduction and for market prices lower than cost. Any write-off is recognized
in the consolidated statements of comprehensive loss as cost of revenues.&#160;&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_15" id="_SignificantAccountingPoliciesTextBlock-c0_cont_14"><ix:nonNumeric contextRef="c0" continuedAt="_PropertyPlantAndEquipmentPolicyTextBlock-c0_cont_1" escape="true" name="us-gaap:PropertyPlantAndEquipmentPolicyTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.75in">&#160;</td> <td style="width: 0.5in"><span style="font-size: 10pt"><b>f.</b></span></td> <td style="text-align: justify"><span style="font-size: 10pt"><b>Property and equipment:</b></span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.5pt; text-align: justify; text-indent: -0.5in">&#160;</p></ix:nonNumeric></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_16" id="_SignificantAccountingPoliciesTextBlock-c0_cont_15"><ix:continuation continuedAt="_PropertyPlantAndEquipmentPolicyTextBlock-c0_cont_2" id="_PropertyPlantAndEquipmentPolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">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:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_17" id="_SignificantAccountingPoliciesTextBlock-c0_cont_16"><ix:nonNumeric contextRef="c0" continuedAt="pvnnf_PropertyPlantAndEquipmentAccumulatedDepreciationAnnualRateTableTextBlock-c0_cont_1" escape="true" name="pvnnf:PropertyPlantAndEquipmentAccumulatedDepreciationAnnualRateTableTextBlock"><ix:continuation continuedAt="_PropertyPlantAndEquipmentPolicyTextBlock-c0_cont_3" id="_PropertyPlantAndEquipmentPolicyTextBlock-c0_cont_2"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: bottom">
    <td style="width: 89%; padding-bottom: 1.5pt">&#160;</td>
    <td style="width: 1%; padding-bottom: 1.5pt">&#160;</td>
    <td style="width: 10%; border-bottom: black 1.5pt solid; padding-bottom: 1.5pt; text-align: center"><span style="font-size: 10pt"><b>%</b></span></td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td><span style="font-size: 10pt">Computers</span></td>
    <td>&#160;</td>
    <td style="text-align: center"><span style="font-size: 10pt"><ix:nonFraction contextRef="c37" decimals="2" format="ixt:num-dot-decimal" name="pvnnf:PropertyPlantAndEquipmentNetOfAccumulatedDepreciationAnnualRate" scale="-2" unitRef="pure">15</ix:nonFraction> &#8211; <ix:nonFraction contextRef="c38" decimals="2" format="ixt:num-dot-decimal" name="pvnnf:PropertyPlantAndEquipmentNetOfAccumulatedDepreciationAnnualRate" scale="-2" unitRef="pure">33</ix:nonFraction></span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td><span style="font-size: 10pt">Equipment</span></td>
    <td>&#160;</td>
    <td style="text-align: center"><span style="font-size: 10pt"><ix:nonFraction contextRef="c39" decimals="2" format="ixt:num-dot-decimal" name="pvnnf:PropertyPlantAndEquipmentNetOfAccumulatedDepreciationAnnualRate" scale="-2" unitRef="pure">7</ix:nonFraction> &#8211; <ix:nonFraction contextRef="c40" decimals="2" format="ixt:num-dot-decimal" name="pvnnf:PropertyPlantAndEquipmentNetOfAccumulatedDepreciationAnnualRate" scale="-2" unitRef="pure">33</ix:nonFraction></span></td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td><span style="font-size: 10pt">Office furniture</span></td>
    <td>&#160;</td>
    <td style="text-align: center"><span style="font-size: 10pt"><ix:nonFraction contextRef="c41" decimals="2" format="ixt:num-dot-decimal" name="pvnnf:PropertyPlantAndEquipmentNetOfAccumulatedDepreciationAnnualRate" scale="-2" unitRef="pure">7</ix:nonFraction> &#8211; <ix:nonFraction contextRef="c42" decimals="2" format="ixt:num-dot-decimal" name="pvnnf:PropertyPlantAndEquipmentNetOfAccumulatedDepreciationAnnualRate" scale="-2" unitRef="pure">15</ix:nonFraction></span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td><span style="font-size: 10pt">Leasehold improvements</span></td>
    <td>&#160;</td>
    <td style="text-align: center"><span style="font-size: 10pt"><span style="-sec-ix-hidden: hidden-fact-78">(*)</span></span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation></ix:nonNumeric></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_18" id="_SignificantAccountingPoliciesTextBlock-c0_cont_17"><ix:continuation id="pvnnf_PropertyPlantAndEquipmentAccumulatedDepreciationAnnualRateTableTextBlock-c0_cont_1"><ix:continuation continuedAt="_PropertyPlantAndEquipmentPolicyTextBlock-c0_cont_4" id="_PropertyPlantAndEquipmentPolicyTextBlock-c0_cont_3"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0in; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.25in; text-align: left"><span style="font-size: 10pt">(*)</span></td><td style="text-align: justify"><ix:footnote id="ix_0_footnote" xml:lang="en-US"><span style="font-size: 10pt">Leasehold improvements are
amortized on a straight-line basis over the shorter of the lease term (including the extension option held by the Group and intended
to be exercised) and the expected life of the improvement.</span></ix:footnote></td>
</tr></table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation></ix:continuation></ix:continuation><div>
</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 104 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->9<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><b>P.V. NANO CELL LTD. AND ITS SUBSIDIARIES</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; border-bottom: black 1.5pt solid"><b>NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>U.S. dollars</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in; text-align: justify"><span style="font-size: 10pt"><b>NOTE 2:</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>SIGNIFICANT ACCOUNTING POLICIES (Cont.)</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in">&#160;</td>
    <td style="width: 0.5in"><span style="font-size: 10pt"><b>f.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>Property and equipment (cont.):</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_19" id="_SignificantAccountingPoliciesTextBlock-c0_cont_18"><ix:continuation id="_PropertyPlantAndEquipmentPolicyTextBlock-c0_cont_4"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">Long-lived assets of the Group are
reviewed for impairment in accordance with ASC No. 360, &#8220;Property, Plant and Equipment&#8221;, whenever events or changes in circumstances
indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison
of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the assets. If such assets are considered
to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair
value of the assets. The Group did not record any impairment losses during the years ended December 31, 2022, 2021 and 2020.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_20" id="_SignificantAccountingPoliciesTextBlock-c0_cont_19"><ix:nonNumeric contextRef="c0" continuedAt="_GoodwillAndIntangibleAssetsPolicyTextBlock-c0_cont_1" escape="true" name="us-gaap:GoodwillAndIntangibleAssetsPolicyTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.75in">&#160;</td> <td style="width: 0.5in"><span style="font-size: 10pt"><b>g.</b></span></td> <td style="text-align: justify"><span style="font-size: 10pt"><b>Goodwill:</b></span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.5pt; text-align: justify; text-indent: -0.5in">&#160;</p></ix:nonNumeric></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_21" id="_SignificantAccountingPoliciesTextBlock-c0_cont_20"><ix:continuation continuedAt="_GoodwillAndIntangibleAssetsPolicyTextBlock-c0_cont_2" id="_GoodwillAndIntangibleAssetsPolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">Goodwill reflects the excess of the
consideration transferred plus the fair value of any non-controlling interest in the acquiree at the business combination date over the
fair values of the identifiable net assets acquired. Goodwill is not amortized but rather is tested for impairment annually at the reporting
unit level, or whenever events or circumstances present an indication of impairment. Goodwill is an asset representing the future economic
benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_22" id="_SignificantAccountingPoliciesTextBlock-c0_cont_21"><ix:continuation continuedAt="_GoodwillAndIntangibleAssetsPolicyTextBlock-c0_cont_3" id="_GoodwillAndIntangibleAssetsPolicyTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">The primary items that generate goodwill
include the value of the synergies between the acquired companies and the Company and the acquired assembled workforce, neither of which
qualifies for recognition as an intangible asset.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_23" id="_SignificantAccountingPoliciesTextBlock-c0_cont_22"><ix:continuation continuedAt="_GoodwillAndIntangibleAssetsPolicyTextBlock-c0_cont_4" id="_GoodwillAndIntangibleAssetsPolicyTextBlock-c0_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">Goodwill is tested for impairment on
an annual basis in the fourth quarter and whenever indicators of potential impairment require an interim goodwill impairment analysis.
The Group may first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit
is less than its carrying amount. If the Group performs a qualitative assessment and concludes that it is more likely than not that the
fair value of a reporting unit exceeds its carrying value, goodwill is not considered impaired and the quantitative impairment test is
not required. However, if the Group concludes otherwise, it is then required to perform a quantitative assessment for goodwill impairment.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_24" id="_SignificantAccountingPoliciesTextBlock-c0_cont_23"><ix:continuation continuedAt="_GoodwillAndIntangibleAssetsPolicyTextBlock-c0_cont_5" id="_GoodwillAndIntangibleAssetsPolicyTextBlock-c0_cont_4"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">The Group performs its quantitative
goodwill impairment test by comparing the fair value of its reporting unit with its carrying value. If the reporting unit&#8217;s carrying
value is determined to be greater than its fair value, an impairment charge is recognized for the amount by which the carrying value exceeds
the reporting unit&#8217;s fair value. If the fair value of the reporting unit is determined to be greater than its carrying amount, the
applicable goodwill is not impaired and no further testing is required.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_25" id="_SignificantAccountingPoliciesTextBlock-c0_cont_24"><ix:continuation continuedAt="_GoodwillAndIntangibleAssetsPolicyTextBlock-c0_cont_6" id="_GoodwillAndIntangibleAssetsPolicyTextBlock-c0_cont_5"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">The evaluation of goodwill impairment
requires the Group to make assumptions associated with its reporting unit fair value. These assumptions require significant judgment and
actual results may differ from assumed and estimated amounts.&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_26" id="_SignificantAccountingPoliciesTextBlock-c0_cont_25"><ix:continuation continuedAt="_GoodwillAndIntangibleAssetsPolicyTextBlock-c0_cont_7" id="_GoodwillAndIntangibleAssetsPolicyTextBlock-c0_cont_6"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">As of December 31, 2019 and onwards, the Group has early adopted the
ASU 2017-04 FASB revised guidance of goodwill impairment. Under this guidance, entities that have reporting units with zero or negative
carrying amount are no longer required to perform the qualitative assessment. The results of such test as of December 31, 2022, 2021 and
2020, were that the fair value was greater than the reporting unit&#8217;s negative carrying value and therefore no goodwill impairment
was recorded as of this date.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>
</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_27" id="_SignificantAccountingPoliciesTextBlock-c0_cont_26"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify"><ix:continuation id="_GoodwillAndIntangibleAssetsPolicyTextBlock-c0_cont_7">As a result of the Jet CU purchase
on July 26, 2020, the Company recorded a goodwill impairment of $<ix:nonFraction contextRef="c36" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:goodwillImpairmentCharge" scale="0" unitRef="usd">265,089</ix:nonFraction>.</ix:continuation> See Note 3 for additional information.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">

</p></ix:continuation><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 105 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->10<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><b>P.V. NANO CELL LTD. AND ITS SUBSIDIARIES</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; border-bottom: black 1.5pt solid"><b>NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>U.S. dollars</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in; text-align: justify"><span style="font-size: 10pt"><b>NOTE 2:</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>SIGNIFICANT ACCOUNTING POLICIES (Cont.)</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_28" id="_SignificantAccountingPoliciesTextBlock-c0_cont_27"><ix:nonNumeric contextRef="c0" continuedAt="_GoodwillAndIntangibleAssetsIntangibleAssetsPolicy-c0_cont_1" escape="true" name="us-gaap:GoodwillAndIntangibleAssetsIntangibleAssetsPolicy"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.75in">&#160;</td> <td style="width: 0.5in"><span style="font-size: 10pt"><b>h.</b></span></td> <td style="text-align: justify"><span style="font-size: 10pt"><b>Intangible assets:</b></span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_29" id="_SignificantAccountingPoliciesTextBlock-c0_cont_28"><ix:continuation continuedAt="_GoodwillAndIntangibleAssetsIntangibleAssetsPolicy-c0_cont_2" id="_GoodwillAndIntangibleAssetsIntangibleAssetsPolicy-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">Intangible
assets and their useful lives are as follows:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-indent: 0.5in">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_30" id="_SignificantAccountingPoliciesTextBlock-c0_cont_29"><ix:nonNumeric contextRef="c0" escape="true" name="pvnnf:IntangibleAssetsAndEstimatedUsefulLivesTableTextBlock"><ix:continuation continuedAt="_GoodwillAndIntangibleAssetsIntangibleAssetsPolicy-c0_cont_3" id="_GoodwillAndIntangibleAssetsIntangibleAssetsPolicy-c0_cont_2"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify; padding-bottom: 1.5pt">&#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">Estimated<br/> useful life</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 88%">Technology</td><td style="width: 1%">&#160;</td>
    <td style="width: 11%; text-align: center"><ix:nonNumeric contextRef="c44" name="us-gaap:FiniteLivedIntangibleAssetsAmortizationMethod">Ten&#160;(10)&#160;years</ix:nonNumeric></td></tr>
  <tr style="vertical-align: bottom; ">
    <td>Backlog</td><td>&#160;</td>
    <td style="text-align: center"><ix:nonNumeric contextRef="c45" name="us-gaap:FiniteLivedIntangibleAssetsAmortizationMethod">One (1) year</ix:nonNumeric></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&#160;</p></ix:continuation></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_31" id="_SignificantAccountingPoliciesTextBlock-c0_cont_30"><ix:continuation continuedAt="_GoodwillAndIntangibleAssetsIntangibleAssetsPolicy-c0_cont_4" id="_GoodwillAndIntangibleAssetsIntangibleAssetsPolicy-c0_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">Intangible
assets represent acquired technology and backlog. Definite life intangible assets are amortized using the straight-line method over their
estimated period of useful life, which is determined by identifying the period over which most of the cash flows are expected to be generated.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_32" id="_SignificantAccountingPoliciesTextBlock-c0_cont_31"><ix:continuation continuedAt="_GoodwillAndIntangibleAssetsIntangibleAssetsPolicy-c0_cont_5" id="_GoodwillAndIntangibleAssetsIntangibleAssetsPolicy-c0_cont_4"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">For definite life intangible assets,
the Group reviews the carrying amounts for potential impairment when events or changes in circumstances indicate that the carrying amount
of an asset may not be recoverable. In evaluating recoverability, the Group groups assets and liabilities at the lowest level such that
the identifiable cash flows relating to the group are largely independent of the cash flows of other assets and liabilities. The Group
then compares the carrying amounts of the asset or asset groups with their respective estimated undiscounted future cash flows. If the
definite life intangible asset or asset group are determined to be impaired, an impairment charge is recorded at the amount by which the
carrying amount of the asset or asset group exceeds their fair value.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_33" id="_SignificantAccountingPoliciesTextBlock-c0_cont_32"><ix:continuation continuedAt="_GoodwillAndIntangibleAssetsIntangibleAssetsPolicy-c0_cont_6" id="_GoodwillAndIntangibleAssetsIntangibleAssetsPolicy-c0_cont_5"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">As of December 31, 2022, the Group
recorded an impairment charge of $<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherAssetImpairmentCharges" scale="0" unitRef="usd">2,108,117</ix:nonFraction>, which is equal to the technology, net amount that the Group recorded as part of the Digiflex
purchase in 2017. The Group has ceased the marketing activities associated with this technology and expect a negative cash-flow throughout
its life, which led to such impairment charge of the remaining asset, net as of December 31, 2022.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">

</p></ix:continuation></ix:continuation><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right; ">&#160;</p><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_34" id="_SignificantAccountingPoliciesTextBlock-c0_cont_33"><ix:continuation id="_GoodwillAndIntangibleAssetsIntangibleAssetsPolicy-c0_cont_6"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">The Group
did not record any intangible assets impairment during the years ended December 31, 2021 and 2020.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_35" id="_SignificantAccountingPoliciesTextBlock-c0_cont_34"><ix:nonNumeric contextRef="c0" continuedAt="_RevenueRecognitionPolicyTextBlock-c0_cont_1" escape="true" name="us-gaap:RevenueRecognitionPolicyTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.75in">&#160;</td> <td style="width: 0.5in"><span style="font-size: 10pt"><b>i.</b></span></td> <td style="text-align: justify"><span style="font-size: 10pt"><b>Revenue Recognition:</b></span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_36" id="_SignificantAccountingPoliciesTextBlock-c0_cont_35"><ix:continuation continuedAt="_RevenueRecognitionPolicyTextBlock-c0_cont_2" id="_RevenueRecognitionPolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">The Group generated its revenues primarily
from sales of inks and pastes and recognizes the revenue primarily at a point in time.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_37" id="_SignificantAccountingPoliciesTextBlock-c0_cont_36"><ix:continuation continuedAt="_RevenueRecognitionPolicyTextBlock-c0_cont_3" id="_RevenueRecognitionPolicyTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">Effective January 1, 2020, the Group
adopted a new accounting standard related to the recognition of revenue in contracts with customers. The Group did not have any material
cumulative-effect adjustment as a result of the adoption of ASC 606. In addition, the adoption of ASC 606 did not have any material impact
on the Group consolidated financial statement line items in the year of adoption.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_38" id="_SignificantAccountingPoliciesTextBlock-c0_cont_37"><ix:continuation continuedAt="_RevenueRecognitionPolicyTextBlock-c0_cont_4" id="_RevenueRecognitionPolicyTextBlock-c0_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">The Group determines revenue recognition
through the following steps:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_39" id="_SignificantAccountingPoliciesTextBlock-c0_cont_38"><ix:continuation continuedAt="_RevenueRecognitionPolicyTextBlock-c0_cont_5" id="_RevenueRecognitionPolicyTextBlock-c0_cont_4"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 1.5in">&#160;</td>
    <td style="width: 0.5in"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">Identification of the contract, or contracts, with a customer.</span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_40" id="_SignificantAccountingPoliciesTextBlock-c0_cont_39"><ix:continuation continuedAt="_RevenueRecognitionPolicyTextBlock-c0_cont_6" id="_RevenueRecognitionPolicyTextBlock-c0_cont_5"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 144px">&#160;</td>
    <td style="width: 48px"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">Determination of the transaction price.</span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_41" id="_SignificantAccountingPoliciesTextBlock-c0_cont_40"><ix:continuation continuedAt="_RevenueRecognitionPolicyTextBlock-c0_cont_7" id="_RevenueRecognitionPolicyTextBlock-c0_cont_6"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 144px">&#160;</td>
    <td style="width: 48px"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">Determination of the transaction price.</span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_42" id="_SignificantAccountingPoliciesTextBlock-c0_cont_41"><ix:continuation continuedAt="_RevenueRecognitionPolicyTextBlock-c0_cont_8" id="_RevenueRecognitionPolicyTextBlock-c0_cont_7"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 144px">&#160;</td>
    <td style="width: 48px"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">Allocation of the transaction price to the performance obligations in the contract.</span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_43" id="_SignificantAccountingPoliciesTextBlock-c0_cont_42"><ix:continuation continuedAt="_RevenueRecognitionPolicyTextBlock-c0_cont_9" id="_RevenueRecognitionPolicyTextBlock-c0_cont_8"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 144px">&#160;</td>
    <td style="width: 48px"><span style="font-size: 10pt">&#9679;</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">Recognition of revenue when, or as, the Group satisfies a performance obligation.</span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_44" id="_SignificantAccountingPoliciesTextBlock-c0_cont_43"><ix:continuation id="_RevenueRecognitionPolicyTextBlock-c0_cont_9"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">As a general point, the Group applies
the five-step model to contracts when it is probable that it will collect the consideration it is entitled to in exchange for the goods
or services it transfers to the customer.&#160;&#160;At contract inception, once the contract is determined to be within the scope of
ASC 606, the Group assesses the goods or services promised within each contract and determines those that are performance obligations
and assesses whether each promised good or service is distinct.&#160;&#160;The Group then recognizes as revenue the amount of the transaction
price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_45" id="_SignificantAccountingPoliciesTextBlock-c0_cont_44"><ix:nonNumeric contextRef="c0" continuedAt="_ResearchAndDevelopmentExpensePolicy-c0_cont_1" escape="true" name="us-gaap:ResearchAndDevelopmentExpensePolicy"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.75in">&#160;</td> <td style="width: 0.5in"><span style="font-size: 10pt"><b>j.</b></span></td> <td style="text-align: justify"><span style="font-size: 10pt"><b>Research and development, net:</b></span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.5pt; text-align: justify; text-indent: -0.5in">&#160;</p></ix:nonNumeric></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_46" id="_SignificantAccountingPoliciesTextBlock-c0_cont_45"><ix:continuation id="_ResearchAndDevelopmentExpensePolicy-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">Research and development expenses are
charged to the consolidated statements of operations as incurred, net of grants received, as described in section k. below.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 106 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->11<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><b>P.V. NANO CELL LTD. AND ITS SUBSIDIARIES</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; border-bottom: black 1.5pt solid"><b>NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>U.S. dollars</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in; text-align: justify"><span style="font-size: 10pt"><b>NOTE 2:</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>SIGNIFICANT ACCOUNTING POLICIES (Cont.)</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&#160;</p><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_47" id="_SignificantAccountingPoliciesTextBlock-c0_cont_46"><ix:nonNumeric contextRef="c0" continuedAt="pvnnf_GovernmentGrantsPolicyTextBlock-c0_cont_1" escape="true" name="pvnnf:GovernmentGrantsPolicyTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.75in">&#160;</td> <td style="width: 0.5in"><span style="font-size: 10pt"><b>k.</b></span></td> <td style="text-align: justify"><span style="font-size: 10pt"><b>Government grants:</b></span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.5pt; text-align: justify; text-indent: -0.5in">&#160;</p></ix:nonNumeric></ix:continuation><div>
</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_48" id="_SignificantAccountingPoliciesTextBlock-c0_cont_47"><ix:continuation id="pvnnf_GovernmentGrantsPolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">The Group has received research and
development funds and grants from the government of Israel and European grants. These amounts are recognized on an accrual basis as a
reduction of research and development costs as such costs are incurred.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">

</p></ix:continuation></ix:continuation><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.5pt; text-align: justify; text-indent: -0.5in">&#160;</p><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_49" id="_SignificantAccountingPoliciesTextBlock-c0_cont_48"><ix:nonNumeric contextRef="c0" continuedAt="_IncomeTaxPolicyTextBlock-c0_cont_1" escape="true" name="us-gaap:IncomeTaxPolicyTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.75in">&#160;</td> <td style="width: 0.5in"><span style="font-size: 10pt"><b>l.</b></span></td> <td style="text-align: justify"><span style="font-size: 10pt"><b>Income taxes:</b></span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.5pt; text-align: justify; text-indent: -0.5in">&#160;</p></ix:nonNumeric></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_50" id="_SignificantAccountingPoliciesTextBlock-c0_cont_49"><ix:continuation continuedAt="_IncomeTaxPolicyTextBlock-c0_cont_2" id="_IncomeTaxPolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">The Group accounts for income taxes
in accordance with ASC No. 740, &#8220;Income Taxes&#8221;. This Statement prescribes the use of the liability method whereby deferred
tax assets 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 Group provides a valuation allowance, if necessary, to reduce deferred tax assets to amounts that more likely than not to be realized.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_51" id="_SignificantAccountingPoliciesTextBlock-c0_cont_50"><ix:continuation id="_IncomeTaxPolicyTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">ASC 740 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 <ix:nonFraction contextRef="c0" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:EffectiveIncomeTaxRateReconciliationTaxSettlementsOther" scale="-2" unitRef="pure">50</ix:nonFraction>% likely to be realized upon ultimate settlement.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_52" id="_SignificantAccountingPoliciesTextBlock-c0_cont_51"><ix:nonNumeric contextRef="c0" continuedAt="_ShareBasedCompensationOptionAndIncentivePlansPolicy-c0_cont_1" escape="true" name="us-gaap:ShareBasedCompensationOptionAndIncentivePlansPolicy"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.75in">&#160;</td> <td style="width: 0.5in"><span style="font-size: 10pt"><b>m.</b></span></td> <td style="text-align: justify"><span style="font-size: 10pt"><b>Accounting for stock-based compensation:</b></span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>
</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_53" id="_SignificantAccountingPoliciesTextBlock-c0_cont_52"><ix:continuation continuedAt="_ShareBasedCompensationOptionAndIncentivePlansPolicy-c0_cont_2" id="_ShareBasedCompensationOptionAndIncentivePlansPolicy-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">The Group accounts for share-based
compensation in accordance with ASC No. 718, &#8220;Compensation &#8211; Stock Compensation,&#8221; which requires companies to estimate
the fair value of equity-based payment awards on the date of grant using an option-pricing model. The Group recognizes compensation expenses
for the value of its awards granted based on the straight-line attribution method over the requisite service period of each of the awards.
The Group recognizes forfeitures of awards as they occur.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">

</p></ix:continuation></ix:continuation><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">&#160;</p><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_54" id="_SignificantAccountingPoliciesTextBlock-c0_cont_53"><ix:continuation continuedAt="_ShareBasedCompensationOptionAndIncentivePlansPolicy-c0_cont_3" id="_ShareBasedCompensationOptionAndIncentivePlansPolicy-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">The Group selected the Black-Scholes
option pricing model as the most appropriate fair value method for its stock-options awards. The Black-Scholes option-pricing model requires
a number of assumptions, of which the most significant are the expected stock volatility and the expected option term. Expected volatility
was calculated based upon similar traded companies&#8217; historical stock price movements. The Group uses the simplified method until
such time as there is sufficient historical exercise data to allow the Group to make and rely upon assumptions as to the expected life
of outstanding options. The risk-free interest rate is based on the yield from U.S. treasury bonds with an equivalent term to the expected
life of the options. Historically, the Group has not paid dividends and in addition has no foreseeable plans to pay dividends, and therefore
uses an expected dividend yield of zero in the option pricing model.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_55" id="_SignificantAccountingPoliciesTextBlock-c0_cont_54"><ix:continuation continuedAt="_ShareBasedCompensationOptionAndIncentivePlansPolicy-c0_cont_4" id="_ShareBasedCompensationOptionAndIncentivePlansPolicy-c0_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">The Group accounts for non-employee share-based awards pursuant to
ASC 505-50, &#8220;Equity-Based Payments to Non-Employees.&#8221; ASC 505-50 requires the costs of goods and services received in exchange
for an award of equity instruments to be recognized using the fair value of the goods and services or the fair value of the equity award,
whichever is more reliably measurable. The fair value of the equity award is determined on the measurement date, which is the earlier
of the date that a performance commitment is reached or the date that performance is complete. Generally, our awards do not entail performance
commitments. When an award vests over time such that performance occurs over multiple reporting periods, we estimate the fair value of
the award as of the end of each reporting period and recognize an appropriate portion of the cost based on the fair value on that date.
When the award vests, we adjust the cost previously recognized so that the cost ultimately recognized is equivalent to the fair value
on the date the performance is complete.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_56" id="_SignificantAccountingPoliciesTextBlock-c0_cont_55"><ix:continuation continuedAt="_ShareBasedCompensationOptionAndIncentivePlansPolicy-c0_cont_5" id="_ShareBasedCompensationOptionAndIncentivePlansPolicy-c0_cont_4"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">The fair value for options granted
is estimated at the date of grant using the Black-Scholes option-pricing model with the following assumptions:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_57" id="_SignificantAccountingPoliciesTextBlock-c0_cont_56"><ix:nonNumeric contextRef="c0" escape="true" name="us-gaap:FairValueOptionQuantitativeDisclosuresTextBlock"><ix:continuation id="_ShareBasedCompensationOptionAndIncentivePlansPolicy-c0_cont_5"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="10" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">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="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">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="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</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="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</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></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 64%; text-align: left">Dividend yield</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c0" decimals="2" format="ixt:num-dot-decimal" name="pvnnf:FairValueAssumptionExpectedDividendRate" scale="-2" unitRef="pure">0</ix:nonFraction></td><td style="width: 1%; text-align: left">%</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c4" decimals="2" format="ixt:num-dot-decimal" name="pvnnf:FairValueAssumptionExpectedDividendRate" scale="-2" unitRef="pure">0</ix:nonFraction></td><td style="width: 1%; text-align: left">%</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c5" decimals="2" format="ixt:num-dot-decimal" name="pvnnf:FairValueAssumptionExpectedDividendRate" scale="-2" unitRef="pure">0</ix:nonFraction></td><td style="width: 1%; text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Expected volatility</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="2" format="ixt:num-dot-decimal" name="pvnnf:FairValueAssumptionExpectedVolatilityRate" scale="-2" unitRef="pure">80</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 contextRef="c4" decimals="2" format="ixt:num-dot-decimal" name="pvnnf:FairValueAssumptionExpectedVolatilityRate" scale="-2" unitRef="pure">80</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 contextRef="c5" decimals="2" format="ixt:num-dot-decimal" name="pvnnf:FairValueAssumptionExpectedVolatilityRate" scale="-2" unitRef="pure">80</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">Risk-free interest</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="4" format="ixt:num-dot-decimal" name="pvnnf:FairValueAssumptionRiskFreeInterestRate" scale="-2" unitRef="pure">3.00</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 contextRef="c4" decimals="4" format="ixt:num-dot-decimal" name="pvnnf:FairValueAssumptionRiskFreeInterestRate" scale="-2" unitRef="pure">0.81</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="font-size: 10pt"><ix:nonFraction contextRef="c46" decimals="4" format="ixt:num-dot-decimal" name="pvnnf:FairValueAssumptionRiskFreeInterestRate" scale="-2" unitRef="pure">0.36</ix:nonFraction>%-<ix:nonFraction contextRef="c47" decimals="4" format="ixt:num-dot-decimal" name="pvnnf:FairValueAssumptionRiskFreeInterestRate" scale="-2" unitRef="pure">1.62</ix:nonFraction></span></td><td style="text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Expected life (in years)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonNumeric contextRef="c0" format="ixt-sec:duryear" name="pvnnf:ExpectedLifeinYears">5</ix:nonNumeric></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonNumeric contextRef="c4" format="ixt-sec:duryear" name="pvnnf:ExpectedLifeinYears">5</ix:nonNumeric></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonNumeric contextRef="c5" format="ixt-sec:duryear" name="pvnnf:ExpectedLifeinYears">5</ix:nonNumeric></td><td style="text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 107 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->12<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><b>P.V. NANO CELL LTD. AND ITS SUBSIDIARIES</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; border-bottom: black 1.5pt solid"><b>NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>U.S. dollars</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in; text-align: justify"><span style="font-size: 10pt"><b>NOTE 2:</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>SIGNIFICANT ACCOUNTING POLICIES (Cont.)</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;&#160;</p><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_58" id="_SignificantAccountingPoliciesTextBlock-c0_cont_57"><ix:nonNumeric contextRef="c0" continuedAt="_ConcentrationRiskCreditRisk-c0_cont_1" escape="true" name="us-gaap:ConcentrationRiskCreditRisk"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.75in">&#160;</td> <td style="width: 0.5in"><span style="font-size: 10pt"><b>n.</b></span></td> <td style="text-align: justify"><span style="font-size: 10pt"><b>Concentrations of credit risks:</b></span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.5pt; text-align: justify; text-indent: -0.5in">&#160;</p></ix:nonNumeric></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_59" id="_SignificantAccountingPoliciesTextBlock-c0_cont_58"><ix:continuation continuedAt="_ConcentrationRiskCreditRisk-c0_cont_2" id="_ConcentrationRiskCreditRisk-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">Financial instruments that potentially
subject the Group to concentrations of credit risk consist principally of cash and cash equivalents and accounts receivables. The Group&#8217;s
cash and cash equivalents balances are managed in major banks in Israel.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_60" id="_SignificantAccountingPoliciesTextBlock-c0_cont_59"><ix:continuation continuedAt="_ConcentrationRiskCreditRisk-c0_cont_3" id="_ConcentrationRiskCreditRisk-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">The majority of the Group&#8217;s cash
and cash equivalents are deposited in major banks in Israel. Deposits in Israel are not insured. Generally, these deposits may be withdrawn
upon demand and therefore bear low risk.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_61" id="_SignificantAccountingPoliciesTextBlock-c0_cont_60"><ix:continuation id="_ConcentrationRiskCreditRisk-c0_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">The Group&#8217;s accounts receivables
are derived from sales mainly in Israel, Europe and the US. Concentration of credit risk with respect to accounts receivables is limited
by ongoing credit evaluation and account monitoring procedures. The Group performs ongoing credit evaluations and establishes an allowance
for doubtful accounts based on factors that may affect a customers&#8217; ability to pay, such as known disputes, age of the receivable
balance and past experience. There was no allowance for doubtful accounts as of December 31, 2022 and 2021. The Group writes off receivables
when they are deemed uncollectible, having exhausted all collection efforts. Actual collection experience may not meet expectations and
may result in increased bad debt expense.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_62" id="_SignificantAccountingPoliciesTextBlock-c0_cont_61"><ix:nonNumeric contextRef="c0" continuedAt="pvnnf_SeverancePayPolicyTextBlock-c0_cont_1" escape="true" name="pvnnf:SeverancePayPolicyTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.75in">&#160;</td> <td style="width: 0.5in"><span style="font-size: 10pt"><b>o.</b></span></td> <td style="text-align: justify"><span style="font-size: 10pt"><b>Severance pay:</b></span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_63" id="_SignificantAccountingPoliciesTextBlock-c0_cont_62"><ix:continuation continuedAt="pvnnf_SeverancePayPolicyTextBlock-c0_cont_2" id="pvnnf_SeverancePayPolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">Pursuant to Section 14 of Israel&#8217;s
Severance Pay Law, 5723-1963 (&#8220;Section 14&#8221;), the Group&#8217;s Israeli employees, covered by this section, are entitled only
to monthly deposits, at a rate of <ix:nonFraction contextRef="c0" decimals="4" format="ixt:num-dot-decimal" name="us-gaap:DefinedContributionPlanMaximumAnnualContributionsPerEmployeePercent" scale="-2" unitRef="pure">8.33</ix:nonFraction>% of their monthly salary, made on their behalf by the Group to an Israeli insurance company. Payments
in accordance with Section 14 release the Group from any future severance liabilities in respect of those employees. Neither severance
pay liability nor severance pay fund under Section 14 for such employees is recorded on the Group&#8217;s consolidated balance sheets.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_64" id="_SignificantAccountingPoliciesTextBlock-c0_cont_63"><ix:continuation id="pvnnf_SeverancePayPolicyTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">Severance expenses for the years ended
December 31, 2022, 2021 and 2020 amounted to $<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:SeveranceCosts1" scale="0" unitRef="usd">51,554</ix:nonFraction>, $<ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:SeveranceCosts1" scale="0" unitRef="usd">53,389</ix:nonFraction> and $<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:SeveranceCosts1" scale="0" unitRef="usd">59,087</ix:nonFraction>, respectively.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 108 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->13<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><b>P.V. NANO CELL LTD. AND ITS SUBSIDIARIES</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; border-bottom: black 1.5pt solid"><b>NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>U.S. dollars</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in; text-align: justify"><span style="font-size: 10pt"><b>NOTE 2:</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>SIGNIFICANT ACCOUNTING POLICIES (Cont.)</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.5pt; text-align: justify; text-indent: -0.5in">&#160;</p><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_65" id="_SignificantAccountingPoliciesTextBlock-c0_cont_64"><ix:nonNumeric contextRef="c0" continuedAt="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_1" escape="true" name="us-gaap:FairValueMeasurementPolicyPolicyTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.75in">&#160;</td> <td style="width: 0.5in"><span style="font-size: 10pt"><b>p.</b></span></td> <td style="text-align: justify"><span style="font-size: 10pt"><b>Fair value of financial instruments:</b></span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.5pt; text-align: justify; text-indent: -0.5in">&#160;</p></ix:nonNumeric></ix:continuation><div>
</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_66" id="_SignificantAccountingPoliciesTextBlock-c0_cont_65"><ix:continuation continuedAt="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_2" id="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">The Group applies ASC 820, &#8220;Fair
Value Measurements and Disclosures&#8221; (&#8220;ASC No. 820&#8221;) with respect to fair value measurements of all financial assets
and liabilities. Under this standard, fair value is defined as the price that would be received to sell an asset or paid to transfer a
liability (i.e., the &#8220;exit price&#8221;) in an orderly transaction between market participants at the measurement date.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">

</p></ix:continuation></ix:continuation><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_67" id="_SignificantAccountingPoliciesTextBlock-c0_cont_66"><ix:continuation continuedAt="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_3" id="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">In determining fair value, the Group
uses various valuation approaches. ASC 820 establishes a hierarchy 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 market participants would use in pricing the asset or liability developed based on market data obtained from sources independent
from the Group. Unobservable inputs are inputs that reflect the Group&#8217;s assumptions about the assumptions market participants would
use in pricing the asset or liability developed based on the best information available in the circumstances.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_68" id="_SignificantAccountingPoliciesTextBlock-c0_cont_67"><ix:continuation continuedAt="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_4" id="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">The following methods and assumptions were used by the Group in estimating
the fair value of their financial instruments:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.5pt">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_69" id="_SignificantAccountingPoliciesTextBlock-c0_cont_68"><ix:continuation continuedAt="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_5" id="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_4"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">The carrying values of cash and cash
equivalents, short-term bank deposits, trade receivables, prepaid expenses and other current assets, trade payables, employees and payroll
accruals and accrued expenses and other current liabilities approximate their fair values due to the short-term maturities of these instruments.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.5pt">&#160;&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_70" id="_SignificantAccountingPoliciesTextBlock-c0_cont_69"><ix:continuation continuedAt="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_6" id="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_5"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">The hierarchy is broken down into three
(3) levels based on the inputs as follows:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_71" id="_SignificantAccountingPoliciesTextBlock-c0_cont_70"><ix:continuation continuedAt="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_7" id="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_6"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 1.5in; text-align: justify">&#160;</td>
    <td style="width: 0.5in; text-align: justify"><span style="font-size: 10pt">Level&#160;1</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">Valuations based on quoted prices in active markets for identical assets or liabilities that the Group has the ability to access at the measurement date.</span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_72" id="_SignificantAccountingPoliciesTextBlock-c0_cont_71"><ix:continuation continuedAt="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_8" id="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_7"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 1.5in; text-align: justify">&#160;</td>
    <td style="width: 0.5in; text-align: justify"><span style="font-size: 10pt">Level&#160;2</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">Valuations based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.</span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_73" id="_SignificantAccountingPoliciesTextBlock-c0_cont_72"><ix:continuation continuedAt="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_9" id="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_8"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 1.5in; text-align: justify">&#160;</td>
    <td style="width: 0.5in; text-align: justify"><span style="font-size: 10pt">Level&#160;3</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">Valuations based on inputs that are unobservable and significant to the overall fair value measurement.</span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_74" id="_SignificantAccountingPoliciesTextBlock-c0_cont_73"><ix:continuation continuedAt="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_10" id="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_9"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">The Group measures its warrants to purchase the Company&#8217;s ordinary
shares classified as liability and the capital note at fair value. The carrying amounts of cash and cash equivalents, accounts receivable,
other current assets, trade payables and other accounts liabilities approximate their fair value due to the short-term maturity of such
instruments.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_75" id="_SignificantAccountingPoliciesTextBlock-c0_cont_74"><ix:continuation continuedAt="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_11" id="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_10"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">The following table presents liabilities
measured at fair value on a recurring basis as of December&#160;31, 2022:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_76" id="_SignificantAccountingPoliciesTextBlock-c0_cont_75"><ix:nonNumeric contextRef="c0" continuedAt="_ScheduleOfFairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisTableTextBlock-c0_cont_1" escape="true" name="us-gaap:ScheduleOfFairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisTableTextBlock"><ix:continuation continuedAt="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_12" id="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_11"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="14" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Fair value measurements using input type</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; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Level 1</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="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Level 2</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="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Level 3</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="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">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" style="text-align: right">&#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: right">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 52%">Warrants</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><div style="-sec-ix-hidden: hidden-fact-79">&#8212;</div></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><div style="-sec-ix-hidden: hidden-fact-80">&#8212;</div></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c50" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:WarrantsPresentedAtFairValu" scale="0" unitRef="usd">15,459</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:WarrantsPresentedAtFairValu" scale="0" unitRef="usd">15,459</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt">Capital note</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"><div style="-sec-ix-hidden: hidden-fact-81">&#8212;</div></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"><div style="-sec-ix-hidden: hidden-fact-82">&#8212;</div></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 contextRef="c53" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:CapitalNote" scale="0" unitRef="usd">40,000</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 contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:CapitalNote" scale="0" unitRef="usd">40,000</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><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; ">
    <td style="text-align: left; padding-bottom: 4pt">Total financial liabilities</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><div style="-sec-ix-hidden: hidden-fact-83">&#8212;</div></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><div style="-sec-ix-hidden: hidden-fact-84">&#8212;</div></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c53" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FinancialLiabilitiesFairValueDisclosure" scale="0" unitRef="usd">55,459</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FinancialLiabilitiesFairValueDisclosure" scale="0" unitRef="usd">55,459</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_77" id="_SignificantAccountingPoliciesTextBlock-c0_cont_76"><ix:continuation continuedAt="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_13" id="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_12"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">The following table presents liabilities
measured at fair value on a recurring basis as of December 31, 2021:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_78" id="_SignificantAccountingPoliciesTextBlock-c0_cont_77"><ix:continuation id="_ScheduleOfFairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisTableTextBlock-c0_cont_1"><ix:continuation continuedAt="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_14" id="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_13"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="14" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Fair value measurements using input type</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; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Level 1</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="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Level 2</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="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Level 3</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="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">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" style="text-align: right">&#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: right">&#160;</td><td>&#160;</td><td>&#160;</td>
    <td colspan="2">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 52%">Warrants</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><div style="-sec-ix-hidden: hidden-fact-85">&#8212;</div></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><div style="-sec-ix-hidden: hidden-fact-86">&#8212;</div></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c56" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:WarrantsPresentedAtFairValu" scale="0" unitRef="usd">106,975</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:WarrantsPresentedAtFairValu" scale="0" unitRef="usd">106,975</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt">Capital note</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"><div style="-sec-ix-hidden: hidden-fact-87">&#8212;</div></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"><div style="-sec-ix-hidden: hidden-fact-88">&#8212;</div></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 contextRef="c59" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:CapitalNote" scale="0" unitRef="usd">40,000</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 contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:CapitalNote" scale="0" unitRef="usd">40,000</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><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; ">
    <td style="text-align: left; padding-bottom: 4pt">Total financial liabilities</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><div style="-sec-ix-hidden: hidden-fact-89">&#8212;</div></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><div style="-sec-ix-hidden: hidden-fact-90">&#8212;</div></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c59" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FinancialLiabilitiesFairValueDisclosure" scale="0" unitRef="usd">146,975</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FinancialLiabilitiesFairValueDisclosure" scale="0" unitRef="usd">146,975</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation></ix:continuation></ix:continuation><div>

</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 109 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->14<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><b>P.V. NANO CELL LTD. AND ITS SUBSIDIARIES</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; border-bottom: black 1.5pt solid"><b>NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>U.S. dollars</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in; text-align: justify"><span style="font-size: 10pt"><b>NOTE 2:</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>SIGNIFICANT ACCOUNTING POLICIES (Cont.)</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify; text-indent: -56.7pt"><b>&#160;</b></p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in">&#160;</td>
    <td style="width: 0.5in"><span style="font-size: 10pt"><b>p.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>Fair value of financial instruments (cont.):</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_79" id="_SignificantAccountingPoliciesTextBlock-c0_cont_78"><ix:continuation continuedAt="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_15" id="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_14"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">The following table presents reconciliations
for the Company&#8217;s liabilities measured and recorded at fair value on a recurring basis, using significant unobservable inputs (Level
3):</p></ix:continuation></ix:continuation><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_80" id="_SignificantAccountingPoliciesTextBlock-c0_cont_79"><ix:nonNumeric contextRef="c0" escape="true" name="us-gaap:FairValueLiabilitiesMeasuredOnRecurringBasisUnobservableInputReconciliationTextBlock"><ix:continuation id="_FairValueMeasurementPolicyPolicyTextBlock-c0_cont_15"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <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="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Level 3</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>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 88%; text-align: justify; text-indent: -9pt; padding-left: 9pt">Balance as of January 1, 2020</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c60" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FairValueMeasurementWithUnobservableInputsReconciliationsRecurringBasisLiabilityValue" scale="0" unitRef="usd">1,544,112</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify; text-indent: -9pt; padding-left: 9pt">&#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: rgb(204,238,255)">
    <td style="text-indent: -9pt; padding-left: 9pt">Fair value of warrants issued</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c61" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:ProceedsFromIssuanceOfOrdinarySharesAndConvertibleSecurities" scale="0" unitRef="usd">192,451</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Changes in Fair value of warrants and capital note</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 contextRef="c61" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdjustmentOfWarrantsGrantedForServices" scale="0" unitRef="usd">7,011,437</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 style="text-align: justify; text-indent: -9pt; padding-left: 9pt">&#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; ">
    <td style="text-align: justify; text-indent: -9pt; padding-left: 9pt">Balance as of December 31, 2020</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c62" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FairValueMeasurementWithUnobservableInputsReconciliationsRecurringBasisLiabilityValue" scale="0" unitRef="usd">8,748,000</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: justify; text-indent: -9pt; padding-left: 9pt">&#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; ">
    <td style="text-align: justify; text-indent: -9pt; padding-left: 9pt">Allocation of the <ix:nonFraction contextRef="c56" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:IncrementalCommonSharesAttributableToCallOptionsAndWarrants" scale="0" unitRef="shares">8,000,000</ix:nonFraction> warrants FV granted to former Jet CU shareholders to the consolidated statement of shareholders&#8217; equity (deficit) as of September 23, 2021 in exchange for <ix:nonFraction contextRef="c63" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:TemporaryEquitySharesAuthorized" scale="0" unitRef="shares">5,428,572</ix:nonFraction> additional ordinary shares</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c56" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NetIncomeLossAvailableToCommonStockholdersBasic" scale="0" sign="-" unitRef="usd">488,907</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: justify; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Changes in Fair value of warrants and capital note</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 contextRef="c56" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdjustmentOfWarrantsGrantedForServices" scale="0" sign="-" unitRef="usd">8,112,118</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify; text-indent: -9pt; padding-left: 9pt">&#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: rgb(204,238,255)">
    <td style="text-align: justify; text-indent: -9pt; padding-left: 9pt">Balance as of December 31, 2021</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c59" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FairValueMeasurementWithUnobservableInputsReconciliationsRecurringBasisLiabilityValue" scale="0" unitRef="usd">146,975</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify; text-indent: -9pt; padding-left: 9pt">&#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: rgb(204,238,255)">
    <td style="text-align: justify; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Changes in Fair value of warrants and capital note</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 contextRef="c50" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdjustmentOfWarrantsGrantedForServices" scale="0" sign="-" unitRef="usd">91,516</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify; text-indent: -9pt; padding-left: 9pt">&#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: rgb(204,238,255)">
    <td style="text-align: justify; padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Balance as of December 31, 2022</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c53" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FairValueMeasurementWithUnobservableInputsReconciliationsRecurringBasisLiabilityValue" scale="0" unitRef="usd">55,459</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.5pt">&#160;&#160;</p></ix:continuation></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_81" id="_SignificantAccountingPoliciesTextBlock-c0_cont_80"><ix:nonNumeric contextRef="c0" continuedAt="_EarningsPerSharePolicyTextBlock-c0_cont_1" escape="true" name="us-gaap:EarningsPerSharePolicyTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.75in">&#160;</td> <td style="width: 0.5in"><span style="font-size: 10pt"><b>q.</b></span></td> <td style="text-align: justify"><span style="font-size: 10pt"><b>Basic and diluted net loss per ordinary share:</b></span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_82" id="_SignificantAccountingPoliciesTextBlock-c0_cont_81"><ix:continuation continuedAt="_EarningsPerSharePolicyTextBlock-c0_cont_2" id="_EarningsPerSharePolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">Basic net loss per ordinary share is
computed based on the weighted average number of ordinary shares outstanding during each year.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_83" id="_SignificantAccountingPoliciesTextBlock-c0_cont_82"><ix:continuation id="_EarningsPerSharePolicyTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">The total number of ordinary shares
related to the outstanding stock options, warrants and conversion of the outstanding convertible loans as of December 31, 2022, aggregated
to <ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:OutstandingStockOptions" scale="0" unitRef="shares">23,783,274</ix:nonFraction>, <ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:ConversionOfOutstandingConvertibleLoans" scale="0" unitRef="shares">30,611,525</ix:nonFraction> and <ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:DilutedLossPerOrdinaryShare" scale="0" unitRef="shares">14,710,663</ix:nonFraction>, respectively, were excluded from the calculations of diluted loss per ordinary share, since
it would have an anti-dilutive effect.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_84" id="_SignificantAccountingPoliciesTextBlock-c0_cont_83"><ix:nonNumeric contextRef="c0" continuedAt="_CommitmentsAndContingenciesPolicyTextBlock-c0_cont_1" escape="true" name="us-gaap:CommitmentsAndContingenciesPolicyTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.75in">&#160;</td> <td style="width: 0.5in"><span style="font-size: 10pt"><b>r.</b></span></td> <td style="text-align: justify"><span style="font-size: 10pt"><b>Contingencies:</b></span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.5pt; text-align: justify; text-indent: -0.5in">&#160;</p></ix:nonNumeric></ix:continuation><div>
</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_85" id="_SignificantAccountingPoliciesTextBlock-c0_cont_84"><ix:continuation id="_CommitmentsAndContingenciesPolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">The Group has been involved in legal
proceedings and assessments and inquiries of the Israeli tax authorities from time to time. The Group records accruals for these types
of contingencies to the extent that the Group concludes their occurrence is probable and that the related liabilities are estimable. When
accruing these costs, the Group will recognize an accrual in the amount within a range of loss that is the best estimate within the range.
When no amount within the range is a better estimate than any other amount, the Group accrues for the minimum amount within the range.
The Group records anticipated recoveries under existing insurance contracts that are virtually certain of occurring at the gross amount
that is expected to be collected. Legal costs are expensed as incurred.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">

</p></ix:continuation></ix:continuation><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 110 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->15<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><b>P.V. NANO CELL LTD. AND ITS SUBSIDIARIES</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; border-bottom: black 1.5pt solid"><b>NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>U.S. dollars</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in; text-align: justify"><span style="font-size: 10pt"><b>NOTE 2:</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>SIGNIFICANT ACCOUNTING POLICIES (Cont.)</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_86" id="_SignificantAccountingPoliciesTextBlock-c0_cont_85"><ix:nonNumeric contextRef="c0" continuedAt="_LesseeLeasesPolicyTextBlock-c0_cont_1" escape="true" name="us-gaap:LesseeLeasesPolicyTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.75in">&#160;</td> <td style="width: 0.5in"><span style="font-size: 10pt"><b>s.</b></span></td> <td style="text-align: justify"><span style="font-size: 10pt"><b>Leases:</b></span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.5pt; text-align: justify; text-indent: -0.5in">&#160;</p></ix:nonNumeric></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_87" id="_SignificantAccountingPoliciesTextBlock-c0_cont_86"><ix:continuation id="_LesseeLeasesPolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">The Group adopted the new accounting standard ASC 842 &#8220;Leases&#8221;
and all the related amendments on January 1, 2020 and used the effective date as the Group&#8217;s date of initial application. The Group
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 Group classifies the lease as a finance lease. Otherwise, the Group classifies the lease as an operating
lease. When determining lease classification, the Group&#8217;s approach in assessing two of the mentioned criteria: (i) generally, 75%
or more of the remaining economic life of the underlying asset is a major part of the remaining economic life of that underlying asset;
and (ii) generally, 90% or more of the fair value of the underlying asset comprises substantially all of the fair value of the underlying
asset.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>



</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_88" id="_SignificantAccountingPoliciesTextBlock-c0_cont_87"><ix:nonNumeric contextRef="c0" continuedAt="_SegmentReportingPolicyPolicyTextBlock-c0_cont_1" escape="true" name="us-gaap:SegmentReportingPolicyPolicyTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.75in">&#160;</td> <td style="width: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>t.</b></span></td> <td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Segments:</b></span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.5pt; text-align: justify; text-indent: -0.5in">&#160;</p></ix:nonNumeric></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_89" id="_SignificantAccountingPoliciesTextBlock-c0_cont_88"><ix:continuation id="_SegmentReportingPolicyPolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">The Group operates in one reportable
segment.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_90" id="_SignificantAccountingPoliciesTextBlock-c0_cont_89"><ix:nonNumeric contextRef="c0" continuedAt="_NewAccountingPronouncementsPolicyPolicyTextBlock-c0_cont_1" escape="true" name="us-gaap:NewAccountingPronouncementsPolicyPolicyTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.75in">&#160;</td> <td style="width: 0.5in"><b>u.</b></td> <td style="text-align: justify"><span style="font-size: 10pt"><b>Recently issued accounting standards:</b></span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.45pt"><b>&#160;</b></p></ix:nonNumeric></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_91" id="_SignificantAccountingPoliciesTextBlock-c0_cont_90"><ix:continuation continuedAt="_NewAccountingPronouncementsPolicyPolicyTextBlock-c0_cont_2" id="_NewAccountingPronouncementsPolicyPolicyTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in"><b>Not yet adopted in the current year: </b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.5pt">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_92" id="_SignificantAccountingPoliciesTextBlock-c0_cont_91"><ix:continuation continuedAt="_NewAccountingPronouncementsPolicyPolicyTextBlock-c0_cont_3" id="_NewAccountingPronouncementsPolicyPolicyTextBlock-c0_cont_2"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 1.25in">&#160;</td>
    <td style="width: 0.5in"><span style="font-size: 10pt">1.</span></td>
    <td>
    <p style="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In August 2020, the FASB issued ASU No. 2020-06, Debt - Debt with Conversion
    and Other Options (Subtopic 470-20) and Derivatives and Hedging Contracts in Entity s Own Equity (Subtopic 815-40): Accounting for Convertible
    Instruments and Contracts in an Entity s Own Equity. ASU 2020-06 will simplify the accounting for convertible instruments by reducing
    the number of accounting models for convertible debt instruments and convertible preferred stock. Limiting the accounting models results
    in fewer embedded conversion features being separately recognized from the host contract as compared with current GAAP. Convertible instruments
    that continue to be subject to separation models are (1) those with embedded conversion features that are not clearly and closely related
    to the host contract, that meet the definition of a derivative, and that do not qualify for a scope exception from derivative accounting
    and (2) convertible debt instruments issued with substantial premiums for which the premiums are recorded as paid-in capital. ASU 2020-06
    also amends the guidance for the derivatives scope exception for contracts in an entity&#8217;s own equity to reduce form-over-substance-based
    accounting conclusions. ASU 2020-06 will be effective for public companies for fiscal years beginning after December 15, 2023, including
    interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15,
    2020, including interim periods within those fiscal years.</p>
    <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p>
    <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Group is currently evaluating the impact that the adoption of ASU
2020-06 will have on the Group&#8217;s consolidated financial statement presentation or disclosures.</p></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.5pt">&#160;</p></ix:continuation></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_93" id="_SignificantAccountingPoliciesTextBlock-c0_cont_92"><ix:continuation continuedAt="_NewAccountingPronouncementsPolicyPolicyTextBlock-c0_cont_4" id="_NewAccountingPronouncementsPolicyPolicyTextBlock-c0_cont_3"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><tr style="vertical-align: top; text-align: justify">
<td style="width: 1.25in"></td><td style="width: 0.5in; text-align: left">2.</td><td style="text-align: justify">In June 2022, the FASB issued Accounting Standards Update
(&#8220;ASU&#8221;) 2022-03, Fair Value Measurement (Topic 820), Fair Value Measurement of Equity Securities Subject to Contractual Sale
Restrictions: to clarify that a contractual restriction on the sale of an equity security is not considered part of a unit of account
of the equity security, and, therefore, is not considered in measuring fair value. The amendments also clarify that an entity cannot,
as a separate unit of account, recognize and measure a contractual sale restriction. The amendments also require the following disclosures
for equity securities subject to the contractual sale restrictions:</td>
</tr></table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_94" id="_SignificantAccountingPoliciesTextBlock-c0_cont_93"><ix:continuation continuedAt="_NewAccountingPronouncementsPolicyPolicyTextBlock-c0_cont_5" id="_NewAccountingPronouncementsPolicyPolicyTextBlock-c0_cont_4"><table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 2in"></td><td style="width: 0.5in"><span>&#9679;</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif">The fair value of equity securities subject to the contractual sale restrictions
reflected on the balance sheet.</span></td></tr></table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 120.5pt; text-indent: -0.25in">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_95" id="_SignificantAccountingPoliciesTextBlock-c0_cont_94"><ix:continuation continuedAt="_NewAccountingPronouncementsPolicyPolicyTextBlock-c0_cont_6" id="_NewAccountingPronouncementsPolicyPolicyTextBlock-c0_cont_5"><table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 2in"></td><td style="width: 0.5in"><span>&#9679;</span></td><td><span style="font-family: Times New Roman, Times, Serif">The nature and remaining duration of the restriction(s).</span></td></tr></table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 120.5pt; text-indent: -0.25in">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_96" id="_SignificantAccountingPoliciesTextBlock-c0_cont_95"><ix:continuation continuedAt="_NewAccountingPronouncementsPolicyPolicyTextBlock-c0_cont_7" id="_NewAccountingPronouncementsPolicyPolicyTextBlock-c0_cont_6"><table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><tr style="vertical-align: top">
<td style="width: 2in"></td><td style="width: 0.5in"><span>&#9679;</span></td><td><span style="font-family: Times New Roman, Times, Serif">The circumstances that could cause a lapse in the restriction(s).</span></td></tr></table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 120.5pt; text-indent: -0.25in">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SignificantAccountingPoliciesTextBlock-c0_cont_97" id="_SignificantAccountingPoliciesTextBlock-c0_cont_96"><ix:continuation continuedAt="_NewAccountingPronouncementsPolicyPolicyTextBlock-c0_cont_8" id="_NewAccountingPronouncementsPolicyPolicyTextBlock-c0_cont_7"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.75in; text-align: justify">This guidance is effective for fiscal years beginning after December
15, 2023, and interim periods within those financial years. The Group does not expect the adoption of ASU 2022-03 to have a significant
impact on its consolidated financial statements.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.5pt">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation id="_SignificantAccountingPoliciesTextBlock-c0_cont_97"><ix:continuation id="_NewAccountingPronouncementsPolicyPolicyTextBlock-c0_cont_8"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 1.25in">&#160;</td>
    <td style="width: 0.5in"><span style="font-size: 10pt">3.</span></td>
    <td style="text-align: justify">With the exception of the new standards discussed above, there have
been no other recent accounting pronouncements or changes in accounting pronouncements during the year ended December 31, 2022, that are
of significance or potential significance to the Group.</td></tr>
  </table></ix:continuation></ix:continuation><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.5pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.5pt"></p><div>

</div><!-- Field: Page; Sequence: 111 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->16<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.5pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><b>P.V. NANO CELL LTD. AND ITS SUBSIDIARIES</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; border-bottom: black 1.5pt solid"><b>NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>U.S. dollars</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>&#160;</b></p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_ScheduleOfBusinessAcquisitionsByAcquisitionTextBlock-c0_cont_1" escape="true" name="us-gaap:ScheduleOfBusinessAcquisitionsByAcquisitionTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in; text-align: justify"><span style="font-size: 10pt"><b>NOTE 3:</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>ACQUISITION</b></span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; ">&#160;</p></ix:nonNumeric><div>
</div><div>

</div><ix:continuation continuedAt="_ScheduleOfBusinessAcquisitionsByAcquisitionTextBlock-c0_cont_2" id="_ScheduleOfBusinessAcquisitionsByAcquisitionTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">On July 26, 2020, the Company consummated
the acquisition of <ix:nonFraction contextRef="c64" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationStepAcquisitionEquityInterestInAcquireePercentage" scale="-2" unitRef="pure">100</ix:nonFraction>% of the shares of Jet CU, a company that was incorporated in Israel in May 2014 and was inactive on the purchase
date since its operational assets were sold few years before. The main balance sheet items as of the purchase date were cash and a liability
to the Israel Innovation Authority (&#8220;IIA&#8221;) of approximately $<ix:nonFraction contextRef="c65" decimals="1" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentAssets" scale="0" unitRef="usd">0.8</ix:nonFraction> million and approximately $<ix:nonFraction contextRef="c66" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentAssets" scale="6" unitRef="usd">1.0</ix:nonFraction> million, respectively. The
Company issued <ix:nonFraction contextRef="c67" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:SharesIssued" scale="0" unitRef="shares">2,000,000</ix:nonFraction> ordinary shares and warrants to purchase <ix:nonFraction contextRef="c68" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:SharesIssued" scale="0" unitRef="shares">8,000,000</ix:nonFraction> ordinary shares, at an exercise price of $<ix:nonFraction contextRef="c68" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1" scale="0" unitRef="usdPershares">0.26</ix:nonFraction> per share,
as consideration for the purchase. The warrants were exercisable until the date which is the earlier of (i) 24 months following the purchase
date and (ii) a merger or acquisition transaction or an initial public offering.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_ScheduleOfBusinessAcquisitionsByAcquisitionTextBlock-c0_cont_3" id="_ScheduleOfBusinessAcquisitionsByAcquisitionTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">The purchase price (as mentioned above)
aggregated to $<ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PurchaseObligation" scale="0" unitRef="usd">411,781</ix:nonFraction> as follows:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_ScheduleOfBusinessAcquisitionsByAcquisitionTextBlock-c0_cont_4" id="_ScheduleOfBusinessAcquisitionsByAcquisitionTextBlock-c0_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">$<ix:nonFraction contextRef="c36" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssued1" scale="0" unitRef="usd">224,200</ix:nonFraction> attributed to the <ix:nonFraction contextRef="c65" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:SharesIssued" scale="0" unitRef="shares">2,000,000</ix:nonFraction>
ordinary shares issued, based on the stock price as of July 26, 2020, and $<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockRepurchasedAndRetiredDuringPeriodValue" scale="0" unitRef="usd">187,581</ix:nonFraction> to the <ix:nonFraction contextRef="c69" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:SharesIssued" scale="0" unitRef="shares">8,000,000</ix:nonFraction> warrants (the Company used the following
assumptions: <ix:nonFraction contextRef="c0" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate" scale="-2" unitRef="pure">0</ix:nonFraction>% dividend yield, <ix:nonFraction contextRef="c0" decimals="3" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate" scale="-2" unitRef="pure">80.0</ix:nonFraction>% expected volatility, <ix:nonFraction contextRef="c0" decimals="4" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate" scale="-2" unitRef="pure">0.14</ix:nonFraction>% risk free rate and <ix:nonNumeric contextRef="c0" format="ixt-sec:duryear" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1">2</ix:nonNumeric> expected life in years) issued, and such warrants
were classified as liability at the issuance date. The fair value of the warrants as of December 31, 2020 aggregated to $<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:FairValueWarrantAmount" scale="0" unitRef="usd">691,473</ix:nonFraction>.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_ScheduleOfBusinessAcquisitionsByAcquisitionTextBlock-c0_cont_5" id="_ScheduleOfBusinessAcquisitionsByAcquisitionTextBlock-c0_cont_4"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.75in; text-align: justify">The allocation
of the purchase price to assets acquired and liabilities assumed is as follows:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 57pt; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_ScheduleOfBusinessAcquisitionsByAcquisitionTextBlock-c0_cont_6" id="_ScheduleOfBusinessAcquisitionsByAcquisitionTextBlock-c0_cont_5"><ix:nonNumeric contextRef="c0" continuedAt="_ScheduleOfRecognizedIdentifiedAssetsAcquiredAndLiabilitiesAssumedTableTextBlock-c0_cont_1" escape="true" name="us-gaap:ScheduleOfRecognizedIdentifiedAssetsAcquiredAndLiabilitiesAssumedTableTextBlock"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 88%; text-align: justify">Cash and cash equivalents</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedRestrictedCash" scale="0" unitRef="usd">811,773</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify">Prepaid expenses and other current assets</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibleAssetsOtherThanGoodwill" scale="0" unitRef="usd">1,977</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: justify">Balance with the Company (*)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" id="ix_0_fact" name="pvnnf:BalanceWithTheCompany" scale="0" sign="-" unitRef="usd">50,000</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify">Investment in the Company&#8217;s shares (**)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" id="ix_2_fact" name="pvnnf:InvestmentInTheCompanysShares" scale="0" sign="-" unitRef="usd">122,482</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: justify">CLA provided to the Company (*)</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" id="ix_1_fact" name="pvnnf:InvestmentCompanyFinancialCommitmentsToInvesteeFutureAmount" scale="0" unitRef="usd">167,188</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify">Liability to Israel Innovation Authority</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeTaxExaminationLiabilityRefundAdjustmentFromSettlementWithTaxingAuthority" scale="0" unitRef="usd">1,006,605</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: justify">Accrued expenses and other current liabilities</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccruedLiabilitiesAndOtherLiabilities" scale="0" unitRef="usd">123</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify; padding-bottom: 1.5pt">Goodwill (***)</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 contextRef="c2" decimals="0" format="ixt:num-dot-decimal" id="ix_3_fact" name="us-gaap:GoodwillFairValueDisclosure" scale="0" unitRef="usd">265,089</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 style="text-align: justify; padding-bottom: 4pt">Total purchase price</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredGoodwillAndLiabilitiesAssumedLessNoncontrollingInterest" scale="0" unitRef="usd">411,781</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_ScheduleOfBusinessAcquisitionsByAcquisitionTextBlock-c0_cont_7" id="_ScheduleOfBusinessAcquisitionsByAcquisitionTextBlock-c0_cont_6"><ix:continuation continuedAt="_ScheduleOfRecognizedIdentifiedAssetsAcquiredAndLiabilitiesAssumedTableTextBlock-c0_cont_2" id="_ScheduleOfRecognizedIdentifiedAssetsAcquiredAndLiabilitiesAssumedTableTextBlock-c0_cont_1"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0in; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.35in; text-align: left"><span style="font-size: 10pt">(*)</span></td><td style="font-family: Times New Roman, Times, Serif; text-align: justify"><ix:footnote id="ix_1_footnote" xml:lang="en-US"><span style="font-size: 10pt">Such amount was eliminated at the consolidated <span style="font-family: Times New Roman, Times, Serif">level.</span></span></ix:footnote></td>
</tr></table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif">&#160;</span></p></ix:continuation></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_ScheduleOfBusinessAcquisitionsByAcquisitionTextBlock-c0_cont_8" id="_ScheduleOfBusinessAcquisitionsByAcquisitionTextBlock-c0_cont_7"><ix:continuation continuedAt="_ScheduleOfRecognizedIdentifiedAssetsAcquiredAndLiabilitiesAssumedTableTextBlock-c0_cont_3" id="_ScheduleOfRecognizedIdentifiedAssetsAcquiredAndLiabilitiesAssumedTableTextBlock-c0_cont_2"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0in; width: 100%"><tr style="font-family: Times New Roman, Times, Serif; vertical-align: top; text-align: justify">
<td style="font-family: Times New Roman, Times, Serif; width: 0.35in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(**)</span></td><td style="font-family: Times New Roman, Times, Serif; text-align: justify"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif">Such amount was recorded as treasury stock within the consolidated statements of shareholders&#8217; equity (deficit) for the year ended December 31, 2020.</span></p></td>
</tr></table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif">&#160;</span></p></ix:continuation></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_ScheduleOfBusinessAcquisitionsByAcquisitionTextBlock-c0_cont_9" id="_ScheduleOfBusinessAcquisitionsByAcquisitionTextBlock-c0_cont_8"><ix:continuation id="_ScheduleOfRecognizedIdentifiedAssetsAcquiredAndLiabilitiesAssumedTableTextBlock-c0_cont_3"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0in; width: 100%"><tr style="font-family: Times New Roman, Times, Serif; vertical-align: top; text-align: justify">
<td style="font-family: Times New Roman, Times, Serif; width: 0.35in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(***)</span></td><td style="font-family: Times New Roman, Times, Serif; text-align: justify"><ix:footnote id="ix_3_footnote" xml:lang="en-US"><span style="font-family: Times New Roman, Times, Serif">Such amount was impaired following the purchase date since Jet CU has no activity and was recorded within the consolidated statements of comprehensive loss for the year ended December 31, 2020.</span></ix:footnote></td>
</tr></table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif">&#160;</span></p></ix:continuation></ix:continuation><div>
</div><div>



</div><ix:continuation id="_ScheduleOfBusinessAcquisitionsByAcquisitionTextBlock-c0_cont_9"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; ">In
September 2021, the Company issued an additional <ix:nonFraction contextRef="c70" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodSharesNewIssues" scale="0" unitRef="shares">5,428,572</ix:nonFraction> ordinary shares to the Jet CU former shareholders as an additional consideration
upon their agreement to forfeit the <ix:nonFraction contextRef="c71" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:WarrantsPurchase" scale="0" unitRef="shares">8,000,000</ix:nonFraction> warrants that were granted to them on the purchase date.</span></p></ix:continuation><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.75in; text-align: justify"></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_OtherCurrentAssetsTextBlock-c0_cont_1" escape="true" name="us-gaap:OtherCurrentAssetsTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in; text-align: justify"><span style="font-size: 10pt"><b>NOTE 4:</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>OTHER CURRENT ASSETS</b></span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify; text-indent: -56.7pt"><b>&#160;</b></p></ix:nonNumeric><div>
</div><div>

</div><ix:continuation continuedAt="_OtherCurrentAssetsTextBlock-c0_cont_2" id="_OtherCurrentAssetsTextBlock-c0_cont_1"><ix:nonNumeric contextRef="c0" continuedAt="_ScheduleOfOtherCurrentAssetsTableTextBlock-c0_cont_1" escape="true" name="us-gaap:ScheduleOfOtherCurrentAssetsTableTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <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"><span style="font-size: 10pt"><b>December 31,</b></span></td>
    <td style="padding-bottom: 1.5pt">&#160;</td></tr>
  <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"><span style="font-size: 10pt"><b>2022</b></span></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"><span style="font-size: 10pt"><b>2021</b></span></td>
    <td style="padding-bottom: 1.5pt">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: justify">&#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 style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="width: 78%; text-align: justify"><span style="font-size: 10pt">Prepaid expenses (primarily insurance policies)*</span></td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%"><span style="font-size: 10pt">$</span></td>
    <td style="width: 8%; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" id="ix_4_fact" name="us-gaap:PrepaidInsurance" scale="0" unitRef="usd">108,250</ix:nonFraction></span></td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%"><span style="font-size: 10pt">$</span></td>
    <td style="width: 8%; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" id="ix_5_fact" name="us-gaap:PrepaidInsurance" scale="0" unitRef="usd">149,349</ix:nonFraction></span></td>
    <td style="width: 1%">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify"><span style="font-size: 10pt">Government authorities</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:GovernmentAuthorities" scale="0" unitRef="usd">122,069</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:GovernmentAuthorities" scale="0" unitRef="usd">103,354</ix:nonFraction></span></td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="padding-bottom: 1.5pt; text-align: justify"><span style="font-size: 10pt">Other*</span></td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: black 1.5pt solid">&#160;</td>
    <td style="border-bottom: black 1.5pt solid; text-align: right"><span style="-sec-ix-hidden: hidden-fact-91; font-size: 10pt">&#8212;</span></td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: black 1.5pt solid">&#160;</td>
    <td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" id="ix_6_fact" name="us-gaap:OtherReceivablesNetCurrent" scale="0" unitRef="usd">87</ix:nonFraction></span></td>
    <td style="padding-bottom: 1.5pt">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right">&#160;</td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="padding-bottom: 4pt; text-align: justify">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: black 4.5pt double"><span style="font-size: 10pt">$</span></td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherAssetsCurrent" scale="0" unitRef="usd">230,319</ix:nonFraction></span></td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: black 4.5pt double"><span style="font-size: 10pt">$</span></td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherAssetsCurrent" scale="0" unitRef="usd">252,790</ix:nonFraction></span></td>
    <td style="padding-bottom: 4pt">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:nonNumeric></ix:continuation><div>
</div><div>

</div><ix:continuation id="_OtherCurrentAssetsTextBlock-c0_cont_2"><ix:continuation id="_ScheduleOfOtherCurrentAssetsTableTextBlock-c0_cont_1"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0in; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.25in; text-align: left">*</td><td style="text-align: justify"><ix:footnote id="ix_4_footnote" xml:lang="en-US">Reclassified</ix:footnote></td>
</tr></table></ix:continuation></ix:continuation><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 112 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->17<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><b>P.V. NANO CELL LTD. AND ITS SUBSIDIARIES</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; border-bottom: black 1.5pt solid"><b>NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>U.S. dollars</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_PropertyPlantAndEquipmentDisclosureTextBlock-c0_cont_1" escape="true" name="us-gaap:PropertyPlantAndEquipmentDisclosureTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in; text-align: justify"><span style="font-size: 10pt"><b>NOTE 5:</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>PROPERTY AND EQUIPMENT, NET</b></span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify; text-indent: -56.7pt"><b>&#160;</b></p></ix:nonNumeric><div>
</div><div>

</div><ix:continuation continuedAt="_PropertyPlantAndEquipmentDisclosureTextBlock-c0_cont_2" id="_PropertyPlantAndEquipmentDisclosureTextBlock-c0_cont_1"><ix:nonNumeric contextRef="c0" escape="true" name="us-gaap:PropertyPlantAndEquipmentTextBlock"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">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="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">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="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>Cost:</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 style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%; padding-left: 9pt">Equipment</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c72" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PropertyPlantAndEquipmentGross" scale="0" unitRef="usd">446,189</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c73" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PropertyPlantAndEquipmentGross" scale="0" unitRef="usd">390,573</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 9pt">Computers</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c74" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PropertyPlantAndEquipmentGross" scale="0" unitRef="usd">4,949</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 contextRef="c75" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PropertyPlantAndEquipmentGross" scale="0" unitRef="usd">965</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-left: 9pt">Office furniture</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c76" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PropertyPlantAndEquipmentGross" scale="0" unitRef="usd">11,949</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 contextRef="c77" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PropertyPlantAndEquipmentGross" scale="0" unitRef="usd">11,069</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt; padding-left: 9pt">Leasehold improvements</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 contextRef="c78" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PropertyPlantAndEquipmentGross" scale="0" unitRef="usd">22,000</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 contextRef="c79" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PropertyPlantAndEquipmentGross" scale="0" unitRef="usd">23,461</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 style="text-align: right">&#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; ">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PropertyPlantAndEquipmentGross" scale="0" unitRef="usd">485,087</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 contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PropertyPlantAndEquipmentGross" scale="0" unitRef="usd">426,068</ix:nonFraction></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></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt">Accumulated depreciation:</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 contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment" scale="0" unitRef="usd">359,539</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 contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment" scale="0" unitRef="usd">334,410</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 style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 4pt">Property and equipment, net</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PropertyPlantAndEquipmentNet" scale="0" unitRef="usd">125,548</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PropertyPlantAndEquipmentNet" scale="0" unitRef="usd">91,658</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify; text-indent: -56.7pt"><b>&#160;</b></p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation id="_PropertyPlantAndEquipmentDisclosureTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 57pt; text-align: justify">Depreciation expenses for the years ended
December 31, 2022, 2021 and 2020 were $<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Depreciation" scale="0" unitRef="usd">59,278</ix:nonFraction>, $<ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Depreciation" scale="0" unitRef="usd">55,076</ix:nonFraction> and $<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Depreciation" scale="0" unitRef="usd">63,095</ix:nonFraction>, respectively.</p></ix:continuation><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 57pt; text-align: justify">&#160;</p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_IntangibleAssetsDisclosureTextBlock-c0_cont_1" escape="true" name="us-gaap:IntangibleAssetsDisclosureTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in; text-align: justify"><span style="font-size: 10pt"><b>NOTE 6:</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>INTANGIBLE ASSETS, NET</b></span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify; text-indent: -56.7pt"><b>&#160;</b></p></ix:nonNumeric><div>
</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify; text-indent: -56.7pt"></p><div>

</div><ix:continuation continuedAt="_IntangibleAssetsDisclosureTextBlock-c0_cont_2" id="_IntangibleAssetsDisclosureTextBlock-c0_cont_1"><ix:nonNumeric contextRef="c0" escape="true" name="us-gaap:ScheduleOfFiniteLivedIntangibleAssetsTableTextBlock"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">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="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">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="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td>Cost:</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 style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%">Technology</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c80" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FiniteLivedIntangibleAssetsGross" scale="0" unitRef="usd">4,284,315</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c81" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FiniteLivedIntangibleAssetsGross" scale="0" unitRef="usd">4,284,315</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-bottom: 1.5pt">Backlog</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 contextRef="c82" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FiniteLivedIntangibleAssetsGross" scale="0" unitRef="usd">45,996</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 contextRef="c83" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FiniteLivedIntangibleAssetsGross" scale="0" unitRef="usd">45,996</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 style="text-align: right">&#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; ">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FiniteLivedIntangibleAssetsGross" scale="0" unitRef="usd">4,330,311</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 contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FiniteLivedIntangibleAssetsGross" scale="0" unitRef="usd">4,330,311</ix:nonFraction></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></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Accumulated amortization and impairment:</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: rgb(204,238,255)">
    <td style="text-align: left">Accumulated amortization</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FiniteLivedIntangibleAssetsAccumulatedAmortization" scale="0" unitRef="usd">2,222,194</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 contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FiniteLivedIntangibleAssetsAccumulatedAmortization" scale="0" unitRef="usd">1,793,763</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-bottom: 1.5pt; text-align: left">Intangible asset impairment</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 contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredTaxAssetsTaxDeferredExpenseReservesAndAccrualsImpairmentLosses" scale="0" unitRef="usd">2,108,117</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"><div style="-sec-ix-hidden: hidden-fact-92">&#8212;</div></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 style="vertical-align: bottom; ">
    <td style="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 style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AssetImpairmentCharges" scale="0" unitRef="usd">4,330,311</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 contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AssetImpairmentCharges" scale="0" unitRef="usd">1,793,763</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 style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 4pt">Intangible assets, net</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><div style="-sec-ix-hidden: hidden-fact-93">&#8212;</div></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FiniteLivedIntangibleAssetsNet" scale="0" unitRef="usd">2,536,548</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify; text-indent: -56.7pt">&#160;&#160;</p></ix:nonNumeric></ix:continuation><div>



</div><ix:continuation id="_IntangibleAssetsDisclosureTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 57pt; text-align: justify">Amortization expenses for the years ended
December 31, 2022, 2021 and 2020 were $<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AmortizationOfIntangibleAssets" scale="0" unitRef="usd">428,431</ix:nonFraction>, $<ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AmortizationOfIntangibleAssets" scale="0" unitRef="usd">428,431</ix:nonFraction> and $<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AmortizationOfIntangibleAssets" scale="0" unitRef="usd">428,434</ix:nonFraction>, respectively. Furthermore, as of December 31, 2022, the Group recorded
an impairment charge of $<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ImpairmentOfIntangibleAssetsFinitelived" scale="0" unitRef="usd">2,108,117</ix:nonFraction>, which equals to the remaining technology net amount. See Note 2.h. for further information.</p></ix:continuation><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 57pt; text-align: justify">

</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 57pt; text-align: justify">&#160;</p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_AccountsPayableAccruedLiabilitiesAndOtherLiabilitiesDisclosureCurrentTextBlock-c0_cont_1" escape="true" name="us-gaap:AccountsPayableAccruedLiabilitiesAndOtherLiabilitiesDisclosureCurrentTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in; text-align: justify"><span style="font-size: 10pt"><b>NOTE 7:</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES</b></span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify; text-indent: -56.7pt">&#160;</p></ix:nonNumeric><div>
</div><div>

</div><ix:continuation continuedAt="_AccountsPayableAccruedLiabilitiesAndOtherLiabilitiesDisclosureCurrentTextBlock-c0_cont_2" id="_AccountsPayableAccruedLiabilitiesAndOtherLiabilitiesDisclosureCurrentTextBlock-c0_cont_1"><ix:nonNumeric contextRef="c0" continuedAt="_ScheduleOfAccountsPayableAndAccruedLiabilitiesTableTextBlock-c0_cont_1" escape="true" name="us-gaap:ScheduleOfAccountsPayableAndAccruedLiabilitiesTableTextBlock"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">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="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">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="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">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>&#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 style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%; text-align: left">Provision for professional fees</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:ProvisionForProfessionalFees" scale="0" unitRef="usd">959,654</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:ProvisionForProfessionalFees" scale="0" unitRef="usd">1,169,156</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Government authorities*</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" id="ix_7_fact" name="pvnnf:GovernmentAuthoritiesExpenses" scale="0" unitRef="usd">1,211,885</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 contextRef="c3" decimals="0" format="ixt:num-dot-decimal" id="ix_8_fact" name="pvnnf:GovernmentAuthoritiesExpenses" scale="0" unitRef="usd">921,726</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">Grants received in advance</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:GrantsReceivedInAdvance" scale="0" unitRef="usd">243,956</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 contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:GrantsReceivedInAdvance" scale="0" unitRef="usd">526,578</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Provision for legal claims</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:ProvisionForLegalClaims" scale="0" unitRef="usd">43,477</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 contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:ProvisionForLegalClaims" scale="0" unitRef="usd">49,195</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr 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 contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherAccruedLiabilitiesCurrentAndNoncurrent" scale="0" unitRef="usd">118,739</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 contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherAccruedLiabilitiesCurrentAndNoncurrent" scale="0" unitRef="usd">116,233</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: justify">&#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: rgb(204,238,255)">
    <td style="text-align: justify; padding-bottom: 4pt">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccountsPayableAndOtherAccruedLiabilitiesCurrent" scale="0" unitRef="usd">2,577,711</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccountsPayableAndOtherAccruedLiabilitiesCurrent" scale="0" unitRef="usd">2,782,888</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify; text-indent: -56.7pt">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation id="_AccountsPayableAccruedLiabilitiesAndOtherLiabilitiesDisclosureCurrentTextBlock-c0_cont_2"><ix:continuation id="_ScheduleOfAccountsPayableAndAccruedLiabilitiesTableTextBlock-c0_cont_1"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0in; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="font-family: Times New Roman, Times, Serif; width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</span></td><td style="font-family: Times New Roman, Times, Serif; text-align: justify"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><ix:footnote id="ix_5_footnote" xml:lang="en-US"><span style="font-family: Times New Roman, Times, Serif">Such amount for both December 31, 2022 and 2021 contains primarily liability to the IIA. See Note 3 for additional information. The remainder of the liability towards the IIA as of December 31, 2021 is presented in a separate line item within the non-current liabilities according to the related settlement. See Note 9.a.1. for additional information.</span></ix:footnote></p></td>
</tr></table></ix:continuation></ix:continuation><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify; text-indent: -56.7pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify; text-indent: -56.7pt"></p><div>

</div><!-- Field: Page; Sequence: 113 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->18<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify; text-indent: -56.7pt">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><b>P.V. NANO CELL LTD. AND ITS SUBSIDIARIES</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; border-bottom: black 1.5pt solid"><b>NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>U.S. dollars</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="pvnnf_ConvertibleBridgeFinancingDisclosureTextBlock-c0_cont_1" escape="true" name="pvnnf:ConvertibleBridgeFinancingDisclosureTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in; text-align: justify"><span style="font-size: 10pt"><b>NOTE 8:</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>LOANS AND CONVERTIBLE BRIDGE FINANCING</b></span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:nonNumeric><div>
</div><div>

</div><ix:continuation continuedAt="pvnnf_ConvertibleBridgeFinancingDisclosureTextBlock-c0_cont_2" id="pvnnf_ConvertibleBridgeFinancingDisclosureTextBlock-c0_cont_1"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.75in">&#160;</td> <td style="width: 0.5in"><span style="font-size: 10pt"><b>a.</b></span></td> <td style="text-align: justify"><p style="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">In August 2017, the Company entered into several Securities Purchase
Agreements with new investors and additional existing shareholders (collectively, the &#8220;CLA August 2017&#8221;), pursuant to which
the Company issued and sold to such holders senior secured convertible notes in an aggregate principal amount of $<ix:nonFraction contextRef="c84" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DebtConversionOriginalDebtAmount1" scale="0" unitRef="usd">905,555</ix:nonFraction> in consideration
for an aggregate subscription amount of $<ix:nonFraction contextRef="c84" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:DebtInstrumentSubscriptionValue" scale="0" unitRef="usd">774,400</ix:nonFraction> net of issuance costs of $<ix:nonFraction contextRef="c85" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredFinanceCostsNet" scale="0" unitRef="usd">40,600</ix:nonFraction>.</p></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="pvnnf_ConvertibleBridgeFinancingDisclosureTextBlock-c0_cont_3" id="pvnnf_ConvertibleBridgeFinancingDisclosureTextBlock-c0_cont_2"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.75in">&#160;</td> <td style="width: 0.5in">&#160;</td> <td style="text-align: justify">As part of the CLA August 2017, the Company also issued to the lenders
five-year warrants to purchase an aggregate <ix:nonFraction contextRef="c86" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DebtConversionConvertedInstrumentWarrantsOrOptionsIssued1" scale="0" unitRef="shares">905,555</ix:nonFraction> ordinary shares, at an exercise price of $<ix:nonFraction contextRef="c86" decimals="2" format="ixt:num-dot-decimal" name="pvnnf:ExercisePrice" scale="0" unitRef="usdPershares">1.20</ix:nonFraction> per ordinary share. The Company classified
the warrants as liabilities due to their nature in the amount of $<ix:nonFraction contextRef="c87" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:WarrantLiability" scale="0" unitRef="usd">492,034</ix:nonFraction> (the Company used the following assumptions: <ix:nonFraction contextRef="c88" decimals="2" format="ixt:num-dot-decimal" name="pvnnf:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRates" scale="-2" unitRef="pure">0</ix:nonFraction>% dividend yield,
<ix:nonFraction contextRef="c88" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate" scale="-2" unitRef="pure">69</ix:nonFraction>% expected volatility, <ix:nonFraction contextRef="c88" decimals="4" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMinimum" scale="-2" unitRef="pure">2.16</ix:nonFraction>% risk free rate and <ix:nonNumeric contextRef="c88" format="ixt-sec:duryear" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1">4.64</ix:nonNumeric> expected life in years). As of December 31, 2021, the fair value of the warrants
amounted to $<ix:nonFraction contextRef="c89" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FairValueAdjustmentOfWarrants" scale="0" unitRef="usd">5,841</ix:nonFraction>. The warrants were forfeited during 2022.</td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="pvnnf_ConvertibleBridgeFinancingDisclosureTextBlock-c0_cont_4" id="pvnnf_ConvertibleBridgeFinancingDisclosureTextBlock-c0_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">The notes include a <ix:nonFraction contextRef="c90" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:DebtInstrumentInterestRateEffectivePercentage" scale="-2" unitRef="pure">10</ix:nonFraction>% original issue
discount on the consideration paid and bear interest at <ix:nonFraction contextRef="c90" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:DebtInstrumentInterestRateStatedPercentage" scale="-2" unitRef="pure">6</ix:nonFraction>% per annum. The notes mature after 14-24 months and may be converted into ordinary
shares, subject to the terms of such notes. The initial conversion price of the notes was $<ix:nonFraction contextRef="c0" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:DebtInstrumentConvertibleConversionPriceIncrease" scale="0" unitRef="usdPershares">1.00</ix:nonFraction>, but it was adjusted in January 2018 to
$<ix:nonFraction contextRef="c91" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:DebtInstrumentConvertibleConversionPriceIncrease" scale="0" unitRef="usdPershares">0.50</ix:nonFraction>, in October 2018 to $<ix:nonFraction contextRef="c92" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:DebtInstrumentConvertibleConversionPriceIncrease" scale="0" unitRef="usdPershares">0.17</ix:nonFraction> and further adjusted in September 2021 to $<ix:nonFraction contextRef="c71" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:DebtInstrumentConvertibleConversionPriceIncrease" scale="0" unitRef="usdPershares">0.07</ix:nonFraction>. The Company accounted for the convertible loans in accordance
with ASC 470-20, &#8220;Debt with conversion and other Options.&#8221; According to ASC 470-20-30-8, since the intrinsic value of the
beneficial conversion feature (&#8220;BCF&#8221;) exceeds the entire proceeds of the convertible loan, the Company allocated the entire
proceeds to the BCF as additional paid in capital. During 2022 and 2021, $<ix:nonFraction contextRef="c90" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ConvertibleNotesPayable" scale="0" unitRef="usd">0</ix:nonFraction> and $<ix:nonFraction contextRef="c93" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ConvertibleNotesPayable" scale="0" unitRef="usd">84,758</ix:nonFraction> of the convertible notes were converted into <ix:nonFraction contextRef="c94" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ConversionOfStockSharesConverted1" scale="0" unitRef="shares">0</ix:nonFraction>
and <ix:nonFraction contextRef="c89" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ConversionOfStockSharesConverted1" scale="0" unitRef="shares">498,758</ix:nonFraction> ordinary shares, respectively. The Company may require mandatory conversion of the notes in certain circumstances and pay
the convertible note in cash upon event of fundamental transaction and change of control transaction as described in the convertible note
agreement.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="pvnnf_ConvertibleBridgeFinancingDisclosureTextBlock-c0_cont_5" id="pvnnf_ConvertibleBridgeFinancingDisclosureTextBlock-c0_cont_4"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">In connection with the convertible
loan agreement signed in October 2018 as described in section c. below, the lenders in the CLA August 2017 agreed to extend the original
maturity date for an additional 24 months. In addition, the Company issued to certain participants in the CLA August 2017 additional four-year
warrants to purchase in the aggregate <ix:nonFraction contextRef="c88" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DebtConversionConvertedInstrumentWarrantsOrOptionsIssued1" scale="0" unitRef="shares">1,659,971</ix:nonFraction> ordinary shares at an exercise price of $<ix:nonFraction contextRef="c88" decimals="2" format="ixt:num-dot-decimal" name="pvnnf:ExercisePrice" scale="0" unitRef="usdPershares">0.17</ix:nonFraction>. The Company classified the warrants as
liabilities in the amount of $<ix:nonFraction contextRef="c95" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:WarrantLiability" scale="0" unitRef="usd">42,591</ix:nonFraction>. As of December 31, 2021, the fair value of the warrants amounted to $<ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FairValueAdjustmentOfWarrants" scale="0" unitRef="usd">11,359</ix:nonFraction>. The warrants were forfeited
during 2022.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="pvnnf_ConvertibleBridgeFinancingDisclosureTextBlock-c0_cont_6" id="pvnnf_ConvertibleBridgeFinancingDisclosureTextBlock-c0_cont_5"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">The CLA August 2017 was required to
be repaid by October 2020. The majority of the lenders did not exercise their conversion right under the convertible loans prior to the
repayment date and therefore, the outstanding amounts (principal and interest) became repayable in cash at such time. The Company did
not timely repay such loan amounts due to financial difficulties and therefore, the Company is in default under those agreements.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 114 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->19<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify"><b>&#160;</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><b>P.V. NANO CELL LTD. AND ITS SUBSIDIARIES</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; border-bottom: black 1.5pt solid"><b>NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>U.S. dollars</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in; text-align: justify"><span style="font-size: 10pt"><b>NOTE 8:</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>LOANS AND CONVERTIBLE BRIDGE FINANCING (Cont.)</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 74.7pt; text-align: justify">&#160;</p><div>

</div><ix:continuation continuedAt="pvnnf_ConvertibleBridgeFinancingDisclosureTextBlock-c0_cont_7" id="pvnnf_ConvertibleBridgeFinancingDisclosureTextBlock-c0_cont_6"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.75in">&#160;</td> <td style="width: 0.5in"><span style="font-size: 10pt"><b>b.</b></span></td> <td> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On May 8, 2018, the Company entered into a Share
Purchase Agreement with an existing shareholder (collectively, the &#8220;CLA May 2018&#8221;), pursuant to which the shareholder provided
the Company with an 18-month convertible loan in an aggregate principal amount of $<ix:nonFraction contextRef="c96" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:InvestmentSoldNotYetPurchasedBalancePrincipalAmount" scale="0" unitRef="usd">170,000</ix:nonFraction> and received from the Company warrants to purchase
<ix:nonFraction contextRef="c96" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:WarrantsPurchases" scale="0" unitRef="shares">170,000</ix:nonFraction> ordinary shares at an exercise price of $<ix:nonFraction contextRef="c97" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:WarrantExercisePriceIncrease" scale="0" unitRef="usdPershares">0.50</ix:nonFraction> per ordinary share. The loan amount is convertible into ordinary shares at a conversion
price of $<ix:nonFraction contextRef="c97" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:DebtInstrumentConvertibleConversionPriceDecrease" scale="0" unitRef="usdPershares">1.00</ix:nonFraction> per ordinary share. The loan includes a <ix:nonFraction contextRef="c96" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ShortDurationContractsDiscountedLiabilitiesDiscountRate" scale="-2" unitRef="pure">10</ix:nonFraction>% original issue discount and bears interest of <ix:nonFraction contextRef="c96" decimals="2" format="ixt:num-dot-decimal" name="pvnnf:BearsInterestRate" scale="-2" unitRef="pure">6</ix:nonFraction>% per annum. In accordance with
the accounting guidance on convertible instruments, the BCF of $<ix:nonFraction contextRef="c96" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:AdditionalPaidInCapitalAmount" scale="0" unitRef="usd">15,300</ix:nonFraction> was recognized in additional paid in capital. The warrants may
be exercised, in whole or in part, for a period of five (5) years. Such warrants were classified as equity due to their nature, their
fair value upon issuance date amounted to $<ix:nonFraction contextRef="c96" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:InvestmentOwnedAtFairValue" scale="0" unitRef="usd">65,718</ix:nonFraction> (the Company used the following assumptions: <ix:nonFraction contextRef="c97" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:EffectiveIncomeTaxRateReconciliationDeductionsDividends" scale="-2" unitRef="pure">0</ix:nonFraction>% dividend yield, <ix:nonFraction contextRef="c97" decimals="4" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedGoodsAndNonemployeeServicesTransactionValuationMethodExpectedVolatilityRate" scale="-2" unitRef="pure">59.69</ix:nonFraction>% expected volatility,
<ix:nonFraction contextRef="c97" decimals="4" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedGoodsAndNonemployeeServicesTransactionValuationMethodRiskFreeInterestRate" scale="-2" unitRef="pure">2.80</ix:nonFraction>% risk free rate and <ix:nonNumeric contextRef="c97" format="ixt-sec:duryear" name="us-gaap:ShareBasedGoodsAndNonemployeeServicesTransactionValuationMethodExpectedTerm1">5</ix:nonNumeric> expected life in years).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p>
<p style="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">The CLA May 2018 was required to be repaid by November 2019. This lender
did not exercise its conversion right under the convertible loans prior to the repayment date and therefore, the outstanding amount (principal
and interest) became repayable in cash as such time. The Company did not timely repay such loan due to financial difficulties and therefore,
the Company is in default under this agreement.</p>
</td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="pvnnf_ConvertibleBridgeFinancingDisclosureTextBlock-c0_cont_8" id="pvnnf_ConvertibleBridgeFinancingDisclosureTextBlock-c0_cont_7"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.75in">&#160;</td> <td style="width: 0.5in"><span style="font-size: 10pt"><b>c.</b></span></td> <td> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">On October 10, 2018,
the Company entered into a Convertible Loan Agreement with an existing investor who invested relatively low amounts previously (the &#8220;CLA
October 2018&#8221;). Pursuant to this agreement, the investor provided the Company a convertible loan in an aggregate principal amount
of $<ix:nonFraction contextRef="c98" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:InvestmentSoldNotYetPurchasedBalancePrincipalAmount" scale="0" unitRef="usd">1,000,000</ix:nonFraction> at an exercise price as defined in the convertible loan agreement but no less than $<ix:nonFraction contextRef="c98" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:DebtInstrumentConvertibleConversionPrice1" scale="0" unitRef="usdPershares">0.17</ix:nonFraction>. The convertible loan bears an
interest rate at Israeli prime plus <ix:nonFraction contextRef="c98" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:DerivativeAverageCapInterestRate" scale="-2" unitRef="pure">4</ix:nonFraction>% per annum. Under the terms of the CLA October 2018, the investor was granted an option to lend
the Company an additional amount up to $<ix:nonFraction contextRef="c99" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdjustmentsToAdditionalPaidInCapitalIncreaseInCarryingAmountOfRedeemablePreferredStock" scale="0" unitRef="usd">2,000,000</ix:nonFraction> (the &#8220;Additional Loan Amount&#8221;) and the Company also issued to the investor
a warrant to purchase ordinary shares for an aggregate purchase price of $<ix:nonFraction contextRef="c99" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:AggregatePurchasePrice" scale="0" unitRef="usd">5,000,000</ix:nonFraction>, and undertook to issue an additional warrant conditioned
upon the investment of the Additional Loan Amount to purchase ordinary shares for an aggregate purchase price of up to $<ix:nonFraction contextRef="c99" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:AggregatePurchasePriceIncreases" scale="0" unitRef="usd">5,000,000</ix:nonFraction> calculated
pro-rata to the amount out of the Additional Loan Amount actually provided.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In March, April, August and December 2019 such
investor provided to the Company additional amounts of $<ix:nonFraction contextRef="c100" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:InvestorAdditionalAmounts" scale="0" unitRef="usd">500,000</ix:nonFraction>, $<ix:nonFraction contextRef="c101" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:InvestorAdditionalAmounts" scale="0" unitRef="usd">500,000</ix:nonFraction>, $<ix:nonFraction contextRef="c102" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:InvestorAdditionalAmounts" scale="0" unitRef="usd">100,000</ix:nonFraction> and $<ix:nonFraction contextRef="c103" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:InvestorAdditionalAmounts" scale="0" unitRef="usd">150,000</ix:nonFraction>, respectively on account of the Additional
Loan Amount (the &#8220;CLA March-December 2019&#8221;). <ix:nonNumeric contextRef="c104" name="us-gaap:DebtInstrumentDescription">The Company determined that the $100,000 received in August 2019 contained a
BCF of $21,445 and recorded such BCF in the additional paid in capital in the year ended December 31, 2019. The Company also issued to
the investor for the aggregate $1,250,000 Additional Loan Amount a warrant to purchase ordinary shares for an aggregate purchase price
of $3,125,000. Such convertible loans bears same terms as the CLA October 2018.</ix:nonNumeric></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In July 2020, this investor provided to the Company
an additional $<ix:nonFraction contextRef="c105" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:InvestorAdditionalAmounts" scale="0" unitRef="usd">16,748</ix:nonFraction> on account of the Additional Loan Amount (the &#8220;CLA July 2020&#8221;) and the Company granted the investor
a warrant to purchase ordinary shares for an aggregate purchase price of $<ix:nonFraction contextRef="c106" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:AggregatePurchasePrice" scale="0" unitRef="usd">83,740</ix:nonFraction>. The terms of that convertible loan and the associated
warrants are the same as those of the CLA October 2018.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; ">The CLA October 2018,
CLA March-December 2019 and CLA July 2020 were required to be repaid by the Company in October 2020. This lender did not exercise its
conversion right under such convertible loans prior to their repayment date and therefore, they became repayable in cash as such time.
The Company did not timely repay such loans due to financial difficulties and therefore, the Company is in default under those agreements.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p>
<p style="text-align: justify; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">On September 23, 2021, all those CLAs (principal plus the accrued
interest as of that date) were converted into ordinary shares and all the related warrants were cancelled. See Note 11.b.5. for additional
information.&#160;&#160;</p></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation><div>
</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 115 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->20<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><b>P.V. NANO CELL LTD. AND ITS SUBSIDIARIES</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; border-bottom: black 1.5pt solid"><b>NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>U.S. dollars</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in; text-align: justify"><span style="font-size: 10pt"><b>NOTE 8:</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>LOANS AND CONVERTIBLE BRIDGE FINANCING (Cont.)</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p><div>

</div><ix:continuation continuedAt="pvnnf_ConvertibleBridgeFinancingDisclosureTextBlock-c0_cont_9" id="pvnnf_ConvertibleBridgeFinancingDisclosureTextBlock-c0_cont_8"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.75in">&#160;</td> <td style="width: 0.5in"><span style="font-size: 10pt"><b>d.</b></span></td> <td> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On November 10, 2018, the Company entered into
several convertible loan agreements with existing shareholders (collectively, the &#8220;CLA November 2018&#8221;), pursuant to which
they provided the Company with convertible loans in an aggregate principal amount of $<ix:nonFraction contextRef="c107" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DebtConversionOriginalDebtAmount1" scale="0" unitRef="usd">225,000</ix:nonFraction>. The convertible loans bear an interest
rate at Israeli prime plus <ix:nonFraction contextRef="c108" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:DebtInstrumentInterestRateEffectivePercentage" scale="-2" unitRef="pure">4</ix:nonFraction>% per annum. Under those agreements, the Company issued to the lenders warrants to purchase ordinary shares
for an aggregate purchase price of $<ix:nonFraction contextRef="c107" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:AggregatePurchasePrice" scale="0" unitRef="usd">1,125,000</ix:nonFraction>. The conversion price for both the loan amount and the warrants is defined in the convertible
loan agreement but no less than $<ix:nonFraction contextRef="c108" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:DebtInstrumentConvertibleConversionPrice1" scale="0" unitRef="usdPershares">0.17</ix:nonFraction>.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The granted warrants were classified as a liability
at the issuance date, their fair value aggregated to $<ix:nonFraction contextRef="c109" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FairValueAdjustmentOfWarrants" scale="0" unitRef="usd">79,227</ix:nonFraction> (the Company used the following assumptions: <ix:nonFraction contextRef="c0" decimals="2" format="ixt:num-dot-decimal" name="pvnnf:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRates" scale="-2" unitRef="pure">0</ix:nonFraction>% dividend yield, <ix:nonFraction contextRef="c109" decimals="4" format="ixt:num-dot-decimal" name="pvnnf:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateS" scale="-2" unitRef="pure">59.69</ix:nonFraction>% expected
volatility, <ix:nonFraction contextRef="c109" decimals="4" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMinimum" scale="-2" unitRef="pure">2.87</ix:nonFraction>% risk free rate and <ix:nonNumeric contextRef="c109" format="ixt-sec:duryear" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1">2</ix:nonNumeric> expected life in years). As of December 31, 2019, the fair value of the warrants amounted to $<ix:nonFraction contextRef="c110" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FairValueAdjustmentOfWarrants" scale="0" unitRef="usd">50,510</ix:nonFraction>.
The warrants were forfeited during 2020.&#160;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The CLA November 2018 was required to be repaid
by November 2020. The lenders did not exercise their conversion right under the convertible loans prior to the repayment date and therefore,
the outstanding amount (principal and interest) became repayable in cash as such time. The Company did not timely repay the loans due
to financial difficulties and therefore, the Company is in default under these agreements.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p>
<p style="text-align: justify; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">On September 23, 2021, $<ix:nonFraction contextRef="c111" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DebtInstrumentIncreaseAccruedInterest" scale="0" unitRef="usd">25,000</ix:nonFraction> of the amounts outstanding under the
CLA November 2018 (principal plus the accrued interest as of that date) was converted into ordinary shares and all the related warrants
were cancelled. See Note 11.b.5. for additional information. The remainder of that the amounts outstanding under the CLA November 2018
were not converted and are referred to as the &#8216;CLA November 2018&#8217; from that date onwards.</p>
</td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="pvnnf_ConvertibleBridgeFinancingDisclosureTextBlock-c0_cont_10" id="pvnnf_ConvertibleBridgeFinancingDisclosureTextBlock-c0_cont_9"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.75in">&#160;</td> <td style="width: 0.5in"><span style="font-size: 10pt"><b>e.</b></span></td> <td> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On December 29, 2018, the Company entered into
a convertible loan agreement with a new investor (the &#8220;CLA December 2018&#8221;), pursuant to which it provided the Company with
a convertible loan in an aggregate principal loan amount of $<ix:nonFraction contextRef="c112" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:AggregatePrincipalLoan" scale="0" unitRef="usd">400,000</ix:nonFraction>. The convertible loan bears an interest rate at Israeli prime plus
<ix:nonFraction contextRef="c113" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:DebtInstrumentInterestRateEffectivePercentage" scale="-2" unitRef="pure">4</ix:nonFraction>% per annum. Under this agreement, the Company issued to the lender warrants to purchase ordinary shares for an aggregate purchase price
of $<ix:nonFraction contextRef="c114" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:InvestorAdditionalAmounts" scale="0" unitRef="usd">2,000,000</ix:nonFraction>.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As part of the CLA December 2018, the Company
paid a finder&#8217;s fee of $<ix:nonFraction contextRef="c115" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:FindersFee" scale="0" unitRef="usd">40,000</ix:nonFraction> and issued to the finder a five-year warrant, commencing February 2019, to purchase ordinary shares
for an aggregate purchase price of $<ix:nonFraction contextRef="c112" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:AggregatePurchasePrice" scale="0" unitRef="usd">240,000</ix:nonFraction>. The conversion price for both the loan amount and the warrants is defined in the CLA December
2018 agreement but no less than $<ix:nonFraction contextRef="c113" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:DebtInstrumentConvertibleConversionPrice1" scale="0" unitRef="usdPershares">0.17</ix:nonFraction>.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The warrants issued to the new investor were classified
as a liability. At the issuance date their fair value aggregated to $<ix:nonFraction contextRef="c116" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:FairValueAggregatedAmount" scale="0" unitRef="usd">180,281</ix:nonFraction> (the Company used the following assumptions: <ix:nonFraction contextRef="c116" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate" scale="-2" unitRef="pure">0</ix:nonFraction>% dividend
yield, <ix:nonFraction contextRef="c116" decimals="4" format="ixt:num-dot-decimal" name="pvnnf:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateS" scale="-2" unitRef="pure">59.69</ix:nonFraction>% expected volatility, <ix:nonFraction contextRef="c116" decimals="4" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMinimum" scale="-2" unitRef="pure">2.48</ix:nonFraction>% risk free rate and <ix:nonNumeric contextRef="c116" format="ixt-sec:duryear" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1">2</ix:nonNumeric> expected life in years). As of December 31, 2019, the fair value of the
warrants amounted to $<ix:nonFraction contextRef="c117" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FairValueAdjustmentOfWarrants" scale="0" unitRef="usd">107,602</ix:nonFraction>. The warrants were forfeited during 2020.&#160;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The warrants issued as part of the finder&#8217;s
fee compensation were classified as a liability. At the issuance date their fair value aggregated to $<ix:nonFraction contextRef="c118" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:FairValueAggregatedAmount" scale="0" unitRef="usd">45,327</ix:nonFraction> (the Company used the following
assumptions: <ix:nonFraction contextRef="c118" decimals="2" format="ixt:num-dot-decimal" name="pvnnf:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRates" scale="-2" unitRef="pure">0</ix:nonFraction>% dividend yield, <ix:nonFraction contextRef="c118" decimals="4" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate" scale="-2" unitRef="pure">59.69</ix:nonFraction>% expected volatility, <ix:nonFraction contextRef="c118" decimals="4" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMinimum" scale="-2" unitRef="pure">2.51</ix:nonFraction>% risk free rate and <ix:nonNumeric contextRef="c118" format="ixt-sec:duryear" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1">5</ix:nonNumeric> expected life in years). As of December 31, 2022
and 2021, the fair value of the warrants amounted to $<ix:nonFraction contextRef="c88" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FairValueAdjustmentOfWarrants" scale="0" unitRef="usd">673</ix:nonFraction> and $<ix:nonFraction contextRef="c119" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FairValueAdjustmentOfWarrants" scale="0" unitRef="usd">34,948</ix:nonFraction>, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The CLA December 2018 was required to be repaid
by December 2020. This lender did not exercise its conversion right under the convertible loan prior to the repayment date and therefore,
the outstanding amount (principal and interest) became repayable in cash as such time. The Company did not timely repay such loan due
to financial difficulties and therefore, the Company was in default under this agreement.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p>
<p style="text-align: justify; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">On September 23, 2021, all of the amount understanding under the CLA
December 2018 (principal plus the accrued interest as of that date) was converted into ordinary shares and all the related warrants were
cancelled. See Note 11.b.5. for additional information.&#160;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation><div>

</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 116 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->21<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><b>P.V. NANO CELL LTD. AND ITS SUBSIDIARIES</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&#160;</p><div>

</div><p style="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>U.S. dollars</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in; text-align: justify"><span style="font-size: 10pt"><b>NOTE 8:</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>LOANS AND CONVERTIBLE BRIDGE FINANCING (Cont.)</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><ix:continuation continuedAt="pvnnf_ConvertibleBridgeFinancingDisclosureTextBlock-c0_cont_11" id="pvnnf_ConvertibleBridgeFinancingDisclosureTextBlock-c0_cont_10"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.75in">&#160;</td> <td style="width: 0.5in"><span style="font-size: 10pt"><b>f.</b></span></td> <td> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In January, February and April 2019, the Company
entered into several convertible loan agreements with existing shareholders (collectively, the &#8220;CLA January-April 2019&#8221;),
pursuant to which they provided the Company with convertible loans in an aggregate principal amount of $<ix:nonFraction contextRef="c120" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DebtConversionOriginalDebtAmount1" scale="0" unitRef="usd">200,000</ix:nonFraction>. The convertible loans
bear interest at Israeli prime plus <ix:nonFraction contextRef="c121" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:DebtInstrumentInterestRateEffectivePercentage" scale="-2" unitRef="pure">4</ix:nonFraction>% per annum. Under those agreements, the Company issued to the lenders warrants to purchase ordinary
shares for an aggregate purchase price of $<ix:nonFraction contextRef="c120" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:AggregatePurchasePrice" scale="0" unitRef="usd">1,000,000</ix:nonFraction>. The conversion price for all the loan amount and the warrants is defined in the
convertible loan agreement but no less than $<ix:nonFraction contextRef="c116" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:FairValueAdjustmentOfWarrants" scale="0" unitRef="usd">0.17</ix:nonFraction>.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;&#160;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The CLA January-April 2019 were required to be
repaid between January-April 2021. The lenders did not exercise their conversion right under the convertible loans prior to the repayment
date and therefore, the outstanding amount (principal and interest) became repayable in cash as such time. The Company did not timely
repay such loans due to financial difficulties and therefore, the Company was in default under those agreements.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p>
<p style="text-align: justify; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">On September 23, 2021, all the amounts outstanding under the CLA January-April
2019 (principal plus the accrued interest as of that date) were converted into ordinary shares and all the related warrants were cancelled.
See Note 11.b.5. for additional information.&#160;</p></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="pvnnf_ConvertibleBridgeFinancingDisclosureTextBlock-c0_cont_12" id="pvnnf_ConvertibleBridgeFinancingDisclosureTextBlock-c0_cont_11"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.75in">&#160;</td> <td style="width: 0.5in"><span style="font-size: 10pt"><b>g.</b></span></td> <td> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In August, September and December 2019, the Company
entered into several convertible loan agreements with a new investor and existing shareholders (collectively, the &#8220;CLA August-December
2019&#8221;), pursuant to which they provided the Company with convertible loans in an aggregate principal amount of $<ix:nonFraction contextRef="c122" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DebtConversionOriginalDebtAmount1" scale="0" unitRef="usd">475,000</ix:nonFraction>. The convertible
loans bear an interest rate at Israeli prime plus <ix:nonFraction contextRef="c123" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:DebtInstrumentInterestRateEffectivePercentage" scale="-2" unitRef="pure">4</ix:nonFraction>% per annum. Under those agreements, the Company issued the lenders warrants to purchase
ordinary shares for an aggregate purchase price of $<ix:nonFraction contextRef="c124" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:AggregatePurchasePrice" scale="0" unitRef="usd">2,375,000</ix:nonFraction>. The conversion price for all the loan amount and the warrants is defined
in the convertible loan agreement but no less than $<ix:nonFraction contextRef="c123" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:DebtInstrumentConvertibleConversionPrice1" scale="0" unitRef="usdPershares">0.17</ix:nonFraction>.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The granted warrants were classified as liability
at the issuance date, their fair value aggregated to $<ix:nonFraction contextRef="c125" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FairValueAdjustmentOfWarrants" scale="0" unitRef="usd">409,668</ix:nonFraction> (the Company used the following assumptions: <ix:nonFraction contextRef="c125" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate" scale="-2" unitRef="pure">0</ix:nonFraction>% dividend yield, <ix:nonFraction contextRef="c125" decimals="4" format="ixt:num-dot-decimal" name="pvnnf:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateS" scale="-2" unitRef="pure">54.50</ix:nonFraction>% expected
volatility, <ix:nonFraction contextRef="c125" decimals="4" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMinimum" scale="-2" unitRef="pure">1.60</ix:nonFraction>% risk free rate and <ix:nonNumeric contextRef="c125" format="ixt-sec:duryear" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1">2</ix:nonNumeric> expected life in years). As of December 31, 2020,the fair value of the warrants amounted to $<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:FairValueAdjustmentOfWarrants" scale="0" unitRef="usd">1,334,255</ix:nonFraction>.
The warrants were forfeited during 2021.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p>
<p style="text-align: justify; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">On September 23, 2021, $<ix:nonFraction contextRef="c126" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DebtInstrumentIncreaseAccruedInterest" scale="0" unitRef="usd">375,000</ix:nonFraction> out of amounts outstanding under the
CLA August-December 2019 (principal plus the accrued interest as of that date) was converted into ordinary shares and all the related
warrants were cancelled. See Note 11.b.5. for additional information.&#160;The remainder of the amounts outstanding under the CLA August-December
2019 were not converted and are referred to as the &#8216;CLA August 2019&#8217; from that date onwards.</p>
</td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="pvnnf_ConvertibleBridgeFinancingDisclosureTextBlock-c0_cont_13" id="pvnnf_ConvertibleBridgeFinancingDisclosureTextBlock-c0_cont_12"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.75in">&#160;</td> <td style="width: 0.5in"><span style="font-size: 10pt"><b>h.</b></span></td> <td> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In March and June 2021, the Company entered into
several convertible loan agreements with new investors (collectively, the &#8220;CLA March-June 2021&#8221;), pursuant to which they provided
the Company with convertible loans in an aggregate principal amount of $<ix:nonFraction contextRef="c127" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DebtConversionOriginalDebtAmount1" scale="0" unitRef="usd">255,000</ix:nonFraction>. The convertible loans bear an interest rate at Israeli
prime plus 4% per annum. Under those agreements, the Company issued to the lenders warrants to purchase ordinary shares for an aggregate
purchase price of $<ix:nonFraction contextRef="c127" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:AggregatePurchasePrice" scale="0" unitRef="usd">985,000</ix:nonFraction>. The conversion price for all the loan amount and the warrants is defined in the convertible loan agreement
but no less than $<ix:nonFraction contextRef="c128" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:DebtInstrumentConvertibleConversionPrice1" scale="0" unitRef="usdPershares">0.17</ix:nonFraction>.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p>
<p style="text-align: justify; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">On September 23, 2021, all of the amounts outstanding under the CLA
March-June 2021 (principal plus the accrued interest as of that date) were converted into ordinary shares and all the related warrants
were cancelled. See Note 11.b.5. for additional information.&#160;</p>
</td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="pvnnf_ConvertibleBridgeFinancingDisclosureTextBlock-c0_cont_14" id="pvnnf_ConvertibleBridgeFinancingDisclosureTextBlock-c0_cont_13"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in">&#160;</td>
    <td style="width: 0.5in"><span style="font-size: 10pt"><b>i.</b></span></td>
    <td style="text-align: justify"><p style="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">The fair value of the warrants issued as part of the convertible loan
agreements (&#8220;CLAs&#8221;) along with warrant issued as finder&#8217;s fees were bifurcated out of the principal loans. Commencing
with the grant dates, the Company calculates the accretion back to the principal amount during the CLAs&#8217; period along with the related
interest and record them financial expenses in connection with convertible loans as part of the financial expenses (income), net line
item within the statement of operations.</p></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation><div>
</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p><div>

</div><!-- Field: Page; Sequence: 117 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->22<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><b>P.V. NANO CELL LTD. AND ITS SUBSIDIARIES</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&#160;</p><div>

</div><p style="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>U.S. dollars</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in; text-align: justify"><span style="font-size: 10pt"><b>NOTE 8:</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>LOANS AND CONVERTIBLE BRIDGE FINANCING (Cont.)</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><ix:continuation continuedAt="pvnnf_ConvertibleBridgeFinancingDisclosureTextBlock-c0_cont_15" id="pvnnf_ConvertibleBridgeFinancingDisclosureTextBlock-c0_cont_14"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in">&#160;</td>
    <td style="width: 0.5in">&#160;</td>
    <td style="text-align: justify"><p style="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">The Company&#8217;s CLAs presented as part of its current liabilities
as of December 31, 2022 as follows:</p></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="pvnnf_ConvertibleBridgeFinancingDisclosureTextBlock-c0_cont_16" id="pvnnf_ConvertibleBridgeFinancingDisclosureTextBlock-c0_cont_15"><ix:nonNumeric contextRef="c0" continuedAt="pvnnf_ScheduleOfCurrentAndNoncurrentLiabilitiesTableTextBlock-c0_cont_1" escape="true" name="pvnnf:ScheduleOfCurrentAndNoncurrentLiabilitiesTableTextBlock"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="border-bottom: black 1.5pt solid"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Type of CLA</b></span></td>
    <td style="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"><b>Original<br/>
principal<br/>
loans<br/>
amounts</b></span></td>
    <td style="text-align: center">&#160;</td>
    <td style="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"><b>Additional<br/>
principal<br/>
loans<br/>
provided</b></span></td>
    <td style="text-align: center">&#160;</td>
    <td style="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"><b>Loans<br/>
already<br/>
converted</b></span></td>
    <td style="text-align: center">&#160;</td>
    <td style="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"><b>Remaining<br/>
principal<br/>
loans<br/>
amount</b></span></td>
    <td style="text-align: center">&#160;</td>
    <td style="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"><b>Converted<br/>
through</b></span></td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td colspan="2" style="border-bottom: black 1.5pt solid">
    <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>Loans</b></p>
    <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>presented<br/>
    as of<br/>
    December&#160;31,<br/>
    2022</b></p></td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center">&#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 style="text-align: center">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="width: 35.5%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">CLA August 2017(*)</span></td>
    <td style="width: 0.5%">&#160;</td>
    <td style="width: 0.5%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td>
    <td style="width: 7%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c129" decimals="0" format="ixt:num-dot-decimal" id="ix_9_fact" name="us-gaap:DebtInstrumentFaceAmount" scale="0" unitRef="usd">905,555</ix:nonFraction></span></td>
    <td style="width: 0.5%">&#160;</td>
    <td style="width: 0.5%">&#160;</td>
    <td style="width: 0.5%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td>
    <td style="width: 7%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c129" decimals="0" format="ixt:num-dot-decimal" id="ix_10_fact" name="pvnnf:AdditionalPrincipalLoansProvided" scale="0" unitRef="usd">22,322</ix:nonFraction></span></td>
    <td style="width: 0.5%">&#160;</td>
    <td style="width: 0.5%">&#160;</td>
    <td style="width: 0.5%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td>
    <td style="width: 7%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c130" decimals="0" format="ixt:num-dot-decimal" id="ix_11_fact" name="us-gaap:DebtConversionConvertedInstrumentAmount1" scale="0" unitRef="usd">276,211</ix:nonFraction></span></td>
    <td style="width: 0.5%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td>
    <td style="width: 0.5%">&#160;</td>
    <td style="width: 0.5%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td>
    <td style="width: 7%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c129" decimals="0" format="ixt:num-dot-decimal" id="ix_12_fact" name="us-gaap:PrincipalAmountOutstandingOnLoansSecuritized" scale="0" unitRef="usd">651,666</ix:nonFraction></span></td>
    <td style="width: 0.5%">&#160;</td>
    <td style="width: 0.5%">&#160;</td>
    <td style="width: 0.5%">&#160;</td>
    <td style="width: 7%; text-align: right"><ix:nonNumeric contextRef="c130" id="ix_13_fact" name="us-gaap:DebtInstrumentMaturityDateDescription"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2020</span></ix:nonNumeric></td>
    <td style="width: 0.5%">&#160;</td>
    <td style="width: 0.5%">&#160;</td>
    <td style="width: 0.5%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td>
    <td style="width: 7%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c129" decimals="0" format="ixt:num-dot-decimal" id="ix_14_fact" name="us-gaap:DebtDefaultLongtermDebtAmount" scale="0" unitRef="usd">861,764</ix:nonFraction></span></td>
    <td style="width: 0.5%">&#160;</td>
    <td style="width: 0.5%">&#160;</td>
    <td style="white-space: nowrap; width: 13%; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">See&#160; Note&#160;8.a.</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">CLA May 2018(*)</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c131" decimals="0" format="ixt:num-dot-decimal" id="ix_15_fact" name="us-gaap:DebtInstrumentFaceAmount" scale="0" unitRef="usd">170,000</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-94; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-95; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c131" decimals="0" format="ixt:num-dot-decimal" id="ix_16_fact" name="us-gaap:PrincipalAmountOutstandingOnLoansSecuritized" scale="0" unitRef="usd">170,000</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><ix:nonNumeric contextRef="c132" id="ix_17_fact" name="us-gaap:DebtInstrumentMaturityDateDescription"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2019</span></ix:nonNumeric></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c131" decimals="0" format="ixt:num-dot-decimal" id="ix_18_fact" name="us-gaap:DebtDefaultLongtermDebtAmount" scale="0" unitRef="usd">241,557</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="white-space: nowrap; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">See Note 8.b.</span></td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">CLA November 2018(*)</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c133" decimals="0" format="ixt:num-dot-decimal" id="ix_19_fact" name="us-gaap:DebtInstrumentFaceAmount" scale="0" unitRef="usd">225,000</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-96; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c134" decimals="0" format="ixt:num-dot-decimal" id="ix_20_fact" name="us-gaap:DebtConversionConvertedInstrumentAmount1" scale="0" unitRef="usd">25,000</ix:nonFraction></span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c133" decimals="0" format="ixt:num-dot-decimal" id="ix_21_fact" name="us-gaap:PrincipalAmountOutstandingOnLoansSecuritized" scale="0" unitRef="usd">200,000</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><ix:nonNumeric contextRef="c134" id="ix_22_fact" name="us-gaap:DebtInstrumentMaturityDateDescription"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2020</span></ix:nonNumeric></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(**)</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c133" decimals="0" format="ixt:num-dot-decimal" id="ix_23_fact" name="us-gaap:DebtDefaultLongtermDebtAmount" scale="0" unitRef="usd">247,629</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">See Note 8.d.</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">CLA August 2019(*)</span></td>
    <td>&#160;</td>
    <td style="border-bottom: black 4.5pt double">&#160;</td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c135" decimals="0" format="ixt:num-dot-decimal" id="ix_24_fact" name="us-gaap:DebtInstrumentFaceAmount" scale="0" unitRef="usd">475,000</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="border-bottom: black 4.5pt double">&#160;</td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="-sec-ix-hidden: hidden-fact-97; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="border-bottom: black 4.5pt double">&#160;</td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c136" decimals="0" format="ixt:num-dot-decimal" id="ix_25_fact" name="us-gaap:DebtConversionConvertedInstrumentAmount1" scale="0" unitRef="usd">375,000</ix:nonFraction></span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td>
    <td>&#160;</td>
    <td style="border-bottom: black 4.5pt double">&#160;</td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c135" decimals="0" format="ixt:num-dot-decimal" id="ix_26_fact" name="us-gaap:PrincipalAmountOutstandingOnLoansSecuritized" scale="0" unitRef="usd">100,000</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><ix:nonNumeric contextRef="c136" id="ix_27_fact" name="us-gaap:DebtInstrumentMaturityDateDescription"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2021</span></ix:nonNumeric></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(**)</span></td>
    <td>&#160;</td>
    <td style="border-bottom: black 4.5pt double">&#160;</td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c135" decimals="0" format="ixt:num-dot-decimal" id="ix_28_fact" name="us-gaap:DebtDefaultLongtermDebtAmount" scale="0" unitRef="usd">119,263</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">See Note 8.g.</span></td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="border-bottom: black 4.5pt double"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DebtInstrumentFaceAmount" scale="0" unitRef="usd">1,775,555</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="border-bottom: black 4.5pt double"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:AdditionalPrincipalLoansProvided" scale="0" unitRef="usd">22,322</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="border-bottom: black 4.5pt double"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DebtConversionConvertedInstrumentAmount1" scale="0" unitRef="usd">676,211</ix:nonFraction></span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td>
    <td>&#160;</td>
    <td style="border-bottom: black 4.5pt double"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PrincipalAmountOutstandingOnLoansSecuritized" scale="0" unitRef="usd">1,121,666</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="border-bottom: black 4.5pt double"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DebtDefaultLongtermDebtAmount" scale="0" unitRef="usd">1,470,213</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="pvnnf_ConvertibleBridgeFinancingDisclosureTextBlock-c0_cont_17" id="pvnnf_ConvertibleBridgeFinancingDisclosureTextBlock-c0_cont_16"><ix:continuation continuedAt="pvnnf_ScheduleOfCurrentAndNoncurrentLiabilitiesTableTextBlock-c0_cont_2" id="pvnnf_ScheduleOfCurrentAndNoncurrentLiabilitiesTableTextBlock-c0_cont_1"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.5in"><span style="font-size: 10pt">(*)</span></td> <td style="text-align: justify"><p style="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><ix:footnote id="ix_6_footnote" xml:lang="en-US">Those CLAs were not repaid on time and therefore were in default as
of December 31, 2022. Due to such default, the Company presented those CLAs in their fair value which was equaled to the principal loan
plus its accrued interest as of that date.</ix:footnote></p></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="pvnnf_ConvertibleBridgeFinancingDisclosureTextBlock-c0_cont_18" id="pvnnf_ConvertibleBridgeFinancingDisclosureTextBlock-c0_cont_17"><ix:continuation continuedAt="pvnnf_ScheduleOfCurrentAndNoncurrentLiabilitiesTableTextBlock-c0_cont_3" id="pvnnf_ScheduleOfCurrentAndNoncurrentLiabilitiesTableTextBlock-c0_cont_2"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.5in"><span style="font-size: 10pt">(**)</span></td> <td style="text-align: justify"><p style="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><ix:footnote id="ix_7_footnote" xml:lang="en-US">Structured as a 24-month convertible loan or less in case of a public
offering event.</ix:footnote></p></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="pvnnf_ConvertibleBridgeFinancingDisclosureTextBlock-c0_cont_19" id="pvnnf_ConvertibleBridgeFinancingDisclosureTextBlock-c0_cont_18"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in">&#160;</td>
    <td style="width: 0.5in">&#160;</td>
    <td style="text-align: justify"><p style="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">The Company&#8217;s CLAs presented as part of its current liabilities
as of December 31, 2021 as follows:</p></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="pvnnf_ConvertibleBridgeFinancingDisclosureTextBlock-c0_cont_20" id="pvnnf_ConvertibleBridgeFinancingDisclosureTextBlock-c0_cont_19"><ix:continuation continuedAt="pvnnf_ScheduleOfCurrentAndNoncurrentLiabilitiesTableTextBlock-c0_cont_4" id="pvnnf_ScheduleOfCurrentAndNoncurrentLiabilitiesTableTextBlock-c0_cont_3"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="border-bottom: black 1.5pt solid"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Type of CLA</b></span></td>
    <td style="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"><b>Original<br/>
principal<br/>
loans<br/>
amounts</b></span></td>
    <td style="text-align: center">&#160;</td>
    <td style="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"><b>Additional<br/>
principal<br/>
loans<br/>
provided</b></span></td>
    <td style="text-align: center">&#160;</td>
    <td style="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"><b>Loans<br/>
already<br/>
converted</b></span></td>
    <td style="text-align: center">&#160;</td>
    <td style="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"><b>Remaining<br/>
principal<br/>
loans<br/>
amount</b></span></td>
    <td style="text-align: center">&#160;</td>
    <td style="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"><b>Converted<br/>
through</b></span></td>
    <td style="text-align: center">&#160;</td>
    <td style="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"><b>Loans<br/>
presented<br/>
as of<br/>
December&#160;31,<br/>
2021</b></span></td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center">&#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 style="text-align: center">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="width: 35.5%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">CLA August 2017(*)</span></td>
    <td style="width: 0.5%">&#160;</td>
    <td style="width: 0.5%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td>
    <td style="width: 7%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c137" decimals="0" format="ixt:num-dot-decimal" id="ix_29_fact" name="us-gaap:DebtInstrumentFaceAmount" scale="0" unitRef="usd">905,555</ix:nonFraction></span></td>
    <td style="width: 0.5%">&#160;</td>
    <td style="width: 0.5%">&#160;</td>
    <td style="width: 0.5%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td>
    <td style="width: 7%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c137" decimals="0" format="ixt:num-dot-decimal" id="ix_30_fact" name="pvnnf:AdditionalPrincipalLoansProvided" scale="0" unitRef="usd">22,322</ix:nonFraction></span></td>
    <td style="width: 0.5%">&#160;</td>
    <td style="width: 0.5%">&#160;</td>
    <td style="width: 0.5%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td>
    <td style="width: 7%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c138" decimals="0" format="ixt:num-dot-decimal" id="ix_31_fact" name="us-gaap:DebtConversionConvertedInstrumentAmount1" scale="0" unitRef="usd">276,211</ix:nonFraction></span></td>
    <td style="width: 0.5%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td>
    <td style="width: 0.5%">&#160;</td>
    <td style="width: 0.5%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td>
    <td style="width: 7%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c137" decimals="0" format="ixt:num-dot-decimal" id="ix_32_fact" name="us-gaap:PrincipalAmountOutstandingOnLoansSecuritized" scale="0" unitRef="usd">651,666</ix:nonFraction></span></td>
    <td style="width: 0.5%">&#160;</td>
    <td style="width: 0.5%">&#160;</td>
    <td style="width: 0.5%">&#160;</td>
    <td style="width: 7%; text-align: right"><ix:nonNumeric contextRef="c138" id="ix_33_fact" name="us-gaap:DebtInstrumentMaturityDateDescription"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2020</span></ix:nonNumeric></td>
    <td style="width: 0.5%">&#160;</td>
    <td style="width: 0.5%">&#160;</td>
    <td style="width: 0.5%"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td>
    <td style="width: 7%; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c137" decimals="0" format="ixt:num-dot-decimal" id="ix_34_fact" name="us-gaap:DebtDefaultLongtermDebtAmount" scale="0" unitRef="usd">1,057,711</ix:nonFraction></span></td>
    <td style="width: 0.5%">&#160;</td>
    <td style="width: 0.5%">&#160;</td>
    <td style="white-space: nowrap; width: 13%; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">See&#160;Note&#160;8.a.</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">CLA May 2018(*)</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c139" decimals="0" format="ixt:num-dot-decimal" id="ix_35_fact" name="us-gaap:DebtInstrumentFaceAmount" scale="0" unitRef="usd">170,000</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-98; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-99; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c139" decimals="0" format="ixt:num-dot-decimal" id="ix_36_fact" name="us-gaap:PrincipalAmountOutstandingOnLoansSecuritized" scale="0" unitRef="usd">170,000</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><ix:nonNumeric contextRef="c140" id="ix_37_fact" name="us-gaap:DebtInstrumentMaturityDateDescription"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2019</span></ix:nonNumeric></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c139" decimals="0" format="ixt:num-dot-decimal" id="ix_38_fact" name="us-gaap:DebtDefaultLongtermDebtAmount" scale="0" unitRef="usd">230,224</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="white-space: nowrap; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">See Note 8.b.</span></td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">CLA November 2018(*)</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c141" decimals="0" format="ixt:num-dot-decimal" id="ix_39_fact" name="us-gaap:DebtInstrumentFaceAmount" scale="0" unitRef="usd">225,000</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-100; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c142" decimals="0" format="ixt:num-dot-decimal" id="ix_40_fact" name="us-gaap:DebtConversionConvertedInstrumentAmount1" scale="0" unitRef="usd">25,000</ix:nonFraction></span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c141" decimals="0" format="ixt:num-dot-decimal" id="ix_41_fact" name="us-gaap:PrincipalAmountOutstandingOnLoansSecuritized" scale="0" unitRef="usd">200,000</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><ix:nonNumeric contextRef="c142" id="ix_42_fact" name="us-gaap:DebtInstrumentMaturityDateDescription"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2020</span></ix:nonNumeric></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(**)</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c141" decimals="0" format="ixt:num-dot-decimal" id="ix_43_fact" name="us-gaap:DebtDefaultLongtermDebtAmount" scale="0" unitRef="usd">236,129</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">See Note 8.d.</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">CLA August 2019(*)</span></td>
    <td>&#160;</td>
    <td style="border-bottom: black 4.5pt double">&#160;</td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c143" decimals="0" format="ixt:num-dot-decimal" id="ix_44_fact" name="us-gaap:DebtInstrumentFaceAmount" scale="0" unitRef="usd">475,000</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="border-bottom: black 4.5pt double">&#160;</td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="-sec-ix-hidden: hidden-fact-101; font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8212;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="border-bottom: black 4.5pt double">&#160;</td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c144" decimals="0" format="ixt:num-dot-decimal" id="ix_45_fact" name="us-gaap:DebtConversionConvertedInstrumentAmount1" scale="0" unitRef="usd">375,000</ix:nonFraction></span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td>
    <td>&#160;</td>
    <td style="border-bottom: black 4.5pt double">&#160;</td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c143" decimals="0" format="ixt:num-dot-decimal" id="ix_46_fact" name="us-gaap:PrincipalAmountOutstandingOnLoansSecuritized" scale="0" unitRef="usd">100,000</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><ix:nonNumeric contextRef="c144" id="ix_47_fact" name="us-gaap:DebtInstrumentMaturityDateDescription"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2021</span></ix:nonNumeric></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(**)</span></td>
    <td>&#160;</td>
    <td style="border-bottom: black 4.5pt double">&#160;</td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c143" decimals="0" format="ixt:num-dot-decimal" id="ix_48_fact" name="us-gaap:DebtDefaultLongtermDebtAmount" scale="0" unitRef="usd">113,513</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">See Note 8.g.</span></td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="border-bottom: black 4.5pt double"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DebtInstrumentFaceAmount" scale="0" unitRef="usd">1,775,555</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="border-bottom: black 4.5pt double"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:AdditionalPrincipalLoansProvided" scale="0" unitRef="usd">22,322</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="border-bottom: black 4.5pt double"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(<ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DebtConversionConvertedInstrumentAmount1" scale="0" unitRef="usd">676,211</ix:nonFraction></span></td>
    <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</span></td>
    <td>&#160;</td>
    <td style="border-bottom: black 4.5pt double"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PrincipalAmountOutstandingOnLoansSecuritized" scale="0" unitRef="usd">1,121,666</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="border-bottom: black 4.5pt double"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</span></td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DebtDefaultLongtermDebtAmount" scale="0" unitRef="usd">1,637,577</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="pvnnf_ConvertibleBridgeFinancingDisclosureTextBlock-c0_cont_21" id="pvnnf_ConvertibleBridgeFinancingDisclosureTextBlock-c0_cont_20"><ix:continuation continuedAt="pvnnf_ScheduleOfCurrentAndNoncurrentLiabilitiesTableTextBlock-c0_cont_5" id="pvnnf_ScheduleOfCurrentAndNoncurrentLiabilitiesTableTextBlock-c0_cont_4"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.35in"><span style="font-size: 10pt">(*)</span></td> <td style="text-align: justify"><ix:footnote id="ix_8_footnote" xml:lang="en-US"><span style="font-size: 10pt">Those CLA&#8217;s were not repaid on time and therefore were in default as of December 31, 2021. Due to such default, the Company presented those CLA&#8217;s in their fair value.</span></ix:footnote></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation></ix:continuation><div>
</div><div>

</div><ix:continuation id="pvnnf_ConvertibleBridgeFinancingDisclosureTextBlock-c0_cont_21"><ix:continuation id="pvnnf_ScheduleOfCurrentAndNoncurrentLiabilitiesTableTextBlock-c0_cont_5"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="font-family: Times New Roman, Times, Serif; width: 0.35in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">(**)</span></td>
    <td style="font-family: Times New Roman, Times, Serif; text-align: justify"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><span style="font-family: Times New Roman, Times, Serif">Structured
                                    as a 24-month convertible loan or less in case of a public offering event.</span></p></td></tr>
  </table></ix:continuation></ix:continuation><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p><div>

</div><!-- Field: Page; Sequence: 118 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->23<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><b>P.V. NANO CELL LTD. AND ITS SUBSIDIARIES</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&#160;</p><div>

</div><p style="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>U.S. dollars</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_1" escape="true" name="us-gaap:CommitmentsAndContingenciesDisclosureTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in; text-align: justify"><span style="font-size: 10pt"><b>NOTE 9:</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>COMMITMENTS AND CONTINGENT LIABILITIES</b></span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:nonNumeric><div>
</div><div>

</div><ix:continuation continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_2" id="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_1"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in">&#160;</td>
    <td style="width: 0.5in"><span style="font-size: 10pt"><b>a.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>Royalties commitments:</b></span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_3" id="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_2"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 1.25in">&#160;</td> <td style="width: 0.5in"><span style="font-size: 10pt">1.</span></td> <td style="text-align: justify"><p style="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">The Company has received grants for research and development programs
from the IIA. The Company is committed to pay royalties to the IIA at the rate of <ix:nonFraction contextRef="c145" decimals="3" format="ixt:num-dot-decimal" name="pvnnf:PercentageOfRoyalties" scale="-2" unitRef="pure">3.0</ix:nonFraction>% of sales of products and services resulting from
know-how financed by the IIA. The amount shall not exceed the grant amount received, linked to the dollar, including accrued interest
at the LIBOR rate (subject to certain exceptions under certain circumstances). The obligation to pay these royalties is contingent on
actual sales of the products and in the absence of such sales, no payment is required.</p></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_4" id="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.75in; text-align: justify">During the years ended December 31,
2022, 2021 and 2020, the Company accrued royalties in respect to the IIA grants in the amount of $<ix:nonFraction contextRef="c146" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccruedRoyaltiesCurrentAndNoncurrent" scale="0" unitRef="usd">16,854</ix:nonFraction>, $<ix:nonFraction contextRef="c147" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccruedRoyaltiesCurrentAndNoncurrent" scale="0" unitRef="usd">11,562</ix:nonFraction> and $<ix:nonFraction contextRef="c148" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccruedRoyaltiesCurrentAndNoncurrent" scale="0" unitRef="usd">19,486</ix:nonFraction>, respectively,
and the liability to the IIA as of December 31, 2022 aggregated to $<ix:nonFraction contextRef="c146" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherAccruedLiabilitiesCurrent" scale="0" unitRef="usd">47,902</ix:nonFraction>, which is recorded within the accrued expenses and other current
liabilities line item.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.75in; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_5" id="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_4"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.75in; text-align: justify">The total grants received by the Company
and Nano Size as of December 31, 2022 aggregated to $<ix:nonFraction contextRef="c149" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:SubsidiaryOrEquityMethodInvesteeCumulativeProceedsReceivedOnAllTransactions" scale="0" unitRef="usd">1,445,622</ix:nonFraction>. The Company&#8217;s total contingent liability (including interest) as
of December 31, 2022, with respect to the IIA grants received, net of royalties paid to the IIA, amounted to $<ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PrepaidRoyalties" scale="0" unitRef="usd">2,048,160</ix:nonFraction>.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 114pt; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_6" id="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_5"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.75in; text-align: justify">As of December 31, 2022 and 2021, Digiflex had received grants for
research and development programs from the IIA in an aggregate amount of approximately $<ix:nonFraction contextRef="c150" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:ResearchAndDevelopmentInProcess" scale="6" unitRef="usd"><ix:nonFraction contextRef="c151" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:ResearchAndDevelopmentInProcess" scale="6" unitRef="usd">2.2</ix:nonFraction></ix:nonFraction> million, out of which an amount of approximately
$<ix:nonFraction contextRef="c150" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:PaymentsToAcquireInProcessResearchAndDevelopment" scale="6" unitRef="usd">1.1</ix:nonFraction> million had been repaid to the IIA by Jet CU as a result of its sale of IIA funded technology and know-how to a foreign company in
January 2018, which sale was authorized by the IIA . The remaining liability at such time (after additional payments) was reduced to approximately
$<ix:nonFraction contextRef="c150" decimals="-5" format="ixt:num-dot-decimal" name="pvnnf:ContingentLiability" scale="6" unitRef="usd">1.0</ix:nonFraction> million and recorded in Jet CU, and as of December 31, 2022, increased to approximately $<ix:nonFraction contextRef="c0" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:DebtInstrumentIncreaseAccruedInterest" scale="6" unitRef="usd">1.1</ix:nonFraction> million due to accrued interest and
change in the NIS vs. USD exchange rate. See Note 3 for additional information.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_7" id="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_6"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 1.25in">&#160;</td> <td style="width: 0.5in"><span style="font-size: 10pt">2.</span></td> <td style="text-align: justify"><p style="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">On December 15, 2011, the Company entered into a research and development
agreement with the Israeli Ministry of Energy (&#8220;Ministry&#8221;). Pursuant to the agreement, the Ministry agreed to fund up to <ix:nonFraction contextRef="c152" decimals="3" format="ixt:num-dot-decimal" name="pvnnf:FundPercentage" scale="-2" unitRef="pure">62.5</ix:nonFraction>%
of the Company&#8217;s expenses related to an approved program up to a maximum amount of NIS <ix:nonFraction contextRef="c153" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CostsAndExpenses" scale="0" unitRef="ils">625,000</ix:nonFraction> ($<ix:nonFraction contextRef="c153" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CostsAndExpenses" scale="0" unitRef="usd">180,063</ix:nonFraction> based on the exchange rate
of $<ix:nonFraction contextRef="c154" decimals="2" format="ixt:num-dot-decimal" name="pvnnf:ExchangePerShare" scale="0" unitRef="usdPershares">1.00</ix:nonFraction> / NIS <ix:nonFraction contextRef="c154" decimals="3" format="ixt:num-dot-decimal" name="pvnnf:ExchangePerShare" scale="0" unitRef="ilsPershares"><ix:nonFraction contextRef="c155" decimals="3" format="ixt:num-dot-decimal" name="pvnnf:ExchangePerShare" scale="0" unitRef="ilsPershares">3.471</ix:nonFraction></ix:nonFraction> in effect as of December 31, 2013), out of which the Company received NIS <ix:nonFraction contextRef="c156" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CostsAndExpenses" scale="0" unitRef="ils">585,119</ix:nonFraction> ($<ix:nonFraction contextRef="c156" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CostsAndExpenses" scale="0" unitRef="usd">168,574</ix:nonFraction> based on the exchange
rate of $<ix:nonFraction contextRef="c155" decimals="2" format="ixt:num-dot-decimal" name="pvnnf:ExchangePerShare" scale="0" unitRef="usdPershares">1.00</ix:nonFraction> / NIS 3.471 in effect as of December 31, 2013) as of December 31, 2022, in exchange for the Company&#8217;s agreement to
pay royalties of <ix:nonFraction contextRef="c157" decimals="2" format="ixt:num-dot-decimal" name="pvnnf:PayRoyaltiesRate" scale="-2" unitRef="pure">5</ix:nonFraction>% plus interest, as detailed in the agreement, of any revenues generated from the intellectual property generated under
the program. The Company does not expect to receive further funding under this agreement.</p></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_8" id="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_7"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.75in; text-align: justify">During the years ended December 31,
2022, 2021 and 2020, the Company accrued royalties with respect to the grant from the Ministry in the amount of $<ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccruedRoyaltiesCurrentAndNoncurrent" scale="0" unitRef="usd">6,026</ix:nonFraction>, $<ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccruedRoyaltiesCurrentAndNoncurrent" scale="0" unitRef="usd">814</ix:nonFraction> and $<ix:nonFraction contextRef="c19" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccruedRoyaltiesCurrentAndNoncurrent" scale="0" unitRef="usd">384</ix:nonFraction>,
respectively, and the liability to the Ministry as of December 31, 2022, aggregated to $<ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherAccruedLiabilitiesCurrent" scale="0" unitRef="usd">6,026</ix:nonFraction> and was recorded within the accrued expenses
and other current liabilities line item.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 114pt; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_9" id="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_8"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.75in; text-align: justify">As of December 31, 2022, the aggregate
contingent liability to the Ministry (including interest), following the payment of royalties up to that date, amounted to NIS <ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AssetAcquisitionContingentConsiderationLiability" scale="0" unitRef="ils">576,773</ix:nonFraction>
($<ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AssetAcquisitionContingentConsiderationLiability" scale="0" unitRef="usd">163,903</ix:nonFraction> based on the exchange rate of $<ix:nonFraction contextRef="c2" decimals="2" format="ixt:num-dot-decimal" name="pvnnf:ExchangePerShare" scale="0" unitRef="usdPershares">1.00</ix:nonFraction> / NIS <ix:nonFraction contextRef="c158" decimals="3" format="ixt:num-dot-decimal" name="pvnnf:ExchangePerShare" scale="0" unitRef="ilsPershares">3.519</ix:nonFraction> in effect as of December 31, 2022).</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.5pt; text-align: justify; text-indent: -28.35pt">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_10" id="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_9"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 1.25in">&#160;</td> <td style="width: 0.5in"><span style="font-size: 10pt">3.</span></td> <td style="text-align: justify"><span style="font-size: 10pt">In October 2010, the Company entered into a Convertible Bridge Financing Agreement with Israel Electric Corporation (&#8220;IEC&#8221;) and, as part of the agreement, the Company committed to pay IEC royalties equal to 2% of the total net sales of the Company&#8217;s products and service revenues from the product developed and manufactured through this agreement, up to a cap of NIS <ix:nonFraction contextRef="c159" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:ProductsAndServiceRevenues" scale="0" unitRef="ils">8,000,000</ix:nonFraction> ($<ix:nonFraction contextRef="c159" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:ProductsAndServiceRevenues" scale="0" unitRef="usd">2,273,373</ix:nonFraction> based on the exchange rate of $<ix:nonFraction contextRef="c160" decimals="2" format="ixt:num-dot-decimal" name="pvnnf:ExchangePerShare" scale="0" unitRef="usdPershares">1.00</ix:nonFraction> / NIS <ix:nonFraction contextRef="c2" decimals="3" format="ixt:num-dot-decimal" name="pvnnf:ExchangePerShare" scale="0" unitRef="ilsPershares">3.519</ix:nonFraction> in effect as of December 31, 2022).</span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation><div>
</div><ix:continuation continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_11" id="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_10"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.75in; text-align: justify">During the years ended December 31,
2022, 2021 and 2020, the Company accrued royalties in the amount of $<ix:nonFraction contextRef="c161" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccruedRoyaltiesCurrentAndNoncurrent" scale="0" unitRef="usd">11,236</ix:nonFraction>, $<ix:nonFraction contextRef="c162" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccruedRoyaltiesCurrentAndNoncurrent" scale="0" unitRef="usd">7,708</ix:nonFraction> and $<ix:nonFraction contextRef="c163" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccruedRoyaltiesCurrentAndNoncurrent" scale="0" unitRef="usd">12,991</ix:nonFraction>, respectively, and the liability as of
December 31, 2022 aggregated to $<ix:nonFraction contextRef="c164" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccruedRentCurrent" scale="0" unitRef="usd">46,911</ix:nonFraction>, which was recorded within the accrued expenses and other current liabilities line item.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.75in; text-align: justify">
</p></ix:continuation><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 114pt; text-align: justify">&#160;</p><div>

</div><ix:continuation continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_12" id="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_11"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 1.25in">&#160;</td> <td style="width: 0.5in"><span style="font-size: 10pt">4.</span></td> <td style="text-align: justify">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In connection with the acquisition of Nano Size,
the Company is obligated to pay <ix:nonFraction contextRef="c2" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:RetailLandSalesReceivablesStatedInterestRate" scale="-2" unitRef="pure">3</ix:nonFraction>% from future sales and <ix:nonFraction contextRef="c2" decimals="2" format="ixt:num-dot-decimal" name="pvnnf:SublicenseFeesRate" scale="-2" unitRef="pure">10</ix:nonFraction>% of sublicense fees derived from Nano Size&#8217;s intellectual property,
until the aggregate consideration amounts to $<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherSignificantNoncashTransactionValueOfConsiderationGiven1" scale="0" unitRef="usd">1,400,000</ix:nonFraction>. The consideration included a minimum consideration of $<ix:nonFraction contextRef="c165" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationConsiderationTransferred1" scale="0" unitRef="usd">180,000</ix:nonFraction> which was paid
during 2011 and will be offset against future royalty payments which will be payable by the Company from sales of products and services.
&#160;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the years ended December 31, 2022, 2021
and 2020, the Company accrued royalties in the amount of $<ix:nonFraction contextRef="c166" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccruedRoyaltiesCurrentAndNoncurrent" scale="0" unitRef="usd">18,100</ix:nonFraction>, $<ix:nonFraction contextRef="c167" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccruedRoyaltiesCurrentAndNoncurrent" scale="0" unitRef="usd">17,061</ix:nonFraction> and $<ix:nonFraction contextRef="c168" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccruedRoyaltiesCurrentAndNoncurrent" scale="0" unitRef="usd">22,839</ix:nonFraction>, respectively, and the liability as of December
31, 2022 aggregated to $<ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccruedRentCurrent" scale="0" unitRef="usd">94,317</ix:nonFraction>, which was recorded within the accrued expenses and other current liabilities line item.</p>
<span style="font-size: 10pt">&#160;</span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 114pt; text-align: justify"></p></ix:continuation><div>
</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 114pt; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 119 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->24<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 7pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 114pt; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><b>P.V. NANO CELL LTD. AND ITS SUBSIDIARIES</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&#160;</p><div>

</div><p style="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>U.S. dollars</b></p><div>

</div><p style="font: 7pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in; text-align: justify"><span style="font-size: 10pt"><b>NOTE 9:</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>COMMITMENTS AND CONTINGENT LIABILITIES (Cont.)</b></span></td></tr>
  </table><div>
</div><p style="font: 7pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify; text-indent: -56.7pt"><b>&#160;</b></p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in">&#160;</td>
    <td style="width: 0.5in"><span style="font-size: 10pt"><b>a.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>Royalties commitments (cont.):</b></span></td></tr>
  </table><div>
</div><p style="font: 7pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify; text-indent: -56.7pt"><b>&#160;</b>&#160;</p><div>

</div><ix:continuation continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_13" id="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_12"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 1.25in">&#160;</td> <td style="width: 0.5in"><span style="font-size: 10pt">5.</span></td> <td style="text-align: justify"><span style="font-size: 10pt">In September 2012, the Company entered into a Know-How License Agreement with Fraunhofer Institute for Ceramic Technologies and Systems IKTS (&#8220;IKTS&#8221;), pursuant to which the Company purchased from IKTS certain additives (the agreement is still active). The Company has the right to receive the production file and knowhow to its chosen manufacturer, in consideration for payment to IKTS of royalties of &#8364;<ix:nonFraction contextRef="c169" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PaymentsForRoyalties" scale="0" unitRef="eur">25</ix:nonFraction> ($<ix:nonFraction contextRef="c169" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PaymentsForRoyalties" scale="0" unitRef="usd">27</ix:nonFraction> based on the exchange rate of $<ix:nonFraction contextRef="c169" decimals="2" format="ixt:num-dot-decimal" name="pvnnf:InvestmentWarrantsExercisePrice" scale="0" unitRef="usdPershares">1.00</ix:nonFraction> / &#8364;<ix:nonFraction contextRef="c169" decimals="2" format="ixt:num-dot-decimal" name="pvnnf:InvestmentWarrantsExercisePrice" scale="0" unitRef="eurPershares">0.94</ix:nonFraction> in effect as of December 31, 2022) per kilogram of the ingredients not manufactured by IKTS. In addition, as of December 31, 2022, the Company is obligated to pay IKTS a minimum annual royalty of &#8364;<ix:nonFraction contextRef="c170" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PaymentsForRoyalties" scale="0" unitRef="eur">2,000</ix:nonFraction> ($<ix:nonFraction contextRef="c170" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:PaymentsForRoyalties" scale="0" unitRef="usd">2,127</ix:nonFraction> based on the exchange rate of $<ix:nonFraction contextRef="c170" decimals="2" format="ixt:num-dot-decimal" name="pvnnf:InvestmentWarrantsExercisePrice" scale="0" unitRef="usdPershares">1.00</ix:nonFraction> / &#8364;<ix:nonFraction contextRef="c170" decimals="2" format="ixt:num-dot-decimal" name="pvnnf:InvestmentWarrantsExercisePrice" scale="0" unitRef="eurPershares">0.94</ix:nonFraction> in effect as of December 31, 2022) deductible against royalties.</span></td></tr> </table><p style="font: 7pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_14" id="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_13"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.75in; text-align: justify">During the year ended December 31, 2022, 2021 and 2020, the Company
recorded royalty expenses in the amount of $<ix:nonFraction contextRef="c170" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RoyaltyExpense" scale="0" unitRef="usd">2,127</ix:nonFraction>, $<ix:nonFraction contextRef="c171" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RoyaltyExpense" scale="0" unitRef="usd">2,272</ix:nonFraction> and $<ix:nonFraction contextRef="c172" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:RoyaltyExpense" scale="0" unitRef="usd">2,453</ix:nonFraction>, respectively and the liability as of December 31, 2022 aggregated
to $<ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AccountsPayableTradeCurrent" scale="0" unitRef="usd">4,265</ix:nonFraction>, which is recorded within the trade payables line item.</p><p style="font: 7pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.5pt; text-align: justify; text-indent: -28.35pt">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_15" id="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_14"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in">&#160;</td>
    <td style="width: 0.5in"><span style="font-size: 10pt"><b>b.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>Legal proceedings:</b></span></td></tr>
  </table><p style="font: 7pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.5pt; text-align: justify; text-indent: -28.35pt">&#160;&#160;&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_16" id="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_15"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">On May 16, 2019, a lawsuit was filed
by Yaskawa Europe Technology Ltd. against the Company and Digiflex in the Magistrate Court in Kfar Saba in Israel. On January 19, 2020,
<ix:nonNumeric contextRef="c173" name="pvnnf:DescriptionOfLawsuit">the Group settled this claim for a total of NIS 152,997 ($43,477 based on the exchange rate of $1.00 / NIS 3.519 in effect as of December
31, 2022) plus Value Added Tax (&#8220;VAT&#8221;) but failed to pay such settlement due to financial difficulties.</ix:nonNumeric> As such, the liability
is recorded as a provision for legal claims within the accrued expenses and other current liabilities as of December 31, 2022 and 2021.</p><p style="font: 7pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.5pt; text-align: justify; text-indent: -28.35pt">&#160;&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_17" id="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_16"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in">&#160;</td>
    <td style="width: 0.5in"><span style="font-size: 10pt"><b>c.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>Lease commitments:</b></span></td></tr>
  </table><p style="font: 7pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.5pt; text-align: justify; text-indent: -28.35pt">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_18" id="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_17"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">The Group has the following lease
agreements:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_19" id="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_18"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 1.25in; font-size: 10pt">&#160;</td> <td style="width: 0.5in; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">1.</span></td> <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><ix:nonNumeric contextRef="c174" name="pvnnf:DescriptionOfLawsuit">The Company currently leases, through Nano Size, approximately 7,300 square feet of space in Migdal Ha&#8217;Emek, Israel for its principal offices and manufacturing facilities at a monthly cost of approximately NIS 18,000 (approximately $5,115 based on the exchange rate of $1.00 / NIS 3.519 in effect as of December 31, 2022).</ix:nonNumeric>&#160;This lease agreement expires on June 30, 2025, and the agreement contains an option of the Company to extend the lease for an additional three (3) years.</span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_20" id="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_19"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 1.25in">&#160;</td> <td style="width: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.</span></td> <td style="text-align: justify"><ix:nonNumeric contextRef="c149" name="us-gaap:OtherCommitmentsDescription"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Digiflex currently leases approximately 1,200 square feet of space in Migdal Ha&#8217;Emek, Israel for its principal office and laboratory at a monthly cost of approximately NIS 5,000 (approximately $1,420 based on the exchange rate of $1.00 / NIS 3.519 in effect as of December 31, 2022). This lease was scheduled to expire on March 14, 2023, and was renewed in February 2023 for an additional one year and the Company has an option to extend the lease for another year.</span></ix:nonNumeric></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_21" id="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_20"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">Under ASC 842, all leases with durations
greater than 12 months, including non-cancellable operating leases, are recognized on the balance sheet. The aggregated present value
of lease agreements is recorded as a long-term asset titled right-of-use assets. The corresponding lease liabilities are split between
Lease current liability and Lease non-current liability.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_22" id="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_21"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">Future minimum lease payments under
non-cancellable operating leases as of December 31, 2022, are as follows (as of December 31, 2021, the Group&#8217;s lease agreements
were for short periods with relatively low rent expenses and therefore, the Group did not apply the lease guidance as of that date):</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation id="_CommitmentsAndContingenciesDisclosureTextBlock-c0_cont_22"><ix:nonNumeric contextRef="c0" escape="true" name="us-gaap:LesseeOperatingLeaseLiabilityMaturityTableTextBlock"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <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">December&#160;31,</td><td style="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="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">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="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">(U.S. dollars)</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="font: 7pt Times New Roman, Times, Serif">
    <td style="font: 7pt Times New Roman, Times, Serif">&#160;</td><td style="font: 7pt Times New Roman, Times, Serif">&#160;</td>
    <td colspan="2" style="font: 7pt Times New Roman, Times, Serif">&#160;</td><td style="font: 7pt Times New Roman, Times, Serif">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="font-weight: bold">Future minimum lease payments:</td><td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 88%; text-align: left">2023</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths" scale="0" unitRef="usd">67,497</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">2024</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LesseeOperatingLeaseLiabilityPaymentsDueYearTwo" scale="0" unitRef="usd">63,926</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt">2025</td><td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; text-align: left">&#160;</td><td style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:LesseeOperatingLeaseLiabilityPaymentsDueYearThree" scale="0" unitRef="usd">31,963</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">Total Future payments</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:LesseeOperatingLeaseLiabilityFuturePayments" scale="0" unitRef="usd">163,386</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">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 contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ReceivableWithImputedInterestNetAmount" scale="0" unitRef="usd">28,279</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 4pt">Net present value of future minimum lease payments</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingLeaseLiability" scale="0" unitRef="usd">135,107</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  <tr style="font: 7pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <td style="font: 7pt Times New Roman, Times, Serif">&#160;</td><td style="font: 7pt Times New Roman, Times, Serif">&#160;</td>
    <td style="font: 7pt Times New Roman, Times, Serif; text-align: left">&#160;</td><td style="font: 7pt Times New Roman, Times, Serif; text-align: right">&#160;</td><td style="font: 7pt Times New Roman, Times, Serif; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: left">Lease liabilities:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Current lease liabilities</td><td>&#160;</td>
    <td style="text-align: left">$</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingLeaseLiabilityCurrent" scale="0" unitRef="usd">60,071</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt">Non-current 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 contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingLeaseLiabilityNoncurrent" scale="0" unitRef="usd">75,036</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 style="text-align: left; padding-bottom: 4pt">Net present value of future minimum lease payments</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OperatingLeaseLiability" scale="0" unitRef="usd">135,107</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  <tr style="font: 7pt Times New Roman, Times, Serif; ">
    <td style="font: 7pt Times New Roman, Times, Serif">&#160;</td><td style="font: 7pt Times New Roman, Times, Serif">&#160;</td>
    <td style="font: 7pt Times New Roman, Times, Serif; text-align: left">&#160;</td><td style="font: 7pt Times New Roman, Times, Serif; text-align: right">&#160;</td><td style="font: 7pt Times New Roman, Times, Serif; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left">Incremental Borrowing Rate</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c2" decimals="4" format="ixt:num-dot-decimal" name="us-gaap:OperatingLeaseWeightedAverageDiscountRatePercent" scale="-2" unitRef="pure">10.00</ix:nonFraction></td><td style="text-align: left">%</td></tr>
  </table></ix:nonNumeric></ix:continuation><div>

</div><p style="font: 7pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 120 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->25<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><b>P.V. NANO CELL LTD. AND ITS SUBSIDIARIES</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&#160;</p><div>

</div><p style="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>U.S. dollars</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_1" escape="true" name="us-gaap:IncomeTaxDisclosureTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in; text-align: justify"><span style="font-size: 10pt"><b>NOTE 10: </b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>TAXES ON INCOME</b></span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify; text-indent: -56.7pt"><b>&#160;</b></p></ix:nonNumeric><div>
</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_2" id="_IncomeTaxDisclosureTextBlock-c0_cont_1"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in">&#160;</td>
    <td style="width: 0.5in"><span style="font-size: 10pt"><b>a.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>Corporate Tax rates:</b></span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.5pt; text-align: justify; text-indent: -28.35pt">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_3" id="_IncomeTaxDisclosureTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">The Israeli corporate tax rate applicable
to the Company, Nano Size and Digiflex commencing 2020 and thereafter is <ix:nonFraction contextRef="c0" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate" scale="-2" unitRef="pure">23</ix:nonFraction>%.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 74.7pt; text-align: justify; text-indent: 10.35pt">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_4" id="_IncomeTaxDisclosureTextBlock-c0_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">Non-Israeli subsidiaries are taxed
according to the tax laws in their respective countries of residence.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 64.35pt; text-align: justify; text-indent: 20.7pt">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_5" id="_IncomeTaxDisclosureTextBlock-c0_cont_4"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in">&#160;</td>
    <td style="width: 0.5in"><span style="font-size: 10pt"><b>b.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>Net operating losses carryforwards:</b></span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 74.7pt; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_6" id="_IncomeTaxDisclosureTextBlock-c0_cont_5"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">As of December 31, 2022, the Company
and its Israeli subsidiaries have accumulated losses for tax purposes in the amount of $<ix:nonFraction contextRef="c2" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:OperatingLossCarryforwards" scale="6" unitRef="usd">46.0</ix:nonFraction> million which may be carried forward and
offset against taxable income for an indefinite period.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_7" id="_IncomeTaxDisclosureTextBlock-c0_cont_6"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in">&#160;</td>
    <td style="width: 0.5in"><span style="font-size: 10pt"><b>c.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>Accounting for uncertainty in income taxes:</b></span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: -28.35pt">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_8" id="_IncomeTaxDisclosureTextBlock-c0_cont_7"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">For the years ended December 31, 2022,
2021 and 2020, the Company did not have any unrecognized tax benefits and no interest and penalties related to unrecognized tax benefits
had been accrued. The Company does not expect that the amount of unrecognized tax benefits will change significantly within the next 12
months.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.5pt; text-align: justify; text-indent: -28.35pt">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_9" id="_IncomeTaxDisclosureTextBlock-c0_cont_8"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in">&#160;</td>
    <td style="width: 0.5in"><span style="font-size: 10pt"><b>d.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>Tax assessments:</b></span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 141.75pt; text-align: justify; text-indent: -28.35pt">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_10" id="_IncomeTaxDisclosureTextBlock-c0_cont_9"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">Tax reports filed by the Company and
its Israeli subsidiaries through the year ended December 31, 2016 are considered final.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_11" id="_IncomeTaxDisclosureTextBlock-c0_cont_10"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in">&#160;</td>
    <td style="width: 0.5in"><span style="font-size: 10pt"><b>e.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>Deferred taxes on income:</b></span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_12" id="_IncomeTaxDisclosureTextBlock-c0_cont_11"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">Significant components of the Group&#8217;s deferred tax assets are
as follows:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_13" id="_IncomeTaxDisclosureTextBlock-c0_cont_12"><ix:nonNumeric contextRef="c0" escape="true" name="us-gaap:ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">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="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">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="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="font-weight: bold">Deferred tax assets</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 style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 76%; text-align: left">Operating loss carry forward</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredTaxAssetsOperatingLossCarryforwards" scale="0" unitRef="usd">10,579,957</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredTaxAssetsOperatingLossCarryforwards" scale="0" unitRef="usd">10,204,294</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; padding-bottom: 1.5pt">Temporary differences</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 contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredTaxAssetsTaxDeferredExpenseReservesAndAccruals" scale="0" unitRef="usd">189,099</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 contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredTaxAssetsTaxDeferredExpenseReservesAndAccruals" scale="0" unitRef="usd">126,150</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 style="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 style="border-bottom: Black 1.5pt solid; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredTaxAssetsGross" scale="0" unitRef="usd">10,769,056</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 contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredTaxAssetsGross" scale="0" unitRef="usd">10,330,444</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="font-weight: bold; text-align: left">Deferred tax liability</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: rgb(204,238,255)">
    <td style="text-align: left">Beneficial conversion feature</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:DeferredTaxBeneficialConversionFeature" scale="0" sign="-" unitRef="usd">99,790</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 contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:DeferredTaxBeneficialConversionFeature" scale="0" sign="-" unitRef="usd">99,790</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <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 style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt">Total deferred tax, 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 contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredIncomeTaxLiabilities" scale="0" unitRef="usd">10,669,266</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 contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredIncomeTaxLiabilities" scale="0" unitRef="usd">10,230,654</ix:nonFraction></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 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: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt">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 style="border-bottom: Black 1.5pt solid; text-align: right">(<ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredTaxAssetsValuationAllowance" scale="0" unitRef="usd">10,669,266</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 contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DeferredTaxAssetsValuationAllowance" scale="0" unitRef="usd">10,230,654</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <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 style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 4pt">Net deferred tax assets</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><div style="-sec-ix-hidden: hidden-fact-102">&#8212;</div></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><div style="-sec-ix-hidden: hidden-fact-103">&#8212;</div></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_14" id="_IncomeTaxDisclosureTextBlock-c0_cont_13"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">The net change in the total valuation
allowance for the year ended December 31, 2022 related primarily to an increase in deferred taxes calculated on the operating loss carry
forward. In assessing the likelihood that deferred tax assets will be realized, management considers whether it is more likely than not
that some or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets depends on the generation
of future taxable income during the periods in which those temporary differences and tax loss carry forwards are deductible.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 121 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->26<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><b>P.V. NANO CELL LTD. AND ITS SUBSIDIARIES</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&#160;</p><div>

</div><p style="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>U.S. dollars</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in; text-align: justify"><span style="font-size: 10pt"><b>NOTE 10: </b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>TAXES ON INCOME (Cont.)</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p><div>

</div><ix:continuation continuedAt="_IncomeTaxDisclosureTextBlock-c0_cont_15" id="_IncomeTaxDisclosureTextBlock-c0_cont_14"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in">&#160;</td>
    <td style="width: 0.5in"><span style="font-size: 10pt"><b>f.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>Reconciliation of the theoretical tax benefit and the actual tax expense:</b></span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation id="_IncomeTaxDisclosureTextBlock-c0_cont_15"><ix:nonNumeric contextRef="c0" escape="true" name="us-gaap:ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td>&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="10" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">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="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">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="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</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="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2020</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: center">&#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" style="text-align: right">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 64%; text-align: left; padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Loss before tax benefit</td><td style="width: 1%; padding-bottom: 4pt">&#160;</td>
    <td style="width: 1%; border-bottom: Black 4pt double; text-align: left">$</td><td style="width: 9%; border-bottom: Black 4pt double; text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeTaxExpenseBenefitContinuingOperationsAdjustmentOfDeferredTaxAssetLiability" scale="0" sign="-" unitRef="usd">4,509,547</ix:nonFraction></td><td style="width: 1%; padding-bottom: 4pt; text-align: left">)</td><td style="width: 1%; padding-bottom: 4pt">&#160;</td>
    <td style="width: 1%; border-bottom: Black 4pt double; text-align: left">$</td><td style="width: 9%; border-bottom: Black 4pt double; text-align: right">(<ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeTaxExpenseBenefitContinuingOperationsAdjustmentOfDeferredTaxAssetLiability" scale="0" sign="-" unitRef="usd">2,518,864</ix:nonFraction></td><td style="width: 1%; padding-bottom: 4pt; text-align: left">)</td><td style="width: 1%; padding-bottom: 4pt">&#160;</td>
    <td style="width: 1%; border-bottom: Black 4pt double; text-align: left">$</td><td style="width: 9%; border-bottom: Black 4pt double; text-align: right">(<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeTaxExpenseBenefitContinuingOperationsAdjustmentOfDeferredTaxAssetLiability" scale="0" sign="-" unitRef="usd">12,543,737</ix:nonFraction></td><td style="width: 1%; padding-bottom: 4pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -9pt; padding-left: 9pt">&#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: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Statutory tax rate</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 contextRef="c0" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:EffectiveIncomeTaxRateReconciliationStateAndLocalIncomeTaxes" scale="-2" unitRef="pure">23</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 contextRef="c4" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:EffectiveIncomeTaxRateReconciliationStateAndLocalIncomeTaxes" scale="-2" unitRef="pure">23</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 contextRef="c5" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:EffectiveIncomeTaxRateReconciliationStateAndLocalIncomeTaxes" scale="-2" unitRef="pure">23</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">%</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -9pt; padding-left: 9pt">&#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: rgb(204,238,255)">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Income tax benefit</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeTaxExpenseBenefit" scale="0" unitRef="usd">1,037,196</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 contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeTaxExpenseBenefit" scale="0" unitRef="usd">579,339</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 contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeTaxExpenseBenefit" scale="0" unitRef="usd">2,885,060</ix:nonFraction></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -9pt; padding-left: 9pt">Effect of:</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: rgb(204,238,255)">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Losses and timing differences for which valuation allowance was provided, net</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance" scale="0" sign="-" unitRef="usd">438,612</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 contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance" scale="0" sign="-" unitRef="usd">463,784</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 contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance" scale="0" sign="-" unitRef="usd">329,578</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left; text-indent: -9pt; padding-left: 9pt">Non-deductible expenses and other permanent differences</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeTaxReconciliationNondeductibleExpense" scale="0" sign="-" unitRef="usd">624,299</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 contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeTaxReconciliationNondeductibleExpense" scale="0" sign="-" unitRef="usd">196,980</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 contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeTaxReconciliationNondeductibleExpense" scale="0" sign="-" unitRef="usd">2,526,808</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: 1.5pt; text-indent: -9pt; padding-left: 9pt">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 contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeTaxReconciliationOtherReconcilingItems" scale="0" unitRef="usd">25,715</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 contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeTaxReconciliationOtherReconcilingItems" scale="0" unitRef="usd">81,425</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 contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:IncomeTaxReconciliationOtherReconcilingItems" scale="0" sign="-" unitRef="usd">28,674</ix:nonFraction></td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-indent: -9pt; padding-left: 9pt">&#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: rgb(204,238,255)">
    <td style="text-align: left; padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Income tax expense recognized in profit or loss</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><div style="-sec-ix-hidden: hidden-fact-104">&#8212;</div></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><div style="-sec-ix-hidden: hidden-fact-105">&#8212;</div></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><div style="-sec-ix-hidden: hidden-fact-106">&#8212;</div></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table></ix:nonNumeric></ix:continuation><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;<b>&#160;</b></p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_1" escape="true" name="us-gaap:DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in; text-align: justify"><span style="font-size: 10pt"><b>NOTE 11:</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>SHARE CAPITAL</b></span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric><div>
</div><div>

</div><ix:continuation continuedAt="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_2" id="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_1"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in">&#160;</td>
    <td style="width: 0.5in"><span style="font-size: 10pt"><b>a.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>Ordinary shares:</b></span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:nonNumeric contextRef="c0" name="pvnnf:RestrictedOrdinarySharesDescription"><ix:continuation continuedAt="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_3" id="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">The share capital as of December 31,
2022 and 2021 is comprised of ordinary shares of NIS 0.01 ($0.003 based on the exchange rate of $1.00 / NIS 3.519 in effect as of December
31, 2022) par value as follows:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation></ix:nonNumeric><div>
</div><div>

</div><ix:continuation continuedAt="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_4" id="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_3"><ix:nonNumeric contextRef="c0" escape="true" name="us-gaap:ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td style="text-align: center">&#160;</td><td style="font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Number of ordinary<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="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Number of ordinary<br/> shares</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; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Authorized</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="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Issued and<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="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Authorized</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="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Issued and<br/>
 outstanding</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="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">December 31, 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="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">December 31, 2021</td><td style="padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="width: 52%">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">&#160;</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">&#160;</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">&#160;</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">&#160;</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 4pt">Ordinary shares</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CommonStockSharesAuthorized" scale="0" unitRef="shares">1,200,000,000</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:CommonStockSharesIssuedAndOutstanding" scale="0" unitRef="shares">147,134,792</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CommonStockSharesAuthorized" scale="0" unitRef="shares">1,200,000,000</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:CommonStockSharesIssuedAndOutstanding" scale="0" unitRef="shares">90,205,191</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_5" id="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_4"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">On December 28, 2020, as part of the
Company&#8217;s annual general meeting of the shareholders&#8217;, the authorized share capital was increased from NIS <ix:nonFraction contextRef="c201" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:ShareCapital" scale="0" unitRef="ils">2,000,000</ix:nonFraction> to NIS
<ix:nonFraction contextRef="c202" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:ShareCapital" scale="0" unitRef="ils">12,000,000</ix:nonFraction>, divided into <ix:nonFraction contextRef="c175" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ExcessStockSharesAuthorized" scale="0" unitRef="shares">1,200,000,000</ix:nonFraction> ordinary shares of NIS <ix:nonFraction contextRef="c175" decimals="2" format="ixt:num-dot-decimal" name="pvnnf:OrdinarySharesParValue" scale="0" unitRef="ilsPershares">0.01</ix:nonFraction> ($<ix:nonFraction contextRef="c175" decimals="3" format="ixt:num-dot-decimal" name="pvnnf:OrdinarySharesParValue" scale="0" unitRef="usdPershares">0.003</ix:nonFraction> based on the exchange rate of $<ix:nonFraction contextRef="c0" decimals="2" format="ixt:num-dot-decimal" name="pvnnf:ExchangeRatePerShare" scale="0" unitRef="usdPershares">1.00</ix:nonFraction> / NIS <ix:nonFraction contextRef="c2" decimals="3" format="ixt:num-dot-decimal" name="pvnnf:OrdinarySharesParValue" scale="0" unitRef="ilsPershares">3.519</ix:nonFraction> in effect as
of December 31, 2022) par value.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 122 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->27<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><b>P.V. NANO CELL LTD. AND ITS SUBSIDIARIES</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&#160;</p><div>

</div><p style="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>U.S. dollars</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in; text-align: justify"><span style="font-size: 10pt"><b>NOTE 11:</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>SHARE CAPITAL (Cont.)</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 113.4pt; text-align: justify; text-indent: -28.35pt">&#160;</p><div>

</div><ix:continuation continuedAt="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_6" id="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_5"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in">&#160;</td>
    <td style="width: 0.5in"><span style="font-size: 10pt"><b>b.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>Issuance of ordinary shares:</b></span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 112.95pt; text-align: justify; text-indent: -20.25pt">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_7" id="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_6"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 1.25in">&#160;</td> <td style="width: 0.5in"><span style="font-size: 10pt">1.</span></td> <td style="text-align: justify"><p style="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">During 2020, the Company issued <ix:nonFraction contextRef="c176" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:SharesIssued" scale="0" unitRef="shares">386,735</ix:nonFraction> ordinary shares in connection
with the conversion of convertible loans.</p></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 112.95pt; text-align: justify; text-indent: -20.25pt">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_8" id="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_7"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 1.25in">&#160;</td> <td style="width: 0.5in"><span style="font-size: 10pt">2.</span></td> <td style="text-align: justify"><span style="font-size: 10pt">During 2020, the Company issued <ix:nonFraction contextRef="c15" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:SharesIssued" scale="0" unitRef="shares">206,250</ix:nonFraction> ordinary shares to a few of the Company&#8217;s service providers. The Company recorded an expense of $<ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherExpenses" scale="0" unitRef="usd">34,045</ix:nonFraction> during the year ended December 31, 2020 in connection with the issuance of those restricted ordinary shares.</span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 112.95pt; text-align: justify; text-indent: -20.25pt">&#160;&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_9" id="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_8"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 120px; font-size: 10pt">&#160;</td> <td style="width: 48px; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.</span></td> <td style="text-align: justify; font-size: 10pt"><p style="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">During 2020, the Company issued <ix:nonFraction contextRef="c177" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:SharesIssued" scale="0" unitRef="shares">2,000,000</ix:nonFraction> ordinary shares in connection
with the Jet CU purchase.&#160;&#160;See Note 3 for additional information.</p></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 112.95pt; text-align: justify; text-indent: -20.25pt">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_10" id="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_9"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 120px">&#160;</td> <td style="width: 48px"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.</span></td> <td style="text-align: justify"><p style="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">During 2021, the Company issued <ix:nonFraction contextRef="c178" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:SharesIssued" scale="0" unitRef="shares">498,578</ix:nonFraction> ordinary shares in connection
with the conversion of convertible loans.&#160;&#160;See Note 8.a. for additional information.</p></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 112.95pt; text-align: justify; text-indent: -20.25pt">&#160;&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_11" id="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_10"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 120px; font-size: 10pt">&#160;</td> <td style="width: 48px; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">5.</span></td> <td> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">At the&#160;annual shareholders&#8217; meeting held on September 19,
2021, the shareholders approved <ix:nonNumeric contextRef="c179" name="pvnnf:RestrictedOrdinarySharesDescription">(i) a capital raise at a per share purchase price of $0.07 for the Company&#8217;s Ordinary Shares, NIS
0.01 ($0.003 based on the exchange rate of $1.00 / NIS 3.519 in effect as of December 31, 2022) par value and (ii) an adjustment to the
conversion price of the Company&#8217;s outstanding CLAs from $0.17 to $0.07 per Ordinary Share, subject to the holders&#8217; agreement
to cancel the outstanding related warrants that were issued in connection with the CLAs.</ix:nonNumeric></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As a result, on September 23, 2021, the Company entered into agreements
with the holders of approximately $<ix:nonFraction contextRef="c180" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:DebtInstrumentAnnualPrincipalPayment" scale="0" unitRef="usd">3,521,748</ix:nonFraction> in principal amount and accrued interest of CLAs for the conversion of the Company&#8217;s
indebtedness under such agreements into an aggregate of <ix:nonFraction contextRef="c180" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:InvestmentOwnedBalancePrincipalAmount" scale="0" unitRef="usd">57,291,838</ix:nonFraction> ordinary shares. Furthermore, in connection therewith, all
the warrants that were previously issued in connection with those CLAs were cancelled and no longer have any force or effect.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Most of those converted CLAs had previously matured and had not been
not repaid on time and therefore, were in default as of September 23, 2021. Due to such default, the Company presented those CLAs at their
fair value just before the conversion occurred, which aggregated to $<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:DebtConversionsConvertedAmount" scale="0" unitRef="usd">12,992,708</ix:nonFraction>. Such amount was allocated to the Consolidated Statement
of Changes in Stockholders&#8217; Equity (Deficit) as of that date.</p></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 112.95pt; text-align: justify; text-indent: -20.25pt">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_12" id="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_11"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 120px; font-size: 10pt">&#160;</td> <td style="width: 48px; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">6.</span></td> <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In September 2021, the Company issued an additional <ix:nonFraction contextRef="c71" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodSharesConversionOfConvertibleSecurities" scale="0" unitRef="shares">5,428,572</ix:nonFraction> Ordinary Shares to the Jet CU former shareholders. See Note 3 for additional information.</span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 112.95pt; text-align: justify; text-indent: -20.25pt">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_13" id="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_12"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 1.25in">&#160;</td> <td style="width: 0.5in"><span style="font-size: 10pt">7.</span></td> <td> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Commencing July 2021 and through 2022, the Company and seven (7) existing
Company shareholders entered into definitive agreements relating to a private placement (the &#8220;Private Placement&#8221;) of the Company&#8217;s
Ordinary Shares for aggregate gross proceeds to the Company of $<ix:nonFraction contextRef="c0" decimals="-5" format="ixt:num-dot-decimal" name="pvnnf:AggregateGrossProceeds" scale="6" unitRef="usd">3.0</ix:nonFraction> million. During 2022, the Company issued an aggregate of <ix:nonFraction contextRef="c181" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:SharesIssued" scale="0" unitRef="shares">42,926,031</ix:nonFraction>
Ordinary Shares in connection with such investment. The shares were issued at a price of $<ix:nonFraction contextRef="c2" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:SaleOfStockPricePerShare" scale="0" unitRef="usdPershares">0.07</ix:nonFraction> per ordinary share. $<ix:nonFraction contextRef="c182" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:AdvancePaymentOnTheAccountOfIssuingOrdinaryShares" scale="0" unitRef="usd">350,000</ix:nonFraction> out of the
$<ix:nonFraction contextRef="c165" decimals="-5" format="ixt:num-dot-decimal" name="pvnnf:AdvancePaymentOnTheAccountOfIssuingOrdinaryShares" scale="6" unitRef="usd">3.0</ix:nonFraction> million was received during 2021 and was recorded as an advance payment on the account of issuing ordinary shares within the Consolidated
Statement of Shareholders&#8217; Equity for the year ended December 31, 2021.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under an agreement entered into in connection with the Private Placement,
certain of the Private Placement investors have the right to nominate three members to the Company&#8217;s board of directors.</p></td></tr> <tr style="vertical-align: top"> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: top"> <td>&#160;</td> <td><span style="font-size: 10pt">8.</span></td> <td style="text-align: justify"><p style="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">In June 2022, the Company issued <ix:nonFraction contextRef="c183" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:SharesIssued" scale="0" unitRef="shares">75,000</ix:nonFraction> ordinary shares to one of the
Company&#8217;s service providers. The Company recorded an expense of $<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherExpenses" scale="0" unitRef="usd">6,750</ix:nonFraction> for the year ended December 31, 2022 in connection with the
issuance of those restricted ordinary shares.</p></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 112.95pt; text-align: justify; text-indent: -20.25pt">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_14" id="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_13"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 1.25in">&#160;</td> <td style="width: 0.5in"><span style="font-size: 10pt">9.</span></td> <td style="text-align: justify"><p style="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><span>As of December 31, 2022 the Company
completed $<ix:nonFraction contextRef="c184" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueOther" scale="0" unitRef="usd">975,000</ix:nonFraction> part of an internal round and as a result issued <ix:nonFraction contextRef="c185" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:SharesIssued" scale="0" unitRef="shares">13,928,570</ix:nonFraction> Ordinary Shares and warrants to purchase <ix:nonFraction contextRef="c186" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdjustmentsToAdditionalPaidInCapitalWarrantIssued" scale="0" unitRef="usd">27,857,140</ix:nonFraction> Ordinary
Shares. Such amount was part of a $<ix:nonFraction contextRef="c186" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueOther" scale="6" unitRef="usd">2.8</ix:nonFraction> million internal round. </span>See <span>Note 17 for further information.</span></p></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 112.95pt; text-align: justify; text-indent: -20.25pt">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_15" id="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_14"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in">&#160;</td>
    <td style="width: 0.5in"><span style="font-size: 10pt"><b>c.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>Rights of ordinary shares:</b></span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_16" id="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_15"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">Ordinary shares confer upon their holders
the rights to elect directors of the Company, to participate and vote in the general meetings of the Company, to receive dividends, if
and when declared, subject to the payment in full of all preferential dividends to which the holders of the Preferred Shares (if any)
are entitled under the Company&#8217;s articles of association and to participate in the distribution of the surplus assets and funds
of the Company in the event of liquidation, subject to the liquidation preference of the Preferred Shares (if any). Each ordinary share
entitles its holder to one vote on all matters submitted to a vote of the Company&#8217;s shareholders.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 123 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->28<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><b>P.V. NANO CELL LTD. AND ITS SUBSIDIARIES</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&#160;</p><div>

</div><p style="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>U.S. dollars</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in; text-align: justify"><span style="font-size: 10pt"><b>NOTE 11:</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>SHARE CAPITAL (Cont.)</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.5pt; text-align: justify; text-indent: -28.35pt">&#160;</p><div>

</div><ix:continuation continuedAt="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_17" id="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_16"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in">&#160;</td>
    <td style="width: 0.5in"><span style="font-size: 10pt"><b>d.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>Stock option plan:</b></span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_18" id="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_17"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">Under the Company&#8217;s 2010 Option
Plan, options may be granted to officers, directors, employees, consultants and service providers of the Company.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_19" id="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_18"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">The vesting terms of the options are
determined by the Board and can vary from grant to grant. Options vest over a period of zero to four years from date of grant. Any options
that are cancelled or forfeited before expiration become available for future grants. The options may be exercised for a period of seven
years from grant.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_20" id="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_19"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 1.25in">&#160;</td> <td style="width: 0.5in"><span style="font-size: 10pt">1.</span></td> <td style="text-align: justify"><p style="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">On January 7, 2020, the Company&#8217;s Board of Directors increased
the options pool by an additional <ix:nonFraction contextRef="c187" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNumberOfSharesPeriodIncreaseDecrease" scale="0" unitRef="shares">15,607,995</ix:nonFraction> ordinary shares, such that <ix:nonFraction contextRef="c187" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOtherShareIncreaseDecrease" scale="0" unitRef="shares">18,783,274</ix:nonFraction> ordinary shares were available for issuance under the
plan following such increase. On the same date, the Company also granted <ix:nonFraction contextRef="c187" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGranted" scale="0" unitRef="shares">13,739,570</ix:nonFraction> options to employees and service providers with three
(3) years vesting and an exercise price of $<ix:nonFraction contextRef="c188" decimals="3" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableWeightedAverageExercisePrice" scale="0" unitRef="usdPershares">0.068</ix:nonFraction> per share. The fair value of those options on their grant date aggregated to $<ix:nonFraction contextRef="c189" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:FairValueAggregatedAmount" scale="0" unitRef="usd">1,097,955</ix:nonFraction>.</p></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_21" id="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_20"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 1.25in">&#160;</td> <td style="width: 0.5in"><span style="font-size: 10pt">2.</span></td> <td style="text-align: justify"><p style="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">On June 22, 2020, the Company granted <ix:nonFraction contextRef="c190" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGranted" scale="0" unitRef="shares">939,164</ix:nonFraction> options to its Active
Chairman with three (3) years vesting and an exercise price of $<ix:nonFraction contextRef="c191" decimals="3" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableWeightedAverageExercisePrice" scale="0" unitRef="usdPershares">0.068</ix:nonFraction> per share. The fair value of those options on their grant date aggregated
to $<ix:nonFraction contextRef="c192" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:FairValueAggregatedAmount" scale="0" unitRef="usd">107,683</ix:nonFraction>.</p></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_22" id="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_21"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 1.25in">&#160;</td> <td style="width: 0.5in"><span style="font-size: 10pt">3.</span></td> <td style="text-align: justify"><p style="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">On June 1, 2021, the Company granted&#160;<ix:nonFraction contextRef="c193" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGranted" scale="0" unitRef="shares">2,003,436</ix:nonFraction>&#160;options to
its former Chief Executive Officer with&#160;three&#160;(3) years&#160;vesting and an exercise price of $<ix:nonFraction contextRef="c194" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1" scale="0" unitRef="usdPershares">0.17</ix:nonFraction>&#160;per share. The fair
value of those options on their grant date aggregated to $<ix:nonFraction contextRef="c193" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:FairValueAggregatedAmount" scale="0" unitRef="usd">403,725</ix:nonFraction>. Such exercise price was modified to $<ix:nonFraction contextRef="c195" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:StockOptionExercisePriceIncrease" scale="0" unitRef="usdPershares">0.07</ix:nonFraction>&#160;on April 28, 2022. This
Chief Executive Officer notified the Company on July 1, 2022 of his resignation from his role.</p></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_23" id="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_22"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 1.25in">&#160;</td> <td style="width: 0.5in"><span style="font-size: 10pt">4.</span></td> <td style="text-align: justify"><p style="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">On July 19, 2021, the Company&#8217;s Board of Directors increased
the options pool by additional <ix:nonFraction contextRef="c196" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNumberOfSharesPeriodIncreaseDecrease" scale="0" unitRef="shares">5,000,000</ix:nonFraction> ordinary shares, such that <ix:nonFraction contextRef="c196" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOtherShareIncreaseDecrease" scale="0" unitRef="shares">23,783,274</ix:nonFraction> ordinary shares were reserved for issuance under the plan
following such increase.</p></td></tr> <tr style="vertical-align: top"> <td>&#160;</td> <td>&#160;</td> <td style="text-align: justify">&#160;</td></tr> <tr style="vertical-align: top"> <td>&#160;</td> <td><span style="font-size: 10pt">5.</span></td> <td style="text-align: justify"><p style="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">In May 2022, the Company granted an aggregate <ix:nonFraction contextRef="c197" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross" scale="0" unitRef="shares">2,600,000</ix:nonFraction> options to
two new directors with four (4) years vesting and an exercise price of $<ix:nonFraction contextRef="c197" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodWeightedAverageGrantDateFairValue" scale="0" unitRef="usdPershares">0.07</ix:nonFraction> per share. One of those directors resigned from his role
on January 1, 2023. The fair value of the options for the director who remained within the Company on their grant date aggregated to $<ix:nonFraction contextRef="c197" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:AggregatedGrantDateAmount" scale="0" unitRef="usd">3</ix:nonFraction>.</p></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_24" id="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_23"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 1.25in">&#160;</td> <td style="width: 0.5in"><span style="font-size: 10pt">6.</span></td> <td style="text-align: justify"><p style="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">During 2022, the Company granted <ix:nonFraction contextRef="c198" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross" scale="0" unitRef="shares">5,249,758</ix:nonFraction> options to its new Chief
Executive Officer. The fair value of those options on their grant date aggregated to $<ix:nonFraction contextRef="c198" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:AggregatedGrantDateAmount" scale="0" unitRef="usd">155,845</ix:nonFraction>. See Note 13.e. for additional information.</p></td></tr> <tr style="vertical-align: top"> <td>&#160;</td> <td>&#160;</td> <td style="text-align: justify">&#160;</td></tr> <tr style="vertical-align: top"> <td>&#160;</td> <td><span style="font-size: 10pt">7.</span></td> <td style="text-align: justify"><p style="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">The total number of ordinary shares available for future grants under
the Company&#8217;s 2010 Option Plan as of December 31, 2022 and 2021 was <ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CommonStockCapitalSharesReservedForFutureIssuance" scale="0" unitRef="shares">1,515,516</ix:nonFraction> and&#160;<ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CommonStockCapitalSharesReservedForFutureIssuance" scale="0" unitRef="shares">5,460,052</ix:nonFraction>, respectively.</p></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 124 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->29<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><b>P.V. NANO CELL LTD. AND ITS SUBSIDIARIES</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&#160;</p><div>

</div><p style="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>U.S. dollars</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in; text-align: justify"><span style="font-size: 10pt"><b>NOTE 11:</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>SHARE CAPITAL (Cont.)</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.5pt; text-align: justify; text-indent: -28.35pt">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in">&#160;</td>
    <td style="width: 0.5in"><span style="font-size: 10pt"><b>d.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>Stock option plan (cont.):</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.5pt; text-align: justify; text-indent: -28.35pt">&#160;</p><div>

</div><ix:continuation continuedAt="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_25" id="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_24"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
    <td style="width: 1.25in">&#160;</td>
    <td style="width: 0.5in"><span style="font-size: 10pt">8.</span></td>
    <td style="text-align: justify"><p style="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">A summary of the Company&#8217;s option activities and related information
for the year ended December 31, 2022, is as follows:&#160;</p></td></tr>
</table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify"></p><div>

</div><ix:continuation continuedAt="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_26" id="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_25"><ix:nonNumeric contextRef="c0" continuedAt="_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableTableTextBlock-c0_cont_1" escape="true" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableTableTextBlock"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <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="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Number of<br/> options</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="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">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="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Weighted<br/> average<br/> remaining<br/> contractual<br/> life (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="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Aggregate<br/> intrinsic-<br/> value</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>&#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" 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 style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 52%">Outstanding as of January 1, 2021</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c3" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber" scale="0" unitRef="shares">18,323,222</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c3" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice" scale="0" unitRef="usdPershares">0.12</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">&#160;</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">&#160;</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-left: 0.125in">Granted*</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c0" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross" scale="0" unitRef="shares">6,600,000</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 contextRef="c0" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice" scale="0" unitRef="usdPershares">0.07</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">&#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: rgb(204,238,255)">
    <td style="padding-bottom: 1.5pt; padding-left: 9pt">Forfeited</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 contextRef="c0" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod" scale="0" unitRef="shares">2,655,464</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 contextRef="c0" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice" scale="0" unitRef="usdPershares">0.10</ix:nonFraction></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">&#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">&#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 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 style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 4pt">Outstanding as of December 31, 2021</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c2" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber" scale="0" unitRef="shares">22,267,758</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c2" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice" scale="0" unitRef="usdPershares">0.11</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonNumeric contextRef="c0" format="ixt-sec:duryear" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2">4.66</ix:nonNumeric></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><div style="-sec-ix-hidden: hidden-fact-107">&#8212;</div></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 4pt">Exercisable as of December 31, 2021</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c2" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber" scale="0" unitRef="shares">15,999,078</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c2" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableWeightedAverageExercisePrice" scale="0" unitRef="usdPershares">0.12</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonNumeric contextRef="c0" format="ixt-sec:duryear" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1">4.00</ix:nonNumeric></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><div style="-sec-ix-hidden: hidden-fact-108">&#160;&#160;&#160;&#160;&#8212;</div></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_27" id="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_26"><ix:continuation continuedAt="_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableTableTextBlock-c0_cont_2" id="_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableTableTextBlock-c0_cont_1"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.25in"><span style="font-size: 10pt">*</span></td> <td style="text-align: justify"><p style="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><ix:nonFraction contextRef="c199" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:SharesHeldInEmployeeStockOptionPlanAllocated" scale="0" unitRef="shares">1,249,758</ix:nonFraction> options approved for grant to the Company&#8217;s new Chief
Executive Officer were not issued since the number of reserved shares under the Company&#8217;s 2010 Option Plan was not sufficient to
support such grant in its totality (and therefore not presented within the Granted line item above). See Note 13.e. for additional information.</p></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_28" id="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_27"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 1.25in">&#160;</td>
    <td style="width: 0.5in"><span style="font-size: 10pt">9.</span></td>
    <td style="text-align: justify"><p style="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">A summary of the Company&#8217;s option activities and related information
for the year ended December 31, 2021, is as follows:&#160;</p></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_29" id="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_28"><ix:continuation id="_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableTableTextBlock-c0_cont_2"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <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="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Number of<br/> options</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="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">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="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Weighted<br/> average<br/> remaining<br/> contractual<br/> life (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="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Aggregate<br/> intrinsic-<br/> value</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>&#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" 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 style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 52%">Outstanding as of January 1, 2021</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c19" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber" scale="0" unitRef="shares">16,319,786</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right"><ix:nonFraction contextRef="c19" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice" scale="0" unitRef="usdPershares">0.12</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">&#160;</td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 9%; text-align: right">&#160;</td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-bottom: 1.5pt; padding-left: 0.125in">Granted</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 contextRef="c4" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross" scale="0" unitRef="shares">2,003,436</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 contextRef="c4" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice" scale="0" unitRef="usdPershares">0.17</ix:nonFraction></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">&#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">&#160;</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><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; ">
    <td style="padding-bottom: 4pt">Outstanding as of December 31, 2021</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c3" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber" scale="0" unitRef="shares">18,323,222</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c3" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice" scale="0" unitRef="usdPershares">0.12</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonNumeric contextRef="c4" format="ixt-sec:duryear" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2">4.97</ix:nonNumeric></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue" scale="0" unitRef="usd">342,452</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-bottom: 4pt">Exercisable as of December 31, 2021</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c3" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber" scale="0" unitRef="shares">11,332,153</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c3" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableWeightedAverageExercisePrice" scale="0" unitRef="usdPershares">0.08</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonNumeric contextRef="c4" format="ixt-sec:duryear" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1">4.68</ix:nonNumeric></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1" scale="0" unitRef="usd">233,086</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 125 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->30<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><b>P.V. NANO CELL LTD. AND ITS SUBSIDIARIES</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&#160;</p><div>

</div><p style="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>U.S. dollars</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in; text-align: justify"><span style="font-size: 10pt"><b>NOTE 11:</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>SHARE CAPITAL (Cont.)</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in">&#160;</td>
    <td style="width: 0.5in"><span style="font-size: 10pt"><b>d.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>Stock option plan (cont.):</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><ix:continuation continuedAt="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_30" id="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_29"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 1.25in">&#160;</td>
    <td style="width: 0.5in"><span style="font-size: 10pt">10.</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">The options granted to officers, directors, employees, consultants and service providers of the Company which were outstanding as of December 31, 2022 have been classified into exercise prices as follows:</span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_31" id="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_30"><ix:nonNumeric contextRef="c0" continuedAt="pvnnf_ScheduleOfOptionsGrantedToOfficersDirectorsEmployeesConsultantsAndServiceProvidersTableTextBlock-c0_cont_1" escape="true" name="pvnnf:ScheduleOfOptionsGrantedToOfficersDirectorsEmployeesConsultantsAndServiceProvidersTableTextBlock"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td colspan="2" style="text-align: center">&#160;</td><td style="text-align: center; padding-bottom: 1.5pt">&#160;</td><td style="text-align: center; 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">Outstanding</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="text-align: center; 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">Exercisable</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Exercise price</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid">Number of <br/> options</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="text-align: center; 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<br/> remaining<br/> contractual life<br/> (years)</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="text-align: center; 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</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&#160;</td><td style="text-align: center; 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<br/> remaining<br/> contractual life<br/> (years)</td><td style="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <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: 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" style="text-align: right">&#160;</td><td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right"><ix:nonFraction contextRef="c203" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeLowerRangeLimit" scale="0" unitRef="usdPershares">0.03</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 19%; text-align: right"><ix:nonFraction contextRef="c204" decimals="INF" format="ixt:num-dot-decimal" name="pvnnf:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionOutstandingNumber" scale="0" unitRef="shares">4,451</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 15%; text-align: right"><ix:nonNumeric contextRef="c203" format="ixt-sec:duryear" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2">1.8</ix:nonNumeric></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 19%; text-align: right"><ix:nonFraction contextRef="c204" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber" scale="0" unitRef="shares">4,451</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td><td style="width: 1%">&#160;</td>
    <td style="width: 1%; text-align: left">&#160;</td><td style="width: 15%; text-align: right"><ix:nonNumeric contextRef="c203" format="ixt-sec:duryear" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageRemainingContractualTerm2">1.8</ix:nonNumeric></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c205" decimals="3" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeLowerRangeLimit" scale="0" unitRef="usdPershares">0.068</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 contextRef="c206" decimals="INF" format="ixt:num-dot-decimal" name="pvnnf:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionOutstandingNumber" scale="0" unitRef="shares">13,728,037</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:nonNumeric contextRef="c205" format="ixt-sec:duryear" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2">4.0</ix:nonNumeric></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 contextRef="c206" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber" scale="0" unitRef="shares">13,649,773</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:nonNumeric contextRef="c205" format="ixt-sec:duryear" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageRemainingContractualTerm2">4.0</ix:nonNumeric></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">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c207" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeLowerRangeLimit" scale="0" unitRef="usdPershares">0.07</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 contextRef="c208" decimals="INF" format="ixt:num-dot-decimal" id="ix_49_fact" name="pvnnf:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionOutstandingNumber" scale="0" unitRef="shares">5,300,000</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:nonNumeric contextRef="c207" format="ixt-sec:duryear" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2">6.5</ix:nonNumeric></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-109">&#8212;</div></td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right"><div style="-sec-ix-hidden: hidden-fact-110">&#8212;</div></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c209" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeLowerRangeLimit" scale="0" unitRef="usdPershares">0.17</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 contextRef="c210" decimals="INF" format="ixt:num-dot-decimal" name="pvnnf:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionOutstandingNumber" scale="0" unitRef="shares">2,003,436</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:nonNumeric contextRef="c209" format="ixt-sec:duryear" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2">5.4</ix:nonNumeric></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 contextRef="c210" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber" scale="0" unitRef="shares">1,113,020</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:nonNumeric contextRef="c209" format="ixt-sec:duryear" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageRemainingContractualTerm2">5.4</ix:nonNumeric></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">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c211" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeLowerRangeLimit" scale="0" unitRef="usdPershares">0.27</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 contextRef="c212" decimals="INF" format="ixt:num-dot-decimal" name="pvnnf:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionOutstandingNumber" scale="0" unitRef="shares">739,000</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:nonNumeric contextRef="c211" format="ixt-sec:duryear" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2">3.0</ix:nonNumeric></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 contextRef="c212" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber" scale="0" unitRef="shares">739,000</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:nonNumeric contextRef="c211" format="ixt-sec:duryear" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageRemainingContractualTerm2">3.0</ix:nonNumeric></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="text-align: left">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c213" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeLowerRangeLimit" scale="0" unitRef="usdPershares">0.34</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 contextRef="c214" decimals="INF" format="ixt:num-dot-decimal" name="pvnnf:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionOutstandingNumber" scale="0" unitRef="shares">8,020</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:nonNumeric contextRef="c213" format="ixt-sec:duryear" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2">0.9</ix:nonNumeric></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 contextRef="c214" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber" scale="0" unitRef="shares">8,020</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:nonNumeric contextRef="c213" format="ixt-sec:duryear" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageRemainingContractualTerm2">0.9</ix:nonNumeric></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">&#160;</td><td style="text-align: right"><ix:nonFraction contextRef="c215" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeLowerRangeLimit" scale="0" unitRef="usdPershares">0.92</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"><ix:nonFraction contextRef="c216" decimals="INF" format="ixt:num-dot-decimal" name="pvnnf:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionOutstandingNumber" scale="0" unitRef="shares">455,501</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:nonNumeric contextRef="c215" format="ixt-sec:duryear" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2">1.5</ix:nonNumeric></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 contextRef="c216" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber" scale="0" unitRef="shares">455,501</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:nonNumeric contextRef="c215" format="ixt-sec:duryear" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageRemainingContractualTerm2">1.5</ix:nonNumeric></td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-bottom: 1.5pt; text-align: left">$</td><td style="padding-bottom: 1.5pt; text-align: right"><ix:nonFraction contextRef="c217" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeLowerRangeLimit" scale="0" unitRef="usdPershares">5.73</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 contextRef="c218" decimals="INF" format="ixt:num-dot-decimal" name="pvnnf:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionOutstandingNumber" scale="0" unitRef="shares">29,313</ix:nonFraction></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"><ix:nonNumeric contextRef="c217" format="ixt-sec:duryear" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2">0.9</ix:nonNumeric></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 contextRef="c218" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber" scale="0" unitRef="shares">29,313</ix:nonFraction></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"><ix:nonNumeric contextRef="c217" format="ixt-sec:duryear" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageRemainingContractualTerm2">0.9</ix:nonNumeric></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="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt; text-align: right">&#160;</td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c2" decimals="INF" format="ixt:num-dot-decimal" name="pvnnf:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionOutstandingNumber" scale="0" unitRef="shares">22,267,758</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt; text-align: right">&#160;</td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: Black 4pt double; text-align: left">&#160;</td><td style="border-bottom: Black 4pt double; text-align: right"><ix:nonFraction contextRef="c2" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber" scale="0" unitRef="shares">15,999,078</ix:nonFraction></td><td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt; text-align: left">&#160;</td><td style="padding-bottom: 4pt; text-align: right">&#160;</td><td style="padding-bottom: 4pt; text-align: left">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify"><b>&#160;</b></p></ix:nonNumeric></ix:continuation><div>


</div><div>

</div><ix:continuation continuedAt="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_32" id="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_31"><ix:continuation continuedAt="pvnnf_ScheduleOfOptionsGrantedToOfficersDirectorsEmployeesConsultantsAndServiceProvidersTableTextBlock-c0_cont_2" id="pvnnf_ScheduleOfOptionsGrantedToOfficersDirectorsEmployeesConsultantsAndServiceProvidersTableTextBlock-c0_cont_1"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0px">&#160;</td> <td style="width: 24px"><span style="font-size: 10pt">*</span></td> <td style="text-align: justify"><p style="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><ix:nonFraction contextRef="c200" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:SharesHeldInEmployeeStockOptionPlanAllocated" scale="0" unitRef="shares">1,249,758</ix:nonFraction> options approved for grant to the Company&#8217;s new Chief
Executive Officer were not issued since the number of reserved shares under the Company&#8217;s 2010 Option Plan was not sufficient to
support such grant in its totality (and therefore not presented within the related line item above). See Note 13.e. for additional information.</p></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p></ix:continuation></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_33" id="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_32"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">As of December 31, 2022, the total
compensation cost related to options granted to employees, consultants and service providers, not yet recognized, amounted to $<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:EmployeeStockOwnershipPlanESOPCompensationExpense" scale="0" unitRef="usd">143,176</ix:nonFraction>
and is expected to be recognized over a weighted average period of <ix:nonNumeric contextRef="c0" format="ixt-sec:duryear" name="us-gaap:PresentValueOfFutureInsuranceProfitsWeightedAverageAmortizationPeriod">1.29</ix:nonNumeric> years.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_34" id="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_33"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 1.25in">&#160;</td>
    <td style="width: 0.5in"><span style="font-size: 10pt">11.</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">The options granted to officers, directors, employees, consultants and service providers of the Company which were outstanding as of December 31, 2021 have been classified into exercise prices as follows:</span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_35" id="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_34"><ix:continuation continuedAt="pvnnf_ScheduleOfOptionsGrantedToOfficersDirectorsEmployeesConsultantsAndServiceProvidersTableTextBlock-c0_cont_3" id="pvnnf_ScheduleOfOptionsGrantedToOfficersDirectorsEmployeesConsultantsAndServiceProvidersTableTextBlock-c0_cont_2"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <tr style="vertical-align: bottom">
    <td colspan="2" style="text-align: center">&#160;</td>
    <td style="text-align: center; padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Outstanding</b></span></td>
    <td style="text-align: center; padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Exercisable</b></span></td>
    <td style="text-align: center; padding-bottom: 1.5pt">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Exercise price</b></span></td>
    <td style="text-align: center; padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Number of <br/>
options</b></span></td>
    <td style="text-align: center; padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Weighted average<br/>
remaining<br/>
contractual life<br/>
(years)</b></span></td>
    <td style="text-align: center; padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Number of <br/>
options</b></span></td>
    <td style="text-align: center; padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Weighted average<br/>
remaining<br/>
contractual life<br/>
(years)</b></span></td>
    <td style="text-align: center; padding-bottom: 1.5pt">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td colspan="2" style="text-align: center">&#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" 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" style="text-align: right">&#160;</td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="width: 1%">&#160;</td>
    <td style="width: 18%; text-align: right"><span style="-sec-ix-hidden: hidden-fact-111; font-size: 10pt">(*</span></td>
    <td style="width: 1%"><span style="font-size: 10pt">)</span></td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 19%; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c220" decimals="INF" format="ixt:num-dot-decimal" name="pvnnf:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionOutstandingNumber" scale="0" unitRef="shares">230,425</ix:nonFraction></span></td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 15%; text-align: right"><span style="-sec-ix-hidden: hidden-fact-112; font-size: 10pt">&#8212;</span></td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 19%; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c220" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber" scale="0" unitRef="shares">230,425</ix:nonFraction></span></td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 15%; text-align: right"><span style="-sec-ix-hidden: hidden-fact-113; font-size: 10pt">&#8212;</span></td>
    <td style="width: 1%">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td><span style="font-size: 10pt">$</span></td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c221" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeLowerRangeLimit" scale="0" unitRef="usdPershares">0.03</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c222" decimals="INF" format="ixt:num-dot-decimal" name="pvnnf:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionOutstandingNumber" scale="0" unitRef="shares">19,288</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><ix:nonNumeric contextRef="c221" format="ixt-sec:duryear" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2"><span style="font-size: 10pt">2.8</span></ix:nonNumeric></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c222" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber" scale="0" unitRef="shares">19,288</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><ix:nonNumeric contextRef="c221" format="ixt-sec:duryear" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageRemainingContractualTerm2"><span style="font-size: 10pt">2.8</span></ix:nonNumeric></td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c223" decimals="3" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeLowerRangeLimit" scale="0" unitRef="usdPershares">0.068</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c224" decimals="INF" format="ixt:num-dot-decimal" name="pvnnf:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionOutstandingNumber" scale="0" unitRef="shares">14,678,734</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><ix:nonNumeric contextRef="c223" format="ixt-sec:duryear" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2"><span style="font-size: 10pt">5.0</span></ix:nonNumeric></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-114; font-size: 10pt">9.507,559</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><ix:nonNumeric contextRef="c223" format="ixt-sec:duryear" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageRemainingContractualTerm2"><span style="font-size: 10pt">5.0</span></ix:nonNumeric></td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c225" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeLowerRangeLimit" scale="0" unitRef="usdPershares">0.17</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c226" decimals="INF" format="ixt:num-dot-decimal" name="pvnnf:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionOutstandingNumber" scale="0" unitRef="shares">2,003,436</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><ix:nonNumeric contextRef="c225" format="ixt-sec:duryear" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2"><span style="font-size: 10pt">6.4</span></ix:nonNumeric></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-115; font-size: 10pt">&#8212;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-116; font-size: 10pt">&#8212;</span></td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c227" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeLowerRangeLimit" scale="0" unitRef="usdPershares">0.27</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c228" decimals="INF" format="ixt:num-dot-decimal" name="pvnnf:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionOutstandingNumber" scale="0" unitRef="shares">809,000</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><ix:nonNumeric contextRef="c227" format="ixt-sec:duryear" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2"><span style="font-size: 10pt">4.0</span></ix:nonNumeric></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c228" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber" scale="0" unitRef="shares">792,542</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><ix:nonNumeric contextRef="c227" format="ixt-sec:duryear" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageRemainingContractualTerm2"><span style="font-size: 10pt">4.0</span></ix:nonNumeric></td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c229" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeLowerRangeLimit" scale="0" unitRef="usdPershares">0.34</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c230" decimals="INF" format="ixt:num-dot-decimal" name="pvnnf:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionOutstandingNumber" scale="0" unitRef="shares">8,020</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><ix:nonNumeric contextRef="c229" format="ixt-sec:duryear" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2"><span style="font-size: 10pt">1.9</span></ix:nonNumeric></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c230" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber" scale="0" unitRef="shares">8,020</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><ix:nonNumeric contextRef="c229" format="ixt-sec:duryear" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageRemainingContractualTerm2"><span style="font-size: 10pt">1.9</span></ix:nonNumeric></td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c231" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeLowerRangeLimit" scale="0" unitRef="usdPershares">0.92</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c232" decimals="INF" format="ixt:num-dot-decimal" name="pvnnf:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionOutstandingNumber" scale="0" unitRef="shares">540,501</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><ix:nonNumeric contextRef="c231" format="ixt-sec:duryear" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2"><span style="font-size: 10pt">2.4</span></ix:nonNumeric></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c232" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber" scale="0" unitRef="shares">540,501</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><ix:nonNumeric contextRef="c231" format="ixt-sec:duryear" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageRemainingContractualTerm2"><span style="font-size: 10pt">2.4</span></ix:nonNumeric></td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c233" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeLowerRangeLimit" scale="0" unitRef="usdPershares">4.72</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c234" decimals="INF" format="ixt:num-dot-decimal" name="pvnnf:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionOutstandingNumber" scale="0" unitRef="shares">1,068</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><ix:nonNumeric contextRef="c233" format="ixt-sec:duryear" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2"><span style="font-size: 10pt">0.2</span></ix:nonNumeric></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c234" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber" scale="0" unitRef="shares">1,068</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><ix:nonNumeric contextRef="c233" format="ixt-sec:duryear" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageRemainingContractualTerm2"><span style="font-size: 10pt">0.2</span></ix:nonNumeric></td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c235" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeLowerRangeLimit" scale="0" unitRef="usdPershares">5.05</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c236" decimals="INF" format="ixt:num-dot-decimal" name="pvnnf:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionOutstandingNumber" scale="0" unitRef="shares">2,769</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><ix:nonNumeric contextRef="c235" format="ixt-sec:duryear" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2"><span style="font-size: 10pt">0.2</span></ix:nonNumeric></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c236" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber" scale="0" unitRef="shares">2,769</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><ix:nonNumeric contextRef="c235" format="ixt-sec:duryear" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageRemainingContractualTerm2"><span style="font-size: 10pt">0.2</span></ix:nonNumeric></td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="padding-bottom: 1.5pt"><span style="font-size: 10pt">$</span></td>
    <td style="padding-bottom: 1.5pt; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c237" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeLowerRangeLimit" scale="0" unitRef="usdPershares">5.73</ix:nonFraction></span></td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: black 1.5pt solid">&#160;</td>
    <td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c238" decimals="INF" format="ixt:num-dot-decimal" name="pvnnf:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionOutstandingNumber" scale="0" unitRef="shares">29,981</ix:nonFraction></span></td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: right"><ix:nonNumeric contextRef="c237" format="ixt-sec:duryear" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2"><span style="font-size: 10pt">1.8</span></ix:nonNumeric></td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: black 1.5pt solid">&#160;</td>
    <td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c238" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber" scale="0" unitRef="shares">29,981</ix:nonFraction></span></td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: right"><ix:nonNumeric contextRef="c237" format="ixt-sec:duryear" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageRemainingContractualTerm2"><span style="font-size: 10pt">1.8</span></ix:nonNumeric></td>
    <td style="padding-bottom: 1.5pt">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt; text-align: right">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: black 4.5pt double">&#160;</td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c3" decimals="INF" format="ixt:num-dot-decimal" name="pvnnf:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionOutstandingNumber" scale="0" unitRef="shares">18,323,222</ix:nonFraction></span></td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt; text-align: right">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: black 4.5pt double">&#160;</td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c3" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber" scale="0" unitRef="shares">11,332,153</ix:nonFraction></span></td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt; text-align: right">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify"><b>&#160;</b></p></ix:continuation></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_36" id="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_35"><ix:continuation id="pvnnf_ScheduleOfOptionsGrantedToOfficersDirectorsEmployeesConsultantsAndServiceProvidersTableTextBlock-c0_cont_3"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 24px"><span style="font-size: 10pt">(*)</span></td> <td style="text-align: justify"><ix:footnote id="ix_9_footnote" xml:lang="en-US"><span style="font-size: 10pt">Represents an amount lower than $<ix:nonFraction contextRef="c3" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:SharePrice" scale="0" unitRef="usdPershares">0.01</ix:nonFraction>.</span></ix:footnote></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>&#160;</b></p></ix:continuation></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_37" id="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_36"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">As of December 31, 2021, the total
compensation cost related to options granted to employees, consultants and service providers, not yet recognized, amounted to $<ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:EmployeeStockOwnershipPlanESOPCompensationExpense" scale="0" unitRef="usd">770,396</ix:nonFraction>
and is expected to be recognized over a weighted average period of <ix:nonNumeric contextRef="c4" format="ixt-sec:duryear" name="us-gaap:PresentValueOfFutureInsuranceProfitsWeightedAverageAmortizationPeriod">0.92</ix:nonNumeric> years.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 126 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->31<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify"></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><b>P.V. NANO CELL LTD. AND ITS SUBSIDIARIES</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&#160;</p><div>

</div><p style="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>U.S. dollars</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in; text-align: justify"><span style="font-size: 10pt"><b>NOTE 11:</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>SHARE CAPITAL (Cont.)</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><ix:continuation continuedAt="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_38" id="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_37"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in">&#160;</td>
    <td style="width: 0.5in"><span style="font-size: 10pt"><b>e.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>Stock based compensation were recorded as follows:</b></span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_39" id="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_38"><ix:nonNumeric contextRef="c0" escape="true" name="us-gaap:ScheduleOfEmployeeServiceShareBasedCompensationAllocationOfRecognizedPeriodCostsTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <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"><span style="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="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"><span style="font-size: 10pt"><b>2022</b></span></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"><span style="font-size: 10pt"><b>2021</b></span></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"><span style="font-size: 10pt"><b>2020</b></span></td>
    <td style="padding-bottom: 1.5pt">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: justify">&#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" style="text-align: right">&#160;</td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="width: 67%"><span style="font-size: 10pt">Research and Development</span></td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%"><span style="font-size: 10pt">$</span></td>
    <td style="width: 8%; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherResearchAndDevelopmentExpense" scale="0" unitRef="usd">130,637</ix:nonFraction></span></td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%"><span style="font-size: 10pt">$</span></td>
    <td style="width: 8%; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherResearchAndDevelopmentExpense" scale="0" unitRef="usd">147,696</ix:nonFraction></span></td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%"><span style="font-size: 10pt">$</span></td>
    <td style="width: 8%; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherResearchAndDevelopmentExpense" scale="0" unitRef="usd">167,328</ix:nonFraction></span></td>
    <td style="width: 1%">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td><span style="font-size: 10pt">Sales and Marketing</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherSellingAndMarketingExpense" scale="0" unitRef="usd">30,804</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherSellingAndMarketingExpense" scale="0" unitRef="usd">47,031</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherSellingAndMarketingExpense" scale="0" unitRef="usd">48,671</ix:nonFraction></span></td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="padding-bottom: 1.5pt"><span style="font-size: 10pt">General and Administrative</span></td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: black 1.5pt solid">&#160;</td>
    <td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherSellingGeneralAndAdministrativeExpense" scale="0" unitRef="usd">319,501</ix:nonFraction></span></td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: black 1.5pt solid">&#160;</td>
    <td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherSellingGeneralAndAdministrativeExpense" scale="0" unitRef="usd">263,646</ix:nonFraction></span></td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: black 1.5pt solid">&#160;</td>
    <td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherSellingGeneralAndAdministrativeExpense" scale="0" unitRef="usd">248,774</ix:nonFraction></span></td>
    <td style="padding-bottom: 1.5pt">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right">&#160;</td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: black 4.5pt double"><span style="font-size: 10pt">$</span></td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AllocatedShareBasedCompensationExpense" scale="0" unitRef="usd">480,942</ix:nonFraction></span></td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: black 4.5pt double"><span style="font-size: 10pt">$</span></td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AllocatedShareBasedCompensationExpense" scale="0" unitRef="usd">458,373</ix:nonFraction></span></td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: black 4.5pt double"><span style="font-size: 10pt">$</span></td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AllocatedShareBasedCompensationExpense" scale="0" unitRef="usd">464,773</ix:nonFraction></span></td>
    <td style="padding-bottom: 4pt">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:nonNumeric></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_40" id="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_39"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in">&#160;</td>
    <td style="width: 0.5in"><span style="font-size: 10pt"><b>f.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>The Company&#8217;s outstanding warrants classified as equity</b></span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_41" id="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_40"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">The Company&#8217;s outstanding warrants
classified as equity as of December 31, 2022 are as follows:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_42" id="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_41"><ix:nonNumeric contextRef="c0" continuedAt="_ScheduleOfOtherShareBasedCompensationActivityTableTextBlock-c0_cont_1" escape="true" name="us-gaap:ScheduleOfOtherShareBasedCompensationActivityTableTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: bottom">
    <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Outstanding</b></span></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"><span style="font-size: 10pt"><b>Issuance<br/>
year</b></span></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"><span style="font-size: 10pt"><b>Exercise<br/>
price</b></span></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"><span style="font-size: 10pt"><b>Exercisable through</b></span></td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <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 style="text-align: center">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 1%">&#160;</td>
    <td style="width: 9%; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c69" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:WarrantAndRightsOutstanding" scale="0" unitRef="usd">117,209</ix:nonFraction></span></td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%">&#160;</td>
    <td style="text-align: center; width: 1%">&#160;</td>
    <td style="width: 9%; text-align: center"><ix:nonNumeric contextRef="c109" format="ixt-sec:duryear" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1"><span style="font-size: 10pt">2009</span></ix:nonNumeric></td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%"><span style="font-size: 10pt">$&#160;</span></td>
    <td style="width: 9%; text-align: right"><span style="-sec-ix-hidden: hidden-fact-117; font-size: 10pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;(*</span></td>
    <td style="width: 1%"><span style="font-size: 10pt">)</span></td>
    <td style="width: 1%">&#160;</td>
    <td style="text-align: center; width: 1%">&#160;</td>
    <td style="width: 9%; text-align: center"><ix:nonNumeric contextRef="c109" id="ix_50_fact" name="pvnnf:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingExercisableThrough"><span style="font-size: 10pt">Exit event</span></ix:nonNumeric></td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 52%"><span style="font-size: 10pt">(**)</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c239" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:WarrantAndRightsOutstanding" scale="0" unitRef="usd">59,384</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center"><ix:nonNumeric contextRef="c240" format="ixt-sec:duryear" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1"><span style="font-size: 10pt">2013</span></ix:nonNumeric></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c240" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeLowerRangeLimit" scale="0" unitRef="usdPershares">0.92</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center"><ix:nonNumeric contextRef="c240" id="ix_51_fact" name="pvnnf:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingExercisableThrough"><span style="font-size: 10pt">2023</span></ix:nonNumeric></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td><span style="font-size: 10pt">(**)</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c241" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:WarrantAndRightsOutstanding" scale="0" unitRef="usd">170,000</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center"><ix:nonNumeric contextRef="c242" format="ixt-sec:duryear" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1"><span style="font-size: 10pt">2018</span></ix:nonNumeric></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c242" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeLowerRangeLimit" scale="0" unitRef="usdPershares">0.50</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center"><ix:nonNumeric contextRef="c242" name="pvnnf:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingExercisableThrough"><span style="font-size: 10pt">2023</span></ix:nonNumeric></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>See Note 8.b.</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c243" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:WarrantAndRightsOutstanding" scale="0" unitRef="usd">200,001</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center"><ix:nonNumeric contextRef="c244" format="ixt-sec:duryear" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1"><span style="font-size: 10pt">2018</span></ix:nonNumeric></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c244" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeLowerRangeLimit" scale="0" unitRef="usdPershares">0.50</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center"><ix:nonNumeric contextRef="c244" id="ix_52_fact" name="pvnnf:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingExercisableThrough"><span style="font-size: 10pt">2023</span></ix:nonNumeric></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td><span style="font-size: 10pt">(**)</span></td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="border-bottom: black 1.5pt solid">&#160;</td>
    <td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c245" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:WarrantAndRightsOutstanding" scale="0" unitRef="usd">27,857,140</ix:nonFraction></span></td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: center"><ix:nonNumeric contextRef="c246" format="ixt-sec:duryear" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1"><span style="font-size: 10pt">2022</span></ix:nonNumeric></td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt"><span style="font-size: 10pt">$</span></td>
    <td style="padding-bottom: 1.5pt; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c246" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeLowerRangeLimit" scale="0" unitRef="usdPershares">0.07</ix:nonFraction></span></td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: center"><ix:nonNumeric contextRef="c246" id="ix_56_fact" name="pvnnf:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingExercisableThrough"><span style="font-size: 10pt">2024(***)</span></ix:nonNumeric></td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt">See Note 11.b.9 and 17</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td>
    <td style="text-align: right">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="border-bottom: black 4.5pt double">&#160;</td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:WarrantAndRightsOutstanding" scale="0" unitRef="usd">28,403,734</ix:nonFraction></span></td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt; text-align: center">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt; text-align: right">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt; text-align: center">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt; text-align: center">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:nonNumeric></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_43" id="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_42"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.35in"><span style="font-size: 10pt">(*)</span></td> <td style="text-align: justify"><span style="font-size: 10pt">Represents an amount lower than $<ix:nonFraction contextRef="c185" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1" scale="0" unitRef="usdPershares">0.01</ix:nonFraction>.</span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_44" id="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_43"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.35in"><span style="font-size: 10pt">(**)</span></td>
    <td style="text-align: justify">Issued in connection with the 2018, 2013 and 2009 arrangements.</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_45" id="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_44"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.35in"><span style="font-size: 10pt">(***)</span></td> <td style="text-align: justify"><span style="font-size: 10pt">The earlier of (i) the closing of a subsequent offering of Company securities by the Company to qualified investors with an effective price per Ordinary Share of at least $<ix:nonFraction contextRef="c2" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:SharesIssuedPricePerShare" scale="0" unitRef="usdPershares">0.20</ix:nonFraction> and (ii) the second anniversary of the issuance of such warrant.</span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_46" id="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_45"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">The Company&#8217;s outstanding warrants
classified as equity as of December 31, 2021 are as follows:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_47" id="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_46"><ix:continuation id="_ScheduleOfOtherShareBasedCompensationActivityTableTextBlock-c0_cont_1"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: bottom">
    <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Outstanding</b></span></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"><span style="font-size: 10pt"><b>Issuance<br/>
year</b></span></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"><span style="font-size: 10pt"><b>Exercise<br/>
price</b></span></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"><span style="font-size: 10pt"><b>Exercisable through</b></span></td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <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 style="text-align: center">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="width: 1%">&#160;</td>
    <td style="width: 9%; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c247" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:WarrantAndRightsOutstanding" scale="0" unitRef="usd">117,209</ix:nonFraction></span></td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%">&#160;</td>
    <td style="text-align: center; width: 1%">&#160;</td>
    <td style="width: 9%; text-align: center"><ix:nonNumeric contextRef="c248" format="ixt-sec:duryear" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1"><span style="font-size: 10pt">2009</span></ix:nonNumeric></td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%"><span style="font-size: 10pt">$&#160;</span></td>
    <td style="width: 9%; text-align: right"><span style="-sec-ix-hidden: hidden-fact-118; font-size: 10pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;(*</span></td>
    <td style="width: 1%"><span style="font-size: 10pt">)</span></td>
    <td style="width: 1%">&#160;</td>
    <td style="text-align: center; width: 1%">&#160;</td>
    <td style="width: 9%; text-align: center"><ix:nonNumeric contextRef="c248" id="ix_53_fact" name="pvnnf:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingExercisableThrough"><span style="font-size: 10pt">Exit event</span></ix:nonNumeric></td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 52%"><span style="font-size: 10pt">(**)</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c249" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:WarrantAndRightsOutstanding" scale="0" unitRef="usd">59,384</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center"><ix:nonNumeric contextRef="c250" format="ixt-sec:duryear" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1"><span style="font-size: 10pt">2013</span></ix:nonNumeric></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c250" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeLowerRangeLimit" scale="0" unitRef="usdPershares">0.92</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center"><ix:nonNumeric contextRef="c250" id="ix_54_fact" name="pvnnf:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingExercisableThrough"><span style="font-size: 10pt">2023</span></ix:nonNumeric></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td><span style="font-size: 10pt">(**)</span></td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c251" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:WarrantAndRightsOutstanding" scale="0" unitRef="usd">170,000</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center"><ix:nonNumeric contextRef="c252" format="ixt-sec:duryear" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1"><span style="font-size: 10pt">2018</span></ix:nonNumeric></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c252" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeLowerRangeLimit" scale="0" unitRef="usdPershares">0.50</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center"><ix:nonNumeric contextRef="c252" name="pvnnf:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingExercisableThrough"><span style="font-size: 10pt">2023</span></ix:nonNumeric></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>See Note 8.b.</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="border-bottom: black 1.5pt solid">&#160;</td>
    <td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c253" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:WarrantAndRightsOutstanding" scale="0" unitRef="usd">200,001</ix:nonFraction></span></td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: center"><ix:nonNumeric contextRef="c254" format="ixt-sec:duryear" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1"><span style="font-size: 10pt">2018</span></ix:nonNumeric></td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt"><span style="font-size: 10pt">$</span></td>
    <td style="padding-bottom: 1.5pt; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c254" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeLowerRangeLimit" scale="0" unitRef="usdPershares">0.50</ix:nonFraction></span></td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt; text-align: center"><ix:nonNumeric contextRef="c254" id="ix_55_fact" name="pvnnf:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingExercisableThrough"><span style="font-size: 10pt">2023</span></ix:nonNumeric></td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td style="padding-bottom: 1.5pt"><span style="font-size: 10pt">(**)</span></td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td>&#160;</td>
    <td style="text-align: right">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td style="border-bottom: black 4.5pt double">&#160;</td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:WarrantAndRightsOutstanding" scale="0" unitRef="usd">546,594</ix:nonFraction></span></td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt; text-align: center">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt; text-align: right">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="text-align: center; padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt; text-align: center">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt; text-align: center">&#160;</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_48" id="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_47"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.35in"><span style="font-size: 10pt">(*)</span></td> <td style="text-align: justify"><span style="font-size: 10pt">Represents an amount lower than $<ix:nonFraction contextRef="c0" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:StockOptionExercisePriceIncrease" scale="0" unitRef="usdPershares">0.01</ix:nonFraction>.</span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_49" id="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_48"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.35in"><span style="font-size: 10pt">(**)</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">Issued in connection with the 2018, 2013 and 2009 arrangements.</span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation id="_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-c0_cont_49"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">All warrants are exercisable to ordinary
shares. The exercise price of the warrants and the number of ordinary shares issuable thereunder is subject to standard anti-dilution
features, including dividends, stock splits, combinations and reclassifications of the Company&#8217;s capital stock. In accordance with
ASC 815, &#8220;Derivatives and Hedging&#8221;, the warrants were classified as equity instruments.</p></ix:continuation><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 127 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->32<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><b>P.V. NANO CELL LTD. AND ITS SUBSIDIARIES</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&#160;</p><div>

</div><p style="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>U.S. dollars</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_FairValueDisclosuresTextBlock-c0_cont_1" escape="true" name="us-gaap:FairValueDisclosuresTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in; text-align: justify"><span style="font-size: 10pt"><b>NOTE 12:</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt; text-transform: uppercase"><b>Warrants presented at fair value</b></span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="text-transform: uppercase"><b>&#160;</b></span></p></ix:nonNumeric><div>
</div><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c0_cont_2" id="_FairValueDisclosuresTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 57pt; text-align: justify">The Company&#8217;s outstanding warrants
classified as a liability as of December 31, 2022 are as follows:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c0_cont_3" id="_FairValueDisclosuresTextBlock-c0_cont_2"><ix:nonNumeric contextRef="c0" continuedAt="_ScheduleOfStockholdersEquityNoteWarrantsOrRightsTextBlock-c0_cont_1" escape="true" name="us-gaap:ScheduleOfStockholdersEquityNoteWarrantsOrRightsTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: bottom">
    <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Outstanding</b></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Exercise<br/>
price</b></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Issuance<br/>
year</b></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td colspan="2" style="text-align: center; border-bottom: black 1.5pt solid">
    <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>Exercisable</b></p>
    <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>through</b></p></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Fair value</b></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td colspan="2" style="text-align: right">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td colspan="2" style="text-align: justify">&#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" style="text-align: right">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="width: 1%">&#160;</td>
    <td style="width: 9%; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c255" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ClassOfWarrantOrRightOutstanding" scale="0" unitRef="shares">120,000</ix:nonFraction></span></td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%"><span style="font-size: 10pt">$</span></td>
    <td style="width: 9%; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c255" decimals="2" format="ixt:num-dot-decimal" id="ix_57_fact" name="us-gaap:ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1" scale="0" unitRef="usdPershares">0.92</ix:nonFraction></span></td>
    <td style="width: 2%"><span style="font-size: 10pt">(*)</span></td>
    <td style="width: 1%">&#160;</td>
    <td style="text-align: center; width: 1%">&#160;</td>
    <td style="width: 9%; text-align: center"><ix:nonNumeric contextRef="c256" name="pvnnf:IssuanceYears"><span style="font-size: 10pt">2014</span></ix:nonNumeric></td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%">&#160;</td>
    <td style="text-align: center; width: 1%">&#160;</td>
    <td style="width: 9%; text-align: center"><span style="font-size: 10pt"><span style="-sec-ix-hidden: hidden-fact-119">(***</span></span>)</td>
    <td style="width: 1%"></td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%"><span style="font-size: 10pt">$</span></td>
    <td style="width: 9%; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c255" decimals="INF" format="ixt:num-dot-decimal" id="ix_60_fact" name="pvnnf:ClassOfWarrantOrRightFairValue" scale="0" unitRef="shares">1</ix:nonFraction></span></td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 39%"><span style="font-size: 10pt">(****)</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c257" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ClassOfWarrantOrRightOutstanding" scale="0" unitRef="shares">675,926</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-120; font-size: 10pt">(**</span></td>
    <td><span style="font-size: 10pt">)</span></td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center"><ix:nonNumeric contextRef="c258" name="pvnnf:IssuanceYears"><span style="font-size: 10pt">2017</span></ix:nonNumeric></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center"><ix:nonNumeric contextRef="c258" name="pvnnf:ExercisableThrough"><span style="font-size: 10pt">2024</span></ix:nonNumeric></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c257" decimals="INF" format="ixt:num-dot-decimal" id="ix_61_fact" name="pvnnf:ClassOfWarrantOrRightFairValue" scale="0" unitRef="shares">14,785</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td><span style="font-size: 10pt">(****)</span></td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="border-bottom: black 1.5pt solid">&#160;</td>
    <td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c259" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ClassOfWarrantOrRightOutstanding" scale="0" unitRef="shares">1,411,765</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c259" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1" scale="0" unitRef="usdPershares">0.17</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center"><ix:nonNumeric contextRef="c260" name="pvnnf:IssuanceYears"><span style="font-size: 10pt">2019</span></ix:nonNumeric></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center"><ix:nonNumeric contextRef="c260" name="pvnnf:ExercisableThrough"><span style="font-size: 10pt">2024</span></ix:nonNumeric></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="border-bottom: black 1.5pt solid">&#160;</td>
    <td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c259" decimals="INF" format="ixt:num-dot-decimal" name="pvnnf:ClassOfWarrantOrRightFairValue" scale="0" unitRef="shares">673</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>See Note 8.e.</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td>
    <td style="text-align: right">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="border-bottom: black 4.5pt double">&#160;</td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c261" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ClassOfWarrantOrRightOutstanding" scale="0" unitRef="shares">2,207,691</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="border-bottom: black 4.5pt double"><span style="font-size: 10pt">$</span></td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c261" decimals="INF" format="ixt:num-dot-decimal" id="ix_65_fact" name="pvnnf:ClassOfWarrantOrRightFairValue" scale="0" unitRef="shares">15,459</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td><span style="font-size: 10pt">(*****)</span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify">&#160;</p></ix:nonNumeric></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c0_cont_4" id="_FairValueDisclosuresTextBlock-c0_cont_3"><ix:continuation continuedAt="_ScheduleOfStockholdersEquityNoteWarrantsOrRightsTextBlock-c0_cont_2" id="_ScheduleOfStockholdersEquityNoteWarrantsOrRightsTextBlock-c0_cont_1"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.5in"><span style="font-size: 10pt">(*)</span></td> <td style="text-align: justify"><ix:footnote id="ix_13_footnote" xml:lang="en-US"><span style="font-size: 10pt">Subject to changes as describe in the agreement.</span></ix:footnote></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c0_cont_5" id="_FairValueDisclosuresTextBlock-c0_cont_4"><ix:continuation continuedAt="_ScheduleOfStockholdersEquityNoteWarrantsOrRightsTextBlock-c0_cont_3" id="_ScheduleOfStockholdersEquityNoteWarrantsOrRightsTextBlock-c0_cont_2"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.5in"><span style="font-size: 10pt">(**)</span></td> <td style="text-align: justify"><ix:footnote id="ix_14_footnote" xml:lang="en-US"><span style="font-size: 10pt">Less than $0.01.</span></ix:footnote></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c0_cont_6" id="_FairValueDisclosuresTextBlock-c0_cont_5"><ix:continuation continuedAt="_ScheduleOfStockholdersEquityNoteWarrantsOrRightsTextBlock-c0_cont_4" id="_ScheduleOfStockholdersEquityNoteWarrantsOrRightsTextBlock-c0_cont_3"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.5in"><span style="font-size: 10pt">(***)</span></td> <td style="text-align: justify">M&amp;A or qualified public offering as described in the agreement.</td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c0_cont_7" id="_FairValueDisclosuresTextBlock-c0_cont_6"><ix:continuation continuedAt="_ScheduleOfStockholdersEquityNoteWarrantsOrRightsTextBlock-c0_cont_5" id="_ScheduleOfStockholdersEquityNoteWarrantsOrRightsTextBlock-c0_cont_4"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.5in"><span style="font-size: 10pt">(****)</span></td> <td style="text-align: justify"><ix:footnote id="ix_16_footnote" xml:lang="en-US"><span style="font-size: 10pt">Issued in connection with the 2014 through 2017 financing rounds.</span></ix:footnote></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c0_cont_8" id="_FairValueDisclosuresTextBlock-c0_cont_7"><ix:continuation continuedAt="_ScheduleOfStockholdersEquityNoteWarrantsOrRightsTextBlock-c0_cont_6" id="_ScheduleOfStockholdersEquityNoteWarrantsOrRightsTextBlock-c0_cont_5"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.5in"><span style="font-size: 10pt">(*****)</span></td> <td style="text-align: justify"><ix:footnote id="ix_17_footnote" xml:lang="en-US"><span style="font-size: 10pt">Contains warrants presented at fair value within non-current liabilities.</span></ix:footnote></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 57pt; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c0_cont_9" id="_FairValueDisclosuresTextBlock-c0_cont_8"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.75in; text-align: justify">The Company&#8217;s outstanding
warrants classified as a liability as of December 31, 2021 are as follows:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c0_cont_10" id="_FairValueDisclosuresTextBlock-c0_cont_9"><ix:continuation continuedAt="_ScheduleOfStockholdersEquityNoteWarrantsOrRightsTextBlock-c0_cont_7" id="_ScheduleOfStockholdersEquityNoteWarrantsOrRightsTextBlock-c0_cont_6"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: bottom">
    <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Outstanding</b></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Exercise<br/>
price</b></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Issuance<br/>
year</b></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td colspan="2" style="text-align: center; border-bottom: black 1.5pt solid">
    <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>Exercisable</b></p>
    <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><b>through</b></p></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>Fair value</b></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td colspan="2" style="text-align: right">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td colspan="2" style="text-align: justify">&#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" style="text-align: right">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="width: 1%">&#160;</td>
    <td style="width: 9%; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c262" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ClassOfWarrantOrRightOutstanding" scale="0" unitRef="shares">120,000</ix:nonFraction></span></td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%"><span style="font-size: 10pt">$</span></td>
    <td style="width: 9%; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c262" decimals="2" format="ixt:num-dot-decimal" id="ix_58_fact" name="us-gaap:ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1" scale="0" unitRef="usdPershares">0.92</ix:nonFraction></span></td>
    <td style="width: 2%"><span style="font-size: 10pt">(*)</span></td>
    <td style="width: 1%">&#160;</td>
    <td style="text-align: center; width: 1%">&#160;</td>
    <td style="width: 9%; text-align: center"><ix:nonNumeric contextRef="c263" name="pvnnf:IssuanceYears"><span style="font-size: 10pt">2014</span></ix:nonNumeric></td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%">&#160;</td>
    <td style="text-align: center; width: 1%">&#160;</td>
    <td style="width: 9%; text-align: center"><ix:nonNumeric contextRef="c263" id="ix_59_fact" name="pvnnf:ExercisableThrough"><span style="font-size: 10pt">(***</span>)</ix:nonNumeric></td>
    <td style="width: 1%"></td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%"><span style="font-size: 10pt">$</span></td>
    <td style="width: 9%; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c262" decimals="INF" format="ixt:num-dot-decimal" id="ix_62_fact" name="pvnnf:ClassOfWarrantOrRightFairValue" scale="0" unitRef="shares">94</ix:nonFraction></span></td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 39%"><span style="font-size: 10pt">(****)</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c264" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ClassOfWarrantOrRightOutstanding" scale="0" unitRef="shares">905,555</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c264" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1" scale="0" unitRef="usdPershares">0.17</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center"><ix:nonNumeric contextRef="c265" name="pvnnf:IssuanceYears"><span style="font-size: 10pt">2017</span></ix:nonNumeric></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center"><ix:nonNumeric contextRef="c265" name="pvnnf:ExercisableThrough"><span style="font-size: 10pt">2022</span></ix:nonNumeric></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c264" decimals="INF" format="ixt:num-dot-decimal" name="pvnnf:ClassOfWarrantOrRightFairValue" scale="0" unitRef="shares">5,841</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>See Note 8.a.</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c266" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ClassOfWarrantOrRightOutstanding" scale="0" unitRef="shares">436,666</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c266" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1" scale="0" unitRef="usdPershares">1.50</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center"><ix:nonNumeric contextRef="c267" name="pvnnf:IssuanceYears"><span style="font-size: 10pt">2017</span></ix:nonNumeric></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center"><ix:nonNumeric contextRef="c267" name="pvnnf:ExercisableThrough"><span style="font-size: 10pt">2022</span></ix:nonNumeric></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c266" decimals="INF" format="ixt:num-dot-decimal" id="ix_63_fact" name="pvnnf:ClassOfWarrantOrRightFairValue" scale="0" unitRef="shares">2</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td><span style="font-size: 10pt">(****)</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c268" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ClassOfWarrantOrRightOutstanding" scale="0" unitRef="shares">33,332</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c268" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1" scale="0" unitRef="usdPershares">1.20</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center"><ix:nonNumeric contextRef="c269" name="pvnnf:IssuanceYears"><span style="font-size: 10pt">2017</span></ix:nonNumeric></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center"><ix:nonNumeric contextRef="c269" name="pvnnf:ExercisableThrough"><span style="font-size: 10pt">2022</span></ix:nonNumeric></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-121; font-size: 10pt">&#8212;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td><span style="font-size: 10pt">(****)</span></td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c270" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ClassOfWarrantOrRightOutstanding" scale="0" unitRef="shares">33,332</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c270" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1" scale="0" unitRef="usdPershares">1.00</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center"><ix:nonNumeric contextRef="c271" name="pvnnf:IssuanceYears"><span style="font-size: 10pt">2017</span></ix:nonNumeric></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center"><ix:nonNumeric contextRef="c271" name="pvnnf:ExercisableThrough"><span style="font-size: 10pt">2022</span></ix:nonNumeric></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-122; font-size: 10pt">&#8212;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td><span style="font-size: 10pt">(****)</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c272" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ClassOfWarrantOrRightOutstanding" scale="0" unitRef="shares">675,926</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-123; font-size: 10pt">(**</span></td>
    <td><span style="font-size: 10pt">)</span></td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center"><ix:nonNumeric contextRef="c273" name="pvnnf:IssuanceYears"><span style="font-size: 10pt">2017</span></ix:nonNumeric></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center"><ix:nonNumeric contextRef="c273" name="pvnnf:ExercisableThrough"><span style="font-size: 10pt">2024</span></ix:nonNumeric></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c272" decimals="INF" format="ixt:num-dot-decimal" id="ix_64_fact" name="pvnnf:ClassOfWarrantOrRightFairValue" scale="0" unitRef="shares">54,731</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td><span style="font-size: 10pt">(****)</span></td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c274" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ClassOfWarrantOrRightOutstanding" scale="0" unitRef="shares">11,111</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c274" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1" scale="0" unitRef="usdPershares">1.20</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center"><ix:nonNumeric contextRef="c275" name="pvnnf:IssuanceYears"><span style="font-size: 10pt">2017</span></ix:nonNumeric></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center"><ix:nonNumeric contextRef="c275" name="pvnnf:ExercisableThrough"><span style="font-size: 10pt">2022</span></ix:nonNumeric></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-124; font-size: 10pt">&#8212;</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td><span style="font-size: 10pt">(****)</span></td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c276" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ClassOfWarrantOrRightOutstanding" scale="0" unitRef="shares">1,659,971</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c276" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1" scale="0" unitRef="usdPershares">0.17</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center"><ix:nonNumeric contextRef="c277" name="pvnnf:IssuanceYears"><span style="font-size: 10pt">2018</span></ix:nonNumeric></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center"><ix:nonNumeric contextRef="c277" name="pvnnf:ExercisableThrough"><span style="font-size: 10pt">2022</span></ix:nonNumeric></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c276" decimals="INF" format="ixt:num-dot-decimal" name="pvnnf:ClassOfWarrantOrRightFairValue" scale="0" unitRef="shares">11,359</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>See Note 8.a.</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="border-bottom: black 1.5pt solid">&#160;</td>
    <td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c278" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ClassOfWarrantOrRightOutstanding" scale="0" unitRef="shares">1,411,765</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c278" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1" scale="0" unitRef="usdPershares">0.17</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center"><ix:nonNumeric contextRef="c279" name="pvnnf:IssuanceYears"><span style="font-size: 10pt">2019</span></ix:nonNumeric></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center"><ix:nonNumeric contextRef="c279" name="pvnnf:ExercisableThrough"><span style="font-size: 10pt">2024</span></ix:nonNumeric></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="border-bottom: black 1.5pt solid">&#160;</td>
    <td style="border-bottom: black 1.5pt solid; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c278" decimals="INF" format="ixt:num-dot-decimal" name="pvnnf:ClassOfWarrantOrRightFairValue" scale="0" unitRef="shares">34,948</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>See Note 8.e.</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td>
    <td style="text-align: right">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="border-bottom: black 4.5pt double">&#160;</td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c3" decimals="INF" format="ixt:num-dot-decimal" name="us-gaap:ClassOfWarrantOrRightOutstanding" scale="0" unitRef="shares">5,287,658</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td style="text-align: center">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="border-bottom: black 4.5pt double"><span style="font-size: 10pt">$</span></td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c3" decimals="INF" format="ixt:num-dot-decimal" id="ix_66_fact" name="pvnnf:ClassOfWarrantOrRightFairValue" scale="0" unitRef="shares">106,975</ix:nonFraction></span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td><span style="font-size: 10pt">(*****)</span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c0_cont_11" id="_FairValueDisclosuresTextBlock-c0_cont_10"><ix:continuation continuedAt="_ScheduleOfStockholdersEquityNoteWarrantsOrRightsTextBlock-c0_cont_8" id="_ScheduleOfStockholdersEquityNoteWarrantsOrRightsTextBlock-c0_cont_7"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.5in"><span style="font-size: 10pt">(*)</span></td> <td style="text-align: justify">Subject to changes as described in the agreement.</td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c0_cont_12" id="_FairValueDisclosuresTextBlock-c0_cont_11"><ix:continuation continuedAt="_ScheduleOfStockholdersEquityNoteWarrantsOrRightsTextBlock-c0_cont_9" id="_ScheduleOfStockholdersEquityNoteWarrantsOrRightsTextBlock-c0_cont_8"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.5in"><span style="font-size: 10pt">(**)</span></td> <td style="text-align: justify"><span style="font-size: 10pt">Less than $0.01.</span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c0_cont_13" id="_FairValueDisclosuresTextBlock-c0_cont_12"><ix:continuation continuedAt="_ScheduleOfStockholdersEquityNoteWarrantsOrRightsTextBlock-c0_cont_10" id="_ScheduleOfStockholdersEquityNoteWarrantsOrRightsTextBlock-c0_cont_9"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.5in"><span style="font-size: 10pt">(***)</span></td> <td style="text-align: justify">M&amp;A or qualified public offering as described in the agreement.</td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_FairValueDisclosuresTextBlock-c0_cont_14" id="_FairValueDisclosuresTextBlock-c0_cont_13"><ix:continuation continuedAt="_ScheduleOfStockholdersEquityNoteWarrantsOrRightsTextBlock-c0_cont_11" id="_ScheduleOfStockholdersEquityNoteWarrantsOrRightsTextBlock-c0_cont_10"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.5in"><span style="font-size: 10pt">(****)</span></td> <td style="text-align: justify"><span style="font-size: 10pt">Issued in connection with the 2014 through 2017 financing rounds.</span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation></ix:continuation><div>
</div><div>

</div><ix:continuation id="_FairValueDisclosuresTextBlock-c0_cont_14"><ix:continuation id="_ScheduleOfStockholdersEquityNoteWarrantsOrRightsTextBlock-c0_cont_11"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.5in"><span style="font-size: 10pt">(*****)</span></td> <td> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><ix:footnote id="ix_18_footnote" xml:lang="en-US">Contains warrants presented at fair value
within current liabilities of $<ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:WarrantsPresentedAtFairValues" scale="0" sign="-" unitRef="usd">17,296</ix:nonFraction> and within non-current liabilities of $<ix:nonFraction contextRef="c3" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:NoncurrentLiabilities" scale="0" unitRef="usd">89,679</ix:nonFraction>.</ix:footnote></p></td></tr> </table></ix:continuation></ix:continuation><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 128 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->33<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><b>P.V. NANO CELL LTD. AND ITS SUBSIDIARIES</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&#160;</p><div>

</div><p style="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>U.S. dollars</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_1" escape="true" name="us-gaap:RelatedPartyTransactionsDisclosureTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in; text-align: justify"><span style="font-size: 10pt"><b>NOTE 13:</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>RELATED PARTIES</b></span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:nonNumeric><div>
</div><div>

</div><ix:continuation continuedAt="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_2" id="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_1"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in">&#160;</td>
    <td style="width: 0.5in"><span style="font-size: 10pt"><b>a.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>Employment or Service Agreements with Dr. Fernando de la Vega, the Company&#8217;s Chief Executive Officer: &#160;</b></span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_3" id="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">On September 9, 2009, the Company entered
into a services agreement, as amended in November 2018 (&#8220;DBG Services Agreement&#8221;), with <ix:nonNumeric contextRef="c198" name="pvnnf:DescriptionOfServiceAgreement">Dr. de la Vega&#8217;s wholly-owned
service company, Dolev Bar-Guy Consulting and Management Ltd. (&#8220;DBG&#8221;), pursuant to which Dr. de la Vega provided us management
services as the Company&#8217;s chief executive officer through June 1, 2021, at which time he resigned from such position and assumed
the position as Chief Technology Officer, under the same terms and conditions according to the DBG Services Agreement. Pursuant to the
terms of the DBG Services Agreement, Dr. de la Vega is currently entitled to a monthly consultancy fee in the amount of NIS 65,000 ($18,471based
on the exchange rate of $1.00 / NIS 3.519 in effect as of December 31, 2022) plus VAT and car allowance in the amount of NIS 2,500 ($710
based on the exchange rate of $1.00 / NIS 3.519 in effect as of December 31, 2022) plus VAT per month plus reimbursement for fuel expenses
and tolls. . The liability towards DBG as of December 31, 2022 and 2021 aggregated to NIS 1,838,300 ($522,392 based on the exchange rate
of $1.00 / NIS 3.519 in effect as of December 31, 2022) plus VAT and NIS 1,774,957 ($570,725 based on the exchange rate of $1.00 / NIS
3.11 in effect as of December 31, 2021) plus VAT, respectively, and was recorded as part of the Employees and payroll accruals line item
within the current liabilities. Dr. de la Vega may terminate the DBG Services Agreement at any time for any reason upon a three (3) months&#8217;
prior written notice. If the Company wishes to terminate the DBG Services Agreement, other than as a result of Dr. de la Vega&#8217;s
breach of his terms of office, the Company shall be required to provide a six (6) months&#8217; prior written notice (provided that if
the termination is up to 12 months following an exit event, 24 months&#8217; prior written notice is required; between 12 and up to 24
months following an exit event, 12 months&#8217; prior written notice is required and between 24 months and up to 36 months following
an exit event, 6 months&#8217; prior written notice is required).</ix:nonNumeric></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_4" id="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">In addition, Dr. de la Vega is entitled
to receive (none of which were received so far):</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_5" id="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_4"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 1.25in">&#160;</td> <td style="width: 0.5in"><ix:nonNumeric contextRef="c198" continuedAt="pvnnf_DescriptionOfCompensationExecutive-c198_cont_1" name="pvnnf:DescriptionOfCompensationExecutive"><span style="font-size: 10pt">1.</span></ix:nonNumeric></td> <td style="text-align: justify"><ix:continuation continuedAt="pvnnf_DescriptionOfCompensationExecutive-c198_cont_2" id="pvnnf_DescriptionOfCompensationExecutive-c198_cont_1"><span style="font-size: 10pt">An annual cash bonus in an amount equivalent to up to four (4) times his monthly service fee, plus VAT, based on achievement of certain performance targets which are determined by our compensation committee and the board of directors on an annual basis.</span></ix:continuation></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_6" id="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_5"><ix:continuation continuedAt="pvnnf_DescriptionOfCompensationExecutive-c198_cont_3" id="pvnnf_DescriptionOfCompensationExecutive-c198_cont_2"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 1.25in">&#160;</td>
    <td style="width: 0.5in"><span style="font-size: 10pt">2.</span></td>
    <td style="text-align: justify"><p style="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">A special one-time bonus in an amount equivalent to six times his monthly
service fee, plus VAT upon the occurrence of an Exit Event (as described below), provided that the Company&#8217;s pre-money valuation
shall be at least $50,000,000 at the closing of such transaction or within 12 months following such closing.</p></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_7" id="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_6"><ix:continuation continuedAt="pvnnf_DescriptionOfCompensationExecutive-c198_cont_4" id="pvnnf_DescriptionOfCompensationExecutive-c198_cont_3"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 1.25in">&#160;</td>
    <td style="width: 0.5in"><span style="font-size: 10pt">3.</span></td>
    <td style="text-align: justify">An equity-based award upon the occurrence of an Exit Event, in accordance
with the following calculation:</td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_8" id="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_7"><ix:continuation continuedAt="pvnnf_DescriptionOfCompensationExecutive-c198_cont_5" id="pvnnf_DescriptionOfCompensationExecutive-c198_cont_4"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt" width="100%"><tr style="vertical-align: top">
<td style="width: 1.5in"></td><td style="width: 0.5in">(i)</td><td>0.5% of the Company&#8217;s share capital on a fully diluted basis, if the Company&#8217;s pre-money valuation shall be equal to or
higher than $30,000,000 but less than $40,000,000;</td></tr><tr style="vertical-align: top">
<td>&#160;</td><td>&#160;</td><td>&#160;</td></tr>
                                                            <tr style="vertical-align: top">
<td>&#160;</td><td>(ii)</td><td>1.25% of the Company&#8217;s share capital on a fully diluted basis,
if the Company&#8217;s pre-money valuation shall be equal to or higher than $40,000,000 but less than $50,000,000;</td></tr>
                                                            <tr style="vertical-align: top">
<td>&#160;</td><td>&#160;</td><td>&#160;</td></tr>
                                                            <tr style="vertical-align: top">
<td>&#160;</td><td>(iii)</td><td>2.0% of the Company&#8217;s share capital on a fully diluted basis,
if the Company&#8217;s pre-money valuation shall be equal to or higher than $50,000,000.</td></tr>
                                                            </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 70.9pt; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_9" id="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_8"><ix:continuation id="pvnnf_DescriptionOfCompensationExecutive-c198_cont_5"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">An &#8216;Exit Event&#8217; is defined
as: (i) the consummation of an initial public offering of ordinary shares of the Company on a recognized stock exchange; or (ii) a sale
of all or substantially all of the share capital of the Company to any individual, firm, corporation, partnership, trust, incorporated
or unincorporated association, joint venture, joint stock company, governmental authority or other entity of any kind, and shall include
any successor (by merger or otherwise) of such entity (a &#8220;Person&#8221;); (iii) a sale, lease, conveyance or disposition of all
or substantially all of the assets of the Company; (iv) a merger of the Company with or into another entity in which the shareholders
of the Company immediately prior to such merger do not hold a majority of the share capital and voting rights of the surviving entity
held by them by virtue of their holdings in the Company prior to the consummation of the transaction or a transaction or series of transactions
in which a Person or group of Persons acquire more than <ix:nonFraction contextRef="c280" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:BusinessCombinationStepAcquisitionEquityInterestInAcquireePercentage" scale="-2" unitRef="pure">50</ix:nonFraction>% of the issued and outstanding share capital of the Company (other than an
acquisition of such share capital from the Company); or (v) an up-listing to a higher exchange.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.2in; text-align: justify">&#160;</p></ix:continuation></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_10" id="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_9"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 1.25in; text-align: justify">To date, the Company did not pay or
record any bonus to DBG.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.2in; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 82pt; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 129 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->34<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 82pt; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><b>P.V. NANO CELL LTD. AND ITS SUBSIDIARIES</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&#160;</p><div>

</div><p style="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>U.S. dollars</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in; text-align: justify"><span style="font-size: 10pt"><b>NOTE 13:</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>RELATED PARTIES (Cont.)</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;&#160;&#160;</p><div>

</div><ix:continuation continuedAt="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_11" id="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_10"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in">&#160;</td>
    <td style="width: 0.5in"><span style="font-size: 10pt"><b>b.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>Consultancy Agreement with Ram Zeevi:</b></span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.2in; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_12" id="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_11"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">On May 15, 2018, the Company entered
into a consultancy agreement with RINC Green Ltd. (&#8220;RINC Green&#8221;), as amended on April 30, 2019 (the &#8220;Ram Zeevi Consultancy
Agreement&#8221;), pursuant to which Mr. Zeevi provides the Company with services in the field of business development in accordance with
pre-approved monthly work plans, which include introduction of potential business partners and investors as well as assistance in negotiations
of business and investment terms. Pursuant to the terms of the Ram Zeevi Consultancy Agreement, RINC Green is currently entitled to a
gross monthly fee in the amount of $<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:InvestmentCompanyShareholderServiceFeeExpense" scale="0" unitRef="usd">5,000</ix:nonFraction> (25 hours per month at $200 per hour rate) plus VAT and to reimbursement of out-of-pocket expenses
related directly to the provision of the consultancy services subject to prior written approval of the chief executive officer, to reimbursement
of travel international travel and board expenses at the same standard as our chief executive officer and to an additional per-day fee
equivalent to four hours per day abroad plus VAT. Either the Company or RINC Green may terminate the agreement at any time for any reason
by providing a 30-day prior written notice. RINC Green ceased providing the above monthly service in January 2019.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 82pt; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_13" id="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_12"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">In addition to the foregoing, RINC
Green is entitled to receive (none of which were received so far):</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_14" id="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_13"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 1.25in">&#160;</td> <td style="width: 0.5in"><ix:nonNumeric contextRef="c281" continuedAt="pvnnf_DescriptionOfConsultancyAgreement-c281_cont_1" name="pvnnf:DescriptionOfConsultancyAgreement"><span style="font-size: 10pt">1.</span></ix:nonNumeric></td> <td style="text-align: justify"><ix:continuation continuedAt="pvnnf_DescriptionOfConsultancyAgreement-c281_cont_2" id="pvnnf_DescriptionOfConsultancyAgreement-c281_cont_1"><span style="font-size: 10pt">A one-time payment in the amount of $25,000 (plus VAT) upon an equity investment exceeding $500,000 by an investor that was introduced to the Company by Mr. Zeevi;</span></ix:continuation></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation><div>
</div><div>


</div><ix:continuation continuedAt="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_15" id="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_14"><ix:continuation continuedAt="pvnnf_DescriptionOfConsultancyAgreement-c281_cont_3" id="pvnnf_DescriptionOfConsultancyAgreement-c281_cont_2"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 120px">&#160;</td>
    <td style="width: 48px; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.</span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">$150,000 in cash (plus VAT) and options to purchase the Company&#8217;s ordinary shares upon an equity investment or execution of business contract resulting in at least&#160; $2,000,000 in proceeds (or revenues) by an entity introduced to the Company by Mr. Zeevi, whereby the number of options will be calculated by dividing $150,000 by the average ordinary share price during the period of 90 days prior to the date upon which the investment is actually made with an exercise price per share of NIS 0.01 ($0.003 based on the exchange rate of $1.00 / NIS 3.519 in effect as of December 31, 2022); and</span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_16" id="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_15"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 120px; font-size: 10pt"><ix:continuation continuedAt="pvnnf_DescriptionOfConsultancyAgreement-c281_cont_4" id="pvnnf_DescriptionOfConsultancyAgreement-c281_cont_3">&#160;</ix:continuation></td> <td style="width: 48px; font-size: 10pt"><ix:continuation continuedAt="pvnnf_DescriptionOfConsultancyAgreement-c281_cont_5" id="pvnnf_DescriptionOfConsultancyAgreement-c281_cont_4"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.</span></ix:continuation></td> <td><ix:continuation continuedAt="pvnnf_DescriptionOfConsultancyAgreement-c281_cont_6" id="pvnnf_DescriptionOfConsultancyAgreement-c281_cont_5"> </ix:continuation><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><ix:continuation id="pvnnf_DescriptionOfConsultancyAgreement-c281_cont_6">An equity based award to be granted upon of an Exit Event, in accordance with the following calculation:(i) 0.4% of the Company&#8217;s share capital on a fully diluted basis, if the Company&#8217;s pre-money valuation shall be equal to or higher than $30,000,000 but less than $50,000,000, or (ii) 1.0% of the Company&#8217;s share capital on a fully diluted basis, if the Company&#8217;s pre-money valuation shall be equal to or higher than $50,000,000.</ix:continuation> In the event that the Company terminate the Ram Zeevi Consultancy Agreement other than for Cause, and the Exit Event occurs within a period of six (6) months of said termination, RINC Green will be entitled to the foregoing equity-based award. An &#8216;Exit Event&#8217; is defined the same as mentioned in section a. above.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_17" id="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_16"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">To date, the Company has not paid or
recorded any bonus to RINC Green.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_18" id="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_17"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">On October 2, 2018, the Company granted
to RINC Green options to purchase up to <ix:nonFraction contextRef="c282" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:GrantedOptionsToPurchaseShares" scale="0" unitRef="shares">120,000</ix:nonFraction> of the Company&#8217;s ordinary shares, at an exercise price per share of $<ix:nonFraction contextRef="c282" decimals="2" format="ixt:num-dot-decimal" name="pvnnf:ExercisePricePerShare" scale="0" unitRef="usdPershares">0.27</ix:nonFraction>. The options
vested over a period of three (3) years, with one third of the options vesting on September 30, 2019, and the remaining two thirds of
the options vesting on a quarterly basis over the remaining two (2) years.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_19" id="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_18"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">Ram Zeevi is the son of Gadi Zeevi,
who is the controlling shareholder of GTRIMG Investments Ltd., the Company&#8217;s controlling shareholder.&#160;</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 130 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->35<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><b>P.V. NANO CELL LTD. AND ITS SUBSIDIARIES</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&#160;</p><div>

</div><p style="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>U.S. dollars</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in; text-align: justify"><span style="font-size: 10pt"><b>NOTE 13:</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>RELATED PARTIES (Cont.)</b></span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;&#160;&#160;</p><div>

</div><ix:continuation continuedAt="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_20" id="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_19"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in">&#160;</td>
    <td style="width: 0.5in"><span style="font-size: 10pt"><b>c.</b></span></td>
    <td style="text-align: justify"><b>Consultancy Agreement with Dov Farkash, the Company&#8217;s Active Chairman: &#160; &#160;</b></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.2in; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_21" id="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_20"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">On April 19, 2020, an Active Chairman
Agreement (the &#8220;Chairman Agreement&#8221;) with Exoro Ltd. (&#8220;Exoro&#8221;), a company wholly owned by Mr. Dov Farkash. The
Chairman Agreement provides that Exoro, through Mr. Farkash is to provide certain services to us as active chairman, focusing on go-to-market
strategy. The Company agreed to enter into an indemnification agreement with Mr. Farkash and to include him in the Company&#8217;s directors&#8217;
and officers&#8217; liability insurance. Mr. Farkash has agreed not to provide any services that would conflict with or complete with
the Company. The Company agreed to pay a monthly service fee of NIS <ix:nonFraction contextRef="c283" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ManagementFeeExpense" scale="0" unitRef="ils">40,000</ix:nonFraction> ($<ix:nonFraction contextRef="c283" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ManagementFeeExpense" scale="0" unitRef="usd">11,366</ix:nonFraction> based on the exchange rate of $<ix:nonFraction contextRef="c284" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:SharePrice" scale="0" unitRef="usdPershares">1.00</ix:nonFraction> / NIS <ix:nonFraction contextRef="c285" decimals="3" format="ixt:num-dot-decimal" name="us-gaap:SharePrice" scale="0" unitRef="ilsPershares">3.519</ix:nonFraction> in
effect as of December 31, 2022) plus VAT to Exoro. The Company granted to Mr. Farkash options to purchase 939,164 ordinary shares under
our 2010 Option Plan, in accordance with our director compensation plan, at an exercise price of $<ix:nonFraction contextRef="c285" decimals="3" format="ixt:num-dot-decimal" name="us-gaap:SaleOfStockPricePerShare" scale="0" unitRef="usdPershares">0.068</ix:nonFraction> per share, vesting over <ix:nonNumeric contextRef="c286" continuedAt="_ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1-c286_cont_1" format="ixt-sec:durwordsen" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1">three</ix:nonNumeric>
(3)<ix:continuation id="_ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1-c286_cont_1"> years</ix:continuation> from April 19, 2020, with one-third vesting after one year and the remainder monthly over a 24-month period. Exoro was entitled
to reimbursement of expenses in connection with the provision of the services and was provided a budget of $<ix:nonFraction contextRef="c286" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherExpenses" scale="0" unitRef="usd">10,000</ix:nonFraction>/month for travel. The
term of the Chairman Agreement was for four (4) months, and the Company has a right to renew the agreement for an additional nine months,
which was utilized. Either party could terminate upon 45 days prior written notice. The Chairman Agreement could also be terminated by
the Company for Cause (as defined in the Chairman Agreement). Notwithstanding the expiration of the Chairman Agreement, Mr. Farkash has
continued to serve as Active Chairman in accordance with the terms thereof, and the Company intends to present such continued engagement
to the approval of the shareholders at the next general meeting of shareholders.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 86.25pt; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_22" id="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_21"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in">&#160;</td>
    <td style="width: 0.5in"><span style="font-size: 10pt"><b>d.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>Consultancy Agreement with Ran Eisenberg, the Company&#8217;s former Chief Executive Officer: &#160;</b></span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 86.25pt; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_23" id="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_22"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">On June 1, 2021, the Company entered
into a consultancy agreement with Mr. Ran Eisenberg to serve as the Company&#8217;s Chief Executive Officer during the term of the agreement.
Pursuant to the terms of the agreement, Mr. Eisenberg was entitled to a monthly fee of NIS <ix:nonFraction contextRef="c287" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ManagementFeeExpense" scale="0" unitRef="ils">40,000</ix:nonFraction> ($<ix:nonFraction contextRef="c287" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ManagementFeeExpense" scale="0" unitRef="usd">12,861</ix:nonFraction> based on the exchange rate
of $<ix:nonFraction contextRef="c288" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:SharePrice" scale="0" unitRef="usdPershares">1.00</ix:nonFraction> / NIS <ix:nonFraction contextRef="c289" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:SharePrice" scale="0" unitRef="ilsPershares"><ix:nonFraction contextRef="c3" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:SharePrice" scale="0" unitRef="ilsPershares">3.11</ix:nonFraction></ix:nonFraction> in effect as of December 31, 2021) plus VAT, which was increased to <ix:nonFraction contextRef="c290" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ManagementFeeExpense" scale="0" unitRef="ils">60,000</ix:nonFraction> NIS ($<ix:nonFraction contextRef="c290" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ManagementFeeExpense" scale="0" unitRef="usd">19,292</ix:nonFraction> based on the exchange rate
of $<ix:nonFraction contextRef="c291" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:SharePrice" scale="0" unitRef="usdPershares">1.00</ix:nonFraction> / NIS 3.11 in effect as of December 31, 2021) plus VAT four (4) months from his commencement date. In addition, Mr. Eisenberg
was awarded options to purchase up to <ix:nonFraction contextRef="c288" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:SharesHeldInEmployeeStockOptionPlanAllocated" scale="0" unitRef="shares">2,003,346</ix:nonFraction> of the Company&#8217;s shares at a per share exercise price of $<ix:nonFraction contextRef="c292" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:StockOptionExercisePriceIncrease" scale="0" unitRef="usdPershares">0.17</ix:nonFraction>, which was reduced
to $<ix:nonFraction contextRef="c292" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:StockOptionExercisePriceDecrease" scale="0" unitRef="usdPershares">0.07</ix:nonFraction>. Vesting of the options is over <ix:nonNumeric contextRef="c292" continuedAt="_ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1-c292_cont_1" format="ixt-sec:durwordsen" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1">three</ix:nonNumeric> (3)<ix:continuation id="_ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1-c292_cont_1"> years</ix:continuation> from June 1, 2021, with one-third vesting after one year and the remainder monthly
over a 24-month period. The options accelerate upon an Exit Event (as defined in section a. above). See Note 11.d. regarding Mr. Eisenberg
resignation.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_24" id="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_23"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in">&#160;</td>
    <td style="width: 0.5in"><span style="font-size: 10pt"><b>e.</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>Consultancy Agreement with Avi Magid, the Company&#8217;s new Chief Executive Officer: &#160;</b></span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 86.25pt; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_25" id="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_24"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">On July 19, 2022, <span>the
Company announced the&#160;</span>appointment of Mr. Avi Magid as the Company&#8217;s Chief Executive Officer. <span>In
connection with being named as the Company&#8217;s Chief Executive Officer, on November 7, 2022, the Company and Mr. Magid executed an
employment agreement with the Company which continued in effect through the close of business on the day of the annual general meeting
of shareholders of the Company which occurred on December 19, 2022 (&#8220;Annual Meeting&#8221;). The principal component of such agreement
was a </span>gross monthly salary with an aggregate monthly cost to the Company of NIS <ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ManagementFeeExpense" scale="0" unitRef="ils">60,000</ix:nonFraction> ($<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ManagementFeeExpense" scale="0" unitRef="usd">17,050</ix:nonFraction> based on the exchange rate of $<ix:nonFraction contextRef="c2" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:SharePrice" scale="0" unitRef="usdPershares">1.00</ix:nonFraction>
/ NIS <ix:nonFraction contextRef="c2" decimals="3" format="ixt:num-dot-decimal" name="us-gaap:SharePrice" scale="0" unitRef="ilsPershares">3.519</ix:nonFraction> in effect as of December 31, 2022), retroactive to August 1, 2022<span>. Under the terms of
the new employment agreement, as approved at the Annual Meeting, Mr. Magid&#160;</span>is entitled to a gross monthly salary of NIS <ix:nonFraction contextRef="c293" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ManagementFeeExpense" scale="0" unitRef="ils">60,000</ix:nonFraction>
($<ix:nonFraction contextRef="c293" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ManagementFeeExpense" scale="0" unitRef="usd">17,050</ix:nonFraction> based on the exchange rate of $<ix:nonFraction contextRef="c294" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:SharePrice" scale="0" unitRef="usdPershares">1.00</ix:nonFraction> / NIS <ix:nonFraction contextRef="c294" decimals="3" format="ixt:num-dot-decimal" name="us-gaap:SharePrice" scale="0" unitRef="ilsPershares">3.519</ix:nonFraction> in effect as of December 31, 2022). At Mr. Magid&#8217;s option, the Company
leases a vehicle for Mr. Magid or, alternatively, may add an amount equal to the vehicle costs as additional salary to Mr. Magid, provided
that the total payroll will be in accordance with the limitation of the Compensation Policy. Mr. Magid was also awarded options under
the Company&#8217;s 2010 Option Plan for an aggregate of 5,249,758 Ordinary Shares, exercisable at a per share exercise price of $0.07
and scheduled to vest as follows: one third (1/3) on August 1, 2023, the first anniversary of the employment start date, and the balance
thereafter in equal monthly instalments at the end of each month, subject to his continued employment with the Company;&#160;provided,
that&#160;as the number of reserved shares under the Company&#8217;s 2010 Option Plan was not sufficient to support the grant in its totality
at the time of the Annual Meeting, options for only <ix:nonFraction contextRef="c295" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodSharesOther" scale="0" unitRef="shares">4,000,000</ix:nonFraction> shares were awarded and the balance of the grant (i.e., <ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodSharesStockOptionsExercised" scale="0" unitRef="shares">1,249,758</ix:nonFraction> options)
shall be completed at such time as the number shares available for issuance under the Company&#8217;s option plan shall have been increased,
and such remaining options, once granted, will vest according to the vesting schedule referenced above.&#160;<span>&#160;Under
the agreement, Mr. Magid is also entitled to the following: <ix:nonNumeric contextRef="c293" continuedAt="_DebtInstrumentDescription-c293_cont_1" name="us-gaap:DebtInstrumentDescription">(i) manager&#8217;s insurance under Israeli law to which the Company contributes
amounts equal to (a) 8.33% for severance payments, and 6.5%, or up to 7.5% (including disability insurance) designated for premium payment
(and Mr. Magid contributes an additional 6%) of each monthly salary payment, and (b) 7.5% of his salary (with Mr. Magid contributing an
additional 2.5%) to an education fund, a form of deferred compensation program established under Israeli law.&#160;</ix:nonNumeric></span><ix:continuation id="_DebtInstrumentDescription-c293_cont_1">The employment
agreement contains (i) customary confidentiality obligations which are not limited by the term of the agreement, (ii) certain non-compete
provisions during the term of the agreement and twelve (12) months thereafter and (iii) certain non-solicitation provisions during the
term of the agreement and for one year thereafter.</ix:continuation>&#160;<span>Either party may terminate the employment
agreement at any time upon one month&#8217;s prior notice</span>.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation id="_RelatedPartyTransactionsDisclosureTextBlock-c0_cont_25"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in">&#160;</td>
    <td style="width: 0.5in"><span style="font-size: 10pt"><b>f.</b></span></td>
    <td style="text-align: justify">See Notes 8.c., 11.b.7., 11.b.9., 11.d.4. and 17 for additional related
party transactions.&#160;</td></tr>
  </table></ix:continuation><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p><div>

</div><!-- Field: Page; Sequence: 131 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->36<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><b>P.V. NANO CELL LTD. AND ITS SUBSIDIARIES</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&#160;</p><div>

</div><p style="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>U.S. dollars</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify; text-indent: -56.7pt"><b>&#160;</b></p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_OtherIncomeAndOtherExpenseDisclosureTextBlock-c0_cont_1" escape="true" name="us-gaap:OtherIncomeAndOtherExpenseDisclosureTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in; text-align: justify"><span style="font-size: 10pt"><b>NOTE 14:</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>FINANCIAL EXPENSES (INCOME), NET</b></span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify; text-indent: -56.7pt">&#160;</p></ix:nonNumeric><div>
</div><div>

</div><ix:continuation id="_OtherIncomeAndOtherExpenseDisclosureTextBlock-c0_cont_1"><ix:nonNumeric contextRef="c0" escape="true" name="us-gaap:ScheduleOfOtherNonoperatingIncomeExpenseTableTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <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"><span style="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>&#160;</td>
    <td style="padding-bottom: 1.5pt">&#160;</td>
    <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><span style="font-size: 10pt"><b>2022</b></span></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"><span style="font-size: 10pt"><b>2021</b></span></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"><span style="font-size: 10pt"><b>2020</b></span></td>
    <td style="padding-bottom: 1.5pt">&#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: right">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td><span style="font-size: 10pt">Financial (income):</span></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" style="text-align: right">&#160;</td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 65%"><span style="font-size: 10pt">Change in fair value of warrants and capital note presented at fair value</span></td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%"><span style="font-size: 10pt">$</span></td>
    <td style="width: 9%; text-align: right"><span style="font-size: 10pt">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:IncreaseInFairValueOfWarrantsAndCapitalNotePresentedAtFairValue" scale="0" sign="-" unitRef="usd">91,516</ix:nonFraction></span></td>
    <td style="width: 1%"><span style="font-size: 10pt">)</span></td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%"><span style="font-size: 10pt">$</span></td>
    <td style="width: 9%; text-align: right"><span style="font-size: 10pt">(<ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:IncreaseInFairValueOfWarrantsAndCapitalNotePresentedAtFairValue" scale="0" sign="-" unitRef="usd">8,112,118</ix:nonFraction></span></td>
    <td style="width: 1%"><span style="font-size: 10pt">)</span></td>
    <td style="width: 1%">&#160;</td>
    <td style="width: 1%"><span style="font-size: 10pt">$</span></td>
    <td style="width: 8%; text-align: right"><span style="-sec-ix-hidden: hidden-fact-125; font-size: 10pt">&#8212;</span></td>
    <td style="width: 1%">&#160;</td></tr>
  <tr>
    <td style="vertical-align: bottom"><span style="font-size: 10pt">Interest and change in fair value in connection with convertible loans</span></td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom; text-align: right"><span style="font-size: 10pt">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:InterestAndChangeInFairValueInConnectionWithConvertibleLoans" scale="0" sign="-" unitRef="usd">167,364</ix:nonFraction></span></td>
    <td style="vertical-align: bottom"><span style="font-size: 10pt">)</span></td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: top; text-align: right"><span style="-sec-ix-hidden: hidden-fact-126; font-size: 10pt">&#8212;</span></td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: top; text-align: right"><span style="-sec-ix-hidden: hidden-fact-127; font-size: 10pt">&#8212;</span></td>
    <td style="vertical-align: bottom">&#160;</td></tr>
  <tr style="background-color: rgb(204,238,255)">
    <td style="vertical-align: bottom"><span style="font-size: 10pt">Foreign exchange income, net</span></td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom; text-align: right"><span style="font-size: 10pt">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:ForeignExchangeIncomeNet" scale="0" sign="-" unitRef="usd">354,725</ix:nonFraction></span></td>
    <td style="vertical-align: bottom"><span style="font-size: 10pt">)</span></td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: top; text-align: right"><span style="-sec-ix-hidden: hidden-fact-128; font-size: 10pt">&#8212;</span></td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: top; text-align: right"><span style="-sec-ix-hidden: hidden-fact-129; font-size: 10pt">&#8212;</span></td>
    <td style="vertical-align: bottom">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right">&#160;</td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td><span style="font-size: 10pt">Financial expenses:</span></td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right">&#160;</td>
    <td>&#160;</td></tr>
  <tr>
    <td style="vertical-align: bottom"><span style="font-size: 10pt">Change in fair value of warrants and capital note presented at fair value</span></td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: top; text-align: right"><span style="-sec-ix-hidden: hidden-fact-130; font-size: 10pt">&#8212;</span></td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom; text-align: right"><span style="-sec-ix-hidden: hidden-fact-131; font-size: 10pt">&#8212;</span></td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:ChangeInFairValueOfWarrantsAndCapital" scale="0" unitRef="usd">7,011,437</ix:nonFraction></span></td>
    <td style="vertical-align: bottom">&#160;</td></tr>
  <tr style="background-color: rgb(204,238,255)">
    <td style="vertical-align: bottom"><span style="font-size: 10pt">Interest, accretion back and change in fair value in connection with convertible loans</span></td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: top; text-align: right"><span style="-sec-ix-hidden: hidden-fact-132; font-size: 10pt">&#8212;</span></td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:InterestAndAccretionBackInConnectionWithConvertibleLoans" scale="0" unitRef="usd">7,892,632</ix:nonFraction></span></td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:InterestAndAccretionBackInConnectionWithConvertibleLoans" scale="0" unitRef="usd">2,597,476</ix:nonFraction></span></td>
    <td style="vertical-align: bottom">&#160;</td></tr>
  <tr>
    <td style="vertical-align: bottom"><span style="font-size: 10pt">Foreign exchange loss, net</span></td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: top; text-align: right"><span style="-sec-ix-hidden: hidden-fact-133; font-size: 10pt">&#8212;</span></td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:ForeignExchangeLossNet" scale="0" unitRef="usd">44,270</ix:nonFraction></span></td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:ForeignExchangeLossNet" scale="0" unitRef="usd">175,877</ix:nonFraction></span></td>
    <td style="vertical-align: bottom">&#160;</td></tr>
  <tr style="background-color: rgb(204,238,255)">
    <td style="vertical-align: bottom; padding-bottom: 1.5pt"><span style="font-size: 10pt">Other</span></td>
    <td style="vertical-align: bottom; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: black 1.5pt solid; vertical-align: bottom">&#160;</td>
    <td style="border-bottom: black 1.5pt solid; vertical-align: top; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherNonoperatingExpense" scale="0" unitRef="usd">85,410</ix:nonFraction></span></td>
    <td style="vertical-align: bottom; padding-bottom: 1.5pt">&#160;</td>
    <td style="vertical-align: bottom; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: black 1.5pt solid; vertical-align: bottom">&#160;</td>
    <td style="border-bottom: black 1.5pt solid; vertical-align: bottom; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherNonoperatingExpense" scale="0" unitRef="usd">124,312</ix:nonFraction></span></td>
    <td style="vertical-align: bottom; padding-bottom: 1.5pt">&#160;</td>
    <td style="vertical-align: bottom; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: black 1.5pt solid; vertical-align: bottom">&#160;</td>
    <td style="border-bottom: black 1.5pt solid; vertical-align: bottom; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherNonoperatingExpense" scale="0" unitRef="usd">29,815</ix:nonFraction></span></td>
    <td style="vertical-align: bottom; padding-bottom: 1.5pt">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right">&#160;</td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: black 4.5pt double"><span style="font-size: 10pt">$</span></td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt">(<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NonoperatingIncomeExpense" scale="0" sign="-" unitRef="usd">528,195</ix:nonFraction></span></td>
    <td style="padding-bottom: 4pt"><span style="font-size: 10pt">)</span></td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: black 4.5pt double"><span style="font-size: 10pt">$</span></td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt">(<ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NonoperatingIncomeExpense" scale="0" sign="-" unitRef="usd">50,904</ix:nonFraction></span></td>
    <td style="padding-bottom: 4pt"><span style="font-size: 10pt">)</span></td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: black 4.5pt double"><span style="font-size: 10pt">$</span></td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:NonoperatingIncomeExpense" scale="0" unitRef="usd">9,814,605</ix:nonFraction></span></td>
    <td style="padding-bottom: 4pt">&#160;</td></tr>
  </table></ix:nonNumeric></ix:continuation><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_RevenueFromContractWithCustomerTextBlock-c0_cont_1" escape="true" name="us-gaap:RevenueFromContractWithCustomerTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in; text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE 15:</b></span></td>
    <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>DISAGGREGATED REVENUES</b></span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>&#160;</b></p></ix:nonNumeric><div>

</div><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c0_cont_2" id="_RevenueFromContractWithCustomerTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.75in; text-align: justify">Geographic information:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_RevenueFromContractWithCustomerTextBlock-c0_cont_3" id="_RevenueFromContractWithCustomerTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">Revenues reported in the consolidated
financial statements derived from the Company&#8217;s country of domicile (Israel) and foreign countries based on the location of the
customers, are as follows:</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation id="_RevenueFromContractWithCustomerTextBlock-c0_cont_3"><ix:nonNumeric contextRef="c0" escape="true" name="us-gaap:RevenueFromExternalCustomersByGeographicAreasTableTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <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"><span style="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="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"><span style="font-size: 10pt"><b>2022</b></span></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"><span style="font-size: 10pt"><b>2021</b></span></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"><span style="font-size: 10pt"><b>2020</b></span></td>
    <td style="padding-bottom: 1.5pt">&#160;</td></tr>
  <tr style="vertical-align: bottom">
    <td style="text-align: justify">&#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: right">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td colspan="2" style="text-align: right">&#160;</td>
    <td>&#160;</td></tr>
  <tr style="background-color: rgb(204,238,255)">
    <td style="vertical-align: bottom; width: 67%"><span style="font-size: 10pt">Spain</span></td>
    <td style="vertical-align: bottom; width: 1%">&#160;</td>
    <td style="vertical-align: bottom; width: 1%"><span style="font-size: 10pt">$</span></td>
    <td style="vertical-align: top; width: 8%; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c296" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">355,274</ix:nonFraction></span></td>
    <td style="vertical-align: bottom; width: 1%">&#160;</td>
    <td style="vertical-align: bottom; width: 1%">&#160;</td>
    <td style="vertical-align: bottom; width: 1%"><span style="font-size: 10pt">$</span></td>
    <td style="vertical-align: bottom; width: 8%; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c297" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">78,960</ix:nonFraction></span></td>
    <td style="vertical-align: bottom; width: 1%">&#160;</td>
    <td style="vertical-align: bottom; width: 1%">&#160;</td>
    <td style="vertical-align: bottom; width: 1%"><span style="font-size: 10pt">$</span></td>
    <td style="vertical-align: bottom; width: 8%; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c298" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">106,376</ix:nonFraction></span></td>
    <td style="vertical-align: bottom; width: 1%">&#160;</td></tr>
  <tr>
    <td style="vertical-align: bottom"><span style="font-size: 10pt">Israel</span></td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: top; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c299" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">145,472</ix:nonFraction></span></td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c300" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">129,976</ix:nonFraction></span></td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c301" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">281,174</ix:nonFraction></span></td>
    <td style="vertical-align: bottom">&#160;</td></tr>
  <tr style="background-color: rgb(204,238,255)">
    <td style="vertical-align: bottom"><span style="font-size: 10pt">United states</span></td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: top; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c302" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">43,614</ix:nonFraction></span></td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c303" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">194,489</ix:nonFraction></span></td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c304" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">264,739</ix:nonFraction></span></td>
    <td style="vertical-align: bottom">&#160;</td></tr>
  <tr>
    <td style="vertical-align: bottom"><span style="font-size: 10pt">Germany</span></td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: top; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c305" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">8,548</ix:nonFraction></span></td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c306" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">83,317</ix:nonFraction></span></td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c307" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">55,131</ix:nonFraction></span></td>
    <td style="vertical-align: bottom">&#160;</td></tr>
  <tr style="background-color: rgb(204,238,255)">
    <td style="vertical-align: bottom"><span style="font-size: 10pt">Holland</span></td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: top; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c308" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">384</ix:nonFraction></span></td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c309" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">3,752</ix:nonFraction></span></td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c310" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">9,676</ix:nonFraction></span></td>
    <td style="vertical-align: bottom">&#160;</td></tr>
  <tr>
    <td style="vertical-align: bottom"><span style="font-size: 10pt">Austria</span></td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: top; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c311" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">839</ix:nonFraction></span></td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c312" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">6,144</ix:nonFraction></span></td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom">&#160;</td>
    <td style="vertical-align: bottom; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c313" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">4,775</ix:nonFraction></span></td>
    <td style="vertical-align: bottom">&#160;</td></tr>
  <tr style="background-color: rgb(204,238,255)">
    <td style="vertical-align: bottom; padding-bottom: 1.5pt"><span style="font-size: 10pt">Other</span></td>
    <td style="vertical-align: bottom; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: black 1.5pt solid; vertical-align: bottom">&#160;</td>
    <td style="border-bottom: black 1.5pt solid; vertical-align: top; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c314" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">49,408</ix:nonFraction></span></td>
    <td style="vertical-align: bottom; padding-bottom: 1.5pt">&#160;</td>
    <td style="vertical-align: bottom; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: black 1.5pt solid; vertical-align: bottom">&#160;</td>
    <td style="border-bottom: black 1.5pt solid; vertical-align: bottom; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c315" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">72,066</ix:nonFraction></span></td>
    <td style="vertical-align: bottom; padding-bottom: 1.5pt">&#160;</td>
    <td style="vertical-align: bottom; padding-bottom: 1.5pt">&#160;</td>
    <td style="border-bottom: black 1.5pt solid; vertical-align: bottom">&#160;</td>
    <td style="border-bottom: black 1.5pt solid; vertical-align: bottom; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c316" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">39,448</ix:nonFraction></span></td>
    <td style="vertical-align: bottom; padding-bottom: 1.5pt">&#160;</td></tr>
  <tr style="vertical-align: bottom; ">
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right">&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td>&#160;</td>
    <td style="text-align: right">&#160;</td>
    <td>&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: black 4.5pt double"><span style="font-size: 10pt">$</span></td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">603,359</ix:nonFraction></span></td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: black 4.5pt double"><span style="font-size: 10pt">$</span></td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c4" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">568,704</ix:nonFraction></span></td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="padding-bottom: 4pt">&#160;</td>
    <td style="border-bottom: black 4.5pt double"><span style="font-size: 10pt">$</span></td>
    <td style="border-bottom: black 4.5pt double; text-align: right"><span style="font-size: 10pt"><ix:nonFraction contextRef="c5" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:Revenues" scale="0" unitRef="usd">761,319</ix:nonFraction></span></td>
    <td style="padding-bottom: 4pt">&#160;</td></tr>
  </table></ix:nonNumeric></ix:continuation><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify">&#160;</p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_ConcentrationRiskDisclosureTextBlock-c0_cont_1" escape="true" name="us-gaap:ConcentrationRiskDisclosureTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0.75in; text-align: left"><b>NOTE 16:</b></td><td style="text-align: justify"><b>CONCENTRATION RISK</b></td>
</tr></table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:nonNumeric><div>

</div><div>

</div><ix:continuation continuedAt="_ConcentrationRiskDisclosureTextBlock-c0_cont_2" id="_ConcentrationRiskDisclosureTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><span>Major
customers are defined as those from whom the Group derives at least <ix:nonFraction contextRef="c0" decimals="2" format="ixt:num-dot-decimal" name="pvnnf:ConsolidatedRevenuePercentage" scale="-2" unitRef="pure">10</ix:nonFraction>% of its consolidated revenues consolidated accounts receivable.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_ConcentrationRiskDisclosureTextBlock-c0_cont_3" id="_ConcentrationRiskDisclosureTextBlock-c0_cont_2"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">During the years ended December 31,
2022, 2021 and 2020, consolidated revenues from the major customers reflected <ix:nonFraction contextRef="c317" decimals="2" format="ixt:num-dot-decimal" name="pvnnf:ConcentrationRiskPercentage" scale="-2" unitRef="pure">77</ix:nonFraction>% (two customers), <ix:nonFraction contextRef="c318" decimals="2" format="ixt:num-dot-decimal" name="pvnnf:ConcentrationRiskPercentage" scale="-2" unitRef="pure">45</ix:nonFraction>% (three customers) and <ix:nonFraction contextRef="c319" decimals="2" format="ixt:num-dot-decimal" name="pvnnf:ConcentrationRiskPercentage" scale="-2" unitRef="pure">27</ix:nonFraction>% (one
customer) of the total consolidated revenues, respectively.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation id="_ConcentrationRiskDisclosureTextBlock-c0_cont_3"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">As of December 31, 2022 and 2021, consolidated
accounts receivable from the major customers reflected <ix:nonFraction contextRef="c2" decimals="2" format="ixt:num-dot-decimal" name="pvnnf:AccountsReceivablePercentage" scale="-2" unitRef="pure">71</ix:nonFraction>% (two customers) and <ix:nonFraction contextRef="c3" decimals="2" format="ixt:num-dot-decimal" name="pvnnf:AccountsReceivablePercentage" scale="-2" unitRef="pure">13</ix:nonFraction>% (one customer), respectively.</p></ix:continuation><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></p><div>

</div><!-- Field: Page; Sequence: 132 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->37<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><b>P.V. NANO CELL LTD. AND ITS SUBSIDIARIES</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&#160;</p><div>

</div><p style="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>U.S. dollars</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify">&#160;</p><div>

</div><ix:nonNumeric contextRef="c0" continuedAt="_SubsequentEventsTextBlock-c0_cont_1" escape="true" name="us-gaap:SubsequentEventsTextBlock"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 0.75in; text-align: justify"><span style="font-size: 10pt"><b>NOTE 17:</b></span></td>
    <td style="text-align: justify"><span style="font-size: 10pt"><b>SUBSEQUENT EVENT</b></span></td></tr>
  </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-align: justify; text-indent: -56.7pt">&#160;</p></ix:nonNumeric><div>
</div><div>

</div><ix:continuation continuedAt="_SubsequentEventsTextBlock-c0_cont_2" id="_SubsequentEventsTextBlock-c0_cont_1"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><span>The
Company announced that it entered into definitive agreements with certain existing Company shareholders (the &#8220;Investors&#8221;)
relating to a private placement of the Company&#8217;s&#160;</span>ordinary shares, par value NIS <ix:nonFraction contextRef="c320" decimals="2" format="ixt:num-dot-decimal" name="pvnnf:OrdinaryShareParValue" scale="0" unitRef="ilsPershares">0.01</ix:nonFraction> per share <span>in
February 2023, for maximum aggregate proceeds to the Company of $<ix:nonFraction contextRef="c321" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:StockIssuedDuringPeriodValueNewIssues" scale="6" unitRef="usd">2.8</ix:nonFraction> million, under the following terms:</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p></ix:continuation><div>

</div><div>

</div><ix:continuation continuedAt="_SubsequentEventsTextBlock-c0_cont_3" id="_SubsequentEventsTextBlock-c0_cont_2"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 72px">&#160;</td> <td style="width: 48px; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">o</span></td> <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; ">The Company offered, </span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">issued and sold <span>to the Investors units of its securities for aggregate gross proceeds to the Company of $<ix:nonFraction contextRef="c322" decimals="-5" format="ixt:num-dot-decimal" name="pvnnf:AggregateGrossProceeds" scale="6" unitRef="usd">1.0</ix:nonFraction> million (the &#8220;Initial Offering&#8221;), each unit comprised of (each, a &#8220;Unit&#8221; and, collectively, the &#8220;Units&#8221;) (i) one (1) Ordinary Share, and (ii) a warrant to purchase an additional two (2) Ordinary Shares, exercisable through the earlier of (i) the closing of a subsequent offering of Company securities by the Company to qualified investors with an effective price per Ordinary Share of at least $<ix:nonFraction contextRef="c32" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:SharesIssuedPricePerShare" scale="0" unitRef="usdPershares">0.20</ix:nonFraction> and (ii) the second anniversary of the issuance of such warrant, in each case at a per share exercise price of $<ix:nonFraction contextRef="c0" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:WarrantExercisePriceDecrease" scale="0" unitRef="usdPershares">0.07</ix:nonFraction>, subject to adjustment (the &#8220;Warrant&#8221;), at a per Unit purchase price of $<ix:nonFraction contextRef="c69" decimals="2" format="ixt:num-dot-decimal" name="us-gaap:SharesIssuedPricePerShare" scale="0" unitRef="usdPershares">0.07</ix:nonFraction> (the &#8220;Purchase Price&#8221;).</span></span></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; ">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SubsequentEventsTextBlock-c0_cont_4" id="_SubsequentEventsTextBlock-c0_cont_3"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 72px">&#160;</td> <td style="width: 48px; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">o</span></td> <td> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span>The Company </span>undertook to offer, <span>issue and sell to the Investors, </span>following the closing of the Initial Offering, <span>additional Ordinary Shares for aggregate gross proceeds to the Company of up to an additional $<ix:nonFraction contextRef="c2" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingAggregateIntrinsicValue" scale="6" unitRef="usd">1.0</ix:nonFraction> million (the &#8220;Follow on Offering&#8221;), at a price per share equal to the Purchase Price, which offering was subject to the achievement by the Company of certain pre-defined milestones on or before December 31, 2022, subject to a further extension at the discretion of the Company, to a date on or before February 28, 2023.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Following the partial fulfillment of the milestones, the Company initially raised from certain of the Investors $<ix:nonFraction contextRef="c2" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CapitalUnitsTotalCostToInvestors" scale="0" unitRef="usd">705,000</ix:nonFraction> in the Follow-on Offering. In April 2023, pursuant to the terms of the subscription agreement, an additional Investor joined the Follow-on Offering, as extended, in the amount of $<ix:nonFraction contextRef="c323" decimals="0" format="ixt:num-dot-decimal" name="pvnnf:AdditionalCapitalUnitsCostToInvestors" scale="0" unitRef="usd">295,000</ix:nonFraction>, resulting in aggregate proceeds to the Company of $<ix:nonFraction contextRef="c324" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:AdditionalCollateralAggregateFairValue" scale="6" unitRef="usd">1.0</ix:nonFraction> million in the Follow-on Offering, which completed the Follow-on Offering.</p></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 2.5pt">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation continuedAt="_SubsequentEventsTextBlock-c0_cont_5" id="_SubsequentEventsTextBlock-c0_cont_4"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 72px">&#160;</td> <td style="width: 48px; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">o</span></td> <td> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span>Following the closing of the Follow on Offering, the Company </span>undertook to <span>offer, issue and sell to the Investors</span>, following the initial closing of the Follow on Offering, <span>additional Ordinary Shares for aggregate gross proceeds to the Company of up to an additional $<ix:nonFraction contextRef="c325" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingAggregateIntrinsicValue" scale="0" unitRef="usd">800,000</ix:nonFraction> (the &#8220;Final Offering&#8221;), at a price per share equal to the Purchase Price, which offering was subject to the achievement by the Company of a certain additional milestone </span>set forth in the subscription agreement and any additional milestones to be agreed upon in good faith negotiations <span>(the &#8220;Second Level Milestones&#8221;). The Final Offering shall be closed by no later than the close of business on the 30th&#160;business day after the delivery of notice by the Company to the Investors that the Second Level Milestones have been achieved.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Two of the Investors undertook to invest $<ix:nonFraction contextRef="c326" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:CapitalUnitsAdjustmentForMarketChanges" scale="0" unitRef="usd">300,000</ix:nonFraction> each in the Final Offering ($<ix:nonFraction contextRef="c327" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherInvestments" scale="0" unitRef="usd">600,000</ix:nonFraction> in total), if the Second Level Milestones are achieved. Notwithstanding that the Second Level Milestones have not yet been fulfilled, an Investor waived such condition and pursuant to the terms of the agreement, invested in this round in the amount of $<ix:nonFraction contextRef="c326" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:OtherInvestments" scale="0" unitRef="usd">105,000</ix:nonFraction>, resulting in aggregate proceeds to the Company of $<ix:nonFraction contextRef="c327" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ExcessStockSharesIssued" scale="0" unitRef="shares">105,000</ix:nonFraction> in the Final Offering to date.</p></td></tr> </table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p></ix:continuation><div>
</div><div>

</div><ix:continuation id="_SubsequentEventsTextBlock-c0_cont_5"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">The Company expects to issue to the
Investors an aggregate of <ix:nonFraction contextRef="c328" decimals="-6" format="ixt:num-dot-decimal" name="us-gaap:SharesHeldInEmployeeStockOptionPlanSuspenseShares" scale="6" unitRef="shares">14,285,712</ix:nonFraction> Ordinary Shares and warrants to purchase an aggregate <span style="-sec-ix-hidden: hidden-fact-134">28,</span><span>571</span>,425
Ordinary Shares in the Initial Offering in respect of the $<ix:nonFraction contextRef="c329" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:OtherInvestments" scale="6" unitRef="usd">1.0</ix:nonFraction> million raised, an additional aggregate <ix:nonFraction contextRef="c329" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ExcessStockSharesIssued" scale="0" unitRef="shares">14,285,713</ix:nonFraction> Ordinary Shares to the
Investors that participated in the Follow on Offering in respect of the $<ix:nonFraction contextRef="c2" decimals="-5" format="ixt:num-dot-decimal" name="us-gaap:OtherInvestments" scale="6" unitRef="usd">1.0</ix:nonFraction> million raised, and an additional <ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfAdditionalSharesAuthorized" scale="0" unitRef="shares">1,500,000</ix:nonFraction> Ordinary Shares
to an Investor in respect of the $<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:AdjustmentsToAdditionalPaidInCapitalMarkToMarket" scale="0" unitRef="usd">105,000</ix:nonFraction> raised to date in the Final Offering. If the&#160;Second Level Milestones are achieved and an
additional&#160;$<ix:nonFraction contextRef="c0" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ProceedsFromIssuanceInitialPublicOffering" scale="0" unitRef="usd">695,000</ix:nonFraction> will be fully raised in the Final Offering, the Company would issue an additional aggregate <ix:nonFraction contextRef="c326" decimals="0" format="ixt:num-dot-decimal" name="us-gaap:ExcessStockSharesIssued" scale="0" unitRef="shares">9,928,571</ix:nonFraction> Ordinary
Shares to such Investors participating in the Final Offering.</p></ix:continuation><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></p><div>

</div><!-- Field: Page; Sequence: 133 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->38<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#160;</p><div>

</div><div><a id="a_033"></a></div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>ITEM 19. Exhibits </b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr>
    <td style="border-bottom: Black 1.5pt solid; vertical-align: top; width: 10%; text-align: center"><span style="font-size: 10pt"><b>Exhibit&#160;No.</b></span></td>
    <td style="padding-bottom: 1.5pt; vertical-align: bottom; width: 1%; text-align: center">&#160;</td>
    <td style="border-bottom: Black 1.5pt solid; vertical-align: bottom; width: 89%; text-align: center"><span style="font-size: 10pt"><b>Exhibit
    Description</b></span></td></tr>
  <tr style="background-color: rgb(204,238,255)">
    <td style="vertical-align: top; text-align: center"><span style="font-size: 10pt">1.1</span></td>
    <td style="vertical-align: bottom; text-align: justify">&#160;</td>
    <td style="vertical-align: bottom; text-align: justify"><a href="f20f2022ex1-1_pvnano.htm"><span style="font-size: 10pt">Articles of Association of P.V. Nano Cell Ltd.</span></a></td></tr>
  <tr>
    <td style="vertical-align: top; text-align: center"><span style="font-size: 10pt">2.1</span></td>
    <td style="vertical-align: bottom; text-align: justify">&#160;</td>
    <td style="vertical-align: bottom; text-align: justify"><a href="f20f2022ex2-1_pvnano.htm"><span style="font-size: 10pt">Description of Securities</span></a></td></tr>
  <tr style="background-color: rgb(204,238,255)">
    <td style="vertical-align: top; text-align: center"><span style="font-size: 10pt">4.1<sup>(1)</sup></span></td>
    <td style="vertical-align: bottom; text-align: justify">&#160;</td>
    <td style="vertical-align: bottom; text-align: justify"><a href="http://www.sec.gov/Archives/edgar/data/1627480/000121390015006718/ff12015ex10i_pvnanocell.htm"><span style="font-size: 10pt">Agreement,
    dated December 15, 2011, by and between P.V. Nano Cell Ltd. and the Ministry of National Infrastructures, Energy and Water Resources.</span></a></td></tr>
  <tr>
    <td style="vertical-align: top; text-align: center"><span style="font-size: 10pt">4.2<sup>(1)</sup></span></td>
    <td style="vertical-align: bottom; text-align: justify">&#160;</td>
    <td style="vertical-align: bottom; text-align: justify"><a href="http://www.sec.gov/Archives/edgar/data/1627480/000121390015006718/ff12015ex10ii_pvnanocell.htm"><span style="font-size: 10pt">Share
    Purchase Agreement, effective November 29, 2009, by and among the shareholders of Nano Size Ltd. and P.V. Nano Cell Ltd.</span></a></td></tr>
  <tr style="background-color: rgb(204,238,255)">
    <td style="vertical-align: top; text-align: center"><span style="font-size: 10pt">4.3<sup>(1)</sup></span></td>
    <td style="vertical-align: bottom; text-align: justify">&#160;</td>
    <td style="vertical-align: bottom; text-align: justify"><a href="http://www.sec.gov/Archives/edgar/data/1627480/000121390015006718/ff12015ex10ix_pvnanocell.htm"><span style="font-size: 10pt">Capital
    Note of IP Bank International (Suzhou) Co., Ltd., dated November 26, 2014</span></a></td></tr>
  <tr>
    <td style="vertical-align: top; text-align: center"><span style="font-size: 10pt">4.4<sup>(1)</sup></span></td>
    <td style="vertical-align: bottom; text-align: justify">&#160;</td>
    <td style="vertical-align: bottom; text-align: justify"><a href="http://www.sec.gov/Archives/edgar/data/1627480/000121390015006718/ff12015ex10xiii_pvnanocell.htm"><span style="font-size: 10pt">Agreement,
    dated September 9, 2009, by and between P.V. Nano Cell Ltd. and Dolev Bar-Guy Consulting and Management Ltd.</span></a></td></tr>
  <tr style="background-color: rgb(204,238,255)">
    <td style="vertical-align: top; text-align: center"><span style="font-size: 10pt">4.5<sup>(1)</sup></span></td>
    <td style="vertical-align: bottom; text-align: justify">&#160;</td>
    <td style="vertical-align: bottom; text-align: justify"><a href="http://www.sec.gov/Archives/edgar/data/1627480/000121390015006718/ff12015ex10xiv_pvnanocell.htm"><span style="font-size: 10pt">First
    Addendum to the Consultancy Agreement, dated April 9, 2013, by and between P.V. Nano Cell Ltd. and Dolev Bar-Guy Consulting and Management
    Ltd.</span></a></td></tr>
  <tr>
    <td style="vertical-align: top; text-align: center"><span style="font-size: 10pt">4.6<sup>(1)</sup></span></td>
    <td style="vertical-align: bottom; text-align: justify">&#160;</td>
    <td style="vertical-align: bottom; text-align: justify"><a href="http://www.sec.gov/Archives/edgar/data/1627480/000121390015006718/ff12015ex10xv_pvnanocell.htm"><span style="font-size: 10pt">Second
    Addendum to the Consultancy Agreement, dated May 23, 2013, by and between P.V. Nano Cell Ltd. and Dolev Bar-Guy Consulting and Management
    Ltd.</span></a></td></tr>
  <tr style="background-color: rgb(204,238,255)">
    <td style="vertical-align: top; text-align: center"><span style="font-size: 10pt">4.7<sup>(2)</sup></span></td>
    <td style="vertical-align: bottom; text-align: justify">&#160;</td>
    <td style="vertical-align: bottom; text-align: justify"><a href="http://www.sec.gov/Archives/edgar/data/1627480/000121390019008807/f20f2018ex4-11_pvnano.htm"><span style="font-size: 10pt">P.V.
    Nano Cell Ltd. 2010 Option Plan (unofficial English translation from Hebrew original)</span></a></td></tr>
  <tr>
    <td style="vertical-align: top; text-align: center"><span style="font-size: 10pt">4.8<sup>(3)</sup></span></td>
    <td style="vertical-align: bottom; text-align: justify">&#160;</td>
    <td style="vertical-align: bottom; text-align: justify"><a href="http://www.sec.gov/Archives/edgar/data/1627480/000121390018006295/f20f2017ex4-20_pvnanocell.htm"><span style="font-size: 10pt">Securities
    Purchase Agreement, dated August 16, 2017, by and between P.V. Nano Cell Ltd. and Alpha Capital Anstalt</span></a></td></tr>
  <tr style="background-color: rgb(204,238,255)">
    <td style="vertical-align: top; text-align: center"><span style="font-size: 10pt">4.9<sup>(3)</sup></span></td>
    <td style="vertical-align: bottom; text-align: justify">&#160;</td>
    <td style="vertical-align: bottom; text-align: justify"><a href="http://www.sec.gov/Archives/edgar/data/1627480/000121390018006295/f20f2017ex4-24_pvnanocell.htm"><span style="font-size: 10pt">Warrant
    executed in favor of Amnon Mendelbaum and Steven Zadka</span></a></td></tr>
  <tr>
    <td style="vertical-align: top; text-align: center"><span style="font-size: 10pt">4.10<sup>(3)</sup></span></td>
    <td style="vertical-align: bottom; text-align: justify">&#160;</td>
    <td style="vertical-align: bottom; text-align: justify"><a href="http://www.sec.gov/Archives/edgar/data/1627480/000121390018006295/f20f2017ex4-25_pvnanocell.htm"><span style="font-size: 10pt">Share
    Purchase Agreement, dated May 8, 2018, by and between P.V. Nano Cell Ltd. and Slobel NV</span></a></td></tr>
  <tr style="background-color: rgb(204,238,255)">
    <td style="vertical-align: top; text-align: center"><span style="font-size: 10pt">4.11<sup>(3)</sup></span></td>
    <td style="vertical-align: bottom; text-align: justify">&#160;</td>
    <td style="vertical-align: bottom; text-align: justify"><a href="http://www.sec.gov/Archives/edgar/data/1627480/000121390018006295/f20f2017ex4-26_pvnanocell.htm"><span style="font-size: 10pt">Consultancy
    Agreement, dated November 12, 2017, by and between P.V. Nano Cell Ltd. and Evyatar Cohen</span></a></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: center"><span style="font-size: 10pt">4.12<sup>(4)</sup></span></td>
    <td>&#160;</td>
    <td><a href="http://www.sec.gov/Archives/edgar/data/1627480/000121390021023460/f20f2019ex4-10_pvnanocell.htm"><span style="font-size: 10pt">Amendment
    No. 1 to P.V. Nano Cell Ltd. 2010 Option Plan (unofficial English translation from Hebrew original)</span></a></td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td style="text-align: center"><span style="font-size: 10pt">4.13<sup>(5)</sup></span></td>
    <td>&#160;</td>
    <td style="text-align: justify"><a href="http://www.sec.gov/Archives/edgar/data/1627480/000121390022026769/f20f2020ex4-29_pvnanocell.htm"><span style="font-size: 10pt">Form
    of Loan Conversion and Warrant Cancellation Agreement between P.V. Nano Cell Ltd. and certain Investors</span></a></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: center"><span style="font-size: 10pt">4.14<sup>(5)</sup></span></td>
    <td>&#160;</td>
    <td style="text-align: justify"><a href="http://www.sec.gov/Archives/edgar/data/1627480/000121390022026769/f20f2020ex4-30_pvnanocell.htm"><span style="font-size: 10pt">Form
    of Subscription Agreement, by and between P.V Nano Cell Ltd. and certain Investors ($3.0 million private placement)</span></a></td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td style="text-align: center"><span style="font-size: 10pt">4.15<sup>(5)</sup></span></td>
    <td>&#160;</td>
    <td><a href="http://www.sec.gov/Archives/edgar/data/1627480/000121390022026769/f20f2020ex4-31_pvnanocell.htm"><span style="font-size: 10pt">Active
    Chairman Agreement dated April 19, .2020 between P.V. Nano Cell Ltd. and Exoro Ltd. </span></a></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: center"><span style="font-size: 10pt">4.16<sup>(6)</sup></span></td>
    <td>&#160;</td>
    <td><a href="http://www.sec.gov/Archives/edgar/data/1627480/000121390022033881/f20f2021ex4-26_pvnanocell.htm"><span style="font-size: 10pt">Letter
    of Engagement dated May 18, 2022, between P.V. Nano Cell Ltd and Ofer Greenberger.</span></a></td></tr>
  <tr style="background-color: rgb(204,238,255)">
    <td style="vertical-align: top; text-align: center"><span style="font-size: 10pt">4.17</span></td>
    <td style="vertical-align: bottom; text-align: justify">&#160;</td>
    <td style="vertical-align: bottom"><a href="f20f2022ex4-17_pvnano.htm">Form of Subscription Agreement, by and between P.V Nano Cell Ltd. and certain Investors ($2.8 million private placement)</a></td></tr>
  <tr>
    <td style="vertical-align: top; text-align: center"><span style="font-size: 10pt">4.18</span></td>
    <td style="vertical-align: bottom; text-align: justify">&#160;</td>
    <td style="vertical-align: bottom"><p style="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><a href="f20f2022ex4-18_pvnano.htm">Letter from Ilanit Halperin, CPA, dated May 15, 2023</a></p></td></tr>
  <tr style="background-color: rgb(204,238,255)">
    <td style="vertical-align: top; text-align: center"><span style="font-size: 10pt">4.19</span></td>
    <td style="vertical-align: bottom; text-align: justify">&#160;</td>
    <td style="vertical-align: bottom"><p style="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><a href="f20f2022ex4-19_pvnano.htm">Compensation Policy for Executive Officers and Directors</a></p></td></tr>
  <tr>
    <td style="vertical-align: top; text-align: center"><span style="font-size: 10pt">8.1<sup>(6)</sup></span></td>
    <td style="vertical-align: bottom; text-align: justify">&#160;</td>
    <td style="vertical-align: bottom; text-align: justify"><a href="http://www.sec.gov/Archives/edgar/data/1627480/000121390022026769/f20f2020ex8-1_pvnanocell.htm"><span style="font-size: 10pt">List
    of Subsidiaries</span></a></td></tr>
  <tr style="background-color: rgb(204,238,255)">
    <td style="vertical-align: top; text-align: center"><span style="font-size: 10pt">12.1</span></td>
    <td style="vertical-align: bottom; text-align: justify">&#160;</td>
    <td style="vertical-align: bottom; text-align: justify"><a href="f20f2022ex12-1_pvnano.htm"><span style="font-size: 10pt">Certification
    of Principal Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a), promulgated under the Securities Exchange Act of 1934,
    as amended</span></a></td></tr>
  <tr>
    <td style="vertical-align: top; text-align: center"><span style="font-size: 10pt">12.2</span></td>
    <td style="vertical-align: bottom; text-align: justify">&#160;</td>
    <td style="vertical-align: bottom; text-align: justify"><a href="f20f2022ex12-2_pvnano.htm"><span style="font-size: 10pt">Certification
    of Principal Financial Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a), promulgated under the Securities Exchange Act of 1934,
    as amended</span></a></td></tr>
  <tr style="background-color: rgb(204,238,255)">
    <td style="vertical-align: top; text-align: center"><span style="font-size: 10pt">13.1</span></td>
    <td style="vertical-align: bottom; text-align: justify">&#160;</td>
    <td style="vertical-align: bottom; text-align: justify"><a href="f20f2022ex13-1_pvnano.htm"><span style="font-size: 10pt">Certifications
    pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002</span></a></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: center"><span style="font-size: 10pt">101.INS</span></td>
    <td>&#160;</td>
    <td><span style="font-size: 10pt">Inline XBRL Instance Document.</span></td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td style="text-align: center"><span style="font-size: 10pt">101.SCH</span></td>
    <td>&#160;</td>
    <td><span style="font-size: 10pt">Inline XBRL Taxonomy Extension Schema Document.</span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: center"><span style="font-size: 10pt">101.CAL</span></td>
    <td>&#160;</td>
    <td><span style="font-size: 10pt">Inline XBRL Taxonomy Extension Calculation Linkbase Document.</span></td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td style="text-align: center"><span style="font-size: 10pt">101.DEF</span></td>
    <td>&#160;</td>
    <td><span style="font-size: 10pt">Inline XBRL Taxonomy Extension Definition Linkbase Document.</span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: center"><span style="font-size: 10pt">101.LAB</span></td>
    <td>&#160;</td>
    <td><span style="font-size: 10pt">Inline XBRL Taxonomy Extension Label Linkbase Document.</span></td></tr>
  <tr style="vertical-align: top; background-color: rgb(204,238,255)">
    <td style="text-align: center"><span style="font-size: 10pt">101.PRE</span></td>
    <td>&#160;</td>
    <td><span style="font-size: 10pt">Inline XBRL Taxonomy Extension Presentation Linkbase Document.</span></td></tr>
  <tr style="vertical-align: top; ">
    <td style="text-align: center"><span style="font-size: 10pt">104</span></td>
    <td>&#160;</td>
    <td><span style="font-size: 10pt">Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-size: 10pt">(1)</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">Filed as part of our Registration Statement on Form F-1 filed with the Securities and Exchange Commission on September 2, 2015 (File No. 333-206723).</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">(2)</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">Filed as part of our annual report on Form 20-F for the 2018 fiscal year filed with the Securities and Exchange Commission on May 15, 2019.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px; text-align: justify"><span style="font-size: 10pt">(3)</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">Filed as part of our annual report on Form 20-F for the 2017 fiscal year filed with the Securities and Exchange Commission on May 15, 2018.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-size: 10pt">(4)</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">Filed as part of our annual report on Form 20-F for the 2019 fiscal year filed with the Securities and Exchange Commission on April 29, 2021.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-size: 10pt">(5)</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">Filed as part of our annual report on Form 20-F for the 2020 fiscal year filed with the Securities and Exchange Commission on May 16, 2022.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td style="width: 24px"><span style="font-size: 10pt">(6)</span></td>
    <td style="text-align: justify"><span style="font-size: 10pt">Filed as part of our annual report on Form 20-F for the 2021 fiscal year filed with the Securities and Exchange Commission on June 21, 2022.</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>


</div><!-- Field: Page; Sequence: 134; Options: NewSection; Value: 92 --><div>
    </div><div style="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><p style="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->92<!-- Field: /Sequence --></p></div><div>
    </div><div style="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><p style="margin: 0pt">&#160;</p></div><div>
    </div><!-- Field: /Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><b>SIGNATURES</b></p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The registrant 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 Form 20-F on its behalf.</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td colspan="2"><span style="font-size: 10pt"><b>P.V. Nano Cell Ltd.</b></span></td></tr>
  <tr style="vertical-align: top">
    <td style="width: 60%">&#160;</td>
    <td style="width: 4%">&#160;</td>
    <td style="width: 36%">&#160;</td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td><span style="font-size: 10pt">By:</span></td>
    <td style="border-bottom: black 1.5pt solid"><span style="font-size: 10pt">/s/ Avi Magid</span></td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td>&#160;</td>
    <td><span style="font-size: 10pt">Avi Magid</span></td></tr>
  <tr style="vertical-align: top">
    <td>&#160;</td>
    <td>&#160;</td>
    <td><span style="font-size: 10pt">Chief Executive Officer</span></td></tr>
  </table><div>
</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Date: May 15, 2023</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&#160;</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">93</p><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><!-- Field: Rule-Page --><div style="margin-top: 0pt; margin-bottom: 0pt; width: 100%"><div style="font-size: 1pt; border-top: Black 1.5pt solid">&#160;</div></div><!-- Field: /Rule-Page --><div>

</div><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p><div>

</div><div style="display: none"><ix:header>
<ix:hidden>
<ix:nonNumeric contextRef="c0" id="hidden-fact-0" name="dei:EntityRegistrantName">PV Nano Cell, Ltd.</ix:nonNumeric>
<ix:nonFraction contextRef="c2" id="hidden-fact-1" name="us-gaap:IntangibleAssetsNetExcludingGoodwill" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c3" id="hidden-fact-2" name="us-gaap:FinanceLeaseRightOfUseAsset" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c2" id="hidden-fact-3" name="us-gaap:ShortTermBankLoansAndNotesPayable" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c2" id="hidden-fact-4" name="us-gaap:OtherShortTermBorrowings" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c2" id="hidden-fact-5" name="pvnnf:WarrantsPresentedAtFairCurrent" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c3" id="hidden-fact-6" name="us-gaap:OperatingLeaseLiabilityCurrent" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c2" id="hidden-fact-7" name="pvnnf:NationalAuthorityForTechnologyAndInnovations" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c3" id="hidden-fact-8" name="us-gaap:OperatingLeaseLiabilityNoncurrent" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c2" id="hidden-fact-9" name="us-gaap:CommitmentsAndContingencies" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c3" id="hidden-fact-10" name="us-gaap:CommitmentsAndContingencies" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c0" id="hidden-fact-11" name="us-gaap:GoodwillAndIntangibleAssetImpairment" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c4" id="hidden-fact-12" name="us-gaap:GoodwillAndIntangibleAssetImpairment" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c4" id="hidden-fact-13" name="us-gaap:ImpairmentOfIntangibleAssetsIndefinitelivedExcludingGoodwill" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c5" id="hidden-fact-14" name="us-gaap:ImpairmentOfIntangibleAssetsIndefinitelivedExcludingGoodwill" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c0" decimals="2" id="hidden-fact-15" name="us-gaap:EarningsPerShareDiluted" unitRef="usdPershares">0.03</ix:nonFraction>
<ix:nonFraction contextRef="c4" decimals="2" id="hidden-fact-16" name="us-gaap:EarningsPerShareDiluted" unitRef="usdPershares">0.06</ix:nonFraction>
<ix:nonFraction contextRef="c5" decimals="2" id="hidden-fact-17" name="us-gaap:EarningsPerShareDiluted" unitRef="usdPershares">0.49</ix:nonFraction>
<ix:nonFraction contextRef="c0" decimals="0" id="hidden-fact-18" name="us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding" unitRef="shares">129144562</ix:nonFraction>
<ix:nonFraction contextRef="c5" decimals="0" id="hidden-fact-19" name="us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding" unitRef="shares">25581000</ix:nonFraction>
<ix:nonFraction contextRef="c4" decimals="0" id="hidden-fact-20" name="us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding" unitRef="shares">44453153</ix:nonFraction>
<ix:nonFraction contextRef="c8" id="hidden-fact-21" name="us-gaap:StockholdersEquity" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c13" id="hidden-fact-22" name="pvnnf:StockIssuedDuringPeriodValueOrdinarySharesInConnectionWithConversionOfConvertibleLoans" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c14" id="hidden-fact-23" name="pvnnf:StockIssuedDuringPeriodValueOrdinarySharesInConnectionWithConversionOfConvertibleLoans" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c13" id="hidden-fact-24" name="pvnnf:StockIssuedDuringPeriodValueOrdinarySharesInConnectionWithProfessionalServiceRendered" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c14" id="hidden-fact-25" name="pvnnf:StockIssuedDuringPeriodValueOrdinarySharesInConnectionWithProfessionalServiceRendered" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c13" id="hidden-fact-26" name="pvnnf:IssuanceOfOrdinarySharesAsAConsiderationForTheJetCUPurchase" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c14" id="hidden-fact-27" name="pvnnf:IssuanceOfOrdinarySharesAsAConsiderationForTheJetCUPurchase" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c14" id="hidden-fact-28" name="us-gaap:TreasuryStockValueAcquiredParValueMethod" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c13" id="hidden-fact-29" name="us-gaap:StockIssuedDuringPeriodValueShareBasedCompensationGross" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c14" id="hidden-fact-30" name="us-gaap:StockIssuedDuringPeriodValueShareBasedCompensationGross" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c11" id="hidden-fact-31" name="us-gaap:NetIncomeLoss" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c12" id="hidden-fact-32" name="us-gaap:NetIncomeLoss" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c13" id="hidden-fact-33" name="us-gaap:NetIncomeLoss" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c22" id="hidden-fact-34" name="pvnnf:StockIssuedDuringPeriodValueOrdinarySharesInConnectionWithConversionOfConvertibleLoans" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c23" id="hidden-fact-35" name="pvnnf:StockIssuedDuringPeriodValueOrdinarySharesInConnectionWithConversionOfConvertibleLoans" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c22" id="hidden-fact-36" name="pvnnf:IssuanceOfWarrantsClassifiedAsEquity" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c23" id="hidden-fact-37" name="pvnnf:IssuanceOfWarrantsClassifiedAsEquity" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c20" id="hidden-fact-38" name="us-gaap:StockIssuedDuringPeriodValueOther" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c22" id="hidden-fact-39" name="us-gaap:StockIssuedDuringPeriodValueOther" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c23" id="hidden-fact-40" name="us-gaap:StockIssuedDuringPeriodValueOther" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c22" id="hidden-fact-41" name="us-gaap:StockIssuedDuringPeriodValueShareBasedCompensationGross" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c23" id="hidden-fact-42" name="us-gaap:StockIssuedDuringPeriodValueShareBasedCompensationGross" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c21" id="hidden-fact-43" name="us-gaap:NetIncomeLoss" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c22" id="hidden-fact-44" name="us-gaap:NetIncomeLoss" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c30" id="hidden-fact-45" name="us-gaap:StockIssuedDuringPeriodValueShareBasedCompensationGross" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c31" id="hidden-fact-46" name="us-gaap:StockIssuedDuringPeriodValueShareBasedCompensationGross" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c29" id="hidden-fact-47" name="us-gaap:NetIncomeLoss" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c30" id="hidden-fact-48" name="us-gaap:NetIncomeLoss" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c5" id="hidden-fact-49" name="us-gaap:InterestExpenseShortTermBorrowings" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c4" id="hidden-fact-50" name="pvnnf:RestrictedSharesIssuedForServices" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c0" id="hidden-fact-51" name="us-gaap:GoodwillAndIntangibleAssetImpairment" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c4" id="hidden-fact-52" name="us-gaap:GoodwillAndIntangibleAssetImpairment" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c4" id="hidden-fact-53" name="us-gaap:ImpairmentOfIntangibleAssetsFinitelived" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c5" id="hidden-fact-54" name="us-gaap:ImpairmentOfIntangibleAssetsFinitelived" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c0" id="hidden-fact-55" name="pvnnf:CapitalLoss" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c4" id="hidden-fact-56" name="pvnnf:CapitalLoss" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c0" id="hidden-fact-57" name="us-gaap:CashAcquiredFromAcquisition" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c4" id="hidden-fact-58" name="us-gaap:CashAcquiredFromAcquisition" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c4" id="hidden-fact-59" name="us-gaap:ProceedsFromIssuanceOfCommonStock" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c5" id="hidden-fact-60" name="us-gaap:ProceedsFromIssuanceOfCommonStock" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c0" id="hidden-fact-61" name="us-gaap:ProceedsFromShortTermDebt" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c5" id="hidden-fact-62" name="us-gaap:ProceedsFromShortTermDebt" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c0" id="hidden-fact-63" name="us-gaap:ProceedsFromDebtNetOfIssuanceCosts" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c0" id="hidden-fact-64" name="us-gaap:ProceedsFromRepaymentsOfNotesPayable" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c5" id="hidden-fact-65" name="us-gaap:ProceedsFromRepaymentsOfNotesPayable" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c0" id="hidden-fact-66" name="us-gaap:ProceedsFromRepaymentsOfShortTermDebt" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c4" id="hidden-fact-67" name="us-gaap:ProceedsFromRepaymentsOfShortTermDebt" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c0" id="hidden-fact-68" name="pvnnf:IssuanceOfSharesInConnectionWithAcquisition" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c4" id="hidden-fact-69" name="pvnnf:IssuanceOfSharesInConnectionWithAcquisition" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c0" id="hidden-fact-70" name="pvnnf:ConversionOfConvertibleLoansIncludingInterestToOrdinaryShares" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c4" id="hidden-fact-71" name="pvnnf:ConversionOfShortTermLoansIncludingInterestToOrdinaryShares" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c5" id="hidden-fact-72" name="pvnnf:ConversionOfShortTermLoansIncludingInterestToOrdinaryShares" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c4" id="hidden-fact-73" name="us-gaap:RightOfUseAssetObtainedInExchangeForOperatingLeaseLiability" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c5" id="hidden-fact-74" name="us-gaap:RightOfUseAssetObtainedInExchangeForOperatingLeaseLiability" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c0" id="hidden-fact-75" name="pvnnf:PurchaseOfPropertyAndEquipmentOnCredit" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c5" id="hidden-fact-76" name="pvnnf:PurchaseOfPropertyAndEquipmentOnCredit" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c5" id="hidden-fact-77" name="pvnnf:RestrictedCashValue" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c43" id="hidden-fact-78" name="pvnnf:PropertyPlantAndEquipmentNetOfAccumulatedDepreciationAnnualRate" unitRef="pure" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c48" id="hidden-fact-79" name="pvnnf:WarrantsPresentedAtFairValu" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c49" id="hidden-fact-80" name="pvnnf:WarrantsPresentedAtFairValu" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c51" id="hidden-fact-81" name="pvnnf:CapitalNote" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c52" id="hidden-fact-82" name="pvnnf:CapitalNote" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c51" id="hidden-fact-83" name="us-gaap:FinancialLiabilitiesFairValueDisclosure" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c52" id="hidden-fact-84" name="us-gaap:FinancialLiabilitiesFairValueDisclosure" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c54" id="hidden-fact-85" name="pvnnf:WarrantsPresentedAtFairValu" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c55" id="hidden-fact-86" name="pvnnf:WarrantsPresentedAtFairValu" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c57" id="hidden-fact-87" name="pvnnf:CapitalNote" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c58" id="hidden-fact-88" name="pvnnf:CapitalNote" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c57" id="hidden-fact-89" name="us-gaap:FinancialLiabilitiesFairValueDisclosure" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c58" id="hidden-fact-90" name="us-gaap:FinancialLiabilitiesFairValueDisclosure" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:footnote id="ix_2_footnote" xml:lang="en-US">Such amount was recorded as Treasury stock within the Consolidated statements of shareholders&#8217; equity (deficit) for the year ended December 31, 2020.</ix:footnote><!--Text not found in footnote sections assigned to Schedule of purchase price to assets acquired and liabilities-->
<ix:nonFraction contextRef="c2" id="hidden-fact-91" name="us-gaap:OtherReceivablesNetCurrent" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c3" id="hidden-fact-92" name="us-gaap:DeferredTaxAssetsTaxDeferredExpenseReservesAndAccrualsImpairmentLosses" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c2" id="hidden-fact-93" name="us-gaap:FiniteLivedIntangibleAssetsNet" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c131" id="hidden-fact-94" name="pvnnf:AdditionalPrincipalLoansProvided" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c132" id="hidden-fact-95" name="us-gaap:DebtConversionConvertedInstrumentAmount1" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c133" id="hidden-fact-96" name="pvnnf:AdditionalPrincipalLoansProvided" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c135" id="hidden-fact-97" name="pvnnf:AdditionalPrincipalLoansProvided" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c139" id="hidden-fact-98" name="pvnnf:AdditionalPrincipalLoansProvided" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c140" id="hidden-fact-99" name="us-gaap:DebtConversionConvertedInstrumentAmount1" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c141" id="hidden-fact-100" name="pvnnf:AdditionalPrincipalLoansProvided" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c143" id="hidden-fact-101" name="pvnnf:AdditionalPrincipalLoansProvided" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c2" id="hidden-fact-102" name="us-gaap:DeferredTaxAssetsLiabilitiesNet" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c3" id="hidden-fact-103" name="us-gaap:DeferredTaxAssetsLiabilitiesNet" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c0" id="hidden-fact-104" name="pvnnf:IncomeTaxExpenseRecognizedInProfitOrLoss" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c4" id="hidden-fact-105" name="pvnnf:IncomeTaxExpenseRecognizedInProfitOrLoss" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c5" id="hidden-fact-106" name="pvnnf:IncomeTaxExpenseRecognizedInProfitOrLoss" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c2" id="hidden-fact-107" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c2" id="hidden-fact-108" name="us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c208" id="hidden-fact-109" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber" unitRef="shares" xsi:nil="true"></ix:nonFraction>
<ix:nonNumeric contextRef="c207" id="hidden-fact-110" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageRemainingContractualTerm2" xsi:nil="true"></ix:nonNumeric>
<ix:nonFraction contextRef="c219" id="hidden-fact-111" name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeLowerRangeLimit" unitRef="usdPershares" xsi:nil="true"></ix:nonFraction>
<ix:nonNumeric contextRef="c219" id="hidden-fact-112" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2" xsi:nil="true"></ix:nonNumeric>
<ix:nonNumeric contextRef="c219" id="hidden-fact-113" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageRemainingContractualTerm2" xsi:nil="true"></ix:nonNumeric>
<ix:nonFraction contextRef="c224" decimals="INF" id="hidden-fact-114" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber" unitRef="shares">9.507559</ix:nonFraction>
<ix:nonFraction contextRef="c226" id="hidden-fact-115" name="us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber" unitRef="shares" xsi:nil="true"></ix:nonFraction>
<ix:nonNumeric contextRef="c225" id="hidden-fact-116" name="us-gaap:SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageRemainingContractualTerm2" xsi:nil="true"></ix:nonNumeric>
<ix:footnote id="ix_10_footnote" xml:lang="en-US">1,249,758 options to the Company&#8217;s new Chief Executive Officer were not officially issued since the number of reserved shares under the Company&#8217;s employee stock option plan were not sufficient to support such grant in its totality (and therefore not presented within the related line item above). Refer to Note 13.e. for additional information.</ix:footnote><!--Text not found in footnote sections assigned to Schedule of options granted to officers, directors, employees, consultants and service providers-->
<ix:nonFraction contextRef="c109" id="hidden-fact-117" name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeLowerRangeLimit" unitRef="usdPershares" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c248" id="hidden-fact-118" name="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeLowerRangeLimit" unitRef="usdPershares" xsi:nil="true"></ix:nonFraction>
<ix:footnote id="ix_11_footnote" xml:lang="en-US">Issued in connection with the 2018, 2013 and 2009 arrangements.</ix:footnote><!--Text not found in footnote sections assigned to Schedule of outstanding warrants-->
<ix:footnote id="ix_12_footnote" xml:lang="en-US">The earlier of (i) the closing of a subsequent offering of Company securities by the Company to qualified investors with an effective price per Ordinary Share of at least $0.20 and (ii) the second anniversary of the issuance of such warrant.</ix:footnote><!--Text not found in footnote sections assigned to Schedule of outstanding warrants-->
<ix:nonNumeric contextRef="c256" id="hidden-fact-119" name="pvnnf:ExercisableThrough" xsi:nil="true"></ix:nonNumeric>
<ix:nonFraction contextRef="c257" id="hidden-fact-120" name="us-gaap:ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1" unitRef="usdPershares" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c268" id="hidden-fact-121" name="pvnnf:ClassOfWarrantOrRightFairValue" unitRef="shares" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c270" id="hidden-fact-122" name="pvnnf:ClassOfWarrantOrRightFairValue" unitRef="shares" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c272" id="hidden-fact-123" name="us-gaap:ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1" unitRef="usdPershares" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c274" id="hidden-fact-124" name="pvnnf:ClassOfWarrantOrRightFairValue" unitRef="shares" xsi:nil="true"></ix:nonFraction>
<ix:footnote id="ix_15_footnote" xml:lang="en-US">M&amp;A or qualified PO as described in the agreement.</ix:footnote><!--Text not found in footnote sections assigned to Schedule of outstanding warrants classified as a liability-->
<ix:nonFraction contextRef="c5" id="hidden-fact-125" name="pvnnf:IncreaseInFairValueOfWarrantsAndCapitalNotePresentedAtFairValue" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c4" id="hidden-fact-126" name="pvnnf:InterestAndChangeInFairValueInConnectionWithConvertibleLoans" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c5" id="hidden-fact-127" name="pvnnf:InterestAndChangeInFairValueInConnectionWithConvertibleLoans" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c4" id="hidden-fact-128" name="pvnnf:ForeignExchangeIncomeNet" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c5" id="hidden-fact-129" name="pvnnf:ForeignExchangeIncomeNet" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c0" id="hidden-fact-130" name="pvnnf:ChangeInFairValueOfWarrantsAndCapital" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c4" id="hidden-fact-131" name="pvnnf:ChangeInFairValueOfWarrantsAndCapital" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c0" id="hidden-fact-132" name="pvnnf:InterestAndAccretionBackInConnectionWithConvertibleLoans" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c0" id="hidden-fact-133" name="pvnnf:ForeignExchangeLossNet" unitRef="usd" xsi:nil="true"></ix:nonFraction>
<ix:nonFraction contextRef="c329" decimals="0" id="hidden-fact-134" name="pvnnf:WarrantsStockSharesIssued" unitRef="shares">28571425</ix:nonFraction>
<ix:nonNumeric contextRef="c0" name="dei:AmendmentFlag">false</ix:nonNumeric>
<ix:nonNumeric contextRef="c0" name="dei:DocumentFiscalPeriodFocus">FY</ix:nonNumeric>
<ix:nonNumeric contextRef="c0" name="dei:EntityCentralIndexKey">0001627480</ix:nonNumeric>
</ix:hidden>
<ix:references><link:schemaRef xlink:href="pvnnf-20221231.xsd" xlink:type="simple"></link:schemaRef></ix:references>
<ix:resources><ix:relationship fromRefs="hidden-fact-78" toRefs="ix_0_footnote"></ix:relationship>
<ix:relationship fromRefs="ix_0_fact ix_1_fact" toRefs="ix_1_footnote"></ix:relationship>
<ix:relationship fromRefs="ix_2_fact" toRefs="ix_2_footnote"></ix:relationship>
<ix:relationship fromRefs="ix_3_fact" toRefs="ix_3_footnote"></ix:relationship>
<ix:relationship fromRefs="ix_4_fact ix_5_fact hidden-fact-91 ix_6_fact" toRefs="ix_4_footnote"></ix:relationship>
<ix:relationship fromRefs="ix_7_fact ix_8_fact" toRefs="ix_5_footnote"></ix:relationship>
<ix:relationship fromRefs="ix_9_fact ix_10_fact ix_11_fact ix_12_fact ix_13_fact ix_14_fact ix_15_fact hidden-fact-94 hidden-fact-95 ix_16_fact ix_17_fact ix_18_fact ix_19_fact hidden-fact-96 ix_20_fact ix_21_fact ix_22_fact ix_23_fact ix_24_fact hidden-fact-97 ix_25_fact ix_26_fact ix_27_fact ix_28_fact" toRefs="ix_6_footnote"></ix:relationship>
<ix:relationship fromRefs="ix_22_fact ix_27_fact" toRefs="ix_7_footnote"></ix:relationship>
<ix:relationship fromRefs="ix_29_fact ix_30_fact ix_31_fact ix_32_fact ix_33_fact ix_34_fact ix_35_fact hidden-fact-98 hidden-fact-99 ix_36_fact ix_37_fact ix_38_fact ix_39_fact hidden-fact-100 ix_40_fact ix_41_fact ix_42_fact ix_43_fact ix_44_fact hidden-fact-101 ix_45_fact ix_46_fact ix_47_fact ix_48_fact" toRefs="ix_8_footnote"></ix:relationship>
<ix:relationship fromRefs="ix_49_fact hidden-fact-117 hidden-fact-118" toRefs="ix_9_footnote"></ix:relationship>
<ix:relationship fromRefs="hidden-fact-111" toRefs="ix_10_footnote"></ix:relationship>
<ix:relationship fromRefs="ix_50_fact ix_51_fact ix_52_fact ix_53_fact ix_54_fact ix_55_fact" toRefs="ix_11_footnote"></ix:relationship>
<ix:relationship fromRefs="ix_56_fact" toRefs="ix_12_footnote"></ix:relationship>
<ix:relationship fromRefs="ix_57_fact ix_58_fact" toRefs="ix_13_footnote"></ix:relationship>
<ix:relationship fromRefs="hidden-fact-120 hidden-fact-123" toRefs="ix_14_footnote"></ix:relationship>
<ix:relationship fromRefs="hidden-fact-119 ix_59_fact" toRefs="ix_15_footnote"></ix:relationship>
<ix:relationship fromRefs="ix_60_fact ix_61_fact ix_62_fact ix_63_fact hidden-fact-121 hidden-fact-122 ix_64_fact hidden-fact-124" toRefs="ix_16_footnote"></ix:relationship>
<ix:relationship fromRefs="ix_65_fact" toRefs="ix_17_footnote"></ix:relationship>
<ix:relationship fromRefs="ix_66_fact" toRefs="ix_18_footnote"></ix:relationship>
<xbrli:context id="c0">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</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="c1">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="dei:EntityAddressesAddressTypeAxis">dei:BusinessContactMember</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="c2">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c3">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c4">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</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="c5">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c6">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:CommonStockMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2019-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c7">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AdditionalPaidInCapitalMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2019-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c8">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">pvnnf:TreasuryStocksMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2019-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c9">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:RetainedEarningsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2019-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c10">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2019-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c11">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:CommonStockMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c12">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:AdditionalPaidInCapitalMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c13">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">pvnnf:TreasuryStocksMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c14">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:RetainedEarningsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c15">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</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="c16">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</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="c17">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">pvnnf:TreasuryStocksMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c18">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</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="c19">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c20">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</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="c21">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</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="c22">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">pvnnf:TreasuryStocksMember</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="c23">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</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="c24">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</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="c25">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</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="c26">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">pvnnf:TreasuryStocksMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c27">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</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="c28">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</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="c29">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</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="c30">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">pvnnf:TreasuryStocksMember</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="c31">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</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="c32">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</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="c33">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</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="c34">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">pvnnf:TreasuryStocksMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c35">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</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="c36">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-07-01</xbrli:startDate>
    <xbrli:endDate>2020-07-26</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c37">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MinimumMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:ComputerEquipmentMember</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="c38">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MaximumMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:ComputerEquipmentMember</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="c39">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MinimumMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:EquipmentMember</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="c40">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MaximumMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:EquipmentMember</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="c41">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MinimumMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:OfficeEquipmentMember</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="c42">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MaximumMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:OfficeEquipmentMember</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="c43">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:LeaseholdImprovementsMember</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="c44">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FiniteLivedIntangibleAssetsByMajorClassAxis">us-gaap:TechnologyBasedIntangibleAssetsMember</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="c45">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FiniteLivedIntangibleAssetsByMajorClassAxis">pvnnf:BacklogMember</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="c46">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MinimumMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c47">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MaximumMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c48">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FairValueByFairValueHierarchyLevelAxis">us-gaap:FairValueInputsLevel1Member</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="c49">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FairValueByFairValueHierarchyLevelAxis">us-gaap:FairValueInputsLevel2Member</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="c50">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FairValueByFairValueHierarchyLevelAxis">us-gaap:FairValueInputsLevel3Member</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="c51">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FairValueByFairValueHierarchyLevelAxis">us-gaap:FairValueInputsLevel1Member</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c52">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FairValueByFairValueHierarchyLevelAxis">us-gaap:FairValueInputsLevel2Member</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c53">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FairValueByFairValueHierarchyLevelAxis">us-gaap:FairValueInputsLevel3Member</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c54">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FairValueByFairValueHierarchyLevelAxis">us-gaap:FairValueInputsLevel1Member</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="c55">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FairValueByFairValueHierarchyLevelAxis">us-gaap:FairValueInputsLevel2Member</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="c56">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FairValueByFairValueHierarchyLevelAxis">us-gaap:FairValueInputsLevel3Member</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="c57">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FairValueByFairValueHierarchyLevelAxis">us-gaap:FairValueInputsLevel1Member</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c58">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FairValueByFairValueHierarchyLevelAxis">us-gaap:FairValueInputsLevel2Member</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c59">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FairValueByFairValueHierarchyLevelAxis">us-gaap:FairValueInputsLevel3Member</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c60">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FairValueByFairValueHierarchyLevelAxis">us-gaap:FairValueInputsLevel3Member</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2019-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c61">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FairValueByFairValueHierarchyLevelAxis">us-gaap:FairValueInputsLevel3Member</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c62">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FairValueByFairValueHierarchyLevelAxis">us-gaap:FairValueInputsLevel3Member</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c63">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FairValueByFairValueHierarchyLevelAxis">us-gaap:FairValueInputsLevel3Member</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-09-23</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c64">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:BusinessAcquisitionAxis">pvnnf:DigiflexIncMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-07-26</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c65">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-07-26</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c66">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:BusinessAcquisitionAxis">pvnnf:DigiflexFormerShareholdersAndOptionHoldersMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-07-26</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c67">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:CommonStockMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-07-26</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c68">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:WarrantMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-07-26</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c69">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:WarrantMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c70">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">pvnnf:JetCUFormerMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-09-01</xbrli:startDate>
    <xbrli:endDate>2021-09-30</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c71">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-09-01</xbrli:startDate>
    <xbrli:endDate>2021-09-30</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c72">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:EquipmentMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c73">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:EquipmentMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c74">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</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="c75">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:ComputerEquipmentMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c76">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:FurnitureAndFixturesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c77">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:FurnitureAndFixturesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c78">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</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="c79">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:PropertyPlantAndEquipmentByTypeAxis">us-gaap:LeaseholdImprovementsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c80">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FiniteLivedIntangibleAssetsByMajorClassAxis">us-gaap:TechnologyBasedIntangibleAssetsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c81">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FiniteLivedIntangibleAssetsByMajorClassAxis">us-gaap:TechnologyBasedIntangibleAssetsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c82">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FiniteLivedIntangibleAssetsByMajorClassAxis">pvnnf:BacklogMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c83">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FiniteLivedIntangibleAssetsByMajorClassAxis">pvnnf:BacklogMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c84">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FinancialInstrumentAxis">pvnnf:ConvertibleLoanAgreementsAugustTwoThousandSeventeenMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2017-08-01</xbrli:startDate>
    <xbrli:endDate>2017-08-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c85">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FinancialInstrumentAxis">pvnnf:ConvertibleLoanAgreementsAugustTwoThousandSeventeenMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2017-08-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c86">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FinancialInstrumentAxis">pvnnf:ConvertibleLoanAgreementsAugustTwoThousandSeventeenMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">pvnnf:FiveYearWarrantsMember</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="c87">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FinancialInstrumentAxis">pvnnf:ConvertibleLoanAgreementsAugustTwoThousandSeventeenMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c88">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FinancialInstrumentAxis">pvnnf:ConvertibleLoanAgreementsAugustTwoThousandSeventeenMember</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="c89">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionsByRelatedPartyAxis">pvnnf:ConvertibleNotesMember</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="c90">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionsByRelatedPartyAxis">pvnnf:ConvertibleNotesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c91">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2018-01-01</xbrli:startDate>
    <xbrli:endDate>2018-01-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c92">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2018-10-01</xbrli:startDate>
    <xbrli:endDate>2018-10-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c93">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionsByRelatedPartyAxis">pvnnf:ConvertibleNotesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c94">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionsByRelatedPartyAxis">pvnnf:ConvertibleNotesMember</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="c95">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FinancialInstrumentAxis">pvnnf:ConvertibleLoanAgreementMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c96">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2018-05-08</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c97">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2018-05-08</xbrli:startDate>
    <xbrli:endDate>2018-05-08</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c98">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2018-10-10</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c99">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2018-10-10</xbrli:startDate>
    <xbrli:endDate>2018-10-10</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c100">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionsByRelatedPartyAxis">us-gaap:InvestorMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2019-03-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c101">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionsByRelatedPartyAxis">us-gaap:InvestorMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2019-04-30</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c102">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionsByRelatedPartyAxis">us-gaap:InvestorMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2019-08-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c103">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionsByRelatedPartyAxis">us-gaap:InvestorMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2019-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c104">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FinancialInstrumentAxis">pvnnf:ConvertibleLoanAgreementMember</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="c105">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FinancialInstrumentAxis">pvnnf:CLAJuly2020Member</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-07-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c106">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FinancialInstrumentAxis">pvnnf:CLAJuly2020Member</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-07-01</xbrli:startDate>
    <xbrli:endDate>2020-07-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c107">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FinancialInstrumentAxis">pvnnf:ConvertibleLoanAgreementsNovemberTwoThousandEighteenMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2018-11-01</xbrli:startDate>
    <xbrli:endDate>2018-11-10</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c108">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FinancialInstrumentAxis">pvnnf:ConvertibleLoanAgreementsNovemberTwoThousandEighteenMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2018-11-10</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c109">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">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="c110">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2019-01-01</xbrli:startDate>
    <xbrli:endDate>2019-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c111">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-09-23</xbrli:startDate>
    <xbrli:endDate>2021-09-23</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c112">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FinancialInstrumentAxis">pvnnf:ConvertibleLoanAgreementsDecemberTwoThousandEighteenMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2018-12-02</xbrli:startDate>
    <xbrli:endDate>2018-12-29</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c113">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FinancialInstrumentAxis">pvnnf:ConvertibleLoanAgreementsDecemberTwoThousandEighteenMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2018-12-29</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c114">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionsByRelatedPartyAxis">us-gaap:InvestorMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2018-12-29</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c115">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2018-12-02</xbrli:startDate>
    <xbrli:endDate>2018-12-29</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c116">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FinancialInstrumentAxis">pvnnf:ConvertibleLoanAgreementsDecemberTwoThousandEighteenMember</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="c117">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FinancialInstrumentAxis">pvnnf:ConvertibleLoanAgreementsDecemberTwoThousandEighteenMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c118">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FinancialInstrumentAxis">pvnnf:ConvertibleLoanAgreementsDecemberTwoThousandEighteenMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">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="c119">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FinancialInstrumentAxis">pvnnf:ConvertibleLoanAgreementsAugustTwoThousandSeventeenMember</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="c120">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FinancialInstrumentAxis">pvnnf:ConvertibleLoanAgreementsJanuaryToApril2019Member</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2019-01-01</xbrli:startDate>
    <xbrli:endDate>2019-04-30</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c121">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FinancialInstrumentAxis">pvnnf:ConvertibleLoanAgreementsJanuaryToApril2019Member</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2019-04-30</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c122">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FinancialInstrumentAxis">pvnnf:ConvertibleLoanAgreementsAugustToDecemberMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2019-08-01</xbrli:startDate>
    <xbrli:endDate>2019-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c123">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FinancialInstrumentAxis">pvnnf:ConvertibleLoanAgreementsAugustToDecemberMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2019-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c124">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FinancialInstrumentAxis">pvnnf:ConvertibleLoanAgreementsAugustToDecemberMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2019-01-01</xbrli:startDate>
    <xbrli:endDate>2019-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c125">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FinancialInstrumentAxis">pvnnf:ConvertibleLoanAgreementsAugustToDecemberMember</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="c126">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FinancialInstrumentAxis">pvnnf:ConvertibleLoanAgreementMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-09-23</xbrli:startDate>
    <xbrli:endDate>2021-09-23</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c127">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FinancialInstrumentAxis">pvnnf:CLAMarchJune2021Member</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-03-01</xbrli:startDate>
    <xbrli:endDate>2021-06-30</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c128">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FinancialInstrumentAxis">pvnnf:CLAMarchJune2021Member</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-06-30</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c129">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:DebtInstrumentAxis">pvnnf:ConvertibleLoanAgreementsAugustTwoThousandSeventeenMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c130">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:DebtInstrumentAxis">pvnnf:ConvertibleLoanAgreementsAugustTwoThousandSeventeenMember</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="c131">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:DebtInstrumentAxis">pvnnf:ConvertibleLoanAgreementsMayTwoThousandEighteenMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c132">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:DebtInstrumentAxis">pvnnf:ConvertibleLoanAgreementsMayTwoThousandEighteenMember</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="c133">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:DebtInstrumentAxis">pvnnf:ConvertibleLoanAgreementsNovemberTwoThousandEighteenMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c134">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:DebtInstrumentAxis">pvnnf:ConvertibleLoanAgreementsNovemberTwoThousandEighteenMember</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="c135">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:DebtInstrumentAxis">pvnnf:CLAAugust2019Member</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c136">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:DebtInstrumentAxis">pvnnf:CLAAugust2019Member</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="c137">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:DebtInstrumentAxis">pvnnf:ConvertibleLoanAgreementsAugustTwoThousandSeventeenMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c138">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:DebtInstrumentAxis">pvnnf:ConvertibleLoanAgreementsAugustTwoThousandSeventeenMember</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="c139">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:DebtInstrumentAxis">pvnnf:ConvertibleLoanAgreementsMayTwoThousandEighteenMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c140">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:DebtInstrumentAxis">pvnnf:ConvertibleLoanAgreementsMayTwoThousandEighteenMember</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="c141">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:DebtInstrumentAxis">pvnnf:ConvertibleLoanAgreementsNovemberTwoThousandEighteenMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c142">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:DebtInstrumentAxis">pvnnf:ConvertibleLoanAgreementsNovemberTwoThousandEighteenMember</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="c143">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:DebtInstrumentAxis">pvnnf:CLAAugust2019Member</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c144">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:DebtInstrumentAxis">pvnnf:CLAAugust2019Member</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="c145">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="dei:LegalEntityAxis">pvnnf:NationalTechnologicalInnovationAuthorityMember</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="c146">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ResearchAndDevelopmentArrangementContractToPerformForOthersByTypeAxis">pvnnf:IsraelInnovationAuthorityIIAMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c147">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ResearchAndDevelopmentArrangementContractToPerformForOthersByTypeAxis">pvnnf:IsraelInnovationAuthorityIIAMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c148">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ResearchAndDevelopmentArrangementContractToPerformForOthersByTypeAxis">pvnnf:IsraelInnovationAuthorityIIAMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c149">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionsByRelatedPartyAxis">pvnnf:NanoSizeMember</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="c150">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:ConsolidatedEntitiesAxis">srt:SubsidiariesMember</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="c151">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:ConsolidatedEntitiesAxis">srt:SubsidiariesMember</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="c152">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2013-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c153">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MaximumMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2013-12-31</xbrli:startDate>
    <xbrli:endDate>2013-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c154">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MaximumMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2013-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c155">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MinimumMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2013-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c156">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MinimumMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2013-12-31</xbrli:startDate>
    <xbrli:endDate>2013-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c157">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2011-12-15</xbrli:startDate>
    <xbrli:endDate>2011-12-15</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c158">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">pvnnf:IsraelElectricCorporationMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c159">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">pvnnf:IsraelElectricCorporationMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2010-10-01</xbrli:startDate>
    <xbrli:endDate>2010-10-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c160">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
<!-- [WMV5][XcpuxYn59dz7vgYynUDuwG7r97K2jUTysl7vcz0lJt/tSeJz73kx1cLt0ZFF2SK/vxBCY0vdSraFVe3ZS3u95BVbLP4SqBEgMD1ehEWncpHT47NrL8JnPU/K/YhSFdjgZaug0ayCjj2Vrl0fm8QSSVE0bENAi+e57KORadX1ELfuUqakF7AkMO/VRZy4zojRC47UaC+Lg1Y0eF6+8QwXaZh9HAKXGaMb7DJhVdeGxFcqmga7dNwXjmdoCgwdyUiMOoahb6DoNePzLfCEZpAGFw==] CSR-->
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">pvnnf:IsraelElectricCorporationMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2010-10-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c161">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="dei:LegalEntityAxis">pvnnf:IsraeliMinistryOfNationalInfrastructuresMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c162">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="dei:LegalEntityAxis">pvnnf:IsraeliMinistryOfNationalInfrastructuresMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c163">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="dei:LegalEntityAxis">pvnnf:IsraeliMinistryOfNationalInfrastructuresMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c164">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionsByRelatedPartyAxis">pvnnf:RoyaltiesCommitmentsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c165">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <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="c166">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionsByRelatedPartyAxis">pvnnf:LIBORMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c167">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionsByRelatedPartyAxis">pvnnf:LIBORMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c168">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionsByRelatedPartyAxis">pvnnf:LIBORMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c169">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FinancialInstrumentAxis">pvnnf:KnowHowLicenseAgreementMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2012-09-01</xbrli:startDate>
    <xbrli:endDate>2012-09-30</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c170">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FinancialInstrumentAxis">pvnnf:KnowHowLicenseAgreementMember</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="c171">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FinancialInstrumentAxis">pvnnf:KnowHowLicenseAgreementMember</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="c172">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:FinancialInstrumentAxis">pvnnf:KnowHowLicenseAgreementMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c173">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionsByRelatedPartyAxis">pvnnf:FinancialManagementLtdMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="dei:LegalEntityAxis">pvnnf:EshedConsultingMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2019-01-01</xbrli:startDate>
    <xbrli:endDate>2019-01-19</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c174">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="dei:LegalEntityAxis">pvnnf:ITSIndustrialTechnologicLtdMember</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="c175">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-28</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c176">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementClassOfStockAxis">pvnnf:OrdinarySharesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c177">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">pvnnf:JetCUPurchaseMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c178">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementClassOfStockAxis">pvnnf:OrdinarySharesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c179">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-09-01</xbrli:startDate>
    <xbrli:endDate>2021-09-19</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c180">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-09-23</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c181">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementClassOfStockAxis">pvnnf:OrdinarySharesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c182">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <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="c183">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementClassOfStockAxis">pvnnf:OrdinarySharesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-06-30</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c184">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementClassOfStockAxis">pvnnf:OrdinarySharesMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:SubsidiarySaleOfStockAxis">us-gaap:NoteWarrantMember</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="c185">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:SubsidiarySaleOfStockAxis">us-gaap:NoteWarrantMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c186">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementClassOfStockAxis">pvnnf:OrdinarySharesMember</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="c187">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:TitleOfIndividualAxis">srt:DirectorMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-07</xbrli:startDate>
    <xbrli:endDate>2020-01-07</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c188">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:TitleOfIndividualAxis">srt:DirectorMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-01-07</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c189">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-07</xbrli:startDate>
    <xbrli:endDate>2020-01-07</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c190">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:TitleOfIndividualAxis">srt:BoardOfDirectorsChairmanMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-06-22</xbrli:startDate>
    <xbrli:endDate>2020-06-22</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c191">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:TitleOfIndividualAxis">srt:BoardOfDirectorsChairmanMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-06-22</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c192">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-06-22</xbrli:startDate>
    <xbrli:endDate>2020-06-22</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c193">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-06-01</xbrli:startDate>
    <xbrli:endDate>2021-06-01</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c194">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:TitleOfIndividualAxis">srt:ChiefExecutiveOfficerMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-06-01</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c195">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-04-01</xbrli:startDate>
    <xbrli:endDate>2022-04-28</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c196">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-07-01</xbrli:startDate>
    <xbrli:endDate>2021-07-19</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c197">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:TitleOfIndividualAxis">srt:DirectorMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2022-05-01</xbrli:startDate>
    <xbrli:endDate>2022-05-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c198">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:TitleOfIndividualAxis">srt:ChiefExecutiveOfficerMember</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="c199">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:TitleOfIndividualAxis">srt:ChiefExecutiveOfficerMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c200">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:TitleOfIndividualAxis">srt:ChiefExecutiveOfficerMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c201">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-12-01</xbrli:startDate>
    <xbrli:endDate>2020-12-28</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c202">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementClassOfStockAxis">pvnnf:OrdinarySharesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-12-01</xbrli:startDate>
    <xbrli:endDate>2020-12-28</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c203">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">pvnnf:ExercisePriceThreeMember</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="c204">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">pvnnf:ExercisePriceThreeMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c205">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">pvnnf:ExercisePrice0068Member</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="c206">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">pvnnf:ExercisePrice0068Member</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c207">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">pvnnf:ExercisePrice007Member</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="c208">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">pvnnf:ExercisePrice007Member</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c209">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">pvnnf:ExercisePrice017Member</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="c210">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">pvnnf:ExercisePrice017Member</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c211">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">pvnnf:ExercisePrice027Member</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="c212">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">pvnnf:ExercisePrice027Member</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c213">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">pvnnf:ExercisePrice034Member</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="c214">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">pvnnf:ExercisePrice034Member</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c215">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">pvnnf:ExercisePrice092Member</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="c216">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">pvnnf:ExercisePrice092Member</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c217">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">pvnnf:ExercisePrice573Member</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="c218">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">pvnnf:ExercisePrice573Member</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c219">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">pvnnf:lowerThanOneMember</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="c220">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">pvnnf:lowerThanOneMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c221">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">pvnnf:ExercisePriceThreeMember</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="c222">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">pvnnf:ExercisePriceThreeMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c223">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">pvnnf:ExercisePrice0068Member</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="c224">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">pvnnf:ExercisePrice0068Member</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c225">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">pvnnf:ExercisePrice007Member</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="c226">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">pvnnf:ExercisePrice007Member</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c227">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">pvnnf:ExercisePrice027Member</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="c228">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">pvnnf:ExercisePrice027Member</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c229">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">pvnnf:ExercisePrice034Member</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="c230">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">pvnnf:ExercisePrice034Member</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c231">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">pvnnf:ExercisePrice092Member</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="c232">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">pvnnf:ExercisePrice092Member</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c233">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">pvnnf:ExercisePrice472Member</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="c234">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">pvnnf:ExercisePrice472Member</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c235">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">pvnnf:ExercisePrice505Member</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="c236">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">pvnnf:ExercisePrice505Member</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c237">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">pvnnf:ExercisePrice573Member</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="c238">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeAxis">pvnnf:ExercisePrice573Member</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c239">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">pvnnf:WarrantOneMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c240">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">pvnnf:WarrantOneMember</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="c241">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">pvnnf:WarrantTwoMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c242">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">pvnnf:WarrantTwoMember</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="c243">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">pvnnf:WarrantThreeMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c244">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">pvnnf:WarrantThreeMember</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="c245">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">pvnnf:WarrantFourMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c246">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">pvnnf:WarrantFourMember</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="c247">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:WarrantMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c248">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">us-gaap:WarrantMember</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="c249">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">pvnnf:WarrantOneMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c250">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">pvnnf:WarrantOneMember</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="c251">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">pvnnf:WarrantTwoMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c252">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">pvnnf:WarrantTwoMember</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="c253">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">pvnnf:WarrantThreeMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c254">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:StatementEquityComponentsAxis">pvnnf:WarrantThreeMember</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="c255">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ClassOfWarrantOrRightAxis">pvnnf:OutstandingWarrantsOneMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c256">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ClassOfWarrantOrRightAxis">pvnnf:OutstandingWarrantsOneMember</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="c257">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ClassOfWarrantOrRightAxis">pvnnf:OutstandingWarrantTwoMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c258">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ClassOfWarrantOrRightAxis">pvnnf:OutstandingWarrantTwoMember</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="c259">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ClassOfWarrantOrRightAxis">pvnnf:OutstandingWarrantsThreeMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c260">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ClassOfWarrantOrRightAxis">pvnnf:OutstandingWarrantsThreeMember</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="c261">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ClassOfWarrantOrRightAxis">pvnnf:OutstandingWarrantsFourMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c262">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ClassOfWarrantOrRightAxis">pvnnf:OutstandingWarrantsFiveMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c263">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ClassOfWarrantOrRightAxis">pvnnf:OutstandingWarrantsFiveMember</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="c264">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ClassOfWarrantOrRightAxis">pvnnf:OutstandingWarrantsSixMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c265">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ClassOfWarrantOrRightAxis">pvnnf:OutstandingWarrantsSixMember</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="c266">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ClassOfWarrantOrRightAxis">pvnnf:OutstandingWarrantsSevenMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c267">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ClassOfWarrantOrRightAxis">pvnnf:OutstandingWarrantsSevenMember</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="c268">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ClassOfWarrantOrRightAxis">pvnnf:OutstandingWarrantsEightMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c269">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ClassOfWarrantOrRightAxis">pvnnf:OutstandingWarrantsEightMember</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="c270">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ClassOfWarrantOrRightAxis">pvnnf:OutstandingWarrantsNineMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c271">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ClassOfWarrantOrRightAxis">pvnnf:OutstandingWarrantsNineMember</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="c272">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ClassOfWarrantOrRightAxis">pvnnf:OutstandingWarrantsTenMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c273">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ClassOfWarrantOrRightAxis">pvnnf:OutstandingWarrantsTenMember</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="c274">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ClassOfWarrantOrRightAxis">pvnnf:OutstandingWarrantsElevenMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c275">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ClassOfWarrantOrRightAxis">pvnnf:OutstandingWarrantsElevenMember</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="c276">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ClassOfWarrantOrRightAxis">pvnnf:OutstandingWarrantsTwelveMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c277">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ClassOfWarrantOrRightAxis">pvnnf:OutstandingWarrantsTwelveMember</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="c278">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ClassOfWarrantOrRightAxis">pvnnf:OutstandingWarrantsThirteenMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c279">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ClassOfWarrantOrRightAxis">pvnnf:OutstandingWarrantsThirteenMember</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="c280">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:BusinessAcquisitionAxis">us-gaap:SeriesOfIndividuallyImmaterialBusinessAcquisitionsMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c281">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:TitleOfIndividualAxis">pvnnf:RINCGreenLtdMember</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="c282">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2018-10-02</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c283">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionsByRelatedPartyAxis">pvnnf:MrDovFarkashMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-04-01</xbrli:startDate>
    <xbrli:endDate>2020-04-19</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c284">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionsByRelatedPartyAxis">pvnnf:MrDovFarkashMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-04-19</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c285">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2020-04-19</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c286">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-04-01</xbrli:startDate>
    <xbrli:endDate>2020-04-19</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c287">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MinimumMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionsByRelatedPartyAxis">pvnnf:MrRanEisenbergMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-06-01</xbrli:startDate>
    <xbrli:endDate>2021-06-01</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c288">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionsByRelatedPartyAxis">pvnnf:MrRanEisenbergMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-06-01</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c289">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-06-01</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c290">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:RangeAxis">srt:MaximumMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionsByRelatedPartyAxis">pvnnf:MrRanEisenbergMember</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="c291">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionsByRelatedPartyAxis">pvnnf:MrRanEisenbergMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2021-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c292">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionsByRelatedPartyAxis">pvnnf:MrRanEisenbergMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2021-06-01</xbrli:startDate>
    <xbrli:endDate>2021-06-01</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c293">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:TitleOfIndividualAxis">pvnnf:MrMagidMember</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="c294">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:TitleOfIndividualAxis">pvnnf:MrMagidMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c295">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:SubsidiarySaleOfStockAxis">us-gaap:StockOptionMember</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="c296">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:StatementGeographicalAxis">country:ES</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="c297">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:StatementGeographicalAxis">country:ES</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="c298">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:StatementGeographicalAxis">country:ES</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c299">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:StatementGeographicalAxis">country:IL</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="c300">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:StatementGeographicalAxis">country:IL</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="c301">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:StatementGeographicalAxis">country:IL</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c302">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:StatementGeographicalAxis">country:US</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="c303">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:StatementGeographicalAxis">country:US</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="c304">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:StatementGeographicalAxis">country:US</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c305">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:StatementGeographicalAxis">country:DE</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="c306">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:StatementGeographicalAxis">country:DE</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="c307">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:StatementGeographicalAxis">country:DE</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c308">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:StatementGeographicalAxis">pvnnf:HollandMember</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="c309">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:StatementGeographicalAxis">pvnnf:HollandMember</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="c310">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:StatementGeographicalAxis">pvnnf:HollandMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c311">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:StatementGeographicalAxis">country:AT</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="c312">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:StatementGeographicalAxis">country:AT</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="c313">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:StatementGeographicalAxis">country:AT</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c314">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:StatementGeographicalAxis">pvnnf:OtherStatesMember</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="c315">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:StatementGeographicalAxis">pvnnf:OtherStatesMember</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="c316">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:StatementGeographicalAxis">pvnnf:OtherStatesMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c317">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">us-gaap:AccountsReceivableMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByTypeAxis">pvnnf:CustomersTwoMember</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="c318">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByBenchmarkAxis">us-gaap:AccountsReceivableMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByTypeAxis">pvnnf:CustomersThreeMember</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="c319">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:ConcentrationRiskByTypeAxis">pvnnf:CustomersOneMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:FairValueConcentrationOfRiskDisclosureItemsAxis">us-gaap:AccountsReceivableMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:startDate>2020-01-01</xbrli:startDate>
    <xbrli:endDate>2020-12-31</xbrli:endDate>
  </xbrli:period>
</xbrli:context><xbrli:context id="c320">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">pvnnf:InvestorsMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:SubsequentEventTypeAxis">us-gaap:SubsequentEventMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2023-02-28</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c321">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">pvnnf:InvestorsMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:SubsequentEventTypeAxis">us-gaap:SubsequentEventMember</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="c322">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:SubsidiarySaleOfStockAxis">pvnnf:InitialOfferingMember</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="c323">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="srt:StatementScenarioAxis">srt:ScenarioForecastMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2023-04-30</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c324">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2023-04-30</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c325">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionsByRelatedPartyAxis">pvnnf:FinalOfferingMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:SubsidiarySaleOfStockAxis">pvnnf:FinalOfferingMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c326">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:SubsidiarySaleOfStockAxis">pvnnf:FinalOfferingMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c327">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">pvnnf:SecondLevelMilestonesMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:SubsidiarySaleOfStockAxis">pvnnf:FinalOfferingMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c328">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:SubsidiarySaleOfStockAxis">pvnnf:InitialOfferingMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:context id="c329">
  <xbrli:entity>
    <xbrli:identifier scheme="http://www.sec.gov/CIK">0001627480</xbrli:identifier>
    <xbrli:segment>
      <xbrldi:explicitMember dimension="us-gaap:RelatedPartyTransactionAxis">pvnnf:SecondLevelMilestonesMember</xbrldi:explicitMember>
      <xbrldi:explicitMember dimension="us-gaap:SubsidiarySaleOfStockAxis">pvnnf:InitialOfferingMember</xbrldi:explicitMember>
    </xbrli:segment>
  </xbrli:entity>
  <xbrli:period>
    <xbrli:instant>2022-12-31</xbrli:instant>
  </xbrli:period>
</xbrli:context><xbrli:unit id="shares">
  <xbrli:measure>xbrli:shares</xbrli:measure>
</xbrli:unit><xbrli:unit id="usd">
  <xbrli:measure>iso4217:USD</xbrli:measure>
</xbrli:unit><xbrli:unit id="ilsPershares">
  <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><xbrli:unit id="usdPershares">
  <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="ils">
  <xbrli:measure>iso4217:ILS</xbrli:measure>
</xbrli:unit><xbrli:unit id="eur">
  <xbrli:measure>iso4217:EUR</xbrli:measure>
</xbrli:unit><xbrli:unit id="eurPershares">
  <xbrli:divide>
    <xbrli:unitNumerator>
      <xbrli:measure>iso4217:EUR</xbrli:measure>
    </xbrli:unitNumerator>
    <xbrli:unitDenominator>
      <xbrli:measure>xbrli:shares</xbrli:measure>
    </xbrli:unitDenominator>
  </xbrli:divide>
</xbrli:unit></ix:resources></ix:header>

</div></div></body>
</html>
[{"type": "20-F", "sequence": "1", "filename": "f20f2022_pvnano.htm", "description": "ANNUAL REPORT", "secsgml_size_bytes": 1945645}]
{"company-data": {"conformed-name": "PV Nano Cell, Ltd.", "cik": "0001627480", "assigned-sic": "2890", "irs-number": "000000000", "state-of-incorporation": "L3", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "20-F", "act": "34", "file-number": "333-206723", "film-number": "23919560"}, "business-address": {"street1": "8 HAMASGER STREET", "city": "MIGDAL HA'EMEK", "state": "L3", "zip": "2310102", "phone": "(972) 4-654-6881"}, "mail-address": {"street1": "8 HAMASGER STREET", "city": "MIGDAL HA'EMEK", "state": "L3", "zip": "2310102"}}
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form
20-F
☐
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
,
2022
OR
☐
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
OR
☐
SHELL
COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _______ to _______
Commission File No.
333-206723
P.V. NANO CELL LTD.
(Exact name of Registrant as specified in its
charter)
N/A
(Translation of the Registrant's name
into English)
State of
Israel
(Jurisdiction of incorporation or organization)
8 Hamasger Street
,
Migdal Ha'Emek
,
Israel
2310102
(Address of principal executive offices)
Avi Magid
Chief Executive Officer
8 Hamasger Street
Migdal Ha'Emek
,
Israel
2310102
Tel:
972
.
4.654.6881
Fax: 972.4.654.6880
(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: None.
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:
Ordinary Shares, nominal value NIS 0.01 per
share
Indicate the number of outstanding
ordinary 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
147,134,792
ordinary shares, nominal value NIS 0.01 per share, as of December 31, 2022.
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 a 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 and posted on its corporate Web site, if any, every Interactive Data File required to be submitted
and posted 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 and post such files).
Yes
☒
No
☐
Indicate by check mark whether
the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. 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
PART I
1
ITEM 1.
Identity of Directors, Senior Management and Advisers
1
ITEM 2.
Offer Statistics and Expected Timetable
1
ITEM 3.
Key Information
1
ITEM 4.
Information on the Company
24
ITEM 4A.
Unresolved Staff Comments
33
ITEM 5.
Operating and Financial Review and Prospects
33
ITEM 6.
Directors, Senior Management and Employees
44
ITEM 7.
Major Shareholders and Related Party Transactions
66
ITEM 8.
Financial Information
69
ITEM 9.
The Offer and Listing
69
ITEM 10.
Additional Information
70
ITEM 11.
Quantitative and Qualitative Disclosures About Market Risk
86
ITEM 12.
Description of Securities Other Than Equity Securities
87
PART II
88
ITEM 13.
Defaults, Dividend Arrearages and Delinquencies
88
ITEM 14.
Material Modifications to the Rights of Security Holders and Use of Proceeds
88
ITEM 15.
Controls and Procedures
88
ITEM 16.
[RESERVED]
88
ITEM 16A.
Audit Committee Financial Expert
88
ITEM 16B.
Code of Ethics
89
ITEM 16C.
Principal Accountant Fees and Services
89
ITEM 16D.
Exemptions from the Listing Standards for Audit Committees
89
ITEM 16E.
Purchases of Equity Securities by the Issuer and Affiliated Purchasers
90
ITEM 16F.
Change in Registrant's Certifying Accountant
90
ITEM 16G.
Corporate Governance
90
ITEM 16H.
Mine Safety Disclosure
90
ITEM 16I.
Disclosure Regarding Foreign Jurisdictions That Prevent Inspections
90
ITEM 16J.
Insider Trading Policy
90
PART III
91
ITEM 17.
Financial Statements
91
ITEM 18.
Financial Statements
91
ITEM 19.
Exhibits
92
i
ABOUT THIS ANNUAL REPORT
All references to "we",
"us", "our", "the Company", "PV Nano", "our company" and "our Company",
in this Annual Report on Form 20-F, or our annual report, are to P.V. Nano Cell Ltd., unless the context otherwise requires. All references
to "Group" in this annual report on Form 20-F, are to the Company and its direct and indirect subsidiaries, unless the context
otherwise requires. All references to "shares", "ordinary shares" or "our ordinary shares" are to
our ordinary shares, NIS 0.01 nominal value per share. All references to "Israel" are to the State of Israel. "U.S.
GAAP" means the generally accepted accounting principles in the United States. Unless otherwise stated, all of our financial information
presented in this annual report has been prepared in accordance with U.S. GAAP. Any discrepancies in any table between totals and sums
of the amounts listed are due to rounding. Unless otherwise indicated, or the context otherwise requires, references in this annual report
to financial and operational data for a particular year refer to the fiscal year of our company ended December 31 of that year.
Our reporting currency and
financial currency is the U.S. dollar. In this annual report on Form 20-F, "NIS" means New Israeli Shekel, and "$,"
"US$" and "U.S. dollars" mean United States dollars. Unless stated otherwise, U.S. dollar translation of NIS amounts
presented in this annual report are translated using the rate of $1.00 =NIS 3.519, the exchange rate published by the Bank of Israel on
December 31, 2022.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This annual report on Form
20-F contains forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), that involve risks and uncertainties. All statements other than statements
of historical facts contained in this annual report on Form 20-F are forward-looking statements. In some cases, you can identify forward-looking
statements by words such as "anticipate," "believe," "continue," "could," "estimate,"
"expect," "intend," "may," "plan," "potential," "predict," "project,"
"seek," "should," "will," "would," or the negative of these words or other comparable
terminology. These forward-looking statements include, but are not limited to, statements about:
●
the potential market opportunities
for commercializing our current and planned products;
●
our ability to raise the capital
needed to realize exploit market opportunities;
●
our going concern qualification
in our consolidated financial statements for the year ended December 31, 2022 and its impact on our capital raising efforts;
●
our expectations and beliefs regarding the technological advantages
and potential market size for our current and planned products;
●
estimates of our expenses, future
revenue, capital requirements, and our needs for additional financing;
●
our ability to develop and advance
our current and planned products;
●
the implementation of our business model and strategic plans for our
business and products;
●
the scope of protection we are
able to establish and maintain for intellectual property rights covering our current and planned products;
●
our ability to maintain and
establish collaborations or obtain additional funding;
●
our financial performance; and
●
developments and projections
relating to our competitors and our industry.
Any forward-looking statements
in this annual report on Form 20-F reflect our current views with respect to future events or to our future financial performance and
involve known and unknown risks, uncertainties, and other factors that may cause our actual results, performance or achievements to be
materially different from any future results, performance, or achievements expressed or implied by these forward-looking statements. Factors
that may cause actual results to differ materially from current expectations include, among other things, those listed under "Item
3 D. — Risk Factors" and elsewhere in this annual report on Form 20-F. Given these uncertainties, you should not place undue
reliance on these forward-looking statements. Except as required by law, we assume no obligation to update or revise these forward-looking
statements for any reason, even if new information becomes available in the future.
This annual report on Form
20-F also contains estimates, projections, and other information concerning our industry, our business, and the markets for our products,
including data regarding the estimated size of those markets. Information that is based on estimates, forecasts, projections, market research,
or similar methodologies is inherently subject to uncertainties and actual events or circumstances may differ materially from events and
circumstances reflected in this information. Unless otherwise expressly stated, we obtained this industry, business, market, and other
data from reports, research surveys, studies, and similar data prepared by market research firms and other third parties, industry and
general publications, government data and similar sources.
ii
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
Our
business faces significant risks. You should carefully consider all of the information set forth in this annual report and in our other
filings with the United States Securities and Exchange Commission (the "SEC"), including the following risk factors which
we face and which are faced by our industry. Our business, financial condition and results of operations could be materially and adversely
affected by any of these risks. In that event, the trading price of our ordinary shares would likely decline and you might lose all or
part of your investment. This report also contains forward-looking statements that involve risks and uncertainties. Our results could
materially differ from those anticipated in these forward-looking statements, as a result of certain important factors including the risks
described below and elsewhere in this report and our other SEC filings. See "Cautionary Note Regarding Forward-Looking Statements"
on page ii.
Risk Factors Summary
Risks Related to Our Financial Position
and Capital Requirements
●
We
have a relatively limited operating history on which to assess our business, have incurred significant losses since our inception, and
anticipate that we will continue to incur significant losses for the foreseeable future.
●
Our
history of net losses has raised substantial doubt regarding our ability to continue as a going concern. If we do not continue as a going
concern, investors could lose their entire investment.
●
We
will need significant additional capital on an immediate basis, which we may be unable to obtain.
Risks Related to Our Business
●
We
have generated only minimal revenue from product sales and may never be profitable.
●
Our
failure to complete the development of our technology and introduce improved Sicrys™ ink and paste formulations, may adversely
affect our ability to successfully commercialize our products and technologies.
●
If
our conductive inks and pastes fail to achieve and sustain sufficient market acceptance or if market penetration occurs more slowly than
expected, our future revenues will be adversely affected.
●
We
believe that our future success depends on our ability to deliver products and services that meet changing technology and customer needs.
●
We
currently have minimal marketing and sales capabilities. If we are unable to establish significant sales and marketing capabilities or
enter into agreements with third parties to market and sell our products once development of our technology for mass production is completed,
we may be unable to generate significant revenue.
●
Our
ability to grow our business successfully depends, among other things, on our ability to develop and implement our production and operating
infrastructure in a way that would effectively support our growth in our target markets.
●
We
are subject to a multitude of manufacturing risks, any of which could substantially increase our costs and limit supply of our products
and technologies.
1
●
We
are subject to risks resulting from fluctuations in the price of silver and other raw materials.
●
Our
business involves the use of hazardous materials, and we must comply with environmental, health and safety laws and regulations, which
can be expensive and restrict how we do business, and if we fail to comply with such laws and regulations, we could become subject to
fines or penalties or incur costs that could have a material adverse effect on the success of our business.
●
We
face competition in the markets in which we operate and the possibility that our competitors may develop products that are similar to,
more advanced than, or more effective than ours, which may adversely affect our financial condition and our ability to successfully commercialize
our products and technologies.
●
International
expansion of our business exposes us to business, regulatory, political, operational, financial, and economic risks associated with doing
business outside of Israel.
●
The
health effects of nanotechnology are unknown.
●
Our
future success depends in part on our ability to retain our key management personnel and to attract, retain, and motivate other qualified
personnel.
●
We
may not be successful in our efforts to identify, license, or discover additional products and technologies.
●
Environmental,
social and corporate governance ("ESG") issues, including those related to climate change and sustainability, may have an
adverse effect on our business, financial condition and results of operations and damage our reputation.
●
Our
business, operating results and growth rates may be adversely affected by current or future unfavorable economic and market conditions
and adverse developments with respect to financial institutions and associated liquidity risk.
●
A
pandemic, epidemic or outbreak of an infectious disease, such as COVID-19, may materially and adversely affect our business, financial
condition and operating results.
Risks Related to Our Intellectual Property
●
If
we are unable to obtain and maintain effective patent rights for our products and technologies or any future products and technologies,
we may not be able to compete effectively in our markets.
●
If
we are unable to maintain effective proprietary rights for our products and technologies or any future products and technologies, we
may not be able to compete effectively in our markets.
●
Third-party
claims of intellectual property infringement may prevent or delay our development and commercialization efforts.
●
We
may become subject to claims of intellectual property infringement by third parties or may be required to indemnify our distributors
or other third parties against such claims, which, regardless of their merit, could result in litigation, distract our management and
materially adversely affect our business, results of operations or financial condition.
●
We
may not be successful in obtaining or maintaining necessary rights to our products and technologies through intellectual property rights
in-licenses.
●
We
may not be able to fully enforce covenants not to compete with our key employees, and therefore we may be unable to prevent our competitors
from benefiting from the expertise of such employees.
●
We
may not be able to protect our intellectual property rights throughout the world.
Risks Related to Our Operations in Israel
●
Our
headquarters and other significant operations are located in Israel and, therefore, our results may be adversely affected by political,
economic and military instability in Israel.
●
The
Israeli government grants we have received for research and development expenditures restrict our ability to manufacture products and
transfer technologies outside of Israel and require us to satisfy specified conditions. If we fail to satisfy these conditions, we may
be required to refund grants previously received together with interest and penalties.
●
Exchange
rate fluctuations, primarily between the U.S. dollar and the NIS currencies, and inflation may negatively affect our results of operations.
●
Provisions
of Israeli law and our Amended and Restated Articles of Association ("Articles of Association"), may delay, prevent or make
undesirable an acquisition of all or a significant portion of our shares or assets.
2
●
The
tax benefits that are available to us as a preferred enterprise require us to continue to meet various conditions and may be terminated
or reduced in the future, which could increase our costs and taxes.
●
It
may be difficult to enforce a judgment of a United States court against us and our officers and directors and the Israeli experts named
in this annual report on Form 20-F located in Israel or the United States, to assert United States securities laws claims in Israel or
to serve process on our officers and directors and these experts.
Risks Related to Our Ordinary Shares
●
Our
U.S. investors may suffer adverse tax consequences if we are characterized as a passive foreign investment company.
●
Your
rights and responsibilities as a shareholder will be governed by Israeli law which differs in some material respects from the rights
and responsibilities of shareholders of U.S. companies.
●
We
have never paid cash dividends on our share capital, and we do not anticipate paying any cash dividends in the foreseeable future.
●
Our
major shareholders, directors and officers as a group have significant voting power and may take actions that may not be in the best
interest of shareholders.
●
We
incur significant costs as a result of operating as a public company, and our management is required to devote substantial time to new
compliance initiatives.
●
We
are a "foreign private issuer" and have disclosure obligations that are different from those of U.S. domestic reporting companies.
●
Offers
or availability for sale of a substantial number of our ordinary shares may cause the price of our ordinary shares to decline.
●
Our
management conducted an evaluation of the effectiveness of our internal control over financial reporting and concluded that our internal
control over financial reporting was not effective as of December 31, 2022. If we fail to maintain an effective system of internal control
over financial reporting, we may not be able to accurately report our financial results or prevent fraud. As a result, shareholders could
lose confidence in our financial and other public reporting.
●
The
market price of our ordinary shares may fluctuate significantly.
●
Because
our ordinary shares are traded as a "penny stock," it may be more difficult for investors to sell our ordinary shares, and
the market price of our ordinary shares may be adversely affected.
●
Compliance
with changing regulations concerning corporate governance and public disclosure may result in additional expenses.
Risks Related to Our Financial Position and
Capital Requirements
We have a relatively limited operating history
on which to assess our business, have incurred significant losses since our inception, and anticipate that we will continue to incur significant
losses for the foreseeable future.
We have a limited operating history. We have incurred net losses since
our inception in 2009, including a net loss of approximately $4.5 million for the year ended on December 31, 2022 and an accumulated deficit
of approximately $40.6 million as of December 31, 2022. We are in default in repayment of our convertible notes which as of December 31,
2022 aggregated to approximately $1.5 million (including principal and interest). To date, we have financed our operations primarily through
the issuance of equity instruments and convertible notes as well as through government grants. The amount of our future net losses will
depend, in part, on the rate of our future expenditures and our ability to generate significant revenues via commercialization of our
products or technologies. We do not know whether or when we will become profitable. Even if we do achieve profitability, we may not be
able to sustain or increase profitability on an ongoing basis. Our inability to achieve and then maintain profitability would negatively
affect our business, financial condition, results of operations and cash flows.
Our history of net losses has raised substantial
doubt regarding our ability to continue as a going concern. If we do not continue as a going concern, investors could lose their entire
investment.
We generated relatively limited revenues, which are not presently sufficient
to sustain our operations. Our total revenues generated from sales were $603,359, $568,704 and $761,319 for the years ended December 31,
2022, 2021, and 2020, respectively. We have incurred net losses since our inception in 2009, including a net loss of approximately $4.5
million for the year ended December 31, 2022. In addition, we are in default in repayment of our convertible notes which as of December
31, 2022 aggregated to approximately $1.5 million (including principal and interest). As of December 31, 2022, and as of the date of the
filing of this annual report on Form 20-F, we had limited cash resources.
3
Our history of net losses
has raised substantial doubt about our ability to continue as a going concern, and as a result, our independent registered public accounting
firm included an explanatory paragraph in its report on our consolidated financial statements as of and for the year ended December 31,
2022 with respect to this uncertainty. We believe that we will need to raise significant additional funds before we have significant cash
flow from operations. Accordingly, our ability to continue as a going concern will require us to seek alternative financing to fund our
operations. The substantial doubt about our ability to continue as a going concern could materially limit our ability to raise additional
funds through the issuance of new debt or equity securities or otherwise. Future reports on our consolidated financial statements may
include an explanatory paragraph with respect to our ability to continue as a going concern.
We will need significant additional capital
on an immediate basis, which we may be unable to obtain.
As of December 31, 2022, we
had cash balance of $362,609. We are in default in repayment of our convertible notes which as of December 31, 2022 aggregated to approximately
$1.5 million (including principal and interest). As of the date of this annual report, we had sufficient cash to fund operations as presently
maintained through June 2023. We will need to raise additional capital to continue our operations beyond such period. There can be no
assurance that additional funds will be available when needed from any source or, if available, will be available on terms that are commercially
acceptable to us. We may be required to pursue sources of additional capital through various means, including debt or equity financings.
Future financing through equity investments is likely to be dilutive to existing shareholders. Furthermore, the terms of securities we
may issue in future capital transactions may be more favorable for our new investors. Newly issued securities may include preferences,
superior voting rights, the issuance of warrants or other derivative securities, and the issuance of incentive awards under equity employee
incentive plans, which may have additional dilutive effects. Further, we may incur substantial costs in pursuing future capital and/or
financing, including finder fees, investment banking fees, legal fees, accounting fees, printing and distribution expenses and other costs.
We may also be required to recognize non-cash expenses in connection with certain securities we may issue, such as convertible notes and
warrants, which will adversely impact our financial condition. Our ability to obtain needed financing may be impaired by such factors
as our history of losses and capital market conditions, including inflation and rising interest rates across the global economy, which
have resulted in, and may continue to result in, significant disruption of global financial markets and could impact the availability
or cost of future financings. If the amount of capital we are able to raise from financing activities, together with our revenues from
operations, is not sufficient to satisfy our capital needs, even to the extent that we reduce our operations accordingly, we may be required
to cease operations.
Risks Related to Our Business
We have generated only minimal revenue from
product sales and may never be profitable.
We have generated only minimal
revenue in the past, primarily from limited sales of our Sicrys™ inks and pastes. Our ability to generate revenue and achieve profitability
depends on (among other things) our ability to demonstrate the technological advantage and successfully commercialize our Sicrys™
inks and pastes and future products and technologies. There is no assurance that we will be successful in any of these endeavors.
Our ability to generate future
revenue from product sales depends heavily on our success in many areas, including but not limited to:
●
completing the development of our metallization solutions for the solar
manufacturing market
;
●
obtaining market acceptance
of our products and technologies;
●
attracting, hiring, and retaining
qualified personnel.
●
developing ink and paste products compatible with commercially available
printing technologies and print heads;
4
●
expanding our distribution channels,
including our ability to enter into cooperation arrangements with printing technologies manufacturers to be able to supply printers to
our potential customers;
●
ramping up our production capabilities
if and when our sales volume increases;
●
maintaining, protecting, and
expanding our portfolio of intellectual property rights, including patents, trade secrets, and know-how; and
●
addressing any competing technological
and market developments.
Our failure to
complete the development of our technology and introduce improved Sicrys
™
ink and paste formulations, may adversely
affect our ability to successfully commercialize our products and technologies.
We
need to continue to invest significant financial resources in the completion of the development of our Sicrys™ inks and pastes for
commercialization in the solar manufacturing market. However, research and development activities are inherently uncertain, and we could
encounter difficulties in commercializing our research results. We seek to continuously improve our products and processes. While we believe
that we will be able to manage these uncertainties, we may encounter unanticipated challenges and there can be no guarantee that our significant
research and development expenditures will produce corresponding benefits. If we are unable to achieve the necessary technological developments,
our overall growth and financial performance and our operating results could be adversely impacted.
If our conductive inks and pastes fail to
achieve and sustain sufficient market acceptance or if market penetration occurs more slowly than expected, our future revenues will be
adversely affected.
Our success depends, among
other things, on our ability to gain additional market acceptance of our Sicrys™ inks and pastes as a reliable and cost-saving alternative
to existing production technologies. Compared to some competing technologies, our nano-metric conductive ink technology is relatively
new, and most potential customers have limited knowledge of, or experience with, our conductive inks and pastes, may have substantial
investments and know-how related to their existing printing technologies, and may perceive risks relating to the reliability, quality,
usefulness and profitability of adopting our conductive inks and pastes when compared to other production technologies available in the
market. Our potential customers may also need to devote significant time and effort to testing and validating our technology prior to
its adoption. Any failure of our technology to meet our potential customer benchmarks could result in customers choosing to retain their
existing technology or to purchase technologies other than ours. If we fail to achieve market acceptance of our conductive inks and pastes
or if market penetration is slower than expected, then our opportunities to grow our revenues and reach profitability will be severely
limited. There is no assurance that we will succeed in any of the foregoing.
We believe that our future success
depends
on
our ability to deliver products and services that meet changing technology and customer needs.
Our business may be affected
by rapid technological change, changes in user and customer requirements and preferences, frequent new product and service introductions
embodying new technologies and the emergence of new standards and practices, any of which could render our existing products and proprietary
technology obsolete. Accordingly, our ongoing research and development programs are intended to enable us to maintain technological leadership.
We believe that to remain competitive we must continually enhance and improve the functionality and features of our products, services
and technologies. However, there is a risk that we may not be able to:
●
Develop or obtain leading technologies
useful in our business;
●
Enhance our existing products;
●
Develop new products, services
and technologies that address the increasingly sophisticated and varied needs of prospective customers, particularly in the area of printer
speeds and materials functionality;
5
●
Respond to technological advances
and emerging industry standards and practices on a cost-effective and timely basis; or
●
Recruit or retain key technology
employees.
If we are unable to meet changing
technology and customer needs, our competitive position, revenue, results of operations and financial condition could be adversely affected.
We currently have minimal marketing and
sales capabilities. If we are unable to establish significant sales and marketing capabilities or enter into agreements with third parties
to market and sell our products once development of our technology for mass production is completed, we may be unable to generate significant
revenue.
We have limited experience
and capabilities in selling and marketing our conductive inks. In order to successfully commercialize our Sicrys™ inks and pastes
or any other products, we will need to either further develop these capabilities on our own or by collaboration with third party distributors
and sales agents with established sales and marketing operations and industry experience. However, there can be no assurance that we will
be able to enter into other agreements with such third-party distribution and sales agents agreements on terms acceptable to us, or at
all, or that such distributors or sales agents will be successful in marketing our inks and pastes. If we are not successful entering
into such agreement our results of operation may be adversely affected.
Our ability to grow our business successfully
depends, among other things, on our ability to develop and implement our production and operating infrastructure in a way that would effectively
support our growth in our target markets.
We manufacture our inks and
pastes at our Migdal Ha'Emek facilities. We currently have capacity to produce an estimated one ton of ink and paste per year and
plan to upgrade our facilities to increase production capacity to 20 tons per year (estimated capital cost of at least $2.5 million),
if and when demand for our inks and pastes is projected to surpass our production capabilities and we have sufficient available capital
to do so.
Our future success requires
among others that we have adequate capacity in our manufacturing facilities to manufacture the quantities of products to support our current
sales level and the anticipated increased levels that may result from our growth. There can be no assurance as to the timing or our ability
to achieve planned, needed, or desired manufacturing capacity levels. We believe that the capacity of our current manufacturing facilities
is sufficient to meet anticipated demand for our products through the end of 2023. In the event that demand for our inks and pastes outgrows
our internal manufacturing capacity, we intend to engage third-party manufacturers to produce additional inks and pastes. There can be
no assurance that we will be able to enter into agreements with such manufacturers on terms acceptable to us, or at all, or that, once
contracted, such manufacturers will perform as expected. If we are not successful entering into such agreement our results of operation
may be adversely affected.
We are subject to a multitude of manufacturing
risks, any of which could substantially increase our costs and limit supply of our products and technologies.
We currently only have one
operating manufacturing line. The process of manufacturing our products and technologies is complex and subject to several risks and uncertainties,
including but not limited to availability and prices of the raw materials (including silver in particular) necessary for production of
our inks, and any major malfunctions in our manufacturing line. Any adverse developments affecting manufacturing operations for our products
and technologies may result in shipment delays, inventory shortages, lot failures, withdrawals or recalls, or other interruptions in the
supply of our products and technologies. We may also have to take inventory write-offs and incur other charges and expenses for products
and technologies that fail to meet specifications, undertake costly remediation efforts, or seek more costly manufacturing alternatives.
6
We are subject to risks resulting from fluctuations
in the price of silver and other raw materials.
The manufacturing process
for our silver-based inks and pastes utilizes a silver salt, the price of which is linked to the price of silver. The price of silver
as well as the price of other raw materials used in the manufacturing process for our inks and pastes, is affected by numerous factors
beyond our control, including inflation, fluctuation of the United States dollar and foreign currencies, global and regional demand, speculative
activities by commodities traders and others and the political and economic conditions of major silver producing countries throughout
the world The volatility of mineral prices represents a substantial risk which no amount of planning or technical expertise can fully
eliminate. In the event the prices of silver or other raw materials used in our manufacturing process increase and remain high for prolonged
periods of time, we may not be able to produce inks and pastes at a cost effective and competitive price. Furthermore, if the price of
silver decreases substantially and remains low for prolonged periods of time, the value proposition that we believe is offered by our
copper-based nano-metric ink and paste may be substantially decreased, since a low price of the silver used in their manufacturing processes
reduces the incentive for manufacturers of electronic devices to replace silver with another metal, such as copper. Any of the foregoing
would have a material adverse effect on our business, financial condition, results of operations, and cash flows.
Our business involves the use of hazardous
materials, and we must comply with environmental, health and safety laws and regulations, which can be expensive and restrict how we do
business, and if we fail to comply with such laws and regulations, we could become subject to fines or penalties or incur costs that could
have a material adverse effect on the success of our business.
Our business involves the
blending, controlled storage, use and disposal of hazardous materials. We are subject to numerous environmental, health and safety laws,
regulations and permitting requirements, currently mainly in Israel, including those governing the emission and discharge of hazardous
materials into ground, air or water; the manufacture, storage, use, management, handling and disposal of hazardous waste; the registration
of chemicals and in the future also import and export of chemicals; the clean-up of contaminated sites; and the health and safety of our
employees. We expect to be subject to similar regulations in any other jurisdictions in which we may establish manufacturing operations
in the future. Although we believe the safety procedures we utilized for handling and disposing of these materials comply with the standards
prescribed by these laws and regulations, we cannot eliminate the risk of accidental contamination or injury from these materials. Some
of these laws and regulations require us to obtain licenses or permits to conduct our operations. Environmental laws and regulations are
complex, change frequently and have tended to become more stringent over time. If we violate or fail to comply with these laws, regulations,
licenses or permits, we could be fined or otherwise sanctioned by regulators. We cannot predict the impact on our business of new or amended
laws or regulations or any changes in the way existing and future laws and regulations are interpreted or enforced, nor can we ensure
we will be able to obtain or maintain any required licenses or permits. In the event of an accident, local or foreign authorities may
curtail the use of these materials and interrupt our business operations. If we are subject to any liability as a result of activities
involving hazardous materials, our business and financial condition may be adversely affected and our reputation may be harmed.
We face competition in the markets in which
we operate and the possibility that our competitors may develop products that are similar to, more advanced than, or more effective than
ours, which may adversely affect our financial condition and our ability to successfully commercialize our products and technologies.
We are currently aware of
various existing products in the market and in development that may compete with our products and technologies, directly and indirectly.
To our knowledge, other companies are currently developing and selling silver-based inkjet inks and pastes for printed electronics ("PE"),
digital electronic inkjet printing applications.
We are aware of several companies seeking to develop
copper-based inks and pastes for printing, however, to our knowledge, none of our competitors has copper-based low viscosity inks in mass
production and at a commercially viable price and quantity to be used in digital printing, and some are using copper oxide as a precursor
in their inks instead of copper. Copper precursors are less effective for thick patterns and high throughput. To our knowledge, we are
the only company offering as much as a 50% copper inkjet low viscosity ink; however, we have not yet proven our ability to mass produce
the product.
7
Many of our competitors have
substantially greater financial, technical, and other resources, such as larger research and development staff and experienced marketing
and manufacturing organizations. Mergers and acquisitions in the conductive ink industry may result in even more resources being concentrated
in our competitors. As a result, these companies may be more effective in selling and marketing their products. Smaller or early-stage
companies may also prove to be significant competitors, particularly through collaborative arrangements with large, established companies.
Competition may increase further as a result of advances in the commercial applicability of technologies and greater availability of capital
for investment in this industry. Our competitors may succeed in developing, acquiring, or licensing on an exclusive basis, products that
are more effective or less costly than our current or future products or technologies, or achieve earlier patent protection, product commercialization,
and market penetration than we do. Additionally, technologies developed by our competitors may render our potential products and technologies
uneconomical or obsolete, and we may not be successful in marketing our products and technologies against competitors.
International expansion of our business
exposes us to business, regulatory, political, operational, financial, and economic risks associated with doing business outside of Israel.
Our headquarters are located
in Israel. Nevertheless, our business strategy incorporates potentially significant international expansion. Doing business internationally
involves a number of risks, including but not limited to:
●
multiple, conflicting, and changing
laws and regulations such as privacy regulations, tax laws, export and import restrictions, employment laws, regulatory requirements,
and other governmental approvals, permits, and licenses;
●
complexities and difficulties
in obtaining protection for and enforcing our intellectual property rights;
●
difficulties in staffing and
managing foreign operations;
●
limitations in our ability to
penetrate international markets;
●
financial risks, such as longer
payment cycles, difficulty collecting accounts receivable, the impact of local and regional financial crises on demand and payment for
our products, and exposure to foreign currency exchange rate fluctuations;
●
changes in foreign regulations
and customs;
●
changes in currency exchange
rates and currency controls;
●
changes in a specific country's
or region's political or economic environment;
●
natural disasters, wars, terrorism,
outbreak of disease, boycotts, curtailment of trade, and other business restrictions;
●
certain expenses including,
among others, expenses for travel, translation, and insurance; and
●
certain countries' regulations
may make it difficult for us to import our inks and pastes into such countries.
Any of these factors could
significantly harm our future international expansion and operations and, consequently, our results of operations.
The health effects of nanotechnology are
unknown.
There is no scientific agreement
on the health effects of nanomaterials, but some scientists believe that, in some cases, nanomaterials may be hazardous to an individual's
health or the environment. The science of nanotechnology is based on arranging atoms in such a way as to modify or build materials. Depending
on the nanomaterials used, the resulting material may not be found in nature; therefore, the effects are unknown. Our technologies are
based on nanometals that are, at most times, dispersed in a liquid minimizing the exposures risks. Moreover, once the metal particles
have been printed and sintered they are no longer nanometals, therefore lowering exposure risks. Although, we take appropriate precautions
for employees working with our materials and believe that any health risks related to the nanometals used in potential products can be
minimized, we cannot assure that such precautions will be effective. Future research in the field of nanomaterials, in general, on health
and environmental issues may have an adverse effect on products using our technology.
8
Our future success depends in part on our
ability to retain our key management personnel and to attract, retain, and motivate other qualified personnel.
We are highly dependent on
our key management personnel, and the loss of their services without proper replacements would adversely impact the achievement of our
objectives. Recruiting and retaining additional key personnel and other qualified employees, consultants, and advisors for our business,
including scientific and technical personnel, will also be critical to our success. We may not be able to attract and retain personnel
on acceptable terms given the competition among numerous high-tech companies for individuals with similar skill sets. The inability to
recruit and retain qualified personnel, or the loss of the services of our key management personnel without proper replacement, may impede
the progress of our research, development, and commercialization objectives.
We may not be successful in our efforts
to identify, license, or discover additional products and technologies.
Although we intend to focus
a substantial amount of our research and development efforts on the continued development and commercialization of our existing products
and technologies, the success of our business also depends upon our ability to identify, license, or discover additional products and
technologies. Given our limited resources it would be difficult to license or otherwise begin development of additional products. Our
research programs or licensing efforts may fail to yield additional products and technologies for development for a number of reasons,
including but not limited to the following:
●
our research or business development
methodology or search criteria and process may be unsuccessful in identifying potential products and technologies;
●
we may not be able or willing
to assemble sufficient resources to acquire or discover additional products and technologies;
●
products and technologies we
develop may be covered by third parties' patents or other exclusive rights;
●
our products and technologies
may not succeed in testing;
●
our potential products and technologies
may have characteristics that make them unmarketable;
●
competitors may develop alternatives
that render our products and technologies obsolete or less attractive;
●
the market for a product may
change during our program so that such a product becomes unreasonable to continue to develop;
●
a product may not be capable
of being produced in commercial quantities at an acceptable cost, or at all; and
●
our products and technologies
may not succeed in testing.
If any of these events occurs,
we may be forced to abandon our development efforts for a program or programs, or we may not be able to identify, license, or discover
additional products and technologies, which would have a material adverse effect on our business. Research programs to identify new products
and technologies require substantial technical, financial, and human resources. We may focus our efforts and resources on potential programs
or products and technologies that ultimately prove to be unsuccessful.
Environmental, social and corporate governance
("ESG") issues, including those related to climate change and sustainability, may have an adverse effect on our business,
financial condition and results of operations and damage our reputation.
There is an increasing focus
from certain investors, customers, consumers, employees and other stakeholders concerning ESG matters. Additionally, public interest and
legislative pressure related to public companies' ESG practices continue to grow. If our ESG practices fail to meet regulatory requirements
or investor, employee or other stakeholders' evolving expectations and standards for responsible corporate citizenship in areas
including environmental stewardship, support for local communities, Board of Director and employee diversity, human capital management,
employee health and safety practices, product quality, supply chain management, corporate governance and transparency, our reputation
and employee retention may be negatively impacted, and our suppliers may be unwilling to continue to do business with us.
9
Investors and other stakeholders
are increasingly focusing on environmental issues, including climate change, energy and water use, plastic waste and other sustainability
concerns. Concern over climate change may result in new or increased legal and regulatory requirements to reduce or mitigate impacts to
the environment. Increased regulatory requirements may result in increased demands or requirements regarding components of our products
and their environmental impact on sustainability. Complying with these demands or requirements could cause us to incur additional manufacturing,
operating or product development costs.
In addition, new sustainability
rules and regulations have been adopted and may continue to be introduced in various states and other jurisdictions. For example, the
SEC has published proposed rules that would require companies to provide significantly expanded climate-related disclosures in their periodic
reporting, which may require us to incur significant additional costs to comply and impose increased oversight obligations on our management
and board of directors.
If we do not adapt to or comply
with new regulations, or fail to meet evolving investor, industry or stakeholder expectations and concerns regarding ESG issues, investors
may reconsider their capital investment in our Company, which could have a material adverse effect on our business or financial condition.
Our business, operating results and growth
rates may be adversely affected by current or future unfavorable economic and market conditions and adverse developments with respect
to financial institutions and associated liquidity risk.
Our business depends on the
economic health of the global economies. If the conditions in the global economies remain uncertain or continue to be volatile, or if
they deteriorate, including as a result of the impact of military conflict, such as the war between Russia and Ukraine, terrorism or other
geopolitical events, our business, operating results and financial condition may be materially adversely affected. Economic weakness,
inflation and increases in interest rates, limited availability of credit, liquidity shortages and constrained capital spending have at
times in the past resulted, and may in the future result, in challenging and delayed sales cycles, slower adoption of new technologies
and increased price competition, and could negatively affect our ability to forecast future periods. In addition, the military conflict
may affect the ability to purchase materials sourced in Russia.
In addition, increases in
inflation raise our costs for commodities, labor, materials and services and other costs required to operate our business, and failure
to secure these on reasonable terms may adversely impact our financial condition. Additionally, increases in inflation, along with the
uncertainties surrounding COVID-19, geopolitical developments and global supply chain disruptions, have caused, and may in the future
cause, global economic uncertainty and uncertainty about the interest rate environment, which may make it more difficult, costly or dilutive
for us to secure additional financing. A failure to adequately respond to these risks could have a material adverse impact on our financial
condition, results of operations or cash flows.
More recently, the closures of SVB and Signature
Bank and their placement into receivership with the FDIC created bank-specific and broader financial institution liquidity risk and concerns.
Although the Department of the Treasury, the Federal Reserve and the FDIC jointly released a statement that depositors at SVB and Signature
Bank would have access to their funds, even those in excess of the standard FDIC insurance limits, under a systemic risk exception, future
adverse developments with respect to specific financial institutions or the broader financial services industry may lead to market-wide
liquidity shortages, impair the ability of companies to access near-term working capital needs, and create additional market and economic
uncertainty. There can be no assurance that future credit and financial market instability and a deterioration in confidence in economic
conditions will not occur. Our general business strategy may be adversely affected by any such economic downturn, liquidity shortages,
volatile business environment or continued unpredictable and unstable market conditions. If the current equity and credit markets deteriorate,
or if adverse developments are experienced by financial institutions, it may cause short-term liquidity risk and also make any necessary
debt or equity financing more difficult, more costly, more onerous with respect to financial and operating covenants and more dilutive.
Failure to secure any necessary financing in a timely manner and on favorable terms could have a material adverse effect on our strategy,
our financial condition, results of operations or cash flows and stock price and could require us to alter our plans. In addition, there
is a risk that one or more of our service providers
,
financial institutions, manufacturers, suppliers and other partners
may be adversely affected by the foregoing risks, which could directly affect our ability to attain our operating goals on schedule and
on budget.
10
A pandemic, epidemic or outbreak of an infectious
disease, such as COVID-19, may materially and adversely affect our business, financial condition and operating results.
Public health crises such
as pandemics or similar outbreaks could adversely impact our business. Beginning in 2019, a novel strain of a virus named SARS-CoV-2 (severe
acute respiratory syndrome coronavirus 2), or coronavirus, which causes COVID-19, spread to most countries across the world, including
Israel. The COVID-19 pandemic led to the implementation of various responses, including government-imposed quarantines, travel restrictions
and other public health safety measures. In early 2020, the World Health Organization declared the rapidly spreading coronavirus disease
(COVID-19) outbreak a pandemic. We experienced disruptions to our operations as a result of the COVID-19 pandemic, including disruptions
to the Company's clinical studies.  The extent to which the COVID-19 pandemic may in the future impact our operations or those
of our third-party partners will depend on future developments, which are highly uncertain and cannot be predicted with confidence. In
particular, any future spread of COVID-19 globally or the reinstatement of restrictions or other actions that may be required to contain
COVID-19 or treat its impact could materially adversely impact our operations and workforce, including our research and development activities
and could result in the inability of our suppliers to deliver components or raw materials on a timely basis or at all, each of which in
turn could have a material adverse impact on our business, financial condition and results of operation. Further, uncertainty around the
COVID-19 pandemic and related issues could lead to adverse effects on the economy of Israel, the United States and other economies, which
could impact our ability to raise the necessary capital needed to develop and commercialize our products.
Risks Related to Our Intellectual Property
If we are unable to obtain and maintain
effective patent rights for our products and technologies or any future products and technologies, we may not be able to compete effectively
in our markets.
We rely upon a combination
of patents, trade secret protection, and confidentiality agreements to protect the intellectual property related to our products and technologies.
Our success depends in large part on our and our licensors' ability to obtain and maintain patent and other intellectual property
protection in the United States and in other countries with respect to our proprietary technology and products.
We have sought to protect
our proprietary position by filing patent applications in the United States and in other countries, as well as related to our novel technologies
and products that are important to our business. The silver ink and dispersions-related patent applications based on PCT/US2011/063459,
have been granted in several countries, including China, Russia, Japan, India, Israel, Korea, Brazil, France, Germany, the United Kingdom,
the Netherlands, the U.S. and the European Union and we currently have additional patent applications pending in the U.S. supporting our
silver-based inks, dispersions and some pastes. Our patent application based on PCT/IB2015/051536, relating to copper-based inks and dispersions,
has been granted in several countries, including Europe, Russia, the United Kingdom, Belgium, Germany, Finland, France, Ireland, the Netherlands,
Israel, Brazil, India and the United States. Additionally, we have patent applications based on PCT/IB2015/051536, relating to copper-based
ink, which have been submitted to national phase in South Korea, Japan and China. This process is expensive and time consuming, and we
may not be able to file and prosecute all necessary or desirable patent applications at a reasonable cost or in a timely manner. It is
also possible that we will fail to identify patentable aspects of our research and development output before it is too late to obtain
patent protection.
The patent position of technology
companies generally is highly uncertain and involves complex legal and factual questions for which legal principles remain unsolved. The
patents or patent applications that we own or in-license may fail to result in issued patents with claims that cover our products and
technologies in the United States or in other foreign countries. There is no assurance that all potentially relevant prior art relating
to our patents and patent applications has been found. The discovery of relevant prior art can invalidate a patent or prevent a patent
from issuing from a pending patent application. Even if patents do successfully issue, and even if such patents cover our products and
technologies, 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, our patents and patent applications may not adequately protect
our intellectual property, provide exclusivity for our products and technologies, or prevent others from designing around our claims.
Any of these outcomes could impair our ability to prevent competition from third parties, which may have an adverse impact on our business.
11
We, independently or together
with our licensors, have filed several patent applications covering various aspects of our products and technologies. Even though some
have already been granted, we cannot provide any assurances about which, if any, additional patents will issue, the breadth of any such
patent or whether any issued patents will be found invalid and unenforceable or will be threatened by third parties. Any successful opposition
to these patents or any other patents owned by or licensed to us after patent issuance could deprive us of rights necessary for the successful
commercialization of any products and technologies that we may develop. Further, if we encounter delays in regulatory approvals, the period
of time during which we could market a product under patent protection could be reduced.
If we cannot obtain and maintain
effective patent rights for our products and technologies, we may not be able to compete effectively and our business and results of operations
would be harmed.
If we are unable to maintain effective proprietary
rights for our products and technologies or any future products and technologies, we may not be able to compete effectively in our markets.
In addition to the protection
afforded by patents, we rely on trade secret protection and confidentiality agreements to protect proprietary knowhow that is not patentable
or that we elect not to patent, processes for which patents are difficult to enforce and any other elements of our product candidate discovery
and development processes that involve proprietary knowhow, information or technology that is not covered by patents. However, trade secrets
can be difficult to protect. We seek to protect our proprietary technology and processes, in part, by entering into confidentiality agreements
with our employees, consultants, scientific advisors, and contractors. We also seek to preserve the integrity and confidentiality of our
data and trade secrets by maintaining physical security of our premises and physical security of our information technology systems. While
we have confidence in these individuals, organizations and systems, agreements or security measures may be breached, and we may not have
adequate remedies for any breach. In addition, our trade secrets may otherwise become known or be independently discovered by competitors.
Although we expect all of
our employees and consultants to assign their inventions to us, and all of our employees, consultants, advisors, and any third parties
who have access to our proprietary knowhow, information, or technology to enter into confidentiality agreements, we cannot provide any
assurances that all such agreements have been duly executed or that our trade secrets and other confidential proprietary information will
not be disclosed or that competitors will not otherwise gain access to our trade secrets or independently develop substantially equivalent
information and techniques. Misappropriation or unauthorized disclosure of our trade secrets could impair our competitive position and
may have a material adverse effect on our business. Additionally, if the steps taken to maintain our trade secrets are deemed inadequate,
we may have insufficient recourse against third parties for misappropriating the trade secret.
Third-party claims of intellectual property
infringement may prevent or delay our development and commercialization efforts.
There have been many lawsuits
and other proceedings involving patent and other intellectual property rights in the high-technology industries, including patent infringement
lawsuits, interferences, oppositions, and reexamination proceedings before the USPTO and corresponding foreign patent offices. Numerous
U.S. and foreign issued patents and pending patent applications, which are owned by third parties, exist in the fields in which we are
developing products and technologies. As the conductive ink and paste industry expands and more patents are issued, the risk increases
that our products and technologies may be subject to claims of infringement of the patent rights of third parties. We have never conducted
a freedom to operate study.
12
Third parties may assert that
we are employing their proprietary technology without authorization. There may be third-party patents or patent applications with claims
to materials, formulations, or methods of manufacture related to the use or manufacture of our products and technologies. Because patent
applications can take many years to issue, there may be currently pending patent applications that may later result in issued patents
that our products and technologies may infringe. In addition, third parties may obtain patents in the future and claim that use of our
technologies infringes upon these patents. If any third-party patents were held by a court of competent jurisdiction to cover the manufacturing
process of any of our products and technologies, the holders of any such patents may be able to block our ability to commercialize such
product or technology unless we obtained a license under the applicable patents, or until such patents expire or are finally determined
to be invalid or unenforceable.
Similarly, if any third-party
patents were held by a court of competent jurisdiction to cover aspects of our formulations, processes for manufacture, or methods of
use, the holders of any such patents may be able to block our ability to develop and commercialize the applicable product or technology
unless we obtained a license or until such patent expires or is finally determined to be invalid or unenforceable. In either case, such
a license may not be available on commercially reasonable terms or at all.
Parties making claims against
us may obtain injunctive or other equitable relief, which could effectively block our ability to further develop and commercialize one
or more of our products and technologies. Defense of these claims, regardless of their merit, would involve substantial litigation expense
and would be a substantial diversion of employee resources from our business. In the event of a successful claim of infringement against
us, we may have to pay substantial damages (including treble damages and attorneys' fees for willful infringement), pay royalties,
redesign our infringing products or obtain one or more licenses from third parties, which may be impossible or require substantial time
and monetary expenditure.
We may become subject to claims of intellectual
property infringement by third parties or may be required to indemnify our distributors or other third parties against such claims, which,
regardless of their merit, could result in litigation, distract our management and materially adversely affect our business, results of
operations or financial condition.
We have in the past and may
in the future become subject to third-party claims that assert that our solutions, services and intellectual property infringe, misappropriate
or otherwise violate third-party intellectual property or other proprietary rights.
Intellectual property disputes
can be costly and disruptive to our business operations by diverting the attention and energies of management and key technical personnel,
and by increasing our costs of doing business. Even if a claim is not directly against us, our agreements with distributors generally
require us to indemnify them against losses from claims that our products infringe third-party intellectual property rights and entitle
us to assume the defense of any claim as part of the indemnification undertaking. Our assumption of the defense of such a claim may result
in similar costs, disruption and diversion of management attention to that of a claim that is asserted directly against us. We may not
prevail in any such dispute or litigation, and an adverse decision in any legal action involving intellectual property rights could harm
our intellectual property rights and the value of any related technology or limit our ability to execute our business.
Adverse outcomes in intellectual
property disputes could:
●
require us to redesign our technology
or force us to enter into costly settlement or license agreements on terms that are unfavorable to us;
●
prevent us from manufacturing,
importing, using, or selling some or all of our solutions;
●
disrupt our operations or the
markets in which we compete;
13
●
impose costly damage awards;
●
require us to indemnify our
distributors and customers; and
●
require us to pay royalties.
We may not be successful in obtaining or
maintaining necessary rights to our products and technologies through intellectual property rights in-licenses.
We currently have rights to
the intellectual property, through licenses from third parties and under patents that we own, to develop our products and technologies.
Because our programs may require the use of proprietary rights held by third parties, the growth of our business will likely depend in
part on our ability to in-license, or use these proprietary rights. In addition, our products and technologies may require specific formulations
to work effectively and efficiently and the rights to these formulations may be held by others. We may be unable to acquire or in-license
any compositions, methods of use, processes, or other third-party intellectual property rights from third parties that we identify as
necessary for our products and technologies. The licensing and acquisition of third-party intellectual property rights is a competitive
area, and a number of more established companies are also pursuing strategies to license or acquire third-party intellectual property
rights that we may consider attractive. These established companies may have a competitive advantage over us due to their size, cash resources,
and greater development and commercialization capabilities.
In addition, companies that
perceive us to be a competitor may be unwilling to assign or license rights to us. We also may be unable to license or acquire third-party
intellectual property rights on terms that would allow us to make an appropriate return on our investment. If we are unable to successfully
obtain rights to required third-party intellectual property rights, we may have to abandon development of that program and our business
and financial condition could suffer.
We may not be able to fully enforce covenants
not to compete with our key employees, and therefore we may be unable to prevent our competitors from benefiting from the expertise of
such employees.
Our employment agreements
with our key employees contain non-compete provisions. These provisions prohibit our key employees, if they cease working for us, from
competing directly with us or working for our competitors for a limited period of time. We may be unable to enforce these provisions under
applicable laws in Israel where all of our key employees reside. In Israel, the Basic Law: Freedom of Occupation, as interpreted by binding
case law, may restrict our ability to enforce non-compete provisions against our employees. If we cannot enforce our non-compete provisions
against our employees, we may be unable to prevent our competitors from benefiting from the expertise of such employees. Even if these
provisions are enforceable, they may not adequately protect our interests. As a result, if one or more of our employees leaves our employment
and subsequently becomes employed by one of our competitors, our business, results of operations and ability to capitalize on our proprietary
information may be materially adversely affected.
We may not be able to protect our intellectual
property rights throughout the world.
Filing, prosecuting, and defending
patents on products and technologies in all countries throughout the world would be prohibitively expensive, and our intellectual property
rights in some countries outside the United States can be less extensive than those in the United States. In addition, the laws of some
foreign countries do not protect intellectual property rights to the same extent as federal and state laws in the United States.
Competitors may use our technologies
in jurisdictions where we have not obtained patent protection to develop their own products and may also export otherwise infringing products
to territories where we have patent protection, but enforcement is not as strong as that in the United States. These products may compete
with our products and our patents or other intellectual property rights may not be effective or sufficient to prevent them from competing.
14
Many companies have encountered
significant problems in protecting and defending intellectual property rights in foreign jurisdictions. The legal systems of certain countries,
particularly certain developing countries, do not favor the enforcement of patents, trade secrets, and other intellectual property protection,
which could make it difficult for us to stop the infringement of our patents or marketing of competing products in violation of our proprietary
rights generally. Proceedings to enforce our patent rights in foreign jurisdictions, whether or not successful, could result in substantial
costs and divert our efforts and attention from other aspects of our business, could put our patents at risk of being invalidated or interpreted
narrowly and our patent applications at risk of not issuing and could provoke third parties to assert claims against us. We may not prevail
in any lawsuits that we initiate and the damages or other remedies awarded, if any, may not be commercially meaningful. Accordingly, our
efforts to enforce our intellectual property rights around the world may be inadequate to obtain a significant commercial advantage from
the intellectual property that we develop or license.
Risks Related to Our Operations in Israel
Our headquarters and other significant operations
are located in Israel and, therefore, our results may be adversely affected by political, economic and military instability in Israel.
Our executive offices, application
department, labs, production site and warehouse are located in Migdal Ha'Emek, Israel. In addition, all of our officers and directors
are residents of Israel. Accordingly, political, economic and military conditions in Israel may directly affect our business. Since the
establishment of the State of Israel in 1948, a number of armed conflicts have taken place between Israel and its neighboring countries
and militia groups. In recent years, Israel has been engaged in sporadic armed conflicts with Hamas, 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. Certain of these conflicts involved missile strikes against civilian targets in various parts of Israel, including
the city in which our headquarters are located as well as areas in which our employees and some of our consultants are located, and negatively
affected business conditions in Israel. In addition, Iran has threatened to attack Israel, may be developing nuclear weapons and has targeted
cyber attacks against Israeli entities.
Popular uprisings in various
countries in the Middle East and North Africa have affected the political stability of those countries. Such instability may lead to deterioration
in the political and trade relationships that exist between the State of Israel and these countries. Furthermore, several countries, principally
in the Middle East, still restrict doing business with Israel and Israeli companies, while some of these countries are eliminating these
constrains, additional countries may impose restrictions on doing business with Israel and Israeli companies if hostilities in Israel
or political instability in the region continues or increases. These restrictions may limit materially our ability to obtain raw materials
from these countries or sell our products to companies or persons in these countries. Any armed conflicts, terrorist activities or political
instability in the region could adversely affect business conditions and could harm our results of operations and could make it more difficult
for us to raise capital. Parties with whom we do business may sometimes decline to travel to Israel during periods of heightened unrest
or tension, forcing us to make alternative arrangements when necessary in order to meet our business partners face to face. In addition,
the political and security situation in Israel may result in parties with whom we have agreements involving performance in Israel claiming
that they are not obligated to perform their commitments under those agreements pursuant to force majeure provisions in such agreements.
Any hostilities involving Israel or the interruption or curtailment of trade between Israel and its present trading partners, or significant
downturn in the economic or financial condition of Israel, could adversely affect our operations and product development, cause our sales
to decrease and, if our securities become publicly traded, adversely affect the share price of our securities.
Our commercial insurance does
not cover losses that may occur as a result of an event associated with the security situation in the Middle East. Although the Israeli
government is currently committed to covering the reinstatement value of direct damages that are caused by terrorist attacks or acts of
war, we cannot assure you that this government coverage will be maintained, or if maintained, will be sufficient to compensate us fully
for damages incurred. Any losses or damages incurred by us could have a material adverse effect on our business. Any armed conflicts or
political instability in the region would likely negatively affect business conditions generally and could harm our results of operations.
15
Furthermore, the Israeli government
is currently pursuing extensive changes to Israel's judicial system. In response to the foregoing developments, individuals, organizations
and 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, they may have an adverse effect on our business, our
results of operations and our ability to raise additional funds.
In
addition, our operations could also be disrupted by the obligations of personnel to perform military service. As of December 31, 2022,
we had 11 employees and independent contractors, all of whom were based in Israel. Some of these Israeli employees and independent contractors
may be called upon to perform up to 54 days in each three year period (and in the case of military officers, up to 84 days in each three
year period) of military reserve duty until they reach the age of 40 (and in some cases, depending on their specific military profession
up to 45 or even 49 years of age) and, in certain emergency circumstances, may be called to immediate and unlimited active duty. In response
to increases in terrorist activity, there have been periods of significant call-ups of military reservists and it is possible that there
will be similar large-scale military reserve duty call-ups in the future. Our operations could be disrupted by the absence of a significant
number of employees related to military service, which could materially adversely affect our business and results of operations
.
The Israeli government grants we have received
for research and development expenditures restrict our ability to manufacture products and transfer technologies outside of Israel and
require us to satisfy specified conditions. If we fail to satisfy these conditions, we may be required to refund grants previously received
together with interest and penalties.
We have received grants from
the Israel Innovation Authority (the "IIA"), for research and development programs and may apply for further grants in the
future. In order to maintain our eligibility for these grants, we must comply with the requirements of the Encouragement of Research,
Development and Technological Innovation in the Industry Law 5744-1984 (formerly known as the Law for the Encouragement of Research and
Development in Industry 5744-1984), and the regulations and guidelines promulgated thereunder (the "Innovation Law"). U
nder
the terms of the Innovation Law, in exchange for the research and development grants we received, we are required to pay the IIA royalties
at the rate of 3% from our revenues up to an aggregate of 100% (which may be increased under certain circumstances, as described below)
of the U.S. dollar-linked value of the grant, plus interest at the rate of 12-month LIBOR.
As of December 31, 2022, we and our
wholly-owned subsidiaries had received funding from the IIA in the aggregate amount of approximately $3.7 million. As of December 31,
2022, we and our wholly-owned subsidiaries had paid royalties to the IIA in the aggregate amount of approximately $1.1 million and had
an obligation to the IIA with respect to such funding (including interest) in the amount of approximately $3.2 million (approximately
$2.0 million out of such amount are contingent liabilities and therefore, not recorded in our liabilities).
The Innovation Law generally
requires that the products developed as part of the programs under which the grants were given be manufactured in Israel and that the
know-how developed thereunder may not be transferred outside of Israel, unless a prior written approval is received from IIA (such approval
is not required for the transfer of a portion of the manufacturing capacity which does not exceed, in the aggregate, 10% of the portion
declared to be manufactured outside of Israel in the applications for funding, in which case only notification is required) and additional
payments are required to be made to IIA. The export of products that incorporate the funded know-how is not restricted. As of the date
of this annual report on Form 20-F, we have not sought to obtain such approvals, as we do not have immediate plans to manufacture outside
of Israel. We may not receive the required approvals for any transfer of manufacturing activities, if such transfer will be contemplated
in the future. Even if we do receive approval to manufacture products developed with IIA grants outside of Israel, the royalty rate may
be increased and we may be required to pay up to 300% of some or all of the grant amounts requiring repayment plus interest, depending
on the manufacturing volume that is performed outside of Israel. This restriction may impair our ability to outsource manufacturing or
engage in our own manufacturing operations for those products or technologies.
16
Additionally, under the Innovation
Law, we are prohibited from transferring, including by way of license, the IIA-financed technologies and related intellectual property
rights and knowhow outside of the State of Israel, except under limited circumstances and only with the prior approval of the IIA. As
of the date of this annual report on Form 20-F, we have not sought to obtain such approvals, as we do not have immediate plans to transfer
the IIA-funded technologies and related intellectual property rights and knowhow outside of Israel. We may not receive the required approvals
for any proposed transfer, if any, and even if received, we may be required to pay the IIA a portion of the consideration that we receive
upon any sale of such technology to a non-Israeli entity up to 600% of the grant amounts plus interest. The scope of the support received,
the royalties that we have already paid to the IIA, the amount of time that has elapsed between the date on which the knowhow or the related
intellectual property rights were transferred and the date on which the IIA grants were received and the sale price and the form of transaction
will be taken into account in order to calculate the amount of the payment to the IIA. Approval of the transfer of technology to residents
of the State of Israel is required, and may be granted in specific circumstances only if the recipient abides by the provisions of applicable
laws, including the restrictions on the transfer of knowhow and the obligation to pay royalties. No assurance can be made that approval
to any such transfer, if requested, will be granted.
These restrictions may impair
our ability to sell our technology assets or to perform or outsource manufacturing outside of Israel, engage in change of control transactions
or otherwise transfer our knowhow outside of Israel and may require us to obtain the approval of the IIA for certain actions and transactions
and pay additional royalties and other amounts to the IIA.
These restrictions will continue
to apply even after we have repaid the full amount of royalties on the grants. If we fail to satisfy the conditions of the Innovation
Law, we may be required to refund certain grants previously received together with interest and penalties, and may become subject to criminal
charges.
The Government of Israel has
reduced the grants available under the IIA's program in recent years, and this program may be discontinued or curtailed in the future.
If we do not receive additional grants in the future, we will be required to allocate other funds to product development at the expense
of other operational costs.
We have also received a grant
from the Israeli Ministry of Energy (the "Ministry") for one of our research and development programs. In order to maintain
our eligibility for this grant, we must meet specified conditions, including the payment of royalties of 5% (plus interest) of any revenues
generated from the intellectual property generated under the program. As of December 31, 2022, we had received funding from the Ministry
in the aggregate amount of approximately NIS 585,119 ($168,574, based on the NIS/US$ exchange rate published by the Bank of Israel on
December 31, 2013 of $1.00 = NIS 3.471). As of December 31, 2022, we had a contingent obligation to the Ministry with respect to such
funding (including interest), following the payment of royalties up to that date, in the amount of NIS 576,773 (approximately $163,903).
If we fail to comply with these conditions in the future, sanctions (such as the cancellation of the grant) might be imposed on us, and
we could be required to refund any payments previously received. The terms of the Ministry's grant require us, among other things,
to obtain the Ministry's approval prior to any assignment of know-how developed under the research and development program funded
with its grant and we must continue to comply with the grant requirements of our agreement with the Ministry regarding intellectual property
even following full repayment of any Ministry grant. The Ministry also has a right to receive a nonexclusive royalty free license to the
know-how developed under any such program to the extent necessary for national needs. Pursuant to the terms of the grant, until the later
of (i) full repayment of our contingent liability to the Ministry, or (ii) finalization of the research and development program, we are
required to notify the Ministry of any new funding offered to us, including by the State of Israel, and the Ministry has a right to negotiate
with such investor(s) for the repayment by us of the grant provided to us by the Ministry.
17
Exchange rate fluctuations, primarily between
the U.S. dollar and the NIS currencies, and inflation may negatively affect our results of operations.
We incur expenses both in
U.S. dollars and NIS, but our consolidated financial statements are denominated in U.S. dollars. As a result, we are exposed to the risks
that the NIS may appreciate relative to the U.S. dollar, or, if the NIS instead depreciates relative to the U.S. dollar, that the inflation
rate in Israel may exceed such rate of depreciation of the NIS, or that the timing of such depreciation may lag behind inflation in Israel.
In any such event, the U.S. dollar cost of our operations in Israel would increase and our U.S. dollar-denominated results of operations
would be adversely affected. We cannot predict any future trends in the rate of inflation in Israel or the rate of depreciation (if any)
of the NIS against the U.S. dollar. In addition, we may incur operating expenses denominated in Euros, and therefore, our operating results
may also be subject to fluctuations due to changes in the U.S. dollar/Euro exchange rate. We cannot predict any future trends in the rate
of inflation in Israel or the rate of depreciation (if any) of the NIS, the Euro and other foreign currencies against the U.S. dollar.
Given our general lack of currency hedging arrangements to protect us from fluctuations in the exchange rates of the NIS and Euro and
other foreign currencies in relation to the U.S. dollar (and/or from inflation of such foreign currencies), we may be exposed to adverse
effects from such movements. The rate of inflation in Israel or Europe or in currency exchange rates may materially change and we might
not be able to effectively mitigate these risks.
Provisions of Israeli law and our Amended
and Restated Articles of Association ("Articles of Association"), may delay, prevent or make undesirable an acquisition of
all or a significant portion of our shares or assets.
Provisions of Israeli law
and our Articles of Association could have the effect of delaying or preventing a change in control of our company; may make it more difficult
for a third-party to acquire us; may make it more difficult for our shareholders to elect different individuals to our board of directors,
even if doing so would be considered to be beneficial by some of our shareholders; and may limit the price that investors may be willing
to pay in the future for our ordinary shares. Among other things:
●
Israeli corporate law regulates
mergers and requires that a tender offer be effected when more than a specified percentage of shares in a company are purchased;
●
our Articles of Association
generally require a vote of the holders of a majority of our outstanding ordinary shares entitled to vote and present at a general meeting
of shareholders; however, the amendment of a limited number of provisions related to the board of directors, proceedings of the board
of directors, and business combinations require a vote of the holders of 60% of our outstanding ordinary shares entitled to vote and
present at a general meeting (excluding abstentions);
●
our Articles of Association
require a vote of the holders of 60% of our outstanding ordinary shares entitled to vote and present at a general meeting (excluding
abstentions) for the removal of directors prior to the expiration of his or her term of office;
●
our Articles of Association
provide that director vacancies may only be filled by our board of directors; and
●
our Articles of Association
prevent "business combinations" with "interested shareholders" for a period of three years after the date of
the transaction in which the person became an interested shareholder, unless the business combination is approved in accordance with
our Articles of Association by a general meeting of our shareholders or satisfies other requirements specified in our Articles of Association.
18
Our Articles of Association
provide for a board of directors consisting of no less than three and no more than seven directors, with all directors (other than the
external directors, whose appointment is required under the Israeli Companies Law, 1999 (the "Companies Law"), as described
below) divided into three classes with staggered three-year terms with each class of directors to consist, as nearly as possible, of one-third
of the total number of directors other than the external directors. This provision may make it more difficult for our shareholders to
elect different individuals to our board of directors, even if doing so would be considered to be beneficial by some of our shareholders,
may limit the price that investors may be willing to pay in the future for our ordinary shares, and may make it more difficult for a potential
acquiror to effect a change of control of our Company or may deter potential acquirors from seeking to effect a change of control.
In addition, under our Articles
of Association, as approved by our shareholders on November 29, 2018, GTRIMG Investments Ltd. ("GTRIMG"), our controlling
shareholder, has the right, so long it holds at least 5% of our issued and outstanding share capital, conditioned upon a $2.0 million
investment by GTRIMG following such date, to appoint a director to the Board who shall also serve as the chairman of the Board, provided
that such nominee has the required qualifications under applicable laws, including the stock exchange rules then applicable. In April
2020, following completion of GTRIMG's $2.0 million investment, GTRIMG appointed Mr. Dov Farkash to serve as a member of our Board
as Active Chairman.
Furthermore, under an agreement
dated October 27, 2021, entered into in connection with a
private placement of our securities, certain
of the investors, including GTRIMG, Messrs. Leon and Lenny Recanati, Dan Vilenski and Teuza, have the right to appoint three directors
to our Board. Accordingly, Mr. Ofer Greenberger and Mr. David Boas were appointed to our Board as of May 19, 2022. Mr. Boas resigned from
our Board as of January 1, 2023, and was replaced by Mr. Keinan Maman, who was appointed
as a director as of March 6, 2023
.
Further, Israeli tax considerations
may make potential transactions undesirable to us or to some of our shareholders whose country of residence does not have a tax treaty
with Israel granting tax relief to such shareholders from Israeli tax. With respect to mergers, Israeli tax law allows for tax deferral
in certain circumstances but makes the deferral contingent on the fulfillment of various 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 actual disposition of the shares has occurred.
The tax benefits that are available to us
as a preferred enterprise require us to continue to meet various conditions and may be terminated or reduced in the future, which could
increase our costs and taxes.
We have not yet elected to
be treated as a preferred enterprise for Israeli tax purposes, a designation which would allow us to receive certain tax benefits, since
we are still not at a stage where we have to pay tax due to carry forward losses. Once we are liable for tax payments, we may be entitled
to reduced tax rates and other tax benefits. If these tax benefits were reduced or eliminated or if we no longer comply with the various
pre-conditions required, the amount of taxes that we pay would consequently be subject to corporate tax at the standard rate, which could
adversely affect our results of operations.
19
It may be difficult to enforce a judgment
of a United States court against us and our officers and directors and the Israeli experts named in this annual report on Form 20-F located
in Israel or the United States, to assert United States securities laws claims in Israel or to serve process on our officers and directors
and these experts.
We were incorporated in Israel.
Our executive officers and all of our directors reside outside of the United States, and all of our assets and most of the assets of these
persons are located outside of the United States. Therefore, a judgment obtained against us, or any of these persons, including a judgment
based on the civil liability provisions of the U.S. federal securities laws, may not be collectible in the United States and may not necessarily
be enforced by an Israeli court. It also may be difficult for you to effect service of process on these persons in the United States or
to assert U.S. securities law claims in original actions instituted in Israel. Additionally, it may be difficult for an investor, or any
other person or entity, to initiate an action with respect to United States securities laws in Israel. Israeli courts may refuse to hear
a claim based on an alleged violation of United States securities laws, reasoning that Israel is not the most appropriate forum in which
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 United
States law is applicable to the claim. If United States law is found to be applicable, the content of applicable United States law must
be proven as a fact by expert witnesses, 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 that addresses the matters described above. As a result of the difficulty associated
with enforcing a judgment against us in Israel, you may not be able to collect any damages awarded by either a United States or foreign
court.
Risks Related to Our Ordinary Shares
Our U.S. investors may suffer adverse tax
consequences if we are characterized as a passive foreign investment company.
Generally, if for any taxable
year 75% or more of our gross income is passive income, or at least 50% of our assets are held for the production of, or produce, passive
income, we would be characterized as a passive foreign investment company ("PFIC"), for U.S. federal income tax purposes.
We have not determined whether we have been a PFIC for 2022 or any previous year, or whether we will be a PFIC in any future year. Because
PFIC status is determined annually and is based on our income, assets and activities for the entire taxable year, there can be no assurance
that we will not be classified as a PFIC in any year. If we were to be characterized as a PFIC for U.S. federal income tax purposes in
any taxable year during which a U.S. Investor owns ordinary shares, such U.S. Investor could face adverse U.S. federal income tax consequences,
including having gains realized on the sale of our ordinary shares classified as ordinary income, rather than as capital gain, the loss
of the preferential rate applicable to dividends received on our ordinary shares by individuals who are U.S. Investors, and having interest
charges apply to distributions by us and the proceeds of share sales. A "qualified electing fund" election may alleviate some
of the adverse consequences of PFIC status; however, we do not intend to provide the information necessary for U.S. Investors to make
qualified electing fund elections if we are classified as a PFIC.
Your rights and responsibilities as a shareholder
will be governed by Israeli law which differs in some material respects from the rights and responsibilities of shareholders of U.S. companies.
The rights and responsibilities
of our shareholders are governed by Israeli law and our Articles of Association. These rights and responsibilities differ in some material
respects from the rights and responsibilities of shareholders in typical U.S.-based 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 general
meetings 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. However, Israeli law does not define the substance
of this duty of fairness. There is limited case law available to assist us in understanding the nature of this duty or the implications
of these provisions. These provisions may be interpreted to impose additional obligations and liabilities on our shareholders that are
not typically imposed on shareholders of U.S. corporations.
20
We have never paid cash dividends on our
share capital, and we do not anticipate paying any cash dividends in the foreseeable future.
We have never declared or
paid cash dividends on our share capital, nor do we anticipate paying any cash dividends on our share capital in the foreseeable future.
We currently intend to retain all available funds and any future earnings to fund the development and growth of our business. As a result,
capital appreciation, if any, of our ordinary shares will be investors' sole source of gain for the foreseeable future. In addition,
Israeli law limits our ability to declare and pay dividends, and may subject our dividends to Israeli withholding taxes. Furthermore,
our payment of dividends (out of tax-exempt income) may retroactively subject us to certain Israeli corporate income taxes, to which we
would not otherwise be subject.
Our major shareholders, directors and officers
as a group have significant voting power and may take actions that may not be in the best interest of shareholders.
Our major shareholders, GTRIMG,
Messrs. Leon and Lenny Recanati or companies under their control
and
Teuza
– A Fairchild Technology Venture Ltd. ("Teuza"), and our
directors and officers as a group beneficially owned
approximately 81.05% of our outstanding ordinary shares as of May 15, 2023. As a result, they will have the ability to exert substantial
influence over all matters requiring approval by our shareholders, including the election and removal of directors and any proposed merger,
consolidation or sale of all or substantially all of our assets.
Their interests may not be consistent
with those of our other shareholders.
In addition, due to their share ownership, our major shareholders, the directors appointed
by them, our other directors and executive officers could dictate the management of our business and affairs. As of May 15, 2023, GTRIMG
beneficially owned in the aggregate approximately 40.23% of our outstanding ordinary shares. This concentration of ownership
may
discourage third parties from seeking to acquire control of us and
could have the effect of delaying, deferring or preventing a
change in control, or impeding a merger or consolidation, takeover or other business combination that could be favorable to you. This
significant concentration of share ownership may also adversely affect the trading price for our ordinary shares, if a public market further
develops for such securities, because investors may perceive disadvantages in owning stock in a company with controlling affiliated shareholders.
We incur significant costs as a result of
operating as a public company, and our management is required to devote substantial time to new compliance initiatives.
We are subject to the requirements
to file periodic and annual reports under Section 15(d) of the Exchange Act, and are otherwise subject to laws applicable to public reporting
companies in the United States. As a public reporting company, we incur significant legal, accounting, and other expenses. In addition,
the Sarbanes-Oxley Act, as amended, and the rules and regulations of the SEC thereunder, have imposed various requirements on public companies.
Shareholder activism, the current political environment, and the current high level of government intervention and regulatory reform may
lead to substantial new regulations and disclosure obligations, which may lead to additional compliance costs and impact the manner in
which we operate our business in ways we cannot currently anticipate. Our management and other personnel need to devote a substantial
amount of time to these compliance initiatives. Moreover, these rules and regulations increase our legal and financial compliance costs
and will make some activities more time consuming and costly.
We are a "foreign private issuer"
and have disclosure obligations that are different from those of U.S. domestic reporting companies.
We are a foreign private issuer
and are not subject to the same requirements that are imposed upon U.S. domestic issuers by the SEC. Under the Exchange Act, we are subject
to reporting obligations that, in certain respects, are less detailed and less frequent than those of U.S. domestic reporting companies.
For example, we are not required to issue quarterly reports and proxy statements that comply with the requirements applicable to U.S.
domestic reporting companies. Furthermore, although as an Israeli public company listed outside of Israel we are required to disclose
the compensation of our five most highly compensated officers on an individual basis, this disclosure is not as extensive as that required
of U.S. domestic reporting companies. We also have four months and an automatic extension of 15 days after the end of each fiscal year
to file our annual reports with the SEC and are not required to file current reports as frequently or promptly as U.S. domestic reporting
companies. Furthermore, our officers, directors and principal shareholders are exempt from the requirements to report short-swing profit
recovery contained in Section 16 of the Exchange Act. Also, as a "foreign private issuer," we are also not subject to the
requirements of Regulation FD (Fair Disclosure) promulgated under the Exchange Act. These exemptions and leniencies will reduce the frequency
and scope of information and protections available to you in comparison to those applicable to U.S. domestic reporting companies.
21
Offers or availability for sale of a substantial
number of our ordinary shares may cause the price of our ordinary shares to decline.
If our major shareholders
sell substantial amounts of our ordinary shares in the public market (if one develops) or if there is a perception in the market that
substantial sales may occur in the future upon the expiration of any statutory holding period, under Rule 144, or upon the exercise of
outstanding options held by our director and officers or warrants held by investors, the market price of our ordinary shares could fall.
The occurrence of such substantial sales or the perception that substantial sales of our ordinary shares may occur in the future could
put downward pressure on the market price of our ordinary shares and
may make it more difficult
for us to raise additional financing through the sale of equity or equity related securities in the future at a time and price that we
deem reasonable or appropriate.
Furthermore, we issued a significant
number of warrants to certain investors, which, if exercised, may have a material dilutive effect on our share capital. For more information
see "Item 7 A. Major Shareholders and Related Party Transactions — Major Shareholders".
Our management conducted an evaluation of
the effectiveness of our internal control over financial reporting and concluded that our internal control over financial reporting was
not effective as of December 31, 2022. If we fail to maintain an effective system of internal control over financial reporting, we may
not be able to accurately report our financial results or prevent fraud. As a result, shareholders could lose confidence in our financial
and other public reporting.
Effective internal controls
over financial reporting are necessary for us to provide reliable financial reports and, together with adequate disclosure controls and
procedures are designed to prevent fraud. Our management is required to assess the effectiveness of our internal controls and procedures
and disclose changes in these controls on an annual basis. Any failure to implement required new or improved controls, or difficulties
encountered in their implementation could cause us to fail to meet our reporting obligations. In addition, any testing by us of our internal
controls and procedures may reveal deficiencies in our internal controls over financial reporting that are deemed to be material weaknesses
or that may require prospective or retroactive changes to our financial statements or identify other areas for further attention or improvement.
Inferior internal controls could also cause investors to lose confidence in our reported financial information.
Our management conducted an
evaluation of the effectiveness of our internal control over financial reporting and concluded that our internal control over financial
reporting was not effective as of December 31, 2022, and also concluded that our disclosure controls and procedures were not effective
as of December 31, 2022, due to material weaknesses in our internal control over financial reporting, all as described in Item 15, "Controls
and Procedures" of this annual report. As defined in Regulation 12b-2 under the Exchange Act, a "material weakness"
is a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility
that a material misstatement of our annual financial statements will not be prevented or detected on a timely basis.
The material weaknesses in
internal control over financial reporting that were identified (among other things) were: (i) significant parts of entity level controls
are missing, (ii) lack of segregation of duties, (iii) controls' effectiveness testing was predominantly not performed, among other
things due to nonperformance of controls or absence of evidence for controls' performance, and (iv) non-remediation of material
weaknesses identified in prior years. Based on such assessment, management has concluded that, as of December 31, 2022, our internal control
over financial reporting is ineffective based on those criteria.
22
We have made, and will continue
to make, changes in these and other areas. In any event, the process of determining whether our existing internal controls are compliant
with applicable requirements and sufficiently effective will require the investment of substantial time and resources, including by our
chief financial officer and other members of our senior management. As a result, this process may divert internal resources and take a
significant amount of time and effort to complete. In addition, we cannot predict the outcome of this process and whether we will need
to implement remedial actions in order to implement effective controls over financial reporting. The determination of whether or not our
internal controls are sufficient and any remedial actions required could result in us incurring additional costs that we did not anticipate.
We may also fail to complete our evaluation, testing and any required remediation needed to comply with applicable requirements in a timely
fashion. Irrespective of compliance with applicable requirements, any additional failure of our internal controls could have a material
adverse effect on our stated results of operations and harm our reputation. As a result, we may experience higher than anticipated operating
expenses, as well as higher independent auditor fees during and after the implementation of these changes. If we are unable to implement
any of the required changes to our internal control over financial reporting effectively or efficiently or are required to do so earlier
than anticipated, it could adversely affect our operations, financial reporting or results of operations.
Furthermore, if we are unable
to certify that our internal control over financial reporting is effective and in compliance with applicable requirements, we may be subject
to sanctions or investigations by regulatory authorities, such as the SEC, and we could lose investor confidence in the accuracy and completeness
of our financial reports, which could hurt our business and our ability to access the capital markets.
The market price of our ordinary shares
may fluctuate significantly.
If a public trading market
further develops for our ordinary shares, the market price of the ordinary shares may fluctuate significantly in response to numerous
factors, some of which are beyond our control, such as:
●
the announcement of new products
or product enhancements by us or our competitors;
●
developments concerning intellectual
property rights and regulatory approvals;
●
variations in our and our competitors'
results of operations;
●
changes in earnings estimates
or recommendations by securities analysts, if the ordinary shares are covered by analysts;
●
developments in the nanotechnology
and alternative energy industries;
●
the results of product liability
or intellectual property lawsuits;
●
future issuances of ordinary
shares or other securities;
●
the addition or departure of
key personnel;
●
announcements by us or our competitors
of acquisitions, investments or strategic alliances; and
●
general market conditions and
other factors, including factors unrelated to our operating performance, such as natural disasters and political and economic instability,
including wars, terrorism, political unrest, results of certain elections and votes, emergence of a pandemic or other widespread health
emergencies (or concerns over the possibility of such an emergency, including for example, the COVID-19 pandemic), boycotts, adoption
or expansion of government trade restrictions, and other business restrictions.
Further, in recent years,
the stock market has experienced extreme price and volume fluctuations. Continued or renewed market fluctuations could result in extreme
volatility in the price of our ordinary shares, which could cause a decline in the value of the ordinary shares. Price volatility of our
ordinary shares might be significant if the trading volume of the ordinary shares is low, which often occurs with respect to securities
quoted on the OTCQB or the OTC Pink.
23
Because our ordinary shares are traded as
a "penny stock," it may be more difficult for investors to sell our ordinary shares, and the market price of our ordinary
shares may be adversely affected.
Our ordinary shares are deemed
a "penny stock" since, among other things, the stock price is currently trading below $5.0 per share. Broker-dealers who sell
penny stocks must provide purchasers of these stocks with a standardized risk-disclosure document prepared by the SEC. This document provides
information about penny stocks and the nature and level of risks involved in investing in the penny-stock market. A broker must also give
a purchaser, orally or in writing, bid and offer quotations and information regarding broker and salesperson compensation, make a written
determination that the penny stock is a suitable investment for the purchaser and obtain the purchaser's written agreement to the
purchase. Broker-dealers must also provide customers that hold penny stock in their accounts with such broker-dealer a monthly statement
containing price and market information relating to the penny stock. If a penny stock is sold to an investor in violation of the penny
stock rules, the investor may be able to cancel its purchase and get its money back.
The penny stock rules may
make it difficult for investors to sell their ordinary shares. Because of the rules and restrictions applicable to a penny stock, there
is less trading in penny stocks and the market price of the ordinary shares may be adversely affected. Also, many brokers choose not to
participate in penny stock transactions. Accordingly, investors may not always be able to resell their ordinary shares publicly at times
and prices that they feel are appropriate.
Compliance with changing regulations concerning
corporate governance and public disclosure may result in additional expenses.
There have been changing laws,
regulations and standards relating to corporate governance and public disclosure, including the Sarbanes-Oxley Act, new regulations promulgated
by the SEC and rules promulgated by the national securities exchanges. These new or changed laws, regulations and standards are subject
to varying interpretations in many cases due to their lack of specificity, and, as a result, their application in practice may evolve
over time as new guidance is provided by regulatory and governing bodies, which could result in continuing uncertainty regarding compliance
matters and higher costs necessitated by ongoing revisions to disclosure and governance practices. As a result, our efforts to comply
with evolving laws, regulations and standards are likely to continue to result in increased general and administrative expenses and a
diversion of management time and attention from revenue-generating activities to compliance activities. Our directors and executive officers
could face an increased risk of personal liability in connection with the performance of their duties. As a result, we may have difficulty
attracting and retaining qualified directors and executive officers, which could harm our business. If our efforts to comply with new
or changed laws, regulations and standards differ from the activities intended by regulatory or governing bodies, we could be subject
to liability under applicable laws or our reputation may be harmed.
ITEM 4. Information on the Company
A. History and development of the company
P.V. Nano Cell Ltd. was incorporated in Israel on June 24, 2009 as
a private limited liability company, organized under the laws of State of Israel. We have three wholly-owned subsidiaries, all of which
are private companies organized under the laws of the State of Israel: (i) Nano Size Ltd. ("Nano Size"), which we acquired
on December 31, 2009; (ii) Digiflex Ltd. ("Digiflex"), which we acquired on December 3, 2017; and (iii) Jet CU P.C.B. Ltd.
("Jet CU"), which we acquired on July 26, 2020. Additionally, Digiflex wholly-owns one subsidiary based in the US: Digiflex
Inc., incorporated under the laws of the State of Delaware.
Our Registration Statement
on Form F-1 was declared effective by the SEC on September 30, 2015, and a FINRA-registered market maker subsequently filed an application
on Form 211 with FINRA to quote the ordinary shares on the OTCQB. On March 31, 2016, the application on Form 211 with FINRA to make a
market in our ordinary shares was approved by FINRA, and on December 15, 2016, quotation of our ordinary shares began on the OTCQB under
the ticker symbol "PVNNF". On December 18, 2019, our ordinary shares began to be quoted on the OTC Pink. However, due to lack
of available resources, we have not been able to comply in a timely manner with our SEC periodic filing obligations for the years ended
December 31, 2020 and 2021. Accordingly, as of September 29, 2021, the public quote for our stock was removed from the OTC Pink. Depending
on market and other conditions and the continued development of our products, we will consider applying to have our ordinary shares quoted
on the OTC Pink.
24
Our principal offices are
located at 8 Hamasger Street, Migdal Ha'Emek, Israel 2310102. Our telephone number is (972) 4-654-6881. Our website address is www.pvnanocell.com.
This website address is included in this annual report on Form 20-F as an inactive textual reference only. The information and other content
appearing on our website are not part of this annual report on Form 20-F. The Company does not have a registered agent in the United States.
B. Business Overview
We are a conductive ink and
pastes manufacturing company focused on developing, manufacturing, marketing and commercializing conductive inks and pastes for digital
conductive printing applications (mainly inkjet and aerosol printing technologies). We have developed the Sicrys™ family of single
crystal nano-metric conductive inks and pastes, which we believe is significantly more effective alternative to other current printing
processes, such as screen printing photolithography and etching processes, for photovoltaic heterojunction technology (PV-HJT) and digital
printed electronics (PE) applications. We adapt our basic inks and pastes to specific customer requirements. We currently sell our Sicrys™
silver-based inks and pastes for PV and PE applications in low volumes and are in the process of seeking to expand our sales efforts to
include sales of Sicrys™ inks and pastes for a wider range of applications, such as solar, automotive and digitally printed electronics.
We have also developed what we believe is the first available commercially viable copper-based nano-metric low viscosity stable ink for
mass-production of printed electronics. We believe that copper inks and pastes represent a significant improvement over silver-based inks
and pastes given copper's significantly lower cost and nearly identical electrical and conductive properties.
Background
Photovoltaic Cell Metallization
PV cells (commonly known as
solar cells) are the building blocks of solar module arrays that convert energy from sunlight into electricity. Multiple PV cells in an
integrated group, all oriented in one plane, constitute a solar photovoltaic panel or module, and a group of connected modules make up
an array. An array of PV cells is capable of converting solar energy into a usable amount of direct current electricity.
Most modern solar cells are
made from either crystalline silicon or thin-film semiconductor material. Crystalline silicon cells are more efficient at converting sunlight
to electricity, but generally have higher manufacturing costs. Thin-film materials are typically less efficient at converting sunlight
into electricity, but can be cheaper to manufacture.
A key part of the PV crystalline
silicon cell manufacturing process is the metallization of the cell – i.e., laying down metal electrodes to collect the electricity
generated by the cell when exposed to sunlight. Typically, the metallization process is completed by the application of a silver paste
to the front side and aluminum-silver pastes on the rear side of the cell using a screen-printing process. This process is one of the
main bottlenecks to reducing the costs of the cells and the cost of electricity produced by the cells due to: high usage of metal (expensive
silver), loss of paste in the process (some paste stays in the screens), cell breakage in the printing process (contact printing), wide
printed patterns (higher shading of cells, less surface exposed to the light) and limited electrical properties of the pastes.
Silicon crystalline solar cells are being replaced by different types
of cells like thin film, HJT, CIGS, perovskite solar cells and others. Some of these cells are sensitive to high temperatures, therefore,
the potential to increase such cells' efficiencies and lower costs utilizing the screen printing process is limited. Inkjet printing
and other non-contact printing processes utilizing our low temperature sintering inks and pastes has been demonstrated to increase cell
efficiency and lower production costs. Therefore, we believe that temperature sensitive cells (such as HJT cells) would benefit from our
technologies.
We believe that a significant
market opportunity exists for a non-contact metallization low temperature sintering solution that is competitive with traditional screen
printing process, does not break silicon cells, allows for thinner PV cell wafers (thus reducing silicon costs, which we believe to be
a major obstacle to the wider proliferation of solar cell technologies), increases the active area of the cell by printing narrower conductors,
and yields better electrical performance than screen-printed conductors. We believe that the market for inks and pastes to be used in
inkjet printing for PV applications is a small subset of the market for silver pastes and inks in PV cell production generally, as described
above. We further believe that such market has a potential to grow over time given the benefits of inkjet printing technologies and the
benefits of our silver and copper based Sycris™ inks and pastes, which, among others, may apply to a range of printing technologies,
and have lower costs and simpler operating procedures when compared to screen-printing processes commonly used.
25
Printed Electronics
Digital printed electronics
is a set of methodologies by which electrical devices are digitally printed onto various substrates (i.e., base material) by depositing
electrically functional inks and pastes (and possibly other additional functional inks and pastes such as insulating materials) on the
substrate, creating active or passive devices, such as conductors, capacitors or resistors. The use of digital printed electronics presents
an opportunity to facilitate widespread, production of new electronics, more efficient electronics, new electronic designs and customized
and personalized electronics while keeping production costs low.
We believe that the current
analog printing and etching methods have inherent limitations when implemented in flexible electronics, 3D (three dimensional) electronics
and in customized and small-scale printing. Furthermore, these processes currently utilize expensive materials and produce toxic byproducts
which must be disposed of, which increases overall production costs. We believe that a significant market opportunity exists for inks
and pastes, such as ours, that enable digital inkjet conductive printing, enabling printing on flexible substrates, three-dimensional
printing and customized and small-scale printing at a lower price.
Digitally printing electronics present many advantages
over the traditional analog method, including:
●
It is an additive process, no etching, or no dangerous waste are involved
or generated;
●
Digital process will allow printing
of passive components (resistors & capacitors) embedded in the layers;
a.
Free mounting area on the outer surfaces (will allow minimizing the surface area and thickness).
b.
Saving component mounting costs and complexity.
While there are quite a few
companies that have silver conductive inks and pastes (which are not compatible with mass production processes), there are very few companies
offering copper nano particle dispersions, which, to our knowledge, are not inks or pastes. The Company offers silver and copper-based
inks and pastes.
Our Solutions
Photovoltaic Cell Metallization
Our Sicrys™ family of
inks are low viscosity, nano-particle inks optimized for inkjet printing. We believe that PV HJT utilizing our Sicrys™ inks results
in the following benefits relative to traditional screen-printing processes:
●
A more efficient solar cell;
●
Immediate cost savings due to
substantially lower metallization costs and increased cell efficiency (lower sintering temperatures);
●
Potential future cost savings
due to the ability to utilize thinner wafers for PV cells, thus reducing silicon costs and potentially further increasing cell efficiency;
●
Enhanced performance due to
improved conductive properties enabling printing of contact lines that are significantly thinner than the lines that can be produced
with screen printing;
●
Improve performance of temperature
sensitive solar cells (CIGS, CdTe, HTJ, thin films and others); and
●
Potential future costs savings
with copper inks and pastes that we are currently investigating to penetrate the new technologies.
26
Printed Electronics
We currently offer silver-based
Sicrys™ inks and pastes and our developed copper-based Sicrys™ for use in the production of PE utilizing inkjet printing technologies.
We believe that inkjet production of PE utilizing our Sicrys™ inks and pastes results in the following benefits relative to traditional
screen printing and photolithography processes:
●
Applications for flexible and
customized electronics and three-dimensional (3D) printed device manufacturing, due to digital (non-contact) printing and the lower sintering
temperatures required for nano-based inks and pastes;
●
Significant cost reductions,
as we estimate that we will be able to market our copper-based inks and pastes at a lower price than silver inks and pastes currently
used in screen printing or etch and photolithography processes; and
●
Significant reductions in the
generation of hazardous waste by products.
Our Strategy
Our goal is to become a leading
producer of conductive inks and pastes for the solar industry and PE applications. Our strategy is to concentrate our efforts on mass
production application opportunities by selling inks and pastes to be used in mass production printing technologies with high throughputs
and high consumption of inks and pastes per year. We are currently focusing our efforts on demonstrating the advantages of our Sicrys™
technology primarily to dedicated customers. We also intend to work with our customers to develop the production processes suitable to
the relevant applications and their needs (including printing strategy, printing temperature, sintering temperatures and time).
In addition, we are continuing
our efforts to:
●
Develop
                                            copper based digital printing inks and pastes for solar cells applications
. We are working
                                            to develop a copper-based ink and paste and process (printing and sintering) which will be
                                            compatible with HJT type solar cells. This printing process would replace the silver and
                                            the wet plating chemistry used today to build the conductive patterns.
●
Increase market awareness
of our products and technologies
. We are attempting to raise our profile in the relevant markets, as well as raise awareness of our
product and technology offerings, by attending conferences, exhibitions and trade shows when this is feasible.
●
Partner with leading printing
technology manufacturers to supply our solutions to potential customers.
●
Explore application of our
technologies to other fields
. We are currently exploring opportunities with several potential customers (worldwide) to implement
our technologies in their processes.
We have several development
consortiums in the framework of the European Horizon 2020, R&D support programs in Europe and Israel, which provide grants for research
and development, including to companies in Israel. The grants are used to expand our know-how and network through research and development
that we commit to, the costs of which is reimbursed in part by European Horizon 2020 and local financing entities. One consortium program
for
the inkjet-based fabrication of multilayer printed circuit boards with embedded printed passive
elements
was recently concluded.
27
The following additional projects
were approved for financing in 2019 and 2021:
●
RolaFlex – A project financed
by the Horizon 2020 framework. The project's vision is to combine high-resolution laser printing and laser patterning and new materials
with high throughput R-2-R process. The technology will be demonstrated in the high-speed fabrication of OLED and OPV components. The
partners in this project are TNO (The Netherlands), Armor (France), Golem (Germany), Seqens (France), FlexEnable (UK), NTUA (Greece),
Imperial Collage (UK), Avantama (Switzerland). The project was initially for a period of three years, commencing May 1, 2020, and was
extended for an additional six-month period, until October 31, 2023.
●
Tinker – A project
financed by the Horizon 2020 framework (a ~$12 million budget, of which PVN has a budget of $0.79 million). The project's vision
is to provide a new cost and resource-efficient pathway for RADAR and LIDAR sensor package fabrication with high throughput of up to
250 units/min. Partners in this project are: Bosch (Germany), Infineon (Germany), Profactor (Austria), Ibeo (Germany), Marelli (Italy),
Leti (France), Notion (Germany), Tiger (Austria), EVG (Austria), Inkron (Finland), Sentech (Germany), Forth (Greece), Austrian Standards
(Austria), Besi (The Netherlands), and Amires (Switzerland). The project was initially for a period of three years commencing October
1, 2020, and was extended for an additional six-month period, until March 31, 2024.
●
Bussard – A project
financed by the Solar EraNet (through the Israeli Ministry of Infrastructure) framework (a ~€4.4 million budget, of which PVN has
a budget of $0.33 million). The project's vision is to develop solar cell metallization methods that can show substantially narrower
patterns than the state of the art. Partners in this project are: Fraunhofer ISE, HighLine, Tempress Janoschka, ContiTech, JB Ecotech,
Energetica and KAU (all in Germany). The project was initially for a period of two years commencing February 1, 2021, and was extended
for an additional 12-month period, until January 31, 2024.
Research and Development
The conductive inks and pastes
we manufacture for digital conductive printing applications are based on either silver or copper. Our Application and Research and
Development ("R&D"), team's efforts are focused primarily on the following two goals:
●
Continuous improvement and
optimization of our inks and pastes:
o
Adapting
the inks to the different available and emerging printing technologies in the market;
o
Optimizing
inks and pastes for new and emerging applications; and
o
Reducing the sintering temperature,
or the process that physically connects between the nano metal particles to produce a continuous conductive layer.
●
Process development (engineering):
We offer our customers a solution approach, comprised of inks, pastes and process know-how. In this framework we are developing for our
customers the printing process for their specific applications, including printing samples and prototypes.
We have and our wholly-owned
subsidiaries have received grants from the Government of Israel through the IIA for the financing of a portion of our research and development
expenditures pursuant to the Innovation Law. As of December 31, 2022, we and our wholly-owned subsidiaries had received funding from the
IIA in the aggregate amount of approximately $3.7 million. As of December 31, 2022, we and our wholly-owned subsidiaries had paid royalties
to the IIA in the aggregate amount of approximately $1.1 million and had an obligation to the IIA with respect to such funding (including
interest) in the amount of approximately $3.2 million (approximately $2.0 million out of such amount are contingent liabilities and therefore,
not recorded in our liabilities). We may apply for additional IIA grants in the future; however, there is no assurance that such applications
will be approved in the amount requested or at all. We have also received a grant from the Ministry for one of our research and development
programs. As of December 31, 2022, we had received funding from the Ministry in the aggregate amount of approximately NIS 585,119 ($168,574,
based on the NIS/US$ exchange rate published by the Bank of Israel on December 31, 2013, of $1.00 = NIS 3.471). As of December 31, 2022,
we had a contingent obligation to the Ministry with respect to such funding (including interest), following the payment of royalties up
to that date, in the amount of NIS 576,773 (approximately $163,903). See "Item 3 D –Risk Factors – Risks Related
to Our Operations in Israel –
The Israeli government grants we have received for research and development expenditures restrict
our ability to manufacture products and transfer technologies outside of Israel and require us to satisfy specified conditions. If we
fail to satisfy these conditions, we may be required to refund grants previously received together with interest and penalties."
28
Competition
The digital electronic printing
and inkjet conductive ink and paste manufacturing industries are extremely competitive. We are currently aware of various existing products
in the market and in development that may compete with our products and technologies. To our knowledge, several other companies are currently
developing silver-based inkjet inks for PE digital electronic inkjet printing applications. Some of these companies already sell conductive
inkjet inks and pastes for PE applications. We also see a trend of bigger companies buying out some of the smaller players, and still
not been able to supply products for mass production. We are aware of companies seeking to develop copper-based inks and pastes for inkjet
printing; however, to our knowledge none of our competitors has copper based low viscosity inks compatible with digital printing in mass
production and at a commercially viable price and quantity.
We believe that our inks have
the following competitive advantages, relative to those currently being sold by our competitors, especially when aiming to print on mass
production applications and throughputs:
●
Higher metal load at low viscosities,
which results in a more cost-efficient printing process;
●
Higher stability and for a longer
period of time (over one year for Sicrys™ at room temperature as compared to less than six months for our competitors, some of
which require their inks to be stored at low temperatures to remain stable for an extended period of time);
●
Copper inks with a similar stability
profile as our silver inks (including its chemical stability), which is difficult to achieve due to the low oxidation point for copper,
which results in certain of our competitors offering copper oxide inks as opposed to pure copper inks;
●
Low resistivity. (ρ <
2.5 x bulk. Laser and thermal sintering);
●
Low sintering temperature (<
200 °C);
●
Silver inks suitable for solar
cells metallization which can show higher efficiency due to enhanced electrical properties after firing the cells (low contact resistance
and resistivity); and
●
Compatibility with high throughput
industrial printing (high jetting frequencies for long periods of time).
Based on the advantages of
our inks, we are developing a paste for solar applications.
Furthermore, we believe that
there is a high barrier to entry for competitors to develop and successfully bring competing inks to market due to the long lead times
required to develop nano particles of an appropriate size to formulate inks compatible with inkjet printing and the difficulty in producing
nano-based inks in large-scale quantities.
Notwithstanding the foregoing,
many of our competitors have substantially greater financial, technical, and other resources, such as larger research and development
staff and experienced marketing and manufacturing organizations. Mergers and acquisitions in the conductive ink and paste industry may
result in even more resources being concentrated in our competitors. As a result, these companies may be more effective in selling and
marketing their products. Smaller or early-stage companies may also prove to be significant competitors, particularly through collaborative
arrangements with large, established companies. Competition may increase further as a result of advances in the commercial applicability
of technologies and greater availability of capital for investment in this industry. Our competitors may succeed in developing, acquiring,
or licensing on an exclusive basis, products that are more effective or less costly than our current or future products or technologies,
or achieve earlier patent protection, product commercialization, and market penetration than we do. Additionally, technologies developed
by our competitors may render our potential products and technologies uneconomical or obsolete, and we may not be successful in marketing
our products and technologies against competitors.
29
Intellectual Property
An important part of our business
and product development strategy is to seek, when appropriate, protection for our products and proprietary technology through the use
of various United States and foreign patents. Our patent application based on PCT/US2011/063459 covering silver single crystal particle
inks, dispersions and some pastes and dispersions have been granted in several countries, including China, Russia, Japan, India, Israel,
Korea, Brazil, Germany, France, UK, Netherlands, the U.S. and the European Union and we currently have additional patent applications
pending in the U.S. supporting our silver-based inks, dispersions and some pastes. Our patent application based on PCT/IB2015/051536,
relating to copper-based ink, has been granted in several countries, including Russia, Europe, the United Kingdom, Belgium, Germany, Finland,
France, Ireland, the Netherlands, Israel, Brazil, India and the United States. Additionally, we have patent applications based on PCT/IB2015/051536,
relating to copper-based ink, which have been submitted to national phase in South Korea, Japan and China.
The silver family main claims
are on the concentrated dispersions and inks made of a majority of single crystal Nano silver particles and the method for producing them.
Patent applications are in different stages of qualification in additional countries. The single crystal particles are easy to police
against infringement. The priority date for the silver family is December 6, 2010.
The copper family relates
to nano-metric copper formulations and stable dispersions containing single-crystal metallic copper particles, and to the method of producing
such formulations and dispersions. The priority date for the copper family is March 3, 2015.
We have a granted joint patent
with Ramot (Tel Aviv University) for "Conductive Nanowire Films" (WO 2013/128458, US 9,373,515 B2), which Ramot maintains
pursuant to the termination settlement of the Magneton Program.
Our wholly-owned subsidiary,
Nano Size, has been granted several patents in the field of ultrasonic manufacturing of nano materials (7,157,058 (US); 7,504,075 (US);
144638 (IL); 149932 (IL)).
Digiflex has been granted
several patents for inks, primers and primer lamination in the field of graphic arts in several countries, including, but not limited
to, the United States, European Union, Canada, China, France, Germany, United Kingdom, Germany, India and Israel. These include: Process
for Producing a Photomask on a Photopolymeric Surface; USA 9,513,551 and 12 countries and Process for Dry-coating of Flexographic Surfaces;
USA 9,352,544.
We intend to continue to seek
patent protection for our products that we may develop in the future. The patenting of technology-related products and processes involves
uncertain and complex legal and factual questions. To date, no consistent policy has emerged regarding the breadth of claims of such technology
patents. Therefore, there is no assurance that our pending applications will issue, or what scope of protection any issued patents will
provide, or whether any such patents ultimately will be upheld as valid by a court of competent jurisdiction in the event of a legal challenge.
The costs of such proceedings would be significant and an unfavorable outcome could result in the loss of rights to the invention at issue
in the proceedings. If we fail to obtain patents for our technology and are required to rely on unpatented proprietary technology, there
is no assurance that we can protect our rights in such unpatented proprietary technology, or that others will not independently develop
substantially equivalent proprietary products and techniques, or otherwise gain access to our proprietary technology.
Competitors have filed applications
for, or have been issued patents, and may obtain additional patents and proprietary rights relating to products or processes used in,
necessary to, competitive with, or otherwise related to, our patents. The scope and validity of these patents, and the extent to which
we may be required to obtain licenses under these patents or under other proprietary rights and the cost and availability of licenses
is unknown. This may limit our ability to license our technology. Litigation concerning these or other patents could be protracted and
expensive. If suit were brought against us for patent infringement, a challenge in the suit by us as to the validity of the other patent
would have to overcome a legal presumption of validity. There can be no assurance that the validity of the patent would not be upheld
by the court or that, in such event, a license of the patent to us would be available. Moreover, even if a license were available, the
payments that would be required are unknown and could materially reduce the value of our interest in the affected products.
30
We also rely upon unpatented
trade secrets. No assurances can be given that others will not independently develop substantially equivalent proprietary information
and techniques or otherwise gain access to our trade secrets or disclose such technology or that we can meaningfully protect our rights
to our unpatented trade secrets. We require our employees, consultants, advisors, and any third parties who have access to our proprietary
know-how, information, or technology to enter into confidentiality agreements with us, which provide that all confidential information
developed or made known to the individual during the course of the relationship is to be kept confidential and not disclosed to third
parties except in specific circumstances. In the case of employees and consultants, the agreements provide that all inventions conceived
by the individual will be our exclusive property or will be assigned to us. There is no assurance, however, that these agreements will
provide meaningful protection for our trade secrets and other confidential proprietary information in the event of unauthorized use or
disclosure of such information.
Marketing and Sales
We offer and sell several
conductive inks and pastes based on either silver or copper, which are sold through our website as well as directly to customers or through
distributors. We are focused on providing more efficient ink and paste solutions for the growing solar market segment and we work with
our customers in the development of our solutions as part of our go-to-market strategy.
Seasonality
Our business and operations
are generally not affected by seasonal fluctuations or factors.
Raw Materials and Suppliers
We believe that the raw materials
that we require to manufacture our inks and pastes are readily available in adequate quantities from multiple sources. In addition, the
manufacturing process for our silver-based inks and pastes utilizes a silver salt the price of which is linked to the price of silver.
The price of silver as well as the price of other raw materials used in the manufacturing process for our inks and pastes, is affected
by numerous factors beyond our control, including inflation, fluctuation of the United States dollar and foreign currencies, global and
regional demand, speculative activities by commodities traders and others and the political and economic conditions of major silver producing
countries throughout the world. The volatility of mineral prices represents a substantial risk which no amount of planning or technical
expertise can fully eliminate. In the event the prices of silver or other raw materials used in our manufacturing process increase and
remain high for prolonged periods of time, we may not be able to produce inks and pastes at a cost effective and competitive price. See
"Item 3 D. — Risk Factors —
We are subject to risks resulting from fluctuations in the price of silver and other
raw materials
."
Manufacturing
We manufacture our inks and
pastes at our Migdal Ha'Emek facilities. We currently have capacity to produce an estimated one ton of ink per year, and plan to
upgrade our facilities to increase production capacity to 20 tons per year (estimated capital cost of at least $2.5 million), if and when
demand for our inks and pastes is projected to surpass our production capabilities and we have sufficient available capital to do so.
In the event that demand for our inks outgrows our internal manufacturing capacity, we intend to engage third-party manufacturers to produce
additional inks and pastes. There can be no assurance that we will be able to enter into agreements with qualified manufacturers on terms
acceptable to us, or at all, or that, once contracted, such manufacturers will perform as expected.
31
Government Regulation
We are subject to various
environmental, health and safety laws, regulations and permitting requirements, including those governing the emission and discharge of
hazardous materials into ground, air or water; noise emissions, the generation, storage, use, management and disposal of hazardous waste;
the registration of chemicals and in the future also import and export; the clean-up of contaminated sites; and the health and safety
of our employees. Under such laws and regulations, we are required to obtain environmental permits from governmental authorities for certain
operations. The manufacture of our products requires storing or using certain hazardous materials. Pursuant to the Israeli Dangerous Substances
Law - 1993, we are required to (and did) obtain a toxin permit from the Ministry of Environmental Protection. Our permit is valid until
May 10, 2025.
Other than applicable local laws in Israel
relating to the handling and disposal of hazardous materials and waste, there are no government regulations that are material to the conduct
of our business. If we establish manufacturing operations in other jurisdictions, we expect to become subject to environmental, health
and safety laws, regulations and permitting requirements in those jurisdictions, which may be similar to or more onerous than those described
above.
C. Organizational structure
P.V. Nano Cell Ltd. was incorporated in Israel on June 24, 2009, as
a private limited liability company, organized under the laws of State of Israel. We have three wholly-owned subsidiaries, all of which
are private companies organized under the laws of the State of Israel: (i) Nano Size, which we acquired on December 31, 2009; (ii) Digiflex,
which we acquired on December 3, 2017; and (iii) Jet CU, which we acquired on July 26, 2020. Additionally, Digiflex wholly-owns one subsidiary
based in the US: Digiflex Inc., incorporated under the laws of the State of Delaware.
D. Property, plants and equipment
We currently lease, through
Nano Size, approximately 678 square meters (approximately 7,300 square feet) of space in Migdal Ha'Emek, Israel for our principal
offices and manufacturing facilities at a monthly cost of approximately NIS 18,000 (approximately $5,115). This lease agreement expires
on June 30, 2025, and we have an option to extend the lease for an additional three years.
Additionally, Digiflex currently
leases approximately 110 square meters (approximately 1,200 square feet) of space in Migdal Ha'Emek, Israel for its principal office
and laboratory at a monthly cost of approximately NIS 5,000 (approximately $1,420). This lease agreement, which was scheduled to expire
on March 14, 2023, was renewed in February 2023 for a period until March 15, 2024, and we have an option to extend the lease for an additional
period of one year.
We currently own production
equipment, housed in our Migdal Ha'Emek facilities, capable of producing up to one ton of ink per year. We intend to upgrade our
facilities to increase production capacity to 20 tons per year (estimated capital cost of at least $2.5 million), if and when demand for
our inks and pastes is projected to surpass our production capabilities and we have sufficient available capital to do so.
32
ITEM 4A. Unresolved Staff Comments.
Not applicable.
ITEM 5. Operating and Financial Review and
Prospects.
A. Operating results
The following discussion
and analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements
and related notes that appear elsewhere in this annual report on Form 20-F. In addition to historical financial information, the following
discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially
from those discussed in the forward-looking statements. Factors that could cause or contribute to these differences include those discussed
below and elsewhere in this annual report on Form 20-F, particularly in the sections titled "Item 3 D. — Risk Factors"
and "Cautionary Note Regarding Forward-Looking Statements."
Overview
We are a conductive ink and
pastes manufacturing company focused on developing, manufacturing, marketing and commercializing conductive inks and pastes for digital
conductive printing applications (mainly inkjet and aerosol printing technologies). We have developed the Sicrys™ family of single
crystal nano-metric conductive inks and pastes, which we believe is significantly a more effective alternative to other current printing
processes, such as screen printing photolithography and etching processes, for photovoltaic heterojunction technology (PV-HJT) and digital
printed electronics (PE) applications. We adapt our basic inks and pastes to specific customer requirements. We currently sell a low
volume of our Sicrys™ silver-based inks and pastes for PV and PE applications and are in the process of seeking to expand our sales
efforts to include sales of Sicrys™ inks and pastes for a wider range of applications, such as solar, automotive and digitally
printed electronics. We have also developed what we believe is the first available commercially viable copper-based nano-metric low viscosity
stable ink for mass-production of printed electronics. We believe that copper inks and pastes represent a significant improvement over
silver-based inks and pastes given copper's significantly lower cost and nearly identical electrical and conductive properties.
Financial Overview
We have incurred net losses
since our inception in 2009, including a net loss of approximately $4.5 million for the year ended December 31, 2022. As of December 31,
2022, we had an accumulated deficit of approximately $40.6 million. We are in default in repayment of our convertible notes which as of
December 31, 2022 aggregated to approximately $1.5 million (including principal and interest). We have devoted substantially all of our
financial resources to identifying, acquiring, licensing, and developing our products and technologies and providing general and administrative
support for these operations. To date, we have financed our operations primarily through the sale of equity and convertible securities
and government grants. The amount of our future net losses will depend, in part, on the rate of our future expenditures and our ability
to generate significant revenues via commercialization of our products or technologies. We are dependent upon external sources to finance
our operations and there can be no assurance that we will succeed in obtaining the necessary financing to continue our operations. As
a result, our independent registered public accounting firm has expressed substantial doubt about our ability to continue as a going concern.
Key Components of
our Statements of Comprehensive Loss
Revenues
Sources
of revenues - we derive revenues primarily from sales of inks and pastes.
33
Cost of Revenues
Our
total cost of revenues includes expenses for the manufacturing of inks and pastes, including: the cost of raw materials; employee-related
expenses, including salaries, equity-based compensation and other benefits and related expenses, lease payments, utility payments, depreciation,
changes in inventory of finished products, royalties and other manufacturing expenses. These expenses are partially reduced by an
allotment of manufacturing costs associated with research and development activities to research and development expenses.
Operating Expenses
Research and Development
Expenses, net
Research
and development activities are central to our business model. However, we do not believe that it is possible at this time to accurately
project total program-specific expenses.
Research
and development expenses consist primarily of compensation for employees engaged in research and development activities, including
salaries, equity-based compensation, benefits and related expenses, clinical trials, contract research organization sub-contractors,
development materials, external advisors and the allotted cost of our manufacturing facility for research and development purposes.
Our research and development
expenses, net, are net of grants for the research and development that we have received grants from the government of the State of Israel,
through the IIA, pursuant to the Innovation Law, for the financing of a portion of our research and development expenditures. As of December
31, 2022, we and our wholly-owned subsidiaries had received funding from the IIA in the aggregate amount of approximately $3.7 million.
As of December 31, 2022, we and our wholly-owned subsidiaries had paid royalties to the IIA in the aggregate amount of approximately $1.1
million and had an obligation to the IIA with respect to such funding (including interest) in the amount of approximately $3.2 million
(approximately $2.0 million out of such amount are contingent liabilities and therefore, not recorded in our liabilities). We may apply
for additional IIA grants in the future; however, there is no assurance that such applications will be approved in the amount requested
or at all.
We have also received a grant from the Ministry for one of our research
and development programs. In order to maintain our eligibility for this grant, we must meet specified conditions, including the payment
of royalties with respect to the grant received. As of December 31, 2022, we had received funding from the Ministry in the aggregate amount
of approximately NIS 585,119 ($168,574, based on the NIS/US$ exchange rate published by the Bank of Israel on December 31, 2013 of $1.00
= NIS 3.471). As of December 31, 2022, we had a contingent obligation to the Ministry with respect to such funding (including interest),
following the payment of royalties up to that date, in the amount of NIS 576,773 (approximately $163,903).
For additional information
regarding grants from the Israeli government, see "Item 3 D –Risk Factors – Risks Related to Our Operations in
Israel –
The Israeli government grants we have received for research and development expenditures restrict our ability to manufacture
products and transfer technologies outside of Israel and require us to satisfy specified conditions. If we fail to satisfy these conditions,
we may be required to refund grants previously received together with interest and penalties."
In
addition, from time to time, we participate in several development consortiums European Horizon 2020 and others in which we receive supporting
grants which we record as a deduction to the research and development expenses. The grants are used to expand our knowhow and network
through research and development that we commit to, the costs of which will be reimbursed in part by European Horizon 2020 and local
financing entities.
Selling and Marketing
Expenses
Selling
and marketing expenses consist primarily of compensation expenses for personnel engaged in sales and marketing, including salaries, equity-based
compensation and benefits and related expenses, as well as promotion, marketing, market access and sales and distribution activities.
34
General and Administrative
Expenses
General
and administrative expenses consist principally of compensation for employees in executive and administrative functions, including salaries,
equity-based compensation, benefits and other related expenses, professional consulting services, including legal and audit fees, as
well as costs of office and overhead.
Financial Income/Financial
Expense
Financial
income/expenses includes primarily change in fair value of warrants and capital note presented at fair value, Interest and accretion
back in connection with convertible loans and exchange rate differences.
Results of Operations
The following table sets
forth a summary of our operating results:
US $
Year ended December 31,
2022
2021
2020
Consolidated Statement of Operations Data:
Revenues
$
603,359
$
568,704
$
761,319
Cost of Revenues
375,877
271,817
307,713
Amortization of intangible assets
428,431
428,431
428,434
Gross loss (income)
200,949
131,544
(25,172
)
Research and development, net
268,601
467,698
400,859
Sales and marketing
566,896
625,031
673,986
General and administrative
1,893,179
1,345,495
1,414,370
Goodwill impairment
—
—
265,089
Intangible asset impairment
2,108,117
—
—
Total operating expenses
4,836,793
2,438,224
2,754,304
Operating loss
5,037,742
2,569,768
2,729,132
Financial expenses (income), net
(528,195
)
(50,904
)
9,814,605
Net loss
$
4,509,547
$
2,518,864
$
12,543,737
Year ended December 31, 2022, compared to year ended December
31, 2021:
Revenues
With respect to the years
ended December 31, 2022 and December 31, 2021, total revenues amounted to $603,359 and $568,704, respectively, an increase of $34,655
or 6%. No significant change year over year.
Cost of revenues
With respect to the
years ended December 31, 2022 and December 31, 2021, total cost of revenues amounted to $375,877 and $271,817, respectively, an
increase of $104,060 or 38%. The increase related primarily to an additional employee joined and the increase of salary of another
employee.
Amortization of intangible assets
With respect to the years
ended December 31, 2022 and December 31, 2021, total amortization of intangible assets amounted to an aggregate amount of $428,431 for
both years. The amortization of intangible assets expense in both years related to amortization of technology we recorded as part of
the Digiflex purchase as of December 3, 2017.
Gross loss
With respect to the years
ended December 31, 2022 and December 31, 2021, total gross loss amounted to $200,949 and $131,544, respectively, an increase of $69,405
or 53%. The increase related to an increase of $104,060 in cost of revenues, offset in part by an increase of $34,655 in revenues.
35
Research and development expenses, net
With respect to the years
ended December 31, 2022 and December 31, 2021, net research and development expenses, net were $268,601, net of $437,045 grants recorded
and $467,698, net of $315,697 grants recorded, respectively, a decrease of $199,097 or 43%. The decrease in research and development,
net related primarily to higher research and development grants recorded in 2022.
Sales and marketing expenses
With respect to the years
ended December 31, 2022 and December 31, 2021, sales and marketing expenses amounted to $566,896 and $625,031, respectively, a decrease
of $58,135 or 9%. No significant change year over year.
General and administrative expenses
With respect to the years
ended December 31, 2022 and December 31, 2021, general and administrative expenses amounted to $1,893,179 and $1,345,495, respectively,
an increase of $547,684 or 41%. The increase related primarily to additional management salaries and fees, professional services fees
and legal fees.
Intangible asset impairment
With respect to the years ended December 31, 2022 and December 31,
2021, intangible asset impairment amounted to $2,108,117 and $0, respectively. As of December 31, 2022, we recorded an impairment charge
of $2,108,117, which is equal to the technology, net amount that we recorded as part of the Digiflex purchase in 2017. We have ceased
the marketing activities associated with this technology and expect a negative cash-flow throughout its life, which led to such impairment
charge of the remaining asset, net as of December 31, 2022.
Operating expenses
With respect to the years
ended December 31, 2022 and December 31, 2021, operating expenses amounted to $4,836,793 and $2,438,224, respectively, an increase of
$2,398,569 or 98%. The increase related to an increase of $2,108,117 and $547,684 in intangible asset impairment and general and administrative
expenses, respectively, offset in part by a decrease of $199,097 and $58,135 in research and development, net and sales and marketing
expenses, respectively.
Operating loss
With respect to the years
ended December 31, 2022 and December 31, 2021, operating loss amounted to $5,037,742 and $2,569,768, respectively, an increase of $2,467,974
or 96%. The increase in operating loss related to an increase of $2,398,569 and $69,405 in operating expenses and gross loss, respectively.
Financial income, net
With respect to the years
ended December 31, 2022 and December 31, 2021, financial income, net, amounted to $528,195 and $50,904, respectively, an increase of
$477,291 or 938%. The increase in financial income, net, related primarily to a change in interest and accretion back in connection with
convertible loans and foreign exchange income, net of $8,059,996 and $398,995, respectively, offset in part by a change in fair value
of warrants and capital note presented at fair value of $8,020,602.
Net loss
With respect to the years
ended December 31, 2022 and December 31, 2021, net loss amounted to $4,509,547 and $2,518,864, respectively, an increase of $1,990,683
or 79%. The increase in operating loss related to an increase of $2,467,974 and $477,291 in operating loss and financial income, net,
respectively.
36
Year ended December 31, 2021, compared to year ended December
31, 2020:
Revenues
With respect to the years ended December 31, 2021 and December 31,
2020, total revenues amounted to $568,704 and $761,319, respectively, a decrease of $192,615 or 25%. The decrease in revenues relates
primarily to lower sales of inks and pastes. We believe that our lack of resources for marketing efforts contributed to that decrease.
Cost of revenues
With respect to the years
ended December 31, 2021 and December 31, 2020, total cost of revenues amounted to $271,817 and $307,713, respectively, a decrease of
$35,896 or 12%. The decrease in cost of revenues is consistent with the decrease in revenues as mentioned above.
Amortization of intangible assets
With respect to the years
ended December 31, 2021 and December 31, 2020, total amortization of intangible assets amounted to $428,431 and $428,434, respectively.
The amortization in both years (which is basically the same) related to amortization of technology we recorded as part of the Digiflex
purchase as of December 3, 2017.
Gross loss (income)
With respect to the years
ended December 31, 2021 and December 31, 2020, total gross loss (income) amounted to $131,544 and $(25,172), respectively, a decrease
of $156,716. The decrease related to a decrease of $192,615 in revenues, partially offset by a decrease of $35,896 in cost of revenues
and decrease of $3 in amortization of intangible assets.
Research and development expenses, net
With respect to the years
ended December 31, 2021 and December 31, 2020, research and development expenses, net were $467,698, net of $315,697 grants recorded,
and $400,859, net of $525,838 grants recorded, respectively, an increase of $66,839 or 17%, respectively. The increase in research and
development, net related primarily to lower grants recorded year over year.
Sales and marketing expenses
With respect to the years
ended December 31, 2021 and December 31, 2020, sales and marketing expenses amounted to $625,031 and $673,986, respectively, a decrease
of $48,955 or 7%. No significant change year over year.
General and administrative expenses
With respect to the years
ended December 31, 2021 and December 31, 2020, general and administrative expenses amounted to $1,345,495 and $1,414,370, respectively,
a decrease of $68,875 or 5%. No significant change year over year.
Goodwill impairment
With respect to the years
ended December 31, 2021 and December 31, 2020, goodwill impairment amounted to $0 and $265,089, respectively. The goodwill impairment
for the year ended December 31, 2020 was recorded following the purchase of Jet CU since that company has no activity.
Operating expenses
With respect to the years
ended December 31, 2021 and December 31, 2020, operating expenses amounted to $2,438,224 and $2,754,304 respectively, a decrease of $316,080
or 11%. The decrease related to a decrease of $265,089 in goodwill impairment, $68,875 in general and administrative expenses and $48,955
in sales and marketing expenses, such decrease was partially offset by an increase of $66,839 in research and development, net.
37
Operating loss
With respect to the years
ended December 31, 2021 and December 31, 2020, operating loss amounted to $2,569,768 and $2,729,132, respectively, a decrease of $159,364
or 6%. The decrease in operating loss related to a decrease of $316,080 in operating expenses, such decrease was partially offset by
a decrease of $156,716 in gross loss (income).
Financial expenses (income), net
With respect to the years
ended December 31, 2021 and December 31, 2020, financial expenses (income), net, amounted to $(50,904) and 9,814,605, a decrease of $9,865,509.
The decrease in financial expenses, net related primarily to a change in fair value of warrants and capital note presented at fair value
of $15,123,555, partially offset by an increase of $5,295,156 in interest and accretion back in connection with convertible loans.
Net loss
With respect to the years
ended December 31, 2021 and December 31, 2020, net loss amounted to $2,518,864 and $12,543,737, respectively, a decrease of $10,024,873
or 80%. The decrease in net loss related to a decrease of $9,865,509 in financial expenses, net and a decrease of $159,364 in operating
loss.
38
Share-Based Compensation and Liabilities Presented
at Fair Value
Ordinary Share Valuations
The fair value of the ordinary
shares was used to determine the value of the warrants presented as a liability and share-based compensation. The following table sets
forth the fair value of our ordinary shares as of the following dates:
Date
Fair Value
Ordinary share
December 31, 2020
$
0.24
Ordinary share
December 31, 2021
$
0.09
Ordinary share
December 31, 2022
$
0.03
Option Valuations
Under U.S. GAAP, we account for share-based compensation for employees
and others in accordance with the provisions of the FASB's ASC Topic 718 "Compensation—Stock Based Compensation,"
or ASC 718, which requires us to measure the cost of equity-based awards based on the fair value of the award on the grant date.
We selected the Black-Scholes option pricing model as the most appropriate
method for determining the estimated fair value of option awards. The resulting cost of an equity incentive award is recognized as an
expense over the requisite service period of the award, which is usually the vesting period. We recognize compensation expense over the
vesting period using the straight-line method and classify these amounts in the consolidated financial statements based on the department
to which the related employee reports.
The determination of the
grant date fair value of options using the Black-Scholes option pricing model is affected by estimates and assumptions regarding a number
of complex and subjective variables. These variables are estimated as follows:
●
Fair Value of our ordinary shares
. Discussed in the above "Ordinary
    Share Valuations".
●
Risk-free Interest Rate
. The risk-free interest rate is based
    on the yield from U.S. Treasury zero-coupon bonds with a term equivalent to the contractual life of the options.
●
Volatility
. The expected share price volatility derived from
    sample of similar companies.
●
Dividend Yield
. We have never declared or paid any cash dividends
    and do not presently plan to pay cash dividends in the foreseeable future. Consequently, we used an expected dividend yield of zero.
●
Expected Life.
We used the "simplified" method,
    meaning the expected life is set as the average of the vesting period for each vested tranche of options and the contractual term
    for those options.
If any of the assumptions
used in the Black-Scholes option pricing model change significantly, share-based compensation for future awards may differ materially
compared with the awards previously granted.
The following table presents
the weighted-average assumptions used to estimate the fair value of options granted to employees, officers and consultants during the
periods presented.
Year Ended December
    31,
2022
2021
2020
Dividend yield
0
%
0
%
0
%
Expected volatility
80
%
80
%
80
%
Risk-free interest
3.00
%
0.81
%
0.36%-1.62
%
Expected life (in years)
5
5
5
Liabilities Presented at Fair Value
Some of our warrants are classified as liabilities in accordance with
ASC No. 815-40, "Distinguishing Liabilities From Equity." Accordingly, these warrants are required to be marked to market
at each reporting date.
39
We estimated the fair value
of these warrants and such conversion feature using a Black-Scholes option pricing model, which is affected by estimates and assumptions
regarding a number of complex and subjective variables. These variables are estimated as follows:
●
Fair Value of our ordinary shares
. Discussed in the above "Ordinary
    Share Valuations".
●
Risk-free Interest Rate
. The risk-free interest rate is based
    on the yield from U.S. Treasury zero-coupon bonds with a term equivalent to the contractual life of the warrants.
●
Volatility
. The expected share price volatility derived from
    sample of similar companies.
●
Dividend Yield
. We have never declared or paid any cash dividends
    and do not presently plan to pay cash dividends in the foreseeable future. Consequently, we used an expected dividend yield of zero.
In addition, the conversion feature of the capital note issued to a
shareholder, is required to be marked to market at each reporting date. We estimated the fair value of the capital note by taking into
account the expected occurrence of certain trigger events (such as public offering or M&A), multiplied by the value in a probability
that the event will occur (based on our subjective assumptions) and discounting the value in an appropriate discount factor (based on
the weighted average cost of capital of the Company) for a period of one year.
Reporting Currency
Our functional currency is
the U.S. Dollar, although substantial portion of our costs are incurred in NIS. We finance our operations mainly in U.S. dollars and
a substantial portion of our costs and revenues from its primary markets are anticipated to be incurred and generated in U.S. dollars.
As such, we believe that the U.S. dollar is the currency of the primary economic environment in which we operate.
Transactions and balances
that are denominated in dollars are presented at their original amounts. Non-dollar transactions and balances have been re-measured to
dollars in accordance with Accounting Standards Codification ("ASC") No. 830, "Foreign Currency Matters". All
foreign currency transaction gains and losses are reflected in the statements of operations as financial income or expenses, as appropriate.
B. Liquidity and Capital Resources
We currently have limited
liquidity. As of December 31, 2022 and 2021, our cash on hand was $362,609 and $19,437, respectively. We are in default in repayment of
our convertible notes which as of December 31, 2022 aggregated to approximately $1.5 million (including principal and interest). Based
on our current cash burn rate, strategy and operating plan, we believe that our cash reserves as of the date of this report will enable
us to operate through June 2023. In order to fund our anticipated liquidity needs beyond such period (or possibly earlier if our current
cash burn rate, strategy or operating plan change in a way that accelerates or increases our liquidity needs), we will need to raise additional
capital.
Significant recent financing activities:
To date, we have financed
our operations primarily through the sale of equity and convertible securities as well as through government grants.
At the annual shareholders'
meeting held on September 19, 2021, the shareholders approved (i) a capital raise at a per share purchase price of $0.07 and (ii) an
adjustment to the conversion price of the Company's outstanding convertible loans (collectively, the "CLAs") from $0.17
to $0.07 per Ordinary Share, subject to the holders' agreement to cancel the outstanding related warrants that were issued in connection
with the CLAs.
On September 23, 2021, the
Company entered into agreements with the holders of approximately $3,521,748 in principal amount and accrued interest of CLAs for the
conversion of the Company's indebtedness into an aggregate of 57,291,838 Ordinary Shares (at the rate of $0.07 per share). Furthermore,
all the warrants that were issued previously in connection with those CLAs were cancelled and no longer have any force or effect.
40
Commencing July 2021 and through July 2022, we and certain existing
Company shareholders, namely GTRIMG, Teuza, entities controlled by each of Leon Recanati and Lenny Recanati and Dan Vilenski, entered
into definitive agreements relating to a private placement of the Company's ordinary shares for aggregate gross proceeds to the
Company of $3.0 million (including approximately $230,000 plus interest thereon upon conversion of CLAs), at a price of $0.07 per ordinary
share. The Company issued to such investors an aggregate of 42,926,031 ordinary shares in respect of the definitive agreements mentioned
above.
In October 2022, certain existing Company shareholders, including GTRIMG,
Teuza, entities controlled by each of Leon and Lenny Recanati and Dan Vilenski (collectively, the "Investors"), entered into
subscription agreements pursuant to which they agreed to invest in our securities by way of a private placement, under the following terms:
●
The
Company offered, issued and sold to the Investors units of its securities for aggregate gross proceeds to the Company of $1.0 million
(the "Initial Offering"), each unit comprised of (each, a "Unit" and, collectively, the "Units")
(i) one Ordinary Share, and (ii) a warrant to purchase an additional two Ordinary Shares, exercisable through the earlier of (a) the
closing of a subsequent offering of Company securities by the Company to qualified investors with an effective price per Ordinary Share
of at least $0.20 and (b) the second anniversary of the issuance of such warrant, in each case at a per share exercise price of $0.07,
subject to adjustment (the "Warrant"), at a per Unit purchase price of $0.07 (the "Purchase Price").
●
The
Company undertook to offer, issue and sell to the Investors, following the closing of the Initial Offering, additional Ordinary Shares
for aggregate gross proceeds to the Company of up to an additional $1.0 million (the "Follow on Offering"), at a price per
share equal to the Purchase Price, which offering was subject to the achievement by the Company of certain pre-defined milestones on
or before December 31, 2022, subject to a further extension at the discretion of the Company, to a date on or before February 28, 2023.
Following the partial fulfillment of the milestones, the Company initially raised from certain of the Investors $705,000 in the Follow
on Offering. In April 2023, pursuant to the terms of the subscription agreement, Teuza joined the Follow-on Offering, as extended, in
the amount of $295,000, resulting in aggregate proceeds to the Company of $1.0 million in the Follow-on Offering, which completed the
Follow-on Offering.
●
The
Company undertook to offer, issue and sell to the Investors, following the initial closing of the Follow on Offering, additional Ordinary
Shares for aggregate gross proceeds to the Company of up to an additional $800,000 (the "Final Offering"), at a price per
share equal to the Purchase Price, which offering was subject to the achievement by the Company of a certain additional milestone set
forth in the subscription agreement and any additional milestones to be agreed upon in good faith negotiations (the "Second Level
Milestones"). The Final Offering shall be closed by no later than the close of business on the 30
th
business day after
the delivery of notice by the Company to the Investors that the Second Level Milestones have been achieved. Two of the Investors undertook
to invest $300,000 each in the Final Offering ($600,000 in total), if the Second Level Milestones are achieved.  Notwithstanding
that the Second Level Milestones have not yet been fulfilled, in April 2023, Teuza waived such condition and pursuant to the terms of
the agreement, invested in this round in the amount of $105,000, resulting in aggregate proceeds to the Company of $105,000 in the Final
Offering to date.
The Company expects to issue to the Investors an aggregate of 14,285,712
Ordinary Shares and warrants to purchase an aggregate 28,571,425 Ordinary Shares in the Initial Offering in respect of the $1.0 million
raised, an additional aggregate 14,285,713 Ordinary Shares to the Investors that participated in the Follow on Offering in respect of
the $1.0 million raised, and an additional 1,500,000 Ordinary Shares to Teuza in respect of the $105,000 raised to date in the Final Offering.
If the Second Level Milestones are achieved and an additional $695,000 will be fully raised in the Final Offering, the Company
would issue an additional aggregate 9,928,571 Ordinary Shares to such Investors participating in the Final Offering.
For additional information
regarding how we financed our operations, please refer to Note 8, Note 11 and Note 17 to our consolidated financial statements for the
year ended December 31, 2022 that appear elsewhere in this annual report on Form 20-F.
41
We expect to continue to
fund our operations through equity or debt financings, strategic collaborations, grants and, to the extent our marketing and commercialization
efforts are successful, sales of our products or technologies.
We have incurred cumulative
losses of $40.6 million from inception through December 31, 2022. In addition, we have not yet established a stable recurring source
of revenues sufficient to cover our operating costs and expect to continue to generate losses for the foreseeable future. There is no
assurance that we will be able to obtain an adequate level of financing needed for our near-term requirements or the long-term development
and commercialization of our product. These conditions raise substantial doubt about our ability to continue as a "going concern".
Cash Flows
The
following table summarizes our consolidated statement of cash flows for the periods presented:
US $
Year ended December 31,
2022
2021
2020
Consolidated Statement of cash flows:
Net cash provided by (used in):
Operating activities
(2,889,426
)
(853,426
)
(793,757
)
Investing activities
(93,168
)
(1,869
)
808,913
Financing activities
3,325,123
849,032
(34,126
)
Net cash used in operating activities for the years ended December
31, 2022, 2021 and 2020 was $2,889,426, $853,426 and $793,757, respectively, an increase of $2,036,000 or 238% (from 2021 to 2022) and
an increase of $59,669 or 8% (from 2020 to 2021). The increase in net cash used in operating activities in 2022 relative to 2021 was primarily
attributable to payments of past liabilities in early 2022 and higher operating expenses during 2022. No significant change in net cash
used in operating activities in 2021 relative to 2020.
Net cash provided by (used
in) investing activities for the years ended December 31, 2022, 2021, and 2020 was $(93,168), $(1,869) and $808,913, respectively, an
increase of $91,299 (from 2021 to 2022) and a decrease of 810,782 (from 2020 to 2021). The increase in net cash used in investing activities
in 2022 relative to 2022 was attributable to higher purchase of property and equipment. The decrease in net cash provided by (used in)
investing activities in 2021 relative to 2020 was attributable to the acquisition of Jet CU.
Net cash provided by (used
in) financing activities for the years ended December 31, 2022, 2021 and 2020 was $3,325,123, $849,032 and $(34,126), respectively, an
increase of $2,476,091 or 292% (from 2021 to 2022) and an increase of $883,158 (from 2020 to 2021). The increase in net cash provided
by financing activities in 2022 relative to 2021 was primarily attributable to proceeds in connection with issuance of ordinary shares.
The increase in net cash provided by (used in) financing activities in 2021 relative to 2020 was primarily attributable to advance payment
on the account of issuing ordinary shares, proceeds from convertible loans and related warrants and change in short term loans.
C. Research and Development, patents and licenses,
etc.
For information regarding
our research and development activities and expenses, see "Item 4 B. — Business Overview" and "Item 5A. —
Operating Results".
D. Trend Information
We are a development stage
company with limited sales, and it is not possible for us to predict with any degree of accuracy the outcome of our research, development
or commercialization efforts. As such, we cannot predict with any degree of accuracy any significant trends, uncertainties, demands,
commitments or events that are reasonably likely to have a material effect on our net loss, liquidity or capital resources, or that would
cause financial information to not be indicative of future operating results or financial condition. However, to the extent possible,
certain trends, uncertainties, demands, commitments and events are described in Item 3D "Key Information—Risk Factors,"
Item 4A "Information on the Company" in this "Item 5. Operating and Financial Review and Prospects."
42
E. Critical Accounting Estimates
We prepare our consolidated
financial statements in accordance with U.S. GAAP, which requires our management to make estimates that affect the reported amounts of
assets, liabilities and disclosures of contingent liabilities at the balance sheet dates, as well as the reported amounts of revenues
and expenses during the reporting periods. To the extent that there are material differences between these estimates and actual results,
our financial condition or results of operations would be affected. We base our estimates on our own historical experience and other assumptions
that we believe are reasonable after taking into account our circumstances and expectations for the future based on available information.
We evaluate these estimates on an ongoing basis.
Our expectations regarding
the future are based on available information and assumptions that we believe to be reasonable, which together form our basis for making
judgments about matters that are not readily apparent from other sources. Since the use of estimates is an integral component of the financial
reporting process, our actual results could differ from those estimates. Some of our accounting policies require a higher degree of judgment
than others in their application.
We consider an accounting
estimate to be critical if: (i) the accounting estimate requires us to make assumptions about matters that were highly uncertain at the
time the accounting estimate was made, and (ii) changes in the estimate that are reasonably likely to occur from period to period or use
of different estimates that we reasonably could have used in the current period, would have a material impact on our financial condition
or results of operations.
When reading our consolidated
financial statements, you should consider our selection of critical accounting policies, the judgment and other uncertainties affecting
the application of such policies and the sensitivity of reported results to changes in conditions and assumptions. For summary information
regarding these accounting policies, see Note 2 to the audited consolidated financial statements for the year ended December 31, 2022
included elsewhere in this annual report on Form 20-F. We believe the following accounting estimates involve the most significant judgments
used in the preparation of our financial statements.
While management believes
its judgments, estimates and assumptions are reasonable, they are based on information presently available and actual results may differ
significantly from those estimates under different assumptions and conditions. We believe that the following critical accounting estimates
involve the most significant judgments used in the preparation of our financial statements.
Going Concern Assessment
We
assess liquidity and going concern uncertainty in our consolidated financial statements to determine whether there is sufficient
cash on hand and working capital, including available borrowings on loans, to operate for a period of at least one year from the
date the consolidated financial statements are issued or available to be issued, which is referred to as the "look-forward
period", as defined in GAAP. As part of this assessment, based on conditions that are known and reasonably knowable to us, we
consider various scenarios, forecasts, projections, estimates and make certain key assumptions, including timing and nature of
projected cash expenditures or programs, our ability to delay or curtail expenditures or programs and our ability to raise
additional capital, if necessary, among other factors. Based on this assessment, as necessary or applicable, we make certain
assumptions around implementing curtailments or delays in the nature and timing of programs and expenditures to the extent we deem
it probable that those implementations can be achieved and we have the proper authority to execute them within the look-forward
period.
As of December 31, 2022, we had cash balance of $362,609. We are in
default in repayment of our convertible notes which as of December 31, 2022 aggregated to approximately $1.5 million (including principal
and interest). As of the date of this annual report, we had sufficient cash to fund operations as presently maintained through June 2023.
We will need to raise additional capital to continue our operations beyond such period.
These
factors raise substantial doubt about our ability to continue as a going concern. Our evaluation of the events and conditions and our
plans regarding these matters are also described in Note 1.b to our consolidated financial statements for the year ended December 31,
2022 that appear elsewhere in this annual report on Form 20-F. The consolidated financial statements do not include any adjustments that
might result from the outcome of this uncertainty.
Impairment of long-lived assets
We review our long-lived
assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable.
When these events occur, we measure impairment by comparing the carrying value of the long-lived assets to the estimated undiscounted
future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted
cash flow is less than the carrying amount of the assets, we will recognize an impairment loss based on the fair value of the assets,
using the expected future discounted cash flows.
43
Warrant Liabilities
We
account for our warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant's
specific terms and applicable authoritative guidance in ASC 480, Distinguishing Liabilities from Equity ("ASC 480") and ASC
815, Derivatives and Hedging ("ASC 815"). The assessment considers whether the warrants are freestanding financial instruments
pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants meet all of the requirements for
liability classification under ASC 815, including whether the warrants are indexed to our ordinary shares, among other conditions for
equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance
and as of each cut-off end date while the warrants are outstanding.
Some
of our warrants meet the criteria as liability classified derivative instruments and are recorded at fair value on the grant date and
re-valued at each reporting date, with changes in the fair value reported in the consolidated statements of comprehensive loss. Warrant
liabilities are classified on the balance sheet as current or non-current based on whether or not net-cash settlement or conversion of
the instrument could be required within 12 months of the balance sheet date. Volatility in our ordinary shares may result in significant
changes in the value of the warrant liabilities and resulting gains and losses on our consolidated statement of comprehensive loss.
Recent Accounting Pronouncements
For information with respect
to recent accounting pronouncements, see Note 2.u. to the audited consolidated financial statements for the year ended December 31, 2022
included elsewhere in this annual report on Form 20-F.
ITEM 6. Directors, Senior Management and Employees.
A. Directors and Senior Management
The following table sets
forth information regarding our directors and senior management team as of May 15, 2023.
Name
Age
Position
Dov Farkash
63
Active Chairman of the Board
Avi Magid
(1)
62
Chief Executive Officer and Director
Dr. Fernando de la Vega
65
Chief Technology Officer and Director
Ofer Greenberger
(2)
61
Director
Keinan Maman
(3)(4)
46
Director
Orly Solomon
(2)(3)
54
External Director
Ido Lapidot
(2)(3)
59
External Director
Evyatar Cohen
50
Chief Financial Officer
(1)
Joined
                                            the Board of Directors on March 2, 2023.
(2)
Member
                                            of our Compensation Committee.
(3)
Member
                                            of our Audit Committee.
(4)
Joined
                                            the Board of Directors on March 6, 2023.
The address of each of our
directors and executive officers is c/o P.V. Nano Cell Ltd., 8 Hamasger Street Migdal Ha'Emek 2310102, Israel.
Dov Farkash
has
served as our Active Chairman since April 2020. Mr. Farkash has more than 25 years of experience in business leadership and technology
development in the electronics industry. From January 2000 to September 2019, Mr. Farkash served in a range of senior business leadership
and technology development positions at Nova Measuring Instruments Ltd., including Senior Vice President Strategic Development, Senior
Corporate Vice President Modeling Software Division, Vice President Sales and Vice President Business Development. Prior to joining Nova,
Mr. Farkash served as worldwide Sales and Marketing Manager of AFCON Ltd., and AFCON Inc. in the United States. Prior to that, Mr. Farkash
served in various software development managerial positions at various hi-tech companies. Mr. Farkash holds a B.Sc. degree in Computer
Engineering and an MBA degree from the Technion – Israel Institute of Technology, Haifa, Israel.
Avi Magid
has served
as our Chief Executive Officer since July 17, 2022 and as a director since March 2, 2023. Mr. Magid has wide and varied managerial experience
in the semiconductor and electronics industries in both startups and established companies. From October 2017 to July 2022, Mr. Magid
served as president of Pointer and Cellocator, an Israel based company engaged in IOT and telematics, which was acquired in November
2019 by Powerfleet, Inc., a Nasdaq traded company. Mr. Magid oversaw and successfully managed multiple business units and spearheaded
M&A activities at Pointer and Cellocator. From January 2016 to September 2017, Mr. Magid was chief executive officer of Micro Point
Pro, which operates in the semiconductor marketplace in both the back and front end. At Micro Point, Mr. Magid expanded its business
by penetrating strategic accounts and establishing new sales channels. From July 2015 to Dec 2015, Mr. Magid served
as Vice President, Industrial Division and Business Development, at Amiad Water Systems. Prior to that position, from August 2014
to June 2016, Mr. Magid served as the chief executive officer and a drector of Goji Ltd., which develops a paradigm-changing
RF-based energy delivery technology. From July 2010 to July 2014, Mr. Magid served as the chief executive officer of Margan Ltd., which
was engaged in ultrasonic sensing systems, where he transformed a small founder-based company into a business with multi-year contractual
engagements. From October 2006 to October 2010, Mr. Magid served as the Executive Vice President Global Business Group at Nova Measuring
Instruments Ltd., where he managed 110 employees and led the company from a non-profitable OEM position to a cutting-edge segment leader.
From 1993 to 2006, Mr. Magid served as the in various managerial position with Kulick and Soffa Industries in both Israel and the United
States. Mr. Magid received his B.Sc. degree in industrial engineering from Pomona Polytechnic University in California in 1992 and graduated
the AeA program at Stanford University in 1999.
44
Dr. Fernando de la Vega
co-founded
PV Nano Cell Ltd. in 2009 and has served as a member of our board of directors since that time (as Chairman of the Board until April
2020), and served as our Chief Executive Officer from our inception until June 2021 and since such time has served as our Chief Technology
Officer. Dr. de la Vega has more than 35 years industrial and entrepreneurial experience, having served in managerial positions with
responsibility over research and development, quality and operations and has founded or co-founded several businesses in the fields of
nano technology and functional materials. From 2001 to early 2009, Dr. de la Vega served as General Manager and a Director of Cima Nanotech
Israel, a company focused on the development of innovative technologies in the field of flexible printed electronics. Dr. de la Vega
also co-founded and, from 2003 through 2009, served as Chairman of the Nano Functional Materials Consortium, a five-year, $25 million
research consortium which performed general research on nanotechnology, sponsored by the IIA (the former Office of the Chief Scientist)
as part of the MAGNET program, a special program intended to encourage cooperation between industry and academia. Dr. de la Vega has
also co-founded three European research and development consortiums. He is a co-inventor of more than 11 patent families in the fields
of nanomaterials and nanotechnology and author and co-author of many scientific and technical publications (including sections on two
books on conductive inks for inkjet printing). Dr. de la Vega holds a Ph.D. in Applied Chemistry from the Casali Institute at the Hebrew
University of Jerusalem, as well as a M.Sc. degree in Applied Chemistry and a B.Sc. degree in Chemistry from the Hebrew University of
Jerusalem.
Ofer Greenberger
has
served as a director since May 2022. Mr. Greenberger is an experienced executive with an international proven track record in turnaround
management in the technology sector. Since February 2017, Mr. Greenberger has served as President and General Manager of Applied Materials
(Israel), a subsidiary of a Nasdaq-listed company and a global leader in materials engineering solutions for semiconductors, flat panel
display and photo voltaic industries. Prior to his position at Applied Materials, from March 2012 through September 2015, Mr. Greenberger
served as the chief executive officer of Orbit Communications Systems, an Israel-based local provider of airborne communications and
satellite- tracking maritime and ground-station and new space solutions. Prior thereto, from 2003 to 2011, Mr. Greenberger served as
President and General Manager of KLA-Tencor (Israel), a subsidiary of a leading worldwide capital equipment company based that supplies
process control and yield management systems for the semiconductor industry and other related nanoelectronics industries. From 1993 to
2003, Mr. Greenberger served as Vice President and General Manager for Kulicke & Soffa, a leading provider of semiconductor packaging
and electronic assembly solutions supporting the global automotive, consumer, communications, computing and industrial segments. Mr.
Greenberger holds a B.Sc. degree in mechanical engineering and an M.B.A. degree from the Technion – Israel Institute of Technology
and is a graduate of the AEA Stanford Executive Program.
Keinan
Maman
has served as a director since March 2023. Mr. Maman is an experienced executive with proven track record in financial and
business performance optimization. Since 2022, Mr. Maman has served as chief financial officer of Keshet-Teamim, an Israeli supermarket
chain. Prior to this position, from 2019 to 2022, Mr. Maman is served as chief financial officer of Fibernet, an Israeli company that
designs, develops and implements cybersecurity, multimedia and fiber optic-based solutions. Prior thereto, from 2014 to 2019, Mr. Maman
served as General Manager of Greenland, an Israeli retail chain. Mr. Maman holds a BA degree in accounting from Haifa University and
a M.B.A. degree in business administration from Tel-Aviv University.
Orly Solomon
has
served as an external director (with proficiency in accounting and
finance) of the Company (within the meaning of the Companies Law) since December 2017. Ms. Solomon serves as Chief Financial Officer of
Radview Software Ltd. (RDVWF) since November 2021. Ms. Solomon currently serves as a director of Next Era Ltd. Ms. Solomon served as Financial
Director and Advisor to the board of directors of Med and Beyond Ltd. in the years 2019-2021. Ms. Solomon served on the board of directors
of Shikmona, a governmental and city owned corporation in Haifa from 2014 to 2017, as a director with financial expertise. Ms. Solomon
served as Chief Financial Officer of Inuitive Ltd from 2017 to 2021. From 2014 to 2016, Ms. Solomon served as Chief Financial Officer
of Future Values Ltd. During 2013, Ms. Solomon served as Chief Executive Officer of D. Medical Industries Ltd. (NASDAQ /TASE: DMED). Ms.
Solomon was also the chairman of the board of directors of RSL Electronics Ltd. (TASE: RSL) from 2011 to 2012. From 2010 to 2012, Ms.
Solomon served as Chief Financial Officer and Deputy to the Chief Executive Officer of Lito Group Ltd. (TASE: LTGR-M). From 2009 to 2010,
Ms. Solomon served as co-founder and Chief Financial Officer of Atid Team, Israel. From 2006 to 2010, Ms. Solomon served as co-founder
and a director of Altshare (formerly known as Altshuler Shacham Benefits Israel), a subsidiary of the Altshuler Shacham Investment House.
Ms. Solomon holds an MBA degree in Finance and Economics from the Hebrew University of Jerusalem, and a BSc. degree in Accounting, with
honors, from Rutgers University, Newark, New Jersey.
45
Ido Lapidot
has served
as an external director of the Company (within the meaning of the Companies Law) since December 2017. Mr. Lapidot is a systematic innovation
consultant and strategic planner, with over two decades of experience in driving innovation and sustainable growth across diverse industries.
Ido is a partner at Next Leap Ventures, an investment club comprising former Intel employees, where he is in charge of identifying and
nurturing groundbreaking technologies and startups and serving as NextLeap Ventures representative on the boards of directors at Sanolla,
Wadis, and Marine Edge. Previously, Mr. Lapidot held several key positions at Intel R&D, Intel Labs, and Intel Corporate Services-EMEA,
where he led LEAN manufacturing and TRIZ programs, and served as a strategic technologies' planner and TRIZ program leader. Mr.
Lapidot also served as an external teacher for TRIZ and systematic innovation at Afeka College of Engineering, at Azrieli College of
Engineering, and Hadassah Academic College. Mr. Lapidot holds an MA degree in Environmental Science, a BA degree in Chemistry, and a
B.A. degree in Atmospheric Science from the Hebrew University of Jerusalem. Mr. Lapidot also holds a TRIZ L3 certification from MA-TRIZ,
a testament to his deep understanding of innovation theory and practice.
Evyatar Cohen
has
served as our Chief Financial Officer since November 2017. Currently and prior to his appointment as our Chief Financial Officer, Mr.
Cohen serves and has served as a Chief Financial Officer and financial consultant for several public companies traded in the United States,
Israel and Europe as well as privately held companies. Mr. Cohen worked at PricewaterhouseCoopers in both Tel-Aviv and New York. Mr.
Cohen has gained vast experience in many industries such as high-tech, bio-tech, oil and gas, entertainment and media, and venture capital.
Mr. Cohen holds a B.A. degree in Business Management from the College of Management and a Masters of Law degree from Bar Ilan University,
Israel. Mr. Cohen is a licensed and certified public accountant in both the United States and Israel.
Appointments to the Board
Under our Articles of Association,
as approved by our shareholders on November 29, 2018, GTRIMG, our controlling shareholder, has the right, so long it holds at least 5%
of our issued and outstanding share capital, to: (i) designate one non-voting observer to our Board, provided that the observer shall
not be a competitor of ours, or employed by a competitor of ours; and (ii) conditioned upon a $2.0 million investment by GTRIMG following
such date, to appoint a director to the Board who shall also serve as the chairman of the Board, provided that such nominee has the required
qualifications under applicable laws, including the stock exchange rules then applicable. In October 2018, Ram Zeevi, the son of Gad Zeevi,
who is the controlling shareholder of GTRIMG, was appointed as an observer to our Board. In April 2020, following completion of GTRIMG's
$2.0 million investment, GTRIMG appointed Mr. Dov Farkash to server as a member of our Board as Active Chairman.
Under an agreement dated
October 27, 2021, entered into in connection with a private placement of our securities, certain of the investors, including GTRIMG,
Messrs. Leon and Lenny Recanati, Dan Vilenski and Teuza, have the right to appoint three directors to our Board. Accordingly, Mr. Ofer
Greenberger and Mr. David Boas were appointed to our Board as of May 19, 2022. Mr. Boas resigned from our Board as of January 1, 2023,
and was replaced by Mr. Keinan Maman, who was appointed as a director as of March 6, 2023.
Family Relationships
There are no family relationships
between any members of our executive management and our directors.
46
B. Compensation
The table below reflects
the compensation granted to our five most highly compensated office holders (as defined in the Companies Law) during or with respect
to the year ended December 31, 2022. We refer to the five individuals for whom disclosure is provided herein as our "Covered Executives".
For purposes of the table below, "compensation" includes amounts accrued or paid in connection with salary cost, consultancy
fees, bonuses, share-based compensation, retirement or termination payments, benefits and perquisites (as applicable) to provide such
compensation. All amounts reported in the table are in terms of cost to the Company, as recognized in our consolidated financial statements
for the year ended December 31, 2022, plus compensation accrued or paid to such Covered Executives following the end of the year in respect
of services provided during the year.
Individual Covered Executive Compensation Name and Principal Position
Salary
(1)
Share-based
Compensation
(2)
Total
US $
Fernando de la Vega, Chief Technology Officer and Director
$
246,190
$
111,754
$
357,944
Hanan Markovich, Former Chief Business Development Officer
(3)
213,211
21,758
234,969
Ran Eisenberg, Former Chief Executive Officer and Director
(4)
141,802
89,717
231,519
Evyatar Cohen, Chief Financial Officer
160,824
46,171
206,995
Dov Farkash, Active Chairman
$
142,955
$
35,894
$
178,849
(1)
Salary includes the Covered Executive's gross salary plus payment
    of social benefits made by us on behalf of such Covered Executive. Such benefits may include, to the extent applicable to the Covered
    Executive, payments, contributions and/or allocations for savings funds (e.g., managers' life insurance policy), education
    funds (referred to in Hebrew as "keren hishtalmut"), pension, severance, risk insurances (e.g., life, or work disability
    insurance), payments for social security and tax gross-up payments, vacation, medical insurance and benefits, convalescence or recreation
    pay and other benefits and perquisites consistent with our policies.
(2)
Represents the share-based compensation expenses recorded in the Company's
    consolidated financial statements for the year ended December 31, 2022, based on the option's grant date fair value, calculated
    in accordance with accounting guidance for share-based compensation.
(3)
Mr. Markovich ceased to serve as our Chief Business Development Officer
    on February 22, 2023.
(4)
Mr. Eisenberg ceased to serve as a director on May 15,
    2022, and ceased to serve as our Chief Executive Officer on July 1, 2022.
Compensation of Executive Officers and Directors
as a Group
The aggregate compensation
paid by us to our executive officers and directors for the year ended December 31, 2022, was approximately $1,210,276, including share-based
compensation expenses of approximately $305,294. This amount does not include business travel, relocation, professional and business
association dues and expenses reimbursed to officers, and other benefits commonly reimbursed or paid by companies in Israel. We did not
set aside or accrue any amounts to provide pension, retirement or similar benefits to any officers or directors of the Company in the
year ended December 31, 2022.
In connection with their
appointments as directors effective May 19, 2022 and March 6, 2023, respectively, each of Mr. Ofer Greenberger and Mr. Keinan Maman was
awarded under the Company's 2010 Option Plan options to purchase up to 1,300,000 shares of the Company's Ordinary Shares,
which options are scheduled to vest as follows: 25% of the options vest on the first anniversary of the appointment to the Board (i.e.,
325,000 options shares) and the balance are to vest over the next three years in equal instalments on a quarterly basis at the end of
each three month period following the first anniversary of appointment to the Board (i.e., 81.250 option share per three month period).
We do not have any written
agreements with any director providing benefits upon the termination of such director's relationship with our company, other than
our consulting agreement with our chief technology officer as described below.
Our officers are employed
under the terms and conditions prescribed in personal contracts. See below "Employment or Service Agreements with our Active Chairman,
Chief Executive Officer, Chief Technology Officer and Chief Financial Officer." These personal contracts provide for notice periods
of varying duration for termination of the agreement by us or by the relevant executive officer, during which time the executive officer
will continue to receive base salary and benefits. These agreements also contain acceleration provisions upon material events such as
a change of control or entry into a material agreement, customary provisions regarding non-competition, confidentiality of information
and assignment of inventions. However, the enforceability of provisions regarding non-competition and assignment of inventions may be
limited under applicable law. See "Item 3 D. — Risk Factors — Risks Related to Our Intellectual Property". Under
current Israeli law, we may not be able to enforce office holders' covenants not to compete and therefore may be unable to
prevent our competitors from benefiting from the expertise of some of our former officer holders.
47
Our other employees are employed
under the terms prescribed in their respective personal contracts, in accordance with the decisions of our management. Under these employment
contracts, the employees are entitled to the social benefits prescribed by law and as otherwise provided in their personal contracts.
Each of these employment contracts contains provisions standard for a company in our industry regarding non-competition, confidentiality
of information and assignment of inventions. Under current applicable employment laws, we may not be able to enforce covenants not to
compete and therefore may be unable to prevent our competitors from benefiting from the expertise of some of our former employees. See
"Item 3 D. — Risk Factors — Risks Related to Our Intellectual Property" for a further description of the enforceability
of non-competition clauses. We also provide certain of our employees with a company car, which is leased from a leasing company.
Compensation of Non-Executive Directors
Our non-executive directors,
other than our external directors (within the meaning of the Companies Law), do not receive any cash compensation.
We pay our external directors
(an annual fee and per-meeting fees in an amount between the minimum and maximum amounts payable from time to time for such fees by us
under the Israeli Companies Regulations (Rules Regarding Compensation and Expense Reimbursement of External Directors), 2000 (the "Compensation
Regulations"). In March 2022, a temporary amendment to the Compensation Regulations was adopted, which was adopted retroactively
as of March 2020, allowing boards of directors to adopt criteria for purposes of classifying the participation of directors in meetings
held electronically as attendance in person for purposes of the payment of per meeting fees, during such period that a "public
health emergency situation" has been declared due to the COVID-19 pandemic. Our Board of Directors adopted a resolution classifying
the participation of directors in meetings held electronically as attendance in person for purposes of the payment of per meeting fees
in consideration of the COVID-19 pandemic and the preparation required of Board members for such meetings. In accordance with the Compensation
Regulations, we currently pay our external directors an annual fee of NIS 25,000 (approximately $7,104) as well as a fee of NIS 3,300
(approximately $938) for each board or committee meeting attended in person, via telephone or videoconference and NIS 1,650 (approximately
$469) for participation by written consent.
Directors and Officers Equity-Based Compensation
As of December 31, 2022, a
total of options to purchase 16,700,377 of our ordinary shares were outstanding and held by certain current directors and executive officers
(consisting of eight persons), of which options to purchase 10,425,377 of our ordinary shares were exercisable or exercisable within 60
days of May 15, 2023. For information regarding the beneficial ownership of our ordinary shares by our directors and executive
officers, see "Item 7 A. Major Shareholders and Related Party Transactions — Major Shareholders"..
Employment or Service Agreements with our
Active Chairman, Chief Executive Officer, Chief Technology Officer and Chief Financial Officer
Dov Farkash
. On April 19, 2020, we entered into an Active Chairman
Agreement (the "Chairman Agreement"), with Exoro Ltd. ("Exoro"), a company wholly-owned by Mr. Dov Farkash. The
Chairman Agreement provided that Exoro, through Mr. Farkash is to provide certain services to us as active chairman, focusing on go-to-market
strategy. We agreed to enter into an indemnification agreement with Mr. Farkash and to include him in our directors' and officers'
liability insurance. Mr. Farkash agreed not to provide any services that would conflict with or complete with ours. We agreed to pay to
Exoro a monthly service fee of NIS 40,000 (approximately $11,366) plus Value Added Tax ("VAT"). Exoro was entitled to reimbursement
of expenses in connection with the provision of the services and was provided a budget of $10,000/month for travel. The term of the Chairman
Agreement was for four months, with our right to renew the agreement for an additional nine months, which was utilized. Either party could
terminate upon 45 days prior written notice. The Chairman Agreement could also be terminated by us for Cause (as defined in the Chairman
Agreement). Notwithstanding the expiration of the Chairman Agreement, Mr. Farkash has continued to serve as Active Chairman in accordance
with the terms thereof, and we intend to present such continued engagement to the approval of our shareholders at the next general meeting
of shareholders.
48
Avi Magid
. On November
7, 2022, we entered into an employment agreement with Mr. Magid in connection with his appointment as our Chief Executive Officer, which
was in effect through the close of business December 19, 2022 (the "Initial CEO Agreement"), at which time our annual
general meeting of shareholders approved the terms and conditions of Mr. Magid's new employment agreement in such capacity, effective
as of such date (the "CEO Agreement"). The primary difference between the Initial CEO Agreement and the CEO Agreement was
that under the Initial CEO Agreement, Mr. Magid was entitled to a gross monthly salary in such amount as consistent with an aggregate
monthly cost to the Company of NIS 60,000, retroactive to August 1, 2022 (his employment start date), whereas under the CEO Agreement,
he is entitled to a gross monthly salary of NIS 60,000 (approximately $17,050). In addition, under the terms of the CEO Agreement,
Mr. Magid is entitled to a leased vehicle or, alternatively, at his option, to receive an additional amount equal to the leasing cost
as salary, provided that the total payroll will be in accordance with the limitation of our Compensation Policy. Under both agreements,
Mr. Magid is also entitled to the following: (i) manager's insurance under Israeli law to which the Company contributes
amounts equal to (a) 8.33% for severance payments, and 6.5%, or up to 7.5% (including disability insurance) designated for premium payment
(and Mr. Magid contributes an additional 6%) of each monthly salary payment, and (b) 7.5% of his salary (with Mr. Magid contributing
an additional 2.5%) to an education fund, a form of deferred compensation program established under Israeli law. Both employment agreements
contain (i) customary confidentiality obligations which are not limited by the term of the agreement, (ii) certain non-compete provisions
during the term of the agreement and 12 months thereafter and (iii) certain non-solicitation provisions during the term of the agreement
and for one year thereafter. Either party may terminate the CEO Agreement at any time upon one month's prior written notice.
In addition, pursuant to the approval of our shareholders at the annual
general meeting held in December 2022, Mr. Magid was awarded options to purchase 5,249,758 ordinary shares, exercisable at a per
share exercise price of $0.07 and scheduled to vest over three years as follows: one-third on August 1, 2023, the first anniversary of
the employment start date, and the balance thereafter in equal monthly instalments at the end of each month, subject to his continued
employment with the Company; provided, that as the number of reserved shares under the Company's 2010 Option Plan is not sufficient
to support the grant in its totality at the time of the shareholder approval, options for only 4,000,000 shares were awarded and the balance
of the grant (i.e., 1,249,758 options) shall be completed at such time as the number shares available for issuance under the Company's
2010 Option Plan shall have been increased (and such remaining options, once granted, will vest according to the vesting schedule referenced
above).
Dr. Fernando de la Vega
.
On September 9, 2009, we entered into a services agreement (the "DBG Services Agreement"), as amended in November 2018, with
Dr. de la Vega's wholly-owned service company, Dolev Bar-Guy Consulting and Management Ltd. ("DBG Services Agreement"),
pursuant to which Dr. de la Vega provided us management services as our Chief Executive Officer through June 1, 2021, at which time he
resigned from such position and assumed the position as Chief Technology Officer, under the same terms and conditions according to the
DBG Services Agreement. Pursuant to the terms of the DBG Services Agreement, Dr. de la Vega is currently entitled to a monthly consultancy
fee in the amount of 65,000 (approximately $18,471) plus VAT and car allowance in the amount of NIS 2,500 (approximately $710) plus VAT
per month plus reimbursement for fuel expenses and tolls. Dr. de la Vega may, at any time, terminate the DBG Services Agreement by three
months' prior written notice. If we wish to terminate the DBG Services Agreement, other than as a result of Dr. de la Vega's
breach of his terms of office, we are required to provide six months' prior written notice (provided that if the termination is
up to 12 months following an exit event, 24 months' prior written notice is required; between 12 and up to 24 months following an
exit event, 12 months' prior written notice is required and between 24 months and up to 36 months following an exit event, 6 months'
prior written notice is required).
In addition, Dr. de la Vega
is entitled to receive:
(a)
An annual cash bonus in an amount equivalent to up to four times his
    monthly service fee, plus VAT, subject to achievement of certain performance targets which are determined by our compensation committee
    and the board of directors on an annual basis.
(b)
A special one-time bonus in an amount equivalent to six times his monthly
    service fee, plus VAT upon the occurrence of an Exit Event (as described below), provided that our pre-money valuation shall be at
    least $50,000,000 at the closing of such transaction or within 12 months following such closing.
(c)
An equity-based award upon the occurrence of an Exit Event, in accordance
    with the following calculation:
(i)
0.5% of the Company's share capital on a fully diluted basis,
    if the Company's pre-money valuation shall be equal to or higher than $30,000,000 but less than $40,000,000;
49
(ii)
1.25% of the Company's share capital on a fully diluted basis,
    if the Company's pre-money valuation shall be equal to or higher than $40,000,000 but less than $50,000,000;
(iii)
2.0% of the Company's share capital on a fully diluted basis, if
    the Company's pre-money valuation shall be equal to or higher than $50,000,000.
An 'Exit Event'
is defined as: (i) the consummation of an initial public offering of ordinary shares of the Company on a recognized stock exchange; or
(ii) a sale of all or substantially all of the share capital of the Company to any individual, firm, corporation, partnership, trust,
incorporated or unincorporated association, joint venture, joint stock company, governmental authority or other entity of any kind, and
shall include any successor (by merger or otherwise) of such entity (a "Person"); (iii) a sale, lease, conveyance or disposition
of all or substantially all of the assets of the Company; (iv) a merger of the Company with or into another entity in which the shareholders
of the Company immediately prior to such merger do not hold a majority of the share capital and voting rights of the surviving entity
held by them by virtue of their holdings in the Company prior to the consummation of the transaction or a transaction or series of transactions
in which a Person or group of Persons acquire more than 50% of the issued and outstanding share capital of the Company (other than an
acquisition of such share capital from the Company); or (v) an up-listing to a higher exchange.
Evyatar Cohen.
On
November 12, 2017, we entered into a consultancy agreement with Mr. Cohen to serve as our Chief Financial Officer. Mr. Cohen's
services include, among others, the services of Ms. Moran Cohen as our controller. Pursuant to the terms of the agreement, Mr. Cohen
is entitled to a monthly fee of NIS 45,000 (approximately $12,787) plus VAT. Either we or Mr. Cohen may terminate the agreement by providing
45-days prior notice.
We have not paid our Active Chairman and certain executive officers all amounts due to them under their respective agreements due to financial
difficulties and have recorded a liability in our consolidated financial statements with respect to such amounts.
Share Option Plan
During 2010, we adopted our
2010 Option Plan (the "Plan"). The purpose of the Plan is to serve as an incentive to attract new employees, directors, consultants
and service providers, and to retain persons of training, experience and ability by providing them with opportunities to purchase securities,
including shares of the Company, pursuant to the Plan, as approved by the board of directors of the Company. As of December 31, 2022,
a total of 1,515,516 ordinary shares were reserved for issuance under the Plan. The number of ordinary shares reserved for issuance under
the Plan may be changed from time to time at the sole discretion of the board of directors.
The Plan is administered
by our board of directors, provided that the board of directors may delegate responsibility for the administration of the Plan to a committee
designated by the board of directors. The board of directors has authority to designate grantees of awards under the Plan and the terms
of any award granted, including the type of securities to be granted, the vesting terms of any securities granted, and any restrictions
on transfer of any securities granted under the Plan.
Pursuant to the Plan, the Company may (1) grant awards of securities
under the Plan under the capital gains track pursuant to Section 102 of the Israeli Income Tax Ordinance [New Version], 1961 (the "Ordinance"),
to our directors, officers and employees who are not holders of 10% or more of our total share capital and are not otherwise controlling
shareholders, and (2) grant awards pursuant to Section 3(i) of the Ordinance to non-employee Israeli service providers, consultants and
shareholders who hold 10% or more of our total share capital or are otherwise controlling shareholders.
Section 102 of the Ordinance
allows employees, directors and officers, who are not controlling shareholders and are considered Israeli residents, to receive favorable
tax treatment for compensation in the form of shares or options. Our non-employee Israeli service providers, consultants and controlling
shareholders, which includes any shareholder holding 10% or more of the Company's ordinary shares on a fully diluted basis, may
only be granted options under Section 3(i) of the Ordinance, which does not provide for similar tax benefits. Section 102 of the Ordinance
includes two alternatives for tax treatment involving the issuance of options or shares to a trustee for the benefit of the grantees
and also includes an additional alternative for the issuance of options or shares directly to the grantee. Section 102(b)(2) of the Ordinance,
the most favorable tax treatment for grantees, permits the issuance to a trustee under the "capital gains" track. However,
under this track we are not allowed to deduct any expense with respect to the issuance of the options or shares. In order to comply with
the terms of the capital gains track, all options granted under the Plan pursuant and subject to the provisions of Section 102 of the
Ordinance, as well as the ordinary shares issued upon exercise of these options and other shares received subsequently following any
realization of rights with respect to such options, such as share dividends and share splits, must be granted to a trustee for the benefit
of the relevant employee, director or officer and should be held by the trustee for at least two years after the date of the grant. If
such options or shares are sold by the trustee or are transferred to the grantee before the end of the two-year period, then the grantee
would be taxed at top marginal rates upon selling the shares.
50
Options granted under the
Plan will vest in accordance with the vesting dates determined by the board of directors with respect to each grant. Options that are
not exercised within seven years of the grant date will expire, unless a shorter or longer term is provided for by the board of directors.
Generally, if we terminate a grantee's employment or services to the Company, all options granted to such grantee that are then
vested will be exercisable for a period of six months after the termination date (unless a shorter period is determined by the board
of directors) or, if earlier, the expiration date of such options if we terminate a grantee's employment or service for cause,
all of the grantee's vested and unvested unexercised options will expire and terminate on the date of termination. In case of termination
for reasons of disability or death, the grantee or his legal successor may exercise options that have vested prior to termination within
a period of twelve months from the date of disability or death.
In the event of a merger
or consolidation of our Company subsequent to which we would no longer exist as a legal entity, or a sale of all, or substantially all,
of our ordinary shares or assets or other transaction having a similar effect on us, the Company will seek to cause the acquirer in such
transaction to substitute all outstanding and unexercised options under the Plan for an appropriate number of the same type of shares
or other securities of the successor company as were distributed to the Company or the shareholders in connection with such transaction.
If the acquirer refuses to substitute the options, unvested options held by any grantee will vest in accordance with the following formula:
X+Y*X/Z, where X = the number of vested options held by the grantee, Y = the number of unvested options held by the grantee, and Z =
the number of options held by the grantee.
C. Board Practices
Board of Directors
Under the Companies Law,
the management of our business, including strategy and policies, is vested in our board of directors. Our board of directors may exercise
all powers and may take all actions that are not specifically granted to our shareholders or to management. Our Chief Executive Officer
and other executive officers are responsible for our day-to-day management and have responsibilities established by our board of directors.
Our Chief Executive Officer is appointed by, and serves at the discretion of, our board of directors, subject to the terms of an employment
agreement that we have entered into with him. All other executive officers are appointed by our chief executive officer, and are subject
to the terms of any applicable employment agreements that we may enter into with them.
Election and Removal of Directors
Our Articles of Association
provide for a board of directors consisting of no less than three and no more than seven directors, with all directors (other than the
external directors, whose appointment is required under the Companies Law, as described below) divided into three classes with staggered
three-year terms, designated as Class I, Class II and Class III, with each class of directors to consist, as nearly as possible, of one-third
of the total number of directors other than the external directors. At each annual general meeting of our shareholders thereafter, the
election or re-election of directors following the expiration of the term of office of the directors of that class of directors will
be for a term of office that expires on the third annual general meeting following such election or re-election. Each director so elected
will hold office until the annual general meeting of our shareholders for the year in which his or her term expires, unless the tenure
of such director expires earlier pursuant to the Companies Law or unless he or she is removed from office as described below. Our board
of directors is divided among the three classes of directors (except for the external directors) as follows:
●
The Class I director is Mr. Dov Farkash, our Active Chairman, for a
    term expiring at the 2023 annual meeting of shareholders.
51
●
The Class II directors are Mr. Ofer Greenberger and Mr. Keinan Maman,
    for a term expiring at the 2024 annual general meeting of shareholders.
●
The Class III director is Dr. Fernando de la Vega, for a term expiring
    at the 2025 annual general meeting of shareholders.
Under our Articles of Association
our Chief Executive Officer, currently Mr. Avi Magid, serves as an ex-officio member of our Board of Directors. In addition, Ms. Orly
Solomon and Mr. Ido Lapidot serve as our external directors in accordance with Israeli law, as described further below.
Our Articles of Association
allow our board of directors to appoint directors (other than the external directors) to fill vacancies on our board of directors, however
created, for a term of office equal to the remaining period of the term of office of the director(s) whose office(s) have been vacated,
and to appoint any person to be a Director in addition to the existing Board, so long as the total number of Directors shall not at any
time exceed the maximum number prescribed by our Articles of Association. Any such director appointed by the Board of Directors shall
be placed in a class of directors so that all classes are as nearly equal as possible. A director, appointed by the Board of Directors,
shall be deemed, for all intents and purposes, as having been appointed by the Annual General Meeting, and, without derogating from the
generality of the aforesaid, shall serve as a Director until the expiry of the term of office of the class to which he or she was appointed.
Observer
Under our Articles of Association,
as approved by our shareholders on November 29, 2018, GTRIMG, our controlling shareholder, has the right, so long it holds at least 5%
of our issued and outstanding share capital, to designate one non-voting observer to our Board, provided that the observer shall not be
a competitor of ours or employed by a competitor of ours. In October 2018, Ram Zeevi, the son of Gad Zeevi, who is the controlling shareholder
of GTRIMG, was appointed as an observer to our Board.
Chairman of the Board
Under our Articles of Association,
as approved by our shareholders on November 29, 2018, GTRIMG, our controlling shareholder, has the right, so long it holds at least 5%
of our issued and outstanding share capital, conditioned upon a $2.0 million investment by GTRIMG following such date, to appoint a director
to the Board who shall also serve as the chairman of the Board, provided that such nominee has the required qualifications under applicable
laws, including the stock exchange rules then applicable. In April 2020, following completion of GTRIMG's $2.0 million investment,
GTRIMG appointed Mr. Dov Farkash to server as a member of our Board as Active Chairman.
Under the Companies Law, the chief executive officer (referred to as
a "general manager" under the Companies Law) or a relative of the chief executive officer may not serve as the chairman of
the board of directors, and the chairman of the board of directors or a relative of the chairman may not be vested with authorities of
the chief executive officer unless approved by our shareholders by a special majority consisting of a majority vote of the shares present
and voting at a shareholders meeting,
provided
that either:
●
at least a majority of the shares of non-controlling shareholders and
    shareholders that do not have a personal interest in the approval voted at the meeting are voted in favor (disregarding abstentions);
    or
●
the total number of shares of non-controlling shareholders and shareholders
    who do not have a personal interest in such appointment voting against such appointment does not exceed two percent of the aggregate
    voting rights in the company.
A person subordinated, directly
or indirectly, to the chief executive officer may not serve as the chairman of the board of directors; the chairman of the board of directors
may not be vested with authorities that are granted to those subordinated to the chief executive officer; and the chairman of the board
of directors may not serve in any other position in the company or a controlled company, but he or she may serve as a director or chairman
of the board of directors of a controlled subsidiary.
There are no family relationships among any of
our officers and directors.
52
External Directors
Under the Companies Law,
companies incorporated under the laws of the State of Israel whose shares are publicly traded are required to appoint at least two external
directors who meet the qualification requirements set forth in the Companies Law within three months of the closing of the initial public
offering.
At our general meeting of
shareholders held in 2017, we appointed Ms. Orly Solomon and Mr. Ido Lapidot as our external directors for an initial term of three years
and they were re-elected at our general meeting of shareholders held in December 2020 for an additional three-year term.
The Companies Law provides
for special approval requirements for the election of external directors. External directors must be elected by a majority vote of the
shares present and voting at a shareholders meeting, provided that either (which we refer to as the "Special Majority"):
●
such
majority includes at least a majority of the shares held by all shareholders who are not controlling shareholders and do not have a personal
interest in such election (other than a personal interest which is not derived from a relationship with a controlling shareholder), present
and voting at such meeting, excluding abstainers; or
●
the
total number of shares of non-controlling shareholders and shareholders who do not have a personal interest in such election (other than
a personal interest which is not derived from a relationship with a controlling shareholder) voting against the election of an external
director does not exceed 2% of the aggregate voting rights in the company.
After an initial term of
three years, an external director may be re-elected to serve in that capacity for up to two additional terms of three years each under
one of two alternatives. Under the first alternative, the external director may be nominated by the board of directors, and such external
director's re-election is approved by a majority of the shareholders that was required to elect such external director in such
director's initial election. Under the second alternative, the external director may be nominated by a shareholder(s) holding 1%
or more of the voting power and at the general meeting of shareholders such re-election is approved by a majority of those shares present
and voting that are held by shareholders who are non-controlling shareholders and do not have a personal interest in the re-election,
provided that such shares represent at least 2% of the total voting power in the company.
Under the Companies Law, an external director cannot be dismissed from
office unless the board of directors has learned there is a concern that: (i) the external director no longer meets the statutory requirements
for his appointment as an external director; or (ii) the external director is in breach of his or her duty of loyalty to the company.
The board of directors shall discuss the matter no later than in the first board of directors meeting convened after the board becomes
aware of such circumstances. In the event the board of directors determines that an external director ceased to comply with the requirements
set forth under the Companies Law, or that he or she breached his or her duty of loyalty to the company, the board of directors shall
convene a general meeting of the shareholders that shall include on the agenda a resolution for the removal from office of such external
director. The removal of an external director from office by the shareholders is subject to the same Special Majority requirements for
the appointment of external directors (as described above); provided, however, that the external director has been given the opportunity
to present his or her position. In addition, a court of law may determine, upon a request by a director or a shareholder, to dismiss the
external director after finding that such external director no longer meets the statutory requirements of an external director set forth
in the Companies Law or that the external director is in breach of his or her duty of loyalty to the company.
Any committee of the board
of directors that is authorized to exercise powers of the board of directors is required to include at least one external director, and
the audit and compensation committees are required to all of such company's external directors.
Under the Companies Law,
external directors of a company are prohibited from receiving, directly or indirectly, any compensation from the company other than for
their services as external directors pursuant to the provisions and limitations set forth in regulations promulgated under the Companies
Law (the "Regulations"), which compensation is determined prior to their appointment and may not be changed throughout the
term of their service as external directors (except for certain exceptions set forth in the regulations).
The Companies Law provides
that a person is not qualified to serve as an external director if, as of the appointment date or at any time during the two years preceding
his or her appointment, that person or a relative, partner or employer of that person, any person to whom that person is subordinate
(whether directly or indirectly), or any entity under that person's control, had any affiliation or business relationship with
the company, any controlling shareholder or relative of a controlling shareholder or an entity that, as of the appointment date is, or
at any time during the two years preceding that date was, controlled by the company or by any entity controlling the company.
53
The term affiliation for
this purpose includes (subject to certain exceptions):
●
an employment relationship;
●
a business or professional relationship maintained on a regular basis;
●
control; and
●
service as an office holder, excluding service as a director in a private
    company prior to the first offering of its shares to the public if such director was appointed as a director of the private company
    in order to serve as an external director following the public offering.
The Companies Law defines
the term "office holder" of a company to include a general manager, chief business manager, deputy general manager, vice
general manager, any other person assuming the responsibilities of any of these positions regardless of such person's title, a
director and any other manager directly subordinate to the general manager.
The following additional
qualifications apply to an external director:
●
a person may not be elected as an external director if he or she is
    a relative of a controlling shareholder;
●
if a company does not have a controlling shareholder or a holder of
    25% or more of the voting power, then a person may not be elected as an external director if he or she (or his or her relative, partner,
    employer or any entity under his or her control) has, as of the date of the person's election to serve as an external director,
    any affiliation with the then chairman of the board of directors, Chief Executive Officer, a holder of 5% or more of the issued share
    capital or voting power, or the most senior financial officer of the company;
●
a person may not serve as an external director if he or she (or his
    or her relative, partner, employer, a person to whom he or she is subordinated or any entity under his or her control) has business
    or professional relations with anyone with whom affiliation is prohibited as described above, and even if these relations are not
    on a regular basis (other than immaterial relations); and
●
a person may not continue to serve as an external director if he or
    she accepts, during his or her tenure as an external director, direct or indirect compensation from the company for his or her role
    as a director, other than the amounts prescribed under the Regulations, indemnification, the company's undertaking to indemnify
    such person and insurance coverage.
Furthermore, no person may
serve as an external director if that person's professional or other activities create, or may create, a conflict of interest with
that person's responsibilities as a director or otherwise interfere with that person's ability to serve as an external director
or if such person is an employee of the Israel Securities Authority or of an Israeli stock exchange. Following the termination of an
external director's membership on the board of directors, such former external director and his or her spouse and children may
not be provided a direct or indirect benefit by the company, its controlling shareholder or any entity under its controlling shareholder's
control, including serving as an executive officer or director of the company or a company controlled by its controlling shareholder
and cannot be employed by or provide professional services to the company for pay, either directly or indirectly, including through a
corporation controlled by that former external director, for a period of two years (the prohibition also applies to relatives of the
former external director who are not his or her spouse or children, but only for a period of one year).
If at the time an external
director is appointed, all members of the board of directors who are not controlling shareholders or their relatives are of the same
gender, the external director must be of the other gender. A director of one company may not be appointed as an external director of
another company if a director of the other company is acting as an external director of the first company at such time.
54
In addition, under the Companies
Law, our board of directors must determine the minimum number of directors who are required to have financial and accounting expertise
and a person may be appointed as an external director only if he or she either has professional qualifications or has accounting and
financial expertise, provided, at least one of the external directors must be determined by our board of directors to have accounting
and financial expertise. A director with financial and accounting expertise is a director who, by reason of his or her education, professional
experience and skill, has a high level of proficiency in and understanding of business accounting matters and financial statements. He
or she must be able to thoroughly comprehend the financial statements of the company and initiate debate regarding the manner in which
financial information is presented. In determining the number of directors required to have such expertise, the board of directors must
consider, among other things, the type and size of the company and the scope and complexity of its operations.
A director with accounting
and financial expertise is a director who, due to his or her education, experience and skills, possesses a high degree of proficiency
in, and an understanding of, business-accounting matters and financial statements, such that he or she is able to understand the financial
statements of the company, in depth, and initiate a discussion about the manner of presentation of the financial data. A director is
deemed to have professional qualifications if he or she has any of (i) an academic degree in economics, business management, accounting,
law or public administration, (ii) an academic degree or has completed another form of higher education in the primary field of business
of the company or in a field which is relevant to his/her position in the company, or (iii) at least five years of experience serving
in one of the following capacities, or at least five years of cumulative experience serving in two or more of the following capacities:
(a) a senior business management position in a company with a significant volume of business; (b) a senior position in the company's
primary field of business; or (c) a senior position in public administration or service. Our board of directors is charged with determining
whether a director possesses financial and accounting expertise or professional qualifications.
Our board of directors has
determined that the minimum number of directors with financial and accounting expertise is one and that Ms. Orly Solomon (an external
director) qualifies as such. In addition, our Board has determined that Ms. Orly Solomon qualifies as an audit committee financial expert
pursuant to the applicable SEC rules.
Audit Committee
Our Audit Committee is comprised
of the following members: Ms. Solomon (external director), Mr. Lapidot (external director) and Mr. Maman. Ms. Solomon is the Chairwoman
of the Audit Committee.
Pursuant to the Companies
Law, the audit committee must be comprised of at least three directors, including all of the external directors, and a majority of its
members must be unaffiliated directors. An unaffiliated director is an external director or a director who is appointed or classified
as such, and who meets the qualifications of an external director (other than the professional qualifications/accounting and financial
expertise requirement), whom the audit committee has confirmed to meet the external director qualifications, and who has not served as
a director of the company for more than nine consecutive years (with any period of up to two years during which such person does not
serve as a director not being viewed as interrupting a nine-year period).
Such person must meet the
non-affiliation requirements as to relationships with the controlling shareholder (and any entity controlled by the controlling shareholder,
other than the company and other entities controlled by the company) and must meet the nine-year requirement described above. Following
the nine-year period, a director of an Israeli company traded on such foreign stock exchange may continue to be considered an unaffiliated
director for unlimited additional periods of three years each, provided the audit committee and the board of directors of the company
confirm that, in light of the director's expertise and special contribution to the work of the board of directors and its committees,
the re-election for such additional period is beneficial to the company.
Under the Companies Law,
the audit committee may not include the chairman of the board, any director employed by the company or who regularly provides services
to the company (other than as a board member), a controlling shareholder or any relative of the controlling shareholder, as each term
is defined in the Companies Law. In addition, the audit committee may not include any director employed by the company's controlling
shareholder or by a company controlled by such controlling shareholder, or who provides services to the company's controlling shareholder,
or a company controlled by such controlling shareholder, on a regular basis, or a director whose main livelihood is from the controlling
shareholder. The chairman of the audit committee is required to be an external director.
55
Audit Committee Role
Our board of directors adopted
an audit committee charter that sets forth the responsibilities of the audit committee consistent with the rules of the U.S. Securities
and Exchange Commission as well as the requirements for such committee under the Companies Law, including the following:
●
oversight of our independent registered public accounting firm and
    recommending the engagement, compensation or termination of engagement of our independent registered public accounting firm to the
    board of directors in accordance with Israeli law;
●
recommending the engagement or termination of the person filling the
    office of our internal auditor; and
●
recommending the terms of audit and non-audit services provided by
    the independent registered public accounting firm for pre-approval by our board of directors.
Our audit committee provides
assistance to our board of directors in fulfilling its legal and fiduciary obligations in matters involving our accounting, auditing,
financial reporting, internal control and legal compliance functions by pre-approving the services performed by our independent auditors
and reviewing their reports regarding our accounting practices and systems of internal control over financial reporting. Our audit committee
also oversees the audit efforts of our independent auditors and takes those actions that it deems necessary to satisfy itself that the
auditors are independent of management.
Under the Companies Law,
our audit committee is responsible for:
●
determining whether there are deficiencies in the business management
    practices of our company, including in consultation with our internal auditor or the independent auditor, and making recommendations
    to the board of directors to improve such practices;
●
determining whether a competitive process must be implemented for the
    approval of certain transactions with controlling shareholders or its relative or in which a controlling shareholder has a personal
    interest (whether or not the transaction is an extraordinary transaction), under the supervision of the audit committee or other
    party determined by the audit committee and in accordance with standards to be determined by the audit committee, or whether a different
    process determined by the audit committee should be implemented for the approval of such transactions (see "—Fiduciary
    duties and Approval of Related Party Transactions under Israeli law");
●
determining the process for the approval of certain transactions with
    controlling shareholders or in which a controlling shareholder has a personal interest that the audit committee has determined are
    not extraordinary transactions but are not immaterial transactions;
●
where the board of directors approves the working plan of the internal
    auditor, examining such working plan before its submission to the board of directors and proposing amendments thereto;
●
examining our internal controls and internal auditor's performance,
    including whether the internal auditor has sufficient resources and tools to dispose of its responsibilities;
●
examining the scope of our auditor's work and compensation and
    submitting a recommendation with respect thereto to our board of directors or shareholders, depending on which of them is considering
    the appointment of our auditor; and
●
establishing procedures for the handling of employees' complaints
    as to deficiencies in the management of our business and the protection to be provided to such employees.
56
Under the Companies Law a
quorum of the audit committee for discussion and approval requires the presence of a majority of the committee's members are present,
which majority consists of unaffiliated directors including at least one external director.
Compensation Committee
Our Compensation Committee
currently consists of Ms. Solomon (external director), Mr. Lapidot (external director) and Mr. Ofer Greenberger.
Ms. Solomon is the chairwoman
of the compensation committee. Our board of directors adopted an audit committee charter that sets forth the responsibilities of the
audit committee.
Under the Companies Law,
the compensation committee is required to be comprised of at least three directors, including all of the external directors. The additional
members of the Compensation Committee must be directors that receive compensation subject to the provisions and limitations set forth
in the Regulations. Under the Companies Law, an external director must serve as the chairman of the Compensation Committee and the external
directors shall constitute a majority of our compensation committee.
Our compensation committee's
duties include, among other things:
●
recommending to the board of directors for its approval (i) a compensation
    policy; (ii) whether a compensation policy should continue in effect, if the then-current policy has a term of greater than three
    years (approval of either a new compensation policy or the continuation of an existing compensation policy must in any case occur
    every three years); and (iii) periodic updates to the compensation policy. See "—Compensation Policy under the Companies
    Law." In addition, the compensation committee is required to periodically examine the implementation of the compensation policy;
●
the approval of the terms of employment and service of office holders
    (including determining whether the compensation terms of a candidate for chief executive officer of the company need not be brought
    to approval of the shareholders); and
●
reviewing and approving grants of options and other incentive
    awards to persons other than office holders to the extent such authority is delegated by our board of directors, subject to the limitations
    on such delegation as provided in the Israeli Companies Law.
Compensation Policy under the Companies
Law
In general, under the Companies
Law, a public company must have a compensation policy that applies to its office holders approved by the board of directors after receiving
and considering the recommendations of the compensation committee. In addition, the compensation policy, which must be approved at least
once every three years, or five years after a company's initial public offering, requires the approval of the general meeting of
the shareholders. In public companies such as our company, shareholder approval by a majority vote of the ordinary shares present and
voting at a meeting of shareholders called for such purpose is required, provided that either: (i) such majority includes the majority
of the votes of those shareholders who are non-controlling shareholders and shareholders who do not have a personal interest in the approval
of the compensation policy, who voted at the meeting (excluding abstentions) or (ii) the total number of votes against the proposal
among the shareholders mentioned in clause (i) does exceed 2% of the 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 arguments and after discussing again the compensation policy,
that approval of the compensation policy, despite the objection of the meeting of shareholders, is in the best interests of the company.
57
Our current compensation
policy was approved by our shareholders at our annual general meeting held on December 19, 2022.
The compensation policy serves
as the basis for decisions concerning the financial terms of employment or engagement of executive officers and directors, including
exculpation, insurance, indemnification or any monetary payment or obligation of payment in respect of employment or engagement. The
compensation policy relates to certain factors, including advancement of the company's objectives, the company's business
and its long-term strategy, and creation of appropriate incentives for executives. It also considers, among other things, the Company's
risk management, size and the nature of its operations. The compensation policy furthermore considers the following additional factors:
●
the knowledge, skills, expertise and accomplishments of the relevant
    director or executive;
●
the director's or executive's roles and responsibilities
    and prior compensation agreements with him or her;
●
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, in particular the ratio between such cost, the average and median salary of the employees of the company,
    as well as the impact of such disparities on the work relationships in the company;
●
if the terms of employment include variable components — the
    possibility of reducing variable compensation at the discretion of the board of directors, and the possibility of setting a limit
    on the exercise value of non-cash variable compensation; and
●
if the terms of employment include severance compensation — the
    term of employment or office of the office holder, the terms of his or her compensation during such service period, the Company's
    performance during that period of service, the person's contribution towards the Company's achievement of its goals and
    the maximization of its profits, and the circumstances under which the person is leaving the company.
In addition, in according
with the Companies Law, our Compensation Policy includes the following principles:
●
the link between variable compensation (e.g., bonuses) and long-term
    performance and measurable criteria (i.e., variable compensation must be determined based on long-term performance and measurable
    criteria). Only "non-material" portion of variable compensation may be determined based on criteria that is not measurable,
    taking into account office holders' contribution to the company;;
●
the ratio of variable to fixed compensation, and the ceiling for the
    value of variable compensation, which is determined at the time of payment, except that the ceiling for equity-based compensation
    is determined at the time of grant;
●
the conditions under which a director or executive would be required
    to repay compensation paid to him or her if it was later shown that the data upon which such compensation was based was inaccurate
    and was required to be restated in the company's financial statements;
●
the minimum holding or vesting period for variable, equity-based compensation
    while referring to appropriate a long-term perspective based incentives; and
●
maximum limits for severance compensation.
58
Compensation of Directors
Under the Companies Law, the compensation of our directors requires
the approval of our Compensation Committee, the subsequent approval of the board of directors and, unless exempted under the Regulations,
the approval of the shareholders at a general meeting. Where the director is also a controlling shareholder, the requirements for approval
of transactions with controlling shareholders apply, as described below under "—Fiduciary duties and approval of specified
related party transactions under Israeli law—Disclosure of Personal Interests of a Controlling Shareholder and Approval of Acts
and Transactions."
The directors are also entitled
to be paid reasonable travel, hotel and other expenses expended by them in attending board meetings and performing their functions as
directors of the Company, all of which is to be determined by the board of directors.
External directors are entitled
to remuneration subject to the provisions and limitations set forth in the Regulations.
Internal Auditor
Under the Companies Law,
the board of directors of an Israeli public company must appoint an internal auditor recommended by the audit committee. The role of
the internal auditor is, among other things, to examine our compliance with applicable law and orderly business procedures.
Under the Companies Law,
the internal auditor cannot be an interested party or an office holder or a relative of an interested party or an office holder, nor
may the internal auditor be the company's independent auditor or its representative. An "interested party" is defined
in the Companies Law as: (i) a holder of 5% or more of the issued share capital or voting power in a company, (ii) any person or entity
who has the right to designate one or more directors or to designate the chief executive officer of the company, or (iii) any person
who serves as a director or as a chief executive officer of the company. As of the date of this annual report on Form 20-F, the board
of directors has not appointed an internal auditor, and the Company is therefore not currently in compliance with the requirements of
the Companies Law. Due to such non-compliance with the Companies Law, the Company may be subject to third parties' and/or shareholders'
claims under the Israeli Torts Ordinance New Version) 5728-1968.
Fiduciary duties and Approval of Related Party
Transactions under Israeli law
Fiduciary duties of office holders
The Companies Law imposes
a duty of care and a duty of loyalty on all office holders of a company. Each person listed in the table under "Directors and Senior
Management" is an office holder under the Companies Law. The duty of care requires an office holder to act with the level of care
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, in light of the circumstances, to (i) obtain information on the advisability of a given action brought
for his or her approval or performed by virtue of his or her position and (ii) all other important information pertaining to these actions.
The duty of care includes
a duty to use reasonable means to obtain:
●
information on the appropriateness of a given action submitted for
    his or her approval or performed by virtue of his or her position; and
●
all other important information pertaining to such action.
The duty of loyalty requires
an office holder to act in good faith and in the best interests of the company, and includes, among other things, the duty to:
●
refrain from any conflict of interest between the performance of his
    or her duties in the company and his or her other duties or personal affairs;
59
●
refrain from any activity that is competitive with the business of
    the company;
●
refrain from exploiting any business opportunity of the company for
    the purpose of gaining a personal advantage for himself or herself or others; and
●
disclose to the company any information or documents relating to the
    company's affairs which the office holder received as a result of his or her position as an office holder.
We may approve an act performed
in breach of the duty of loyalty of an office holder provided that the office holder acted in good faith, the act or its approval does
not harm the company, and the office holder discloses his or her personal interest a sufficient amount of time before the date for discussion
of approval of such act.
Disclosure of Personal Interests of an
Office Holder and Approval Certain Transactions
The Companies Law requires
that an office holder promptly disclose to the company any "personal interest" that he or she may have and all related material
information or documents relating to any existing or proposed transaction by the company. An interested office holder's disclosure
must be made promptly and in any event no later than the first meeting of the board of directors at which the transaction is considered.
A personal interest includes an interest of any person in an act or transaction of a company, including a personal interest of one's
relative or of a corporate body in which such person or a relative of such person is a 5% or greater shareholder, director or general
manager or in which he or she has the right to appoint at least one director or the general manager, but excluding a personal interest
stemming solely from one's ownership of shares in the company. A personal interest includes the personal interest of a person for
whom the office holder holds a voting proxy or the personal interest of the office holder with respect to his or her vote on behalf of
a person for whom he or she holds a proxy, discretionary or otherwise, even if such shareholder has no personal interest in the matter.
An office holder is not, however, obliged to disclose a personal interest if it derives solely from the personal interest of his or her
relative in a transaction that is not considered an extraordinary transaction.
Under the Companies Law,
extraordinary transactions that require approval are defined as any of the following: a transaction other than in the ordinary course
of business; a transaction that is not on market terms; or a transaction that may have a material impact on a company's profitability,
assets or liabilities.
Generally, a person who
has a personal interest in a matter which is considered at a meeting of the board of directors or the audit committee shall not be present
at such a meeting or vote on that matter unless, with respect to an office holder, the chairman of the audit committee or board of directors
(as applicable) determines that the office holder should be present during the discussions in order to present the transaction that is
subject to approval (provided that the office holder may not vote on the matter). If a majority of the members of the audit committee
or the board of directors (as applicable) has a personal interest in the approval of a transaction, then all directors may participate
in discussions of the audit committee or the board of directors (as applicable) on such transaction and the voting on approval thereof.
If a majority of the members of the board of directors has a personal interest in the approval of a transaction, shareholder approval
is also required for such transaction.
The amendment of an existing related-party transaction requires only
the approval of the audit committee, provided the committee determines that the amendment is not material in relation to the existing
arrangement.
Approval of Transactions with Officer Holders
If it is determined that
an office holder has a personal interest in a transaction that is not an extraordinary transaction, approval by the board of directors
is required for the transaction, unless the company's articles of association provide for a different method of approval. Further,
so long as an office holder has disclosed his or her personal interest in a transaction, the board of directors may approve an act by
the office holder that would otherwise be deemed a breach of his or her duty of loyalty, provided that the transaction is in the company's
best interest and the office holder acted in good faith. An extraordinary transaction in which an office holder has a personal interest
requires approval first by the company's audit committee and subsequently by the board of directors.
60
Compensation of Officers Other than the Chief Executive Officer
Pursuant to the Companies Law, compensation arrangements such as insurance,
indemnification or exculpation arrangements with office holders (other than the chief executive officer) or directors require approval
first by the compensation committee, then by the board of directors, according to the company's compensation policy.
In special circumstances, the compensation committee and the board
of directors may approve compensation arrangements inconsistent with the company's compensation policy, subject to the approval
of a majority vote of the shares present and voting at a shareholders meeting, provided that provided that they have considered the same
considerations and matters required for the approval of a compensation policy in accordance with the Israeli Companies Law and such arrangement
must be approved by a majority vote of the shares present and voting at a shareholders meeting on the matter, provided that either: (a)
such majority includes at least a majority of the shares held by all shareholders who are not controlling shareholders and shareholders
who do not have a personal interest in such compensation arrangement; or (b) the total number of shares of non-controlling shareholders
and shareholders who do not have a personal interest in the compensation arrangement and who vote against the arrangement does not exceed
two percent of the company's aggregate voting rights ("Special Majority Vote for Compensation"). However, if the shareholders
of the company do not approve a compensation arrangement with an executive officer that is inconsistent with the company's compensation
policy by the Special Majority Vote for Compensation, the compensation committee and board of directors may, in special circumstances,
override the shareholders' decision if each of the compensation committee and the board of directors discuss the arrangement again,
analyze the shareholders' objection and provide detailed reasons for their decision.
An amendment to an existing
arrangement with an office holder (other than the chief executive officer) who is not a director requires only the approval of the compensation
committee, if the compensation committee determines that the amendment is not material in comparison to the existing arrangement. However,
according to Regulations, an amendment to an existing arrangement with an office holder (who is not a director) who is subordinate to
the chief executive officer shall not require the approval of the compensation committee, if (i) the amendment is approved by the chief
executive officer and the company's compensation policy determines that a non-material amendment to the terms of service of an
office holder (other than the chief executive officer) may be approved by the chief executive officer and (ii) the engagement terms are
consistent with the company's compensation policy.
Compensation of Chief Executive Officer
Pursuant to the Companies
Law, compensation of a public company's chief executive officer generally requires the approval of first, the company's compensation
committee, second, the company's board of directors and third (except for a number of exceptions), the company's shareholders
by the Special Majority for Compensation. Compensation arrangements with the Chief Executive Officer must comply with the company's
compensation policy. However, if the shareholders of the company do not approve a compensation arrangement with a chief executive officer
by the Special Majority Vote for Compensation, the compensation committee and the board of directors may in special circumstances, override
the shareholders' decision if each of the compensation committee and the board of directors discuss the arrangement again, analyze
the shareholders' objection and provide detailed reasons for their decision. Notwithstanding the above, the compensation committee
is authorized to refrain from submitting a proposed compensation arrangement with a Chief Executive Officer candidate for shareholder
approval, if (a) doing so would jeopardize the company's engagement of the candidate and (b) the proposed arrangement complies
with the company's compensation policy.
According to regulations
promulgated under the Companies Law, the renewal or extension of an existing arrangement with a chief executive officer shall not require
shareholder approval if (i) the renewal or extension is not beneficial to the chief executive officer as compared to the prior arrangement
or there is no substantial change in the terms and other relevant circumstances; and (ii) the engagement terms are consistent with the
company's compensation policy and the prior arrangement was approved by the shareholders by the Special Approval for Compensation.
61
Compensation of Directors
Arrangements regarding
the compensation of a director require the approval of the compensation committee, board of directors and (except for a number of exceptions)
shareholders by ordinary majority, in that order. The approval of the compensation committee and board of directors must be in accordance
with the compensation policy. In special circumstances, the compensation committee and board of directors may approve a compensation
arrangement that is inconsistent with the company's compensation policy, provided that they have considered the same considerations
and matters required for the approval of a compensation policy in accordance with the Israeli Companies Law and that shareholder approval
was obtained by the Special Approval for Compensation.
With respect to compensation
of an officer (including chief executive officer) or director who is also a controlling shareholder, see "— Disclosure of
Personal Interests of Controlling Shareholders and Approval of Certain Transactions."
Disclosure of Personal Interests of a Controlling
Shareholder and Approval of Certain Transactions
Pursuant to the Companies Law, the disclosure requirements regarding
personal interests that apply to directors and executive officers also apply to a controlling shareholder of a public company. A controlling
shareholder is a shareholder who has the ability to direct the activities of a company, and in the context of a transaction involving
a shareholder of the company, includes also a shareholder who holds 25% or more of the voting rights in the company if no other shareholder
holds more than 50% of the voting rights. For this purpose, the holdings of all shareholders who have a personal interest in the same
transaction will be aggregated. Extraordinary transactions with a controlling shareholder or in which a controlling shareholder has a
personal interest, including a private placement in which a controlling shareholder has a personal interest, and the terms of engagement
with a controlling shareholder or a relative thereof, directly or indirectly (including through a corporation controlled by a controlling
shareholder), for the provision of services to the company and his or her terms of employment or service as an office holder or employment
as other than an office holder, require the approval of each of (i) the audit committee or the compensation committee with respect to
the terms of service or employment by the company as an office holder, an employee or service provider; (ii) the board of directors; and
(iii) the shareholders, in that order. The shareholder approval requires one of the following:
●
at least a majority of the voting rights in the company held by shareholders
    who have no personal interest in the transaction and who are present and voting at the general meeting, must be voted in favor of
    approving the transaction (for this purpose, abstentions are disregarded); or
●
the voting rights held by shareholders who have no personal interest
    in the transaction and who are present and voting at the general meeting, and who vote against the transaction, do not exceed 2%
    of the voting rights in the company.
Each shareholder voting
on the approval of an extraordinary transaction with a controlling shareholder must inform the company prior to voting whether or not
he or she has a personal interest in the approval of the transaction, otherwise, the shareholder is not eligible to vote on the proposal
and his or her vote will not be counted for purposes of the proposal.
To the extent that any such
transaction with a controlling shareholder or his relative is for a period extending beyond three years, shareholder approval is required
once every three years, unless, in respect to certain transactions, the audit committee determines that the duration of the transaction
is reasonable under the circumstances.
The compensation committee and board approval for arrangements regarding
the terms of service or employment of a controlling shareholder must be in accordance with the company's compensation policy. In
special circumstances the compensation committee and board of directors may approve a compensation arrangement that is inconsistent with
the company's compensation policy, provided that they have considered the same considerations and matters required for the approval
of a compensation policy in accordance with the Israeli Companies Law and that shareholder approval was obtained by the Special Majority
Vote for Compensation.
62
Pursuant to regulations
promulgated under the Israeli Companies Law, certain transactions with a controlling shareholder or his or her relative, or with directors,
relating to terms of service or employment that would otherwise require approval of a company's shareholders may be exempt from
shareholder approval upon certain determinations of the audit committee and board of directors. In addition, disclosure of a personal
interest in a private placement of a public company (including disclosure of any material fact or document) is required by (i) a shareholder
holding 5% or more of the company's issued and outstanding capital or its voting rights whose holdings will increase as result
of the private placement and a shareholder who will hold 5% or more of the company's issued and outstanding capital or its voting
rights as a result of the private placement, if 20% or more of the company's outstanding share capital prior to the private placement
is issued in the private placement and the payment for which is not only in cash or listed securities or the transaction is not on market
terms; and (ii) a person or entity that will become a controlling shareholder as a result of the private placement.
Duties of Shareholders
Under the Companies Law,
a shareholder has a duty to to act in good faith and in a customary manner toward the company and other shareholders and to refrain from
abusing its power in the company, including, among other things, voting at general meetings of shareholders on the following matters:
●
an amendment to the company's articles of association;
●
an increase in the company's authorized share capital;
●
a merger; and
●
the approval of related party transactions and acts of office holders
    that require shareholder approval.
A shareholder also has a
general duty to refrain from discriminating against other shareholders.
In addition, certain shareholders
have a duty of fairness toward the company, including any shareholder that knows that its vote can determine the outcome of a shareholder
vote and any shareholder that, under a company's articles of association, has the power to appoint or prevent the appointment of
an office holder, or has another power with respect to a company. The Companies Law does not define the substance of the duty of fairness,
except to state that the remedies generally available upon a breach of contract will also apply in the event of a breach of the duty
to act with fairness.
Exculpation, Insurance and Indemnification
of Office Holders
Under the Companies Law,
a company may not exculpate an office holder from liability for a breach of the duty of loyalty. A company may exculpate an office holder
in advance from liability to the company, in whole or in part, for damages caused to the company as a result of a breach of the duty
of care but only if a provision authorizing such exculpation is included in its articles of association. Our amended and restated articles
of association include such a provision. An Israeli company may not exculpate a director from liability arising out of a breach of the
duty of care with respect to a dividend or distribution to shareholders.
Under the Companies Law and
the Securities Law, 5738—1968 (the "Securities Law"), a company may indemnify an office holder in respect of the following
liabilities, payments and expenses incurred for acts performed as an office holder, either pursuant to an undertaking made in advance
of an event or following an event, provided a provision authorizing such indemnification is contained in its articles of association:
●
a financial liability incurred by or imposed on him or her in favor
    of another person pursuant to a judgment, including a settlement or arbitrator's award approved by a court. However, if an
    undertaking to indemnify an office holder with respect to such liability is provided in advance, then such undertaking must be limited
    to certain events which, in the opinion of the board of directors, can be foreseen based on the company's activities when the
    undertaking to indemnify is given, and to an amount or according to criteria determined by the board of directors as reasonable under
    the circumstances, and such undertaking shall detail the foreseen events and described above amount or criteria;
63
●
reasonable litigation expenses, including reasonable attorneys'
    fees, incurred by the office holder (1) as a result of an investigation or proceeding instituted against him or her by an authority
    authorized to conduct such investigation or proceeding, provided that (i) no indictment was filed against such office holder as a
    result of such investigation or proceeding; and (ii) no financial liability was imposed upon him or her as a substitute for the criminal
    proceeding as a result of such investigation or proceeding or, if such financial liability was imposed, it was imposed with respect
    to an offense that does not require proof of criminal intent; and (2) in connection with a monetary sanction;
●
expenses, including reasonable litigation expenses and legal fees,
    incurred by an office holder in relation to an administrative proceeding instituted against such office holder, or certain compensation
    payments made to an injured party imposed on an office holder in connection with an administrative procedure under the Securities
    Law; and
●
reasonable litigation expenses, including attorneys' fees, incurred
    by the office holder or imposed by a court in proceedings instituted against him or her by the company, on its behalf or by a third
    party or in connection with criminal proceedings in which the office holder was acquitted or as a result of a conviction for an offense
    that does not require proof of criminal intent.
Under the Companies Law and
the Securities Law, a company may insure an office holder against the following liabilities incurred for acts performed by him or her
as an office holder if and to the extent provided in the company's articles of association:
●
a breach of duty of care to the company or to a third party, to the
    extent such a breach arises out of the negligent conduct of the office holder;
●
a breach of duty of loyalty to the company, provided that the office
    holder acted in good faith and had a reasonable basis to believe that the act would not harm the company;
●
a financial liability imposed on the office holder in favor of a third
    party;
●
expenses, including reasonable litigation expenses and legal fees,
    incurred by an office holder in relation to an administrative proceeding instituted against such office holder or certain compensation
    payments to an injured party imposed on an office holder by an administrative proceeding, pursuant to certain provisions of the Securities
    Law.
Under the Companies Law,
a company may not indemnify, exculpate or insure an office holder against any of the following:
●
a breach of duty of loyalty, except for indemnification and insurance
    for a breach of the duty of loyalty to the company to the extent that the office holder acted in good faith and had a reasonable
    basis to believe that the act would not harm the company;
●
a breach of the duty of care committed intentionally or recklessly,
    excluding a breach arising out of the negligent conduct of the office holder;
●
an act or omission committed with intent to derive illegal personal
    benefit; or
●
a fine, monetary sanction or forfeit levied against the office holder.
Under the Companies Law,
exculpation, indemnification and insurance of office holders must be approved by the compensation committee and the board of directors
and, with respect to certain office holders or under certain circumstances, also by the shareholders. See "— Fiduciary duties
and Approval of Related Party Transactions under Israeli law." However, the insurance of office holders shall not require shareholder
approval and may be approved only by the compensation committee, if the engagement terms are determined in the company's compensation
policy and that policy was approved by the shareholders by the Special Approval for Compensation, provided that the policy is on market
terms and is not likely to materially impact the company's profitability, assets or obligations.
64
Our amended and restated
articles of association permit us to exculpate, indemnify and insure our office holders as permitted under the Companies Law and the
Israeli Securities Law. Our office holders are currently covered by a directors and officers' liability insurance policy. As of
the date of this annual report on Form 20-F, no claims for directors' and officers' liability insurance have been filed under
this policy, we are not aware of any pending or threatened litigation or proceeding involving any of our directors or officers in which
indemnification is sought, nor are we aware of any pending or threatened litigation that may result in claims for indemnification by
any director or officer.
We have entered
into agreements with our directors and executive officers exculpating them from liability to us for damages caused to us as a result
of a breach of duty of care and undertaking to indemnify them, in each case, to the fullest extent permitted by law and our
Articles of Association, to the extent that these liabilities are not covered by insurance, all subject to limited exceptions. 
Indemnification for any monetary liability incurred by or imposed on a director or officer in favor of a third party is limited to certain
events that were determined as foreseeable by our Board of Directors based on our operations, as set forth in the indemnification
agreements. Under such indemnification agreements, the maximum aggregate amount of indemnification that we may pay to all of our directors
and offices together based on such indemnification agreements is $5,000,000. However, in the opinion of the SEC, indemnification
of office holders for liabilities arising under the Securities Act is against public policy and therefore unenforceable.
D. Employees
As of December 31, 2022,
we had 11 full time employees in PVN and one full time employee in Digiflex, all of whom were located in Israel. Israeli labor laws govern
the length of the workday, minimum wages for employees, procedures for hiring and dismissing employees, determination of severance pay,
annual leave, sick days, advance notice of termination of employment, equal opportunity and anti-discrimination laws and other conditions
of employment of our Israeli employees. Subject to certain exceptions, Israeli law generally requires severance pay upon the retirement,
death or dismissal of an employee, and requires us and our employees to make payments to the National Insurance Institute, which is similar
to the U.S. Social Security Administration. Our Israeli employees have pension plans in accordance with the applicable Israeli legal
requirements.
While none of our employees
are party to any collective bargaining agreements, certain provisions of the collective bargaining agreements between the Histadrut (General
Federation of Labor in Israel) and the Coordination Bureau of Economic Organizations (including the Industrialists' Associations)
are applicable to our employees by extension orders issued by the Israeli Ministry of Industry, Trade and Labor. These provisions primarily
concern the length of the workday, minimum daily wages for professional workers, pension fund benefits for all employees, insurance for
work-related accidents, procedures for dismissing employees, determination of severance pay and other conditions of employment. We generally
provide our employees with benefits and working conditions beyond the required minimums.
E. Share Ownership
Share Ownership by Directors and Executive
Officers
For information regarding
beneficial ownership of our ordinary shares by our directors and executive officers, see "Item 7 A. Major Shareholders and Related
Party Transactions — Major Shareholders".
Share Option Plan
For information on our share
option plan, see "Item 6 B. — Compensation — Incentive Compensation Plan".
65
ITEM 7. Major Shareholders and Related Party
Transactions
A. Major Shareholders.
The following table sets
forth certain information regarding the beneficial ownership of our ordinary shares as of May 15, 2023, by:
●
each person (or group of affiliated persons) known by us to be the
    beneficial owner of more than 5% of the outstanding ordinary shares.
●
each of our directors and executive officers;
●
all of our directors and executive officers as a group.
The beneficial ownership
of our ordinary shares is determined in accordance with the rules of the SEC. Under these rules, a person is deemed to be a beneficial
owner of a security if that person has or shares voting power, which includes the power to vote or to direct the voting of the security,
or investment power, which includes the power to dispose of or to direct the disposition of the security. For purposes of the
table below, we deem ordinary shares issuable pursuant to options that are currently exercisable or exercisable within 60 days as of 
May 15, 2023, if any, to be outstanding and to be beneficially owned by the person holding the options or warrants for the purposes of
computing the percentage ownership of that person, but we do not treat them as outstanding for the purpose of computing the percentage
ownership of any other person. The percentage of ordinary shares beneficially owned is based on 163,277,647 ordinary shares outstanding
as of May 15, 2023.
Except where otherwise indicated,
we believe, based on information furnished to us by such owners and based on public information, that the beneficial owners of the ordinary shares
listed below have sole investment and voting power with respect to such shares. In addition, none of our shareholders have different
voting rights from other shareholders.
No. of Shares
Beneficially
Owned
Percentage
Owned
Holders of more than 5% of our voting securities:
GTRIMG Investments Ltd.
69,129,160
(1)
40.24
%
Legov Ltd.
38,370,282
(2)
22.75
%
Teuza – A Fairchild Technology Venture Ltd.
29,838,107
(3)
17.84
%
Y.T.Y. Lenny Investments Ltd.
13,695,182
(4)
8.21
%
Directors and executive officers who are not 5% holders:
Dov Farkash, Chairman of the Board
939,164
(5)
*
Avi Magid, Chief Executive Officer and Director
—
—
Fernando de la Vega, Chief Technology Officer and Director
5,801,534
(6)
3.46
%
Ofer Greenberger, Director
325,000
(7)
*
Keinan Maman, Director
—
—
Orly Solomon, External Director
1,408,746
(8)
*
Ido Lapidot, External Director
1,408,746
(9)
*
Evyatar Cohen, Chief Financial Officer
1,878,327
(10)
1.14
%
Directors and executive officers as a group (8 persons)
11,761,517
7.08
%
*
Represents
                                            less than 1.0% beneficially held.
(1)
Includes (i) 60,557,732 ordinary shares beneficially owned by GTRIMG
Investments Ltd., a company incorporated under the laws of the State of Israel ("GTRIMG"), which is wholly-owned by TRIMG
Communication International Ltd., a company incorporated under the laws of the State of Israel, ("GTRIMG Communication"),
which itself is wholly-owned by GTRIMG Ltd., a company incorporated under the laws of the British Virgin Islands ("GTRIMG Ltd."
and together with GTRIMG and GTRIMG Communication, the "GTRIMG Entities"), which itself is wholly-owned by GTRIMG Foundation,
a foundation incorporated under the laws of the Principality of Liechtenstein, the beneficiaries of which are Messrs. Talia Zeevi, Rami
Zeevi, Yael Zeevi Shoer, Michal Zeevi Bender and Gur Zeevi, and (ii) 8,571,428 ordinary shares issuable upon exercise of outstanding warrants
held by GTRIMG currently exercisable or exercisable within 60 days as of May 15, 2023.
66
(2)
Includes (i) an aggregate 29,798,854 ordinary shares held by Legov
Ltd, GlenRock Israel Ltd, Insight Capital Ltd (collectively, the "LR Entities") and Leon Recanati, and (ii) 8,571,428 ordinary
shares issuable upon exercise of outstanding warrants held by Insight Capital Ltd. currently exercisable or exercisable within 60 days
as of May 15, 2023. Leon Recanati is the beneficial owner of the ordinary shares held by the LR Entities and underlying the warrants held
by Insight Capital Ltd.
(3)
Includes (i) 25,552,393 ordinary shares beneficially owned, and (ii)
    4,285,714 ordinary shares issuable upon exercise of outstanding warrants currently exercisable or exercisable within 60 days as of
    May 15, 2023.
(4)
Includes (i) an aggregate 7,980,897 ordinary shares held by Y.T.Y.
Lenny Investments Ltd. and Sullam Holdings L.R Ltd., and (ii) 5,714,285 ordinary shares issuable upon exercise of outstanding warrants
held by Sullam Holdings L.R Ltd. currently exercisable or exercisable within 60 days as of May 15, 2023. Lenny Recanati is the beneficial
owner of the ordinary shares held by Y.T.Y. Lenny Investments Ltd. and Sullam Holdings L.R Ltd. and the ordinary shares underlying the
warrants held by Sullam Holdings L.R. Ltd.
(5)
Represents options to purchase 939,164 ordinary shares currently exercisable
    or exercisable within 60 days as of May 15, 2023.
(6)
Includes (i) 1,336,140 ordinary shares beneficially owned, and (ii)
    options to purchase 4,465,394 ordinary shares currently exercisable or exercisable within 60 days as of May 15, 2023.
(7)
Represents options to purchase 325,000 ordinary shares currently exercisable
    or exercisable within 60 days as of May 15, 2023.
(8)
Represents options to purchase 1,408,746 ordinary shares currently
    exercisable or exercisable within 60 days as of May 15, 2023.
(9)
Represents options to purchase 1,408,746 ordinary shares currently
    exercisable or exercisable within 60 days as of May 15, 2023.
(10)
Represents options to purchase 1,878,327 ordinary shares currently
    exercisable or exercisable within 60 days as of May 15, 2023.
Record Holders
Based on the information
provided to us by our transfer agent, as of May 15, 2023, 18 registered holders (holding approximately 3.63% of our ordinary shares)
were U.S. domiciled holders (including CEDE & Co. as nominee for the Depository Trust Company, which held approximately 2.13% of
our outstanding ordinary shares as of said date).
Significant Changes in Ownership of Major
Shareholders
To our knowledge, in 2022
(i) each of the following ceased to be the beneficial owner of more than 5% of our outstanding shares: Slobel NV, Terra Venture Partners
and Fineline PCB (Cyprus) Ltd.; and (ii) Y.T.Y. Lenny Investments Ltd. became a beneficial owner of more than 5% of our outstanding shares.
To our knowledge, there were
no significant changes in the percentage of beneficial ownership held by our major shareholders during 2021.
To our knowledge, each of
the following ceased to be the beneficial owner of more than 5% of our outstanding shares in 2020: Hypermarketing Inc.; Y.T.Y. Lenny
Investments Ltd.; Fernando de la Vega; Amnon Mandelbaum; Bio Rad Laboratories Inc.; Ariel Lijtenstein; and ProSeed - Venture Capital
Fund.
67
B. Related Party Transactions
The following is a description
of our related party transactions since January 1, 2022:
Employment and Services
Agreements
. Employment and services agreements entered into with our executive officers and our Active Chairman, as described above
under "Item 6 B. — Compensation — Employment or Service Agreements with Senior Managers."
Indemnification and Exculpation
Agreements with Directors and Executive Officers.
Customary indemnification and exculpation agreements entered into with our directors
and executive officers, as described above under "Item 6 C. — Board Practices — Exculpation, Insurance and Indemnification
of Office Holders."
Option Agreements with
Directors and Executive Officers
. Option Agreements entered into with our directors and executive officers, as described above under
"Item 6 E. — Share Ownership — Incentive Compensation Plan".
Consultancy Agreement
with Ram Zeevi.
On May 15, 2018, the Company entered into a consultancy agreement with RINC Green Ltd. ("RINC Green"),
as amended on April 30, 2019 (the "Ram Zeevi Consultancy Agreement"), pursuant to which Mr. Zeevi provides the Company with
services in the field of business development in accordance with pre-approved monthly work plans, which include introduction of potential
business partners and investors as well as assistance in negotiations of business and investment terms. Pursuant to the terms of the
Ram Zeevi Consultancy Agreement, RINC Green is currently entitled to a gross monthly fee in the amount of $5,000 (25 hours per month
at $200 per hour rate) plus VAT and to reimbursement of out-of-pocket expenses related directly to the provision of the consultancy services
subject to prior written approval of the chief executive officer, to reimbursement of travel international travel and board expenses
at the same standard as our chief executive officer and to an additional per-day fee equivalent to four hours per day abroad plus VAT.
Either the Company or RINC Green may terminate the agreement at any time for any reason by providing a 30-day prior written notice. RINC
Green ceased providing the above monthly service in January 2019. Ram Zeevi is the son of Gad Zeevi, who is the controlling shareholder
of GTRIMG, our controlling shareholder.
In addition to the foregoing,
RINC Green is entitled to receive (none of which were received so far):
●
A
                                            one-time payment in the amount of $25,000 (plus VAT) upon an equity investment exceeding
                                            $500,000 by an investor that was introduced to the Company by Mr. Zeevi;
●
$150,000 in cash (plus VAT) and options to purchase the Company's ordinary shares upon an equity investment or execution of business contract resulting in at least  $2,000,000 in proceeds (or revenues) by an entity introduced to the Company by Mr. Zeevi, whereby the number of options will be calculated by dividing $150,000 by the average ordinary share price during the period of 90 days prior to the date upon which the Investment is actually made with an exercise price per share of NIS 0.01; and
●
An equity based award to be granted upon of an Exit Event, in accordance with the following calculation:(i) 0.4% of the Company's share capital on a fully diluted basis, if the Company's pre-money valuation shall be equal to or higher than $30,000,000 but less than $50,000,000, or (ii) 1.0% of the Company's share capital on a fully diluted basis, if the Company's pre-money valuation shall be equal to or higher than $50,000,000. In the event that the Company terminates the Ram Zeevi Consultancy Agreement other than for Cause, and the Exit Event occurs within a period of six months of said termination, RINC Green will be entitled to the foregoing equity-based award. For the definition of Exit Event, see "Item 6 B – Compensation of Executive Officers and Directors as a Group –
Employment or Service Agreements with our Active Chairman, Chief Executive Officer, Chief Technology Officer and, Chief Financial Officer
."
On October 2, 2018, we granted
to RINC Green options to purchase up to 120,000 of our ordinary shares, at an exercise price per share of $0.27. The options vested over
a period of three years, with one third of the options vesting on September 30, 2019, and the remaining two thirds of the options vesting
on a quarterly basis over the remaining two years.
68
Financing Agreements with
Existing Shareholders.
Agreements entered into with
certain existing shareholders in connection
with private placements of our securities, as described above under "
Item 5 B. — Operating and Financial Review and
Prospects — Liquidity and Capital Resources".
For
additional information, see Note 13 to our consolidated financial statements
for the year ended December 31, 2022,
included
elsewhere
in this annual report on Form 20-F.
C. Interests of Experts and Counsel.
Not applicable.
ITEM 8. Financial Information.
A. Consolidated Financial Statements and Other
Financial Information.
See "Item 18. Financial
Statements" for the consolidated financial statements filed as part of this annual report on Form 20-F.
Legal Proceedings
From time to time, we may
be involved in various claims and legal proceedings that arise through the normal course of business. As of the date of this filing, we
are not a party to any material legal proceedings nor are we aware of any such pending or threatened legal proceedings.
We are not aware of any
material legal proceedings in which any of our directors, officers or affiliates is either a party adverse to us or our subsidiaries or
has a material interest adverse to ours or our subsidiaries.
For information regarding
prior legal proceedings, see Note 9.b. to our consolidated financial statements that appear elsewhere in this annual report on Form 20-F.
Dividend Policy
We have never declared or
paid any cash dividends on our ordinary shares and do not anticipate paying any cash dividends in the foreseeable future. Payment of cash
dividends, if any, in the future will be at the discretion of our board of directors and will depend on then-existing conditions, including
our financial condition, operating results, contractual restrictions, capital requirements, business prospects and other factors our board
of directors may deem relevant.
Our ability to distribute
dividends also may be limited by Israeli law. The Companies Law restricts our ability to declare dividends. Unless otherwise approved
by a court, we can distribute dividends only from "profits" (as defined by the Companies Law), and only if there is no reasonable
concern that the dividend distribution will prevent us from meeting our existing and foreseeable obligations as they become due. Payment
of dividends may also be subject to Israeli withholding taxes. See "Item 10 – Additional Information - Memorandum and Articles
of Association".
B. Significant Changes.
Except as disclosed elsewhere
in this annual report, there have been no other significant changes since December 31, 2022, until the date of the filing of this annual
report.
ITEM 9. The Offer and Listing.
9.A Offer and Listing Details
Our ordinary shares were quoted
on the OTC Pink under the symbol "PVNNF." However, due to lack of available resources, we were not able to comply with our
SEC periodic filing obligations for the years ended December 31, 2020 and 2021. Accordingly, as of September 29, 2021, the public quote
for our ordinary shares was removed from the OTC Pink. Depending on market and other conditions and the continued development of our products,
we will consider applying to have our ordinary shares quoted on the OTC Pink.
69
9.B. Plan of distribution
Not applicable.
9.C. Market for ordinary shares
Not applicable.
9.D. Selling shareholders
Not applicable.
9.E. Dilution
Not applicable.
9.F. Expenses of the issue
Not applicable.
ITEM 10. Additional Information.
A. Share Capital.
Not applicable.
B. Memorandum and Articles of Association.
A copy of our amended and restated articles of association is incorporated
by reference attached as Exhibit 1.1 to this annual report. As of December 31, 2022, our authorized share capital consists of 1,200,000,000
ordinary shares, par value NIS 0.01 per share, of which 147,134,792 were issued and outstanding.
Other
than as disclosed below, 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.
All of our outstanding ordinary
shares are validly issued, fully paid and non-assessable. Our ordinary shares do not have any preemptive rights.
Registration Number and Purposes of the Company
Our registration number with
the Israeli Companies Registrar is 514287093. Our purpose is set forth in our Articles of Association and includes any lawful activity.
Voting Rights and Conversion
All ordinary shares will have
identical voting and other rights in all respects.
Holders of our ordinary shares
have one vote for each ordinary share held on all matters submitted to a vote before the shareholders at a general meeting.
70
Transfer of shares
Our fully paid ordinary shares
are issued in registered form and may be freely transferred under our amended and restated articles of association, unless the transfer
is restricted or prohibited by another instrument, applicable law or the rules of a stock exchange on which the shares are listed for
trade. The ownership or voting of our ordinary shares by non-residents of Israel is not restricted in any way by our amended and restated
articles of association or the laws of the State of Israel, except for ownership by nationals of some countries that are, or have been,
in a state of war with Israel.
Board of directors
See "Item 6 C. Directors,
Senior Management and Employees—Board Practices."
Dividend and Liquidation Rights
We have never declared or
paid any cash dividends on our ordinary shares and do not anticipate paying any cash dividends in the foreseeable future.
We may declare a dividend
to be paid to the holders of our ordinary shares in proportion to their respective shareholdings. Under the Companies Law, dividend distributions
are determined by the board of directors and do not require the approval of the shareholders of a company unless the company's articles
of association provide otherwise. Our Articles of Association do not require shareholder approval of a dividend distribution and provide
that dividend distributions may be determined by our board of directors.
Pursuant to the Companies
Law, the distribution amount is limited to the greater of retained earnings or earnings generated over the two most recent fiscal years,
according to our then last reviewed or audited financial statements, provided that the end of the period to which the financial statements
relate is not more than six months prior to the date of the distribution. If we do not meet such criteria, then we may distribute dividends
only with court approval. In each case, we are only permitted to distribute a dividend if our board of directors and the court, if applicable,
determines that there is no reasonable concern that payment of the dividend will prevent us from satisfying our existing and foreseeable
obligations as they become due.
In the event of our liquidation,
after satisfaction of liabilities to creditors, our assets will be distributed to the holders of our ordinary shares in proportion to
their shareholdings. This right, as well as the right to receive dividends, may be affected by the grant of preferential dividend or distribution
rights to the holders of a class of shares with preferential rights that may be authorized in the future.
General Meetings of Shareholders and Shareholder
Proposals
Under Israeli law, we are required to hold an annual general meeting
of our shareholders once every calendar year that must be held no later than 15 months after the date of the previous annual general meeting.
All meetings other than the annual general meeting of shareholders are referred to in Articles of Association as special general meetings.
Our board of directors may call special general meetings whenever it sees fit, at such time and place, within or outside of Israel, as
it may determine. In addition, the Companies Law provides that our board of directors is required to convene a special general meeting
upon the written request of (i) any two or more of our directors or one-quarter or more of the members of our board of directors or (ii)
one or more shareholders holding, in the aggregate, either (a) 5% or more of our outstanding issued shares and 1% or more of our outstanding
voting power or (b) 5% or more of our outstanding voting power. Our Articles of Association contain procedural guidelines and disclosure
items with respect to the submission of shareholder proposals for shareholder meetings.
Subject to the provisions
of the Companies Law and the regulations promulgated thereunder, shareholders entitled to participate and vote at general meetings are
the shareholders of record on a date to be decided by the board of directors, which may generally be between four and 21 days prior to
the date of the meeting, and in certain circumstances, between four and 40 days prior to the date of the meeting. Furthermore, the Companies
Law requires that resolutions regarding the following matters must be passed at a general meeting of our shareholders:
●
amendments to our articles of association;
●
appointment or termination of our auditors;
71
●
appointment of external directors;
●
approval of certain related party transactions;
●
increases or reductions of our authorized share capital;
●
a merger; and
●
the exercise of our board of director's powers by a general meeting, if our board of directors is unable to exercise its powers and the exercise of any of its powers is required for our proper management.
The Companies Law requires
that a notice of any annual general meeting or special general meeting be provided to shareholders at least 21 days prior to the meeting
and if the agenda of the meeting includes the appointment or removal of directors, the approval of transactions with office holders or
interested or related parties, or an approval of a merger, notice must be provided at least 35 days prior to the meeting. Under the Companies
Law and our amended and restated articles of association, shareholders are not permitted to take action by way of written consent in lieu
of a meeting.
Quorum
Pursuant to our amended and
restated articles of association, holders of our ordinary shares have one vote for each ordinary share held on all matters submitted to
a vote before the shareholders at a general meeting. The quorum required for our general meetings of shareholders consists of at least
two shareholders (not in default in payment of any sum) present in person, by proxy or written ballot who hold or represent between or
among them at least 25% of the total our issued share capital. If within thirty minutes from the time appointed for the general meeting
the requisite quorum is not present, the meeting shall be dissolved, but shall stand adjourned to the same day in the next week at
the same time the following week and at the same place or to a later date, if so specified in advance in the notice of the general meeting.
All matters for which the general meeting was summoned shall be discussed at the adjourned meeting, and subject to a limited exception,
any number of shareholders present in person or by proxy shall constitute a lawful quorum.
Vote Requirements
Our Articles of Association
provide that all resolutions of our shareholders require a simple majority vote, unless otherwise required by the Companies Law or by
our amended and restated articles of association. For special majority requirements under the Companies Law see "Item 6 C. —
Board Practices". Under our Articles of Association, the alteration of the rights, privileges, preferences or obligations of any
class of our shares requires a simple majority of the class so affected (or such other percentage of the relevant class that may be set
forth in the governing documents relevant to such class), in addition to the ordinary majority vote of all classes of shares voting together
as a single class at a shareholder meeting. Our Articles of Association also provide that a change to the provisions related to the committees
of our board of directors, the number of directors, the election or removal of any director from office, the proceedings of our board
of directors, mergers and business combinations, the winding up of the Company, and the amendment of our Articles of Association, require
the vote of at least 60% of our outstanding share capital having the right to vote, voting in person or by proxy at such general meeting.
Access to corporate records
Under the Companies Law, all
shareholders generally have the right to review minutes of our general meetings, our shareholder register, including with respect to material
shareholders, our articles of association, our financial statements, other documents as provided in the Companies Law, and any document
we are required by law to file publicly with the Israeli Companies Registrar or the Israeli Securities Authority. Any shareholder who
specifies the purpose of its request may request to review any document in our possession that relates to any action or transaction with
a related party which requires shareholder approval under the Companies Law. We may deny a request to review a document if we determine
that the request was not made in good faith, that the document contains a commercial secret or a patent or that the document's disclosure
may otherwise impair our interests.
72
Exchange Controls
There are currently no Israeli
currency control restrictions on remittances of dividends on our ordinary shares, proceeds from the sale of the shares or interest or
other payments to non-residents of Israel, except for shareholders who are subjects of countries that are, or have been, in a state of
war with Israel.
Acquisitions under Israeli law
Merger
The
Companies Law permits merger transactions if approved by each party's board of directors and, unless certain requirements described
under the Companies Law are met, by a majority vote of each party's shares, and, in the case of the target company, a majority vote
of each class of its shares, voted on the proposed merger at a shareholders meeting. The board of directors of a merging company is required
pursuant to the Companies Law to discuss and determine whether in its opinion there exists a reasonable concern that as a result of a
proposed merger, the surviving company will not be able to satisfy its obligations towards its creditors, such determination taking into
account the financial status of the merging companies. If the board of directors has determined that such a concern exists, it may not
approve a proposed merger. Following the approval of the board of directors of each of the merging companies, the boards of directors
must jointly prepare a merger proposal for submission to the Israeli Registrar of Companies.
For purposes of the shareholder
vote, unless a court rules otherwise, the merger will not be deemed approved if a majority of the shares represented at the shareholders
meeting that are held by parties other than the other party to the merger, or by any person (or group of persons acting in concert) who
holds (or hold, as the case may be) 25% or more of the outstanding shares or the right to appoint 25% or more of the directors of the
other party, vote against the merger. If the transaction would have been approved but for the separate approval of each class or the exclusion
of the votes of certain shareholders as provided above, a court may still approve the merger upon the request of holders of at least 25%
of the voting rights of a company, if the court holds that the merger is fair and reasonable, taking into account the value of the parties
to the merger and the consideration offered to the shareholders. Pursuant to the Companies Law, if a merger is with a company's
controlling shareholder or if the controlling shareholder has a personal interest in the merger, then the merger is instead subject to
the same special majority approval that governs all extraordinary transactions with controlling shareholders (as described above under
"Board Practices — Fiduciary duties and Approval of Related Party Transactions under Israeli law.").
In addition, under our Articles
of Association, the Company shall not engage in any Business Combination with any Interested Shareholder for a period of three years following
the time that such shareholder became an Interested Shareholder, unless either prior to such time the Board of Directors approved either
the Business Combination or the transaction which resulted in the shareholder becoming an Interested Shareholder; or upon consummation
of the transaction which resulted in the shareholder becoming an Interested Shareholder, the Interested Shareholder owned at least 85%
of the Voting Shares of the Company outstanding at the time the transaction commenced.
Under the Companies Law, each
merging company must send a copy of the proposed merger plan to its secured creditors. Unsecured creditors are entitled to receive notice
of the merger pursuant to regulations promulgated under the Companies Law. Upon the request of a creditor of either party to the proposed
merger, the court may delay or prevent the merger if it concludes that there exists a reasonable concern that, as a result of the merger,
the surviving company will be unable to satisfy the obligations the target company. The court may further give instructions to secure
the rights of creditors.
In addition, a merger may
not be completed unless at least fifty days have passed from the date that a proposal for approval of the merger was filed with the Israeli
Companies Registrar and thirty days from the date on which the merger was approved by the shareholders of each party.
73
Full tender offer
A person wishing to acquire
shares of a public Israeli company and who would as a result hold over 90% of the target company's issued and outstanding share
capital, or of a certain class of shares, is required by the Companies Law to make a tender offer to all of the company's shareholders
or the shareholders who holds shares of the same class for the purchase of all of the issued and outstanding shares of the company or
of the same class, as applicable.
If the shareholders who do
not respond to or accept the offer hold less than 5% of the issued and outstanding share capital of the company or of the applicable class
of the shares, and more than half of the shareholders who do not have a personal interest in the offer accept the offer, all of the shares
that the acquirer offered to purchase will be transferred to the acquirer by operation of law. However, a tender offer will also be accepted
if the shareholders who do not accept the offer hold less than 2% of the issued and outstanding share capital of the company or of the
applicable class of shares.
Upon a successful completion
of such a full tender offer, any shareholder that was an offeree in such tender offer, whether the shareholder accepted the tender offer
or not, may, within six months from the date of acceptance of the tender offer, petition the Israeli court to determine whether the tender
offer was for less than fair value and that the fair value should be paid as determined by the court. However, under certain conditions,
the offeror may include in the terms of the tender offer that an offeree who accepted the offer will not be entitled to petition the Israeli
court as described above.
If the full tender offer was
not accepted in accordance with the above alternatives, the acquirer may not acquire shares of the company that will increase its holdings
to more than 90% of the company's voting rights or issued and outstanding share capital or of the applicable class from shareholders
who accepted the tender offer.
Special tender offer
The Companies Law provides
that an acquisition of shares of a public Israeli company must be made by means of a special tender offer if as a result of the acquisition
the purchaser would become a holder of at least 25% of the voting rights in the company. This rule does not apply if there is already
another holder of at least 25% of the voting rights in the company. Similarly, the Companies Law provides that an acquisition of shares
in a public company must be made by means of a tender offer if as a result of the acquisition the purchaser would become a holder of more
than 45% of the voting rights in the company, if there is no other shareholder of the company who holds more than 45% of the voting rights
in the company, subject to certain exceptions.
A special tender offer must
be extended to all shareholders of a company but the offeror is not required to purchase shares representing more than 5% of the voting
power attached to the company's outstanding shares, regardless of how many shares are tendered by shareholders. A special tender
offer may be consummated only if (i) at least 5% of the voting power attached to the company's outstanding shares will be acquired
by the offeror and (ii) the number of shares tendered by shareholders who accept the offer exceeds the number of shares whose holders
objected to the offer (excluding the purchaser and its controlling shareholders, holders of 25% or more of the voting rights in the company
or any person having a personal interest in the acceptance of the tender offer or any other person acting on their behalf, including relatives
and entities under such person's control). If a special tender offer is accepted, then (i) shareholders who did not respond to or
that had objected to the offer may accept the offer within four days of the last date set for the acceptance of the offer and they will
be considered to have accepted the offer from the first day it was made, and (ii) the purchaser or any person or entity controlling it
or under common control with the purchaser or such controlling person or entity may not make a subsequent tender offer for the purchase
of shares of the target company and may not enter into a merger with the target company for a period of one year from the date of the
offer, unless the purchaser or such person or entity undertook to effect such an offer or merger in the initial special tender offer.
In the event that a special
tender offer is made, a company's board of directors is required to express its opinion on the advisability of the offer, or shall
abstain from expressing any opinion if it is unable to do so, provided that it gives the reasons for its abstention. In addition, the
board of directors must disclose any personal interest each member of the board of directors has in the offer or stems therefrom. An office
holder in a target company who, in his or her capacity as an office holder, performs an action the purpose of which is to cause the failure
of an existing or foreseeable special tender offer or is to impair the chances of its acceptance, is liable to the potential purchaser
and shareholders for damages resulting from his or her acts, unless such office holder acted in good faith and had reasonable grounds
to believe he or she was acting for the benefit of the company. However, office holders of the target company may negotiate with the potential
purchaser in order to improve the terms of the special tender offer, and may further negotiate with third parties in order to obtain a
competing offer.
74
Shares purchased in contradiction
to the tender offer rules under the Companies Law, as described above, will have no rights and will become dormant shares.
Borrowing Powers
Pursuant to the Israeli
Companies Law and our amended articles of association, our board of directors may exercise all powers and take all actions that are not
required under law or under our amended articles of association to be exercised or taken by our shareholders, including the power to borrow
money for company purposes.
For details regarding the
approvals required under the Israeli Companies Law for the approval of director compensation, see "Item 6 C "Directors, Senior
Management and Employees — Board Practices – Fiduciary Duties and Approval of Related Party Transactions under Israeli Law."
Changes in Capital
Our amended and restated articles
of association enable us to increase or reduce our share capital. Any such changes are subject to Israeli law and must be approved by
a resolution duly passed by our shareholders at a general meeting by voting on such change in the capital. In addition, transactions that
have the effect of reducing capital, such as the declaration and payment of dividends in the absence of sufficient retained earnings or
profits, require the approval of both our board of directors and an Israeli court.
Transfer Agent and Registrar
The transfer agent and registrar
for our ordinary shares is Vstock Transfer, LLC. Its address is 18 Lafayette Place Woodmere, New York 11598, and its telephone number
is (212) 828-8436.
C. Material Contracts
We have not entered into any material contracts other than in the ordinary
course of business and other than those described below and in Item 4. "Information on Our Company", "Item 5 B. —
Operating and Financial Review and Prospects — Liquidity and Capital Resources", "Item 6 B. — Directors, Senior
Management and Employees— Compensation," "Item 7B. Major Shareholders and Related Party Transactions — Related
Party Transactions" or elsewhere in this annual report.
Convertible Loan Agreements
For information regarding
certain convertible loan agreements we entered into, all of which convertible loans have matured and (to the extent not converted) were
not timely repaid by us due to financial difficulties, see Note 8 to our consolidated financial statements for the year ended December
31, 2022 that appear elsewhere in this annual report on Form 20-F.
D. Exchange Controls.
There are no Israeli government
laws, decrees or regulations that restrict or that affect our export or import of capital or the remittance of dividends, interest or
other payments to non-resident holders of our securities, including the availability of cash and cash equivalents for use by us and our
wholly-owned subsidiaries, except for ownership by nationals of certain countries that are, or have been, declared as enemies of Israel.
75
E. Taxation
The
following description is not intended to constitute a complete analysis of all tax consequences relating to the acquisition, ownership
and disposition of our ordinary shares. You should consult your own tax advisor concerning the tax consequences of your particular situation,
as well as any tax consequences that may arise under the laws of any state, local, foreign or other taxing jurisdiction.
Certain Israeli Tax Considerations
The following is a brief summary
of the material Israeli income tax laws applicable to us. This summary does not discuss all the aspects of Israeli tax law that may be
relevant to a particular investor in light of his or her personal investment circumstances or to some types of investors subject to special
treatment under Israeli law. Examples of this kind of investor include residents of Israel or investors in securities who are subject
to special tax regimes not covered in this discussion. To the extent that the discussion is based on new tax legislation that has not
yet been subject to judicial or administrative interpretation, we cannot assure you that the appropriate tax authorities or the courts
will accept the views expressed in this discussion. This summary is based on laws and regulations in effect as of the date hereof and
does not take into account possible future amendments which may be under consideration.
General Corporate Tax Structure in Israel
Israeli resident companies
are generally subject to corporate tax. In 2018 and thereafter the corporate tax rate is 23% of their taxable income. However, the effective
tax rate payable by a company that derives income from an Approved Enterprise, a Preferred Enterprise, a Beneficiary Enterprise or a Technology
Enterprise (as discussed below) may be considerably less.
Capital gains derived by an
Israeli resident company are generally subject to corporate tax rate.
Law for the Encouragement of Industry (Taxes),
5729-1969
The Law for the Encouragement
of Industry (Taxes), 5729-1969, which we refer to as the Industry Encouragement Law, provides several tax benefits for "Industrial
Company," which is defined as Israeli resident-company incorporated in Israel, of which 90% or more of its income in any tax year,
other than income from certain government loans, is derived from an "Industrial Enterprise" that it owns and located in Israel
or in the "Area", in accordance with the definition in section 3a of the Ordinance. An "Industrial Enterprise"
is defined as an enterprise which is held by an Industrial Company whose principal activity in a given tax year is industrial production.
Eligibility for benefits under the Industry Encouragement Law is not contingent upon approval of any governmental authority.
The following corporate tax
benefits, among others, are available to Industrial Companies:
●
amortization over an eight-year period of the cost of purchased patent, rights to use a patent and rights to know-how, which are used for the development or advancement of the Industrial Enterprise, commencing in the year in which such rights were first exercised;
●
under limited conditions, an election to file consolidated tax returns with related Industrial Companies; and
●
expenses related to a public offering are deductible in equal amounts over three years commencing on the year of the offering.
We believe that we currently
qualify as an "Industrial Company" within the meaning of the Industry Encouragement Law. There can be no assurance that we
will qualify as an industrial company or that the benefits described above will be available in the future.
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 incentives for capital investments in
production facilities (or other eligible assets). Generally, an investment program that is implemented in accordance with the provisions
of the Investment Law, is entitled to benefits. These benefits may include cash grants from the Israeli government and tax benefits, based
upon, among other things, the geographic location in Israel of the facility in which the investment and manufacture activity are made.
In order to qualify for these incentives, an Approved Enterprise, a Beneficiary Enterprise, a Preferred Enterprise or a Technology Enterprise
is required to comply with the requirements of the Investment Law.
76
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 elect instead, irrevocably, to forego such benefits and have the benefits of the 2011 Amendment apply.
The 2017 Amendment introduces new benefits for Technological Enterprises, alongside the existing tax benefits.
The following discussion is a summary
of the Investment Law following its 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 a specified development zone, 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 a certain development zone. As of January 1, 2017, the definition for 'Special Preferred Enterprise' includes less stringent
conditions. The tax benefits under the 2011 Amendment also include accelerated depreciation and amortization for tax purposes.
As of January 1, 2014, dividends
distributed from income which is attributed to a "Preferred Enterprise" or to a Special 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, withholding tax at a rate of 20% or such lower rate as may be provided in an applicable
tax treaty will apply (subject to the receipt in advance of a valid certificate from the Israel Tax Authority allowing for a reduced tax
rate)) (ii) Israeli resident individuals – 20% (iii) non-Israeli residents (individuals and corporations) - 20%, subject to a reduced
tax rate under the provisions of an applicable double tax treaty (subject to the receipt in advance of a valid certificate from the Israel
Tax Authority allowing for a reduced tax rate). In 2017-2019 dividends paid out of preferred income attributed to a Special Preferred
Enterprise, directly to a foreign parent company, are subject to withholding tax at source at the rate of 5% (temporary provisions).
Currently, we are not entitled
to receive the tax benefits described above and there can be no assurance that we will be entitled to receive such benefits at any time
in the future. Furthermore, there can be no assurance that even if in the future we meet the relevant requirements for such tax benefits,
that such tax benefits will be available to us at all.
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 "Technology Enterprises", as described below, and is in addition to the other existing
tax beneficial programs under the Investment Law.
77
The 2017 Amendment provides
that a technology company satisfying certain conditions will qualify as a "Preferred Technology 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 Technology Enterprise located in development zone "A". In addition,
a Preferred Technology Company 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 (approximately $64 million), and the sale receives prior
approval from the IIA.
The 2017 Amendment further
provides that a technology company satisfying certain conditions will qualify as a "Special Preferred Technology Enterprise"
and will thereby enjoy a reduced corporate tax rate of 6% on "Preferred Technology Income" regardless of the company's
geographic location within Israel. In addition, a Special Preferred Technology 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 Technology 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 Technology Enterprise that acquires Benefitted
Intangible Assets from a foreign company for more than NIS 500 million (approximately $161 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 Technology Enterprise or a Special Preferred Technology Enterprise, paid out of Preferred Technology 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 Israel Tax Authority allowing for a reduced tax rate). However, if such dividends are paid
to an Israeli company, no tax is required to be withheld (although, if such dividends are subsequently distributed from such Israeli company
to individuals or a non-Israeli company, withholding tax at a rate of 20% or such lower rate as may be provided in an applicable tax treaty
will apply). If such dividends are distributed to a foreign company and other conditions are met, the withholding tax rate will be 4%
(or a lower rate under a tax treaty, if applicable, subject to the receipt in advance of a valid certificate from the Israel Tax Authority
allowing for a reduced tax rate).
Currently, we are not entitled
to receive the tax benefits described above and there can be no assurance that we will be entitled to receive such benefits at any time
in the future. Furthermore, there can be no assurance that even if in the future we meet the relevant requirements for such tax benefits,
that such tax benefits will be available to us at all.
Capital Gains Taxes Applicable to Non-Israeli
Resident Shareholders.
Israeli capital gains tax
is imposed on the disposal of capital assets by a non-Israeli resident if such assets are either (i) located in Israel; (ii) shares
or rights to shares in an Israeli resident company, or (iii) represent, directly or indirectly, rights to assets located in Israel, unless
a specific exemption is available or unless a tax treaty between Israel and the seller's country of residence provides otherwise.
Capital gain is generally subject to tax at the corporate tax rate (23% in 2018 and thereafter), if generated by a company, or at the
rate of 25% if generated by an individual, or 30% in the case of sale of shares by a Substantial Shareholder (i.e., a person who
holds, directly or indirectly, alone or together with such person's relative or another person who collaborates with such person
on a permanent basis, 10% or more of any of the company's "means of control" (including, among other things, the right
to receive profits of the company, voting rights, the right to receive proceeds upon liquidation and the right to appoint a director))
at the time of sale or at any time during the preceding 12-month period. Individual and corporate shareholders dealing in securities in
Israel are taxed at the tax rates applicable to business income (a corporate tax rate for a corporation and a marginal tax rate of up
to 47% for an individual in 2021) unless the benefiting provisions of an applicable treaty applies.
Notwithstanding the foregoing,
a non-Israeli resident (individual or corporation) who 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 recognized stock exchange in Israel or outside of Israel will generally be
exempt from Israeli tax so long as the shares were not held through a permanent establishment that the non-resident maintains in Israel
(and with respect to shares listed on a recognized stock exchange outside of Israel, so long as neither the shareholder nor the particular
capital gain is otherwise subject to the Israeli Income Tax Law (Inflationary Adjustments) 5745-1985). However, non-Israeli corporations
will not be entitled to the foregoing exemption if Israeli residents: (i) have a controlling interest of more than 25% 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. These provisions dealing with capital gain are not applicable to a person whose gains from selling or
otherwise disposing of the shares are deemed to be business income.
78
Additionally, a sale of shares
by a non-Israeli resident may be exempt from Israeli capital gains tax under the provisions of an applicable tax treaty. For example,
under the United States-Israel Tax Treaty, the sale, exchange or other disposition of shares of an Israeli company by a shareholder who
(i) is a U.S. resident (for purposes of the treaty), (ii) holds the shares as a capital asset, and (iii) is entitled to claim the benefits
afforded to such person by the treaty, is generally exempt from Israeli capital gains tax. Such exemption will not apply if: (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 the sale, exchange or disposition that
can be attributed to a permanent establishment of the shareholder that is maintained in Israel under certain terms; (iv) the shareholder
holds, directly or indirectly, shares representing 10% or more of the voting rights during any part of the 12-month period preceding such
sale exchange or other disposition, subject to certain conditions; or (v) such U.S. resident is an individual and was present in Israel
for a period or periods aggregating to 183 days or more during the relevant taxable year. In any such case, the sale, exchange or disposition
of our ordinary shares would be subject to Israeli tax, to the extent applicable; however, under the United States-Israel Tax Treaty,
a U.S. resident would be permitted to claim a credit for such taxes against the U.S. federal income tax imposed with respect to such sale,
exchange or disposition, subject to the limitations under U.S. law applicable to foreign tax credits. The United States-Israel Tax Treaty
does not relate to 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. Specifically, in transactions involving a sale of all of the shares of an
Israeli resident company, such as a merger or other transaction, the Israel Tax Authority may require from shareholders who are not liable
for Israeli tax to sign declarations in forms specified by that authority or obtain a specific exemption from the Israel Tax Authority
to confirm their status as non-Israeli residents, and, in the absence of such declarations or exemptions, may require the purchaser of
the shares to withhold taxes at source.
Taxation of Non-Israeli Shareholders on Receipt
of Dividends.
Non-Israeli residents (whether
individuals or corporations) are generally subject to Israeli income tax on the receipt of dividends paid on our ordinary shares at the
rate of 25% or 30% (if the recipient is a Substantial Shareholder at the time of receiving the dividend or at any time during the preceding
12 months) or 15% if the dividend is distributed from income attributed to a Benefited Enterprise and 20% with respect to a Preferred
Enterprise, subject to certain conditions. Such dividends are generally subject to Israeli withholding tax at a rate of 25% so long as
the shares are registered with a nominee company (whether the recipient is a Substantial Shareholder or not) and 15% if the dividend is
distributed from income attributed to a Benefited Enterprise or 20% if the dividend is distributed from income attributed to an Preferred
Enterprise, unless a reduced rate is provided under an applicable tax treaty (subject to the receipt of a valid certificate from the Israel
Tax Authority 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 (for purposes of the United States-Israel Tax Treaty) is 25%. However, generally, the maximum rate of withholding tax
for dividends not generated by a Benefited Enterprise and paid to a U.S. corporation holding 10% or more of the outstanding voting rights
from the start of the tax year preceding the distribution of the dividend through (and including) the distribution of the dividend, 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, a distribution of dividends to non-Israeli residents is subject to withholding tax at source at a rate
of 15% if the dividend is distributed from income attributed to a Benefited Enterprise for such U.S. corporation shareholder, provided
that the condition related to our gross income for the previous year (as set forth in the previous sentence) is met. U.S. residents who
are subject to Israeli withholding tax on a dividend may be entitled to a credit or deduction for United States federal income tax purposes
in the amount of the taxes withheld, subject to detailed rules contained in U.S. tax legislation.
79
If the dividend is attributable
partly to income derived from a Benefited Enterprise or a Preferred Enterprise, and partly from other sources of income, the withholding
rate will be a blended rate reflecting the relative portions of the two types of income.
Estate and Gift Tax.
Israeli law presently does
not impose estate or gift taxes.
Excess Tax.
Beginning on January 1,
2013, an additional tax liability at the rate of 2% was added to the applicable tax rate on the annual taxable income of individuals (whether
any such individual is an Israeli resident or non-Israeli resident) exceeding a certain level, including, but not limited to, dividends,
interest and capital gain. Pursuant to new legislation enacted recently, such tax rate was increased to 3% on annual income exceeding
NIS 698,280 in 2023.
U.S. Federal Income Taxation
The following is a description
of the material U.S. federal income tax consequences to U.S. Holders (as defined below) of the acquisition, ownership and disposition
of our ordinary shares. This description addresses only the U.S. federal income tax consequences to purchasers of our ordinary shares
and that will hold such ordinary shares as capital assets. This description does not address tax considerations applicable to holders
that may be subject to special tax rules, including, without limitation:
●
banks, financial institutions or insurance companies;
●
real estate investment trusts, regulated investment companies or grantor trusts;
●
dealers or traders in securities, commodities or currencies;
●
tax-exempt entities;
●
certain former citizens or long-term residents of the United States;
●
persons that received our ordinary shares as compensation for the performance of services;
●
persons that will hold our ordinary shares as part of a "hedging," "integrated" or "conversion" transaction or as a position in a "straddle" for U.S. federal income tax purposes;
●
partnerships (including entities classified as partnerships for U.S. federal income tax purposes) or other pass-through entities, or holders that will hold our ordinary shares through such an entity;
●
U.S. Holders (as defined below) whose "functional currency" is not the U.S. dollar; or
●
holders that own directly, indirectly or through attribution 10.0% or more of the voting power or value of our ordinary shares.
Moreover, this description
does not address the United States federal estate, gift, alternative minimum tax or net investment income tax consequences, or any state,
local or non-U.S. tax consequences, of the acquisition, ownership and disposition of our ordinary shares.
This description is based
on the U.S. Internal Revenue Code of 1986, as amended (the "Code"), existing, proposed and temporary U.S. Treasury Regulations
and judicial and administrative interpretations thereof, in each case as in effect and available on the date hereof. Each of the foregoing
is subject to change, which change could apply retroactively and could affect the tax consequences described below. There can be no assurances
that the U.S. Internal Revenue Service will not take a different position concerning the tax consequences of the acquisition, ownership
and disposition of our ordinary shares or that such a position would not be sustained.
80
For purposes of this description,
a "U.S. Holder" is a beneficial owner of our ordinary shares that, for U.S. federal income tax purposes, is:
●
a citizen or resident of the United States;
●
a corporation (or other entity treated as a corporation for U.S. federal income tax purposes) created or organized in or under the laws of the United States or any state thereof, including the District of Columbia;
●
an estate the income of which is subject to U.S. federal income taxation regardless of its source; or
●
a trust if such trust has validly elected to be treated as a U.S. person for U.S. federal income tax purposes or if (1) a court within the United States is able to exercise primary supervision over its administration and (2) one or more U.S. persons have the authority to control all of the substantial decisions of such trust.
If a partnership (or any other
entity treated as a partnership for U.S. federal income tax purposes) holds ordinary shares, the tax treatment of a partner in such partnership
will generally depend on the status of the partner and the activities of the partnership. Such a partner or partnership should consult
its tax advisor as to its tax consequences.
You should consult your
tax advisor with respect to the U.S. federal, state, local and foreign tax consequences of acquiring, owning and disposing of our ordinary
shares.
Distributions
Subject to the discussion
below under "— Passive Foreign Investment Company Considerations," if you are a U.S. Holder, the gross amount of any
distribution that we pay you with respect to our ordinary shares before reduction for any non-U.S. taxes withheld therefrom generally
will be includible in your income as dividend income to the extent such distribution is paid out of our current or accumulated earnings
and profits as determined under U.S. federal income tax principles. To the extent that the amount of any cash distribution exceeds our
current and accumulated earnings and profits as determined under U.S. federal income tax principles, it will be treated first as a tax
free return of your adjusted tax basis in our ordinary shares and thereafter as capital gain. We do not expect to maintain calculations
of our earnings and profits under U.S. federal income tax principles. Therefore, if you are a U.S. Holder, you should expect that the
entire amount of any cash distribution generally will be reported as dividend income to you; provided, however, that distributions of
ordinary shares to U.S. Holders that are part of a pro rata distribution to all of our shareholders generally will not be subject to U.S.
federal income tax. Non-corporate U.S. Holders may qualify for the lower rates of taxation with respect to dividends on ordinary shares
applicable to long term capital gains (i.e., gains from the sale of capital assets held for more than one year), provided that certain
conditions are met, including certain holding period requirements and the absence of certain risk reduction transactions. Moreover, such
reduced rate shall not apply if we are a PFIC for the taxable year in which it pays a dividend or were a PFIC for the preceding taxable
year. Dividends will not be eligible for the dividends received deduction generally allowed to corporate U.S. Holders.
If you are a U.S. Holder,
subject to the discussion below, dividends that we pay you with respect to our ordinary shares will be treated as foreign source income,
which may be relevant in calculating your foreign tax credit limitation. Subject to certain conditions and limitations, non-U.S. tax withheld
on dividends may be deducted from your taxable income or credited against your U.S. federal income tax liability. The limitation on foreign
taxes eligible for credit is calculated separately with respect to specific classes of income. For this purpose, dividends that we distribute
generally should constitute "passive category income," or, in the case of certain U.S. Holders, "general category income."
A foreign tax credit for foreign taxes imposed on distributions may be denied if you do not satisfy certain minimum holding period requirements.
The rules relating to the determination of the foreign tax credit are complex, and you should consult your tax advisor to determine whether
and to what extent you will be entitled to this credit.
81
Although, as discussed above,
dividends that we pay to a U.S. Holder will generally be treated as foreign source income, for periods in which we are a "United
States-owned foreign corporation," a portion of dividends paid by us may be treated as U.S. source income solely for purposes of
the foreign tax credit. We would be treated as a United States-owned foreign corporation if 50% or more of the total value or total voting
power of our stock is owned, directly, indirectly or by attribution, by United States persons. To the extent any portion of our dividends
is treated as U.S. source income pursuant to this rule, the ability of a U.S. Holder to claim a foreign tax credit for any Israeli withholding
taxes payable in respect of our dividends may be limited. A U.S. Holder entitled to benefits under the United States-Israel Tax Treaty
may, however, elect to treat any dividends as foreign source income for foreign tax credit purposes if the dividend income is separated
from other income items for purposes of calculating the U.S. Holder's foreign tax credit. U.S. Holders should consult their own
tax advisors about the impact of, and any exception available to, the special sourcing rule described in this paragraph, and the desirability
of making, and the method of making, such an election.
The amount of any dividend
income paid in NIS will be the U.S. dollar amount calculated by reference to the exchange rate in effect on the date of receipt, regardless
of whether the payment is in fact converted into U.S. dollars. If the dividend is converted into U.S. dollars on the date of receipt,
you should not be required to recognize exchange gain or loss in respect of the dividend income. You may have exchange gain or loss if
the dividend is converted into U.S. dollars after the date of receipt. Exchange gain or loss will be treated as U.S.-source ordinary income
or loss.
Sale, Exchange or Other Disposition of Ordinary
Shares
Subject to the discussion
below under "— Passive Foreign Investment Company Considerations," if you are a U.S. Holder, you generally will recognize
an amount of gain or loss on the sale, exchange or other disposition of our ordinary shares equal to the difference between the amount
realized on such sale, exchange or other disposition and your tax basis in our ordinary shares, and such gain or loss will be capital
gain or loss. The tax basis in an ordinary share generally will equal the U.S. dollar cost of such ordinary share. If you are a non-corporate
U.S. Holder, capital gain from the sale, exchange or other disposition of ordinary shares generally will be eligible for a preferential
rate of taxation applicable to capital gains, if your holding period for such ordinary shares exceeds one year. The deductibility of capital
losses for U.S. federal income tax purposes is subject to limitations under the Code. Any such gain or loss that a U.S. Holder recognizes
generally will be treated as U.S. source income or loss for foreign tax credit limitation purposes.
If an Israeli tax is imposed
on the sale or other disposition of our ordinary shares, your amount realized will include the gross amount of the proceeds of the sale
or other disposition before deduction of the Israeli tax. Because your gain from the sale or other disposition of our ordinary shares
will generally be U.S.-source gain, and you may use foreign tax credits to offset only the portion of U.S. federal income tax liability
that is attributable to foreign source income, you may be unable to claim a foreign tax credit with respect to the Israeli tax, if any,
on gains. You should consult your tax adviser as to whether the Israeli tax on gains may be creditable against your U.S. federal income
tax on foreign-source income from other sources.
Passive Foreign Investment Company
In general, a non-U.S. corporation
will be treated as a PFIC for U.S. federal income tax purposes in any taxable year in which either (i) at least 75% of its gross income
is "passive income," or (ii) on average at least 50% of its assets by value produce passive income or are held for the production
of passive income. Passive income for this purpose generally includes, among other things, certain dividends, interest, royalties, rents
and gains from commodities and securities transactions and from the sale or exchange of property that gives rise to passive income. Passive
income also includes amounts derived by reason of the temporary investment of funds, including those raised in a public offering. Assets
that produce or are held for the production of passive income include cash, even if held as working capital or raised in a public offering,
marketable securities and other assets that may produce passive income. In determining whether a non-U.S. corporation is a PFIC, a proportionate
share of the income and assets of each corporation in which it owns, directly or indirectly, at least a 25% interest (by value) is taken
into account.
82
A foreign corporation's
PFIC status is an annual determination that is based on tests that are factual in nature, and our status for any year will depend on the
corporation's income, assets, and activities for such year. We have not determined whether we have been a PFIC for any previous
year prior to 2021. Also we cannot assure that we will not be considered a PFIC for 2021, based on our estimation, we do not expect to
be a PFIC for the 2021 tax year. We did not conduct an analysis whether we will be a PFIC in 2022 or in any future years.
U.S. Holders should be aware
of certain tax consequences of investing directly or indirectly in us due to our classification as a PFIC. A U.S. Holder is subject to
different rules depending on whether the U.S. Holder makes an election to treat us as a "qualified electing fund," referred
to herein as a "QEF election," for the first taxable year that the U.S. Holder holds ordinary shares makes a "mark-to-market"
election with respect to the ordinary shares, or makes neither election.
QEF Election
. One way
in which certain of the adverse consequences of PFIC status can be mitigated is for a U.S. Holder make a QEF election. Generally, a shareholder
making the QEF election is required for each taxable year to include in income a pro rata share of the ordinary earnings and net capital
gain of the QEF, subject to a separate election to defer payment of taxes, which deferral is subject to an interest charge. An election
to treat us as a QEF will not be available if we do not provide the information necessary to make such an election. It is not expected
that a U.S. Holder will be able to make a QEF election because we do not intend to provide U.S. Holders with the information necessary
to make a QEF election.
Mark-to-Market Election
.
Alternatively, if our ordinary shares are treated as "marketable stock," a U.S. Holder would be allowed to make a "mark-to-market"
election with respect to our ordinary shares, provided the U.S. Holder completes and files IRS Form 8621 in accordance with the relevant
instructions and related Treasury Regulations. If that election is made, the U.S. Holder generally would include as ordinary income in
each taxable year the excess, if any, of the fair market value of our ordinary shares at the end of the taxable year over such holder's
adjusted tax basis in such ordinary shares. The U.S. Holder would also be permitted an ordinary loss in respect of the excess, if any,
of the U.S. Holder's adjusted tax basis in our ordinary shares over their fair market value at the end of the taxable year, but
only to the extent of the net amount previously included in income as a result of the mark-to-market election. A U.S. Holder's tax
basis in our ordinary shares would be adjusted to reflect any such income or loss amount. Gain realized on the sale, exchange or other
disposition of our ordinary shares would be treated as ordinary income, and any loss realized on the sale, exchange or other disposition
of our ordinary shares would be treated as ordinary loss to the extent that such loss does not exceed the net mark-to-market gains previously
included in income by the U.S. Holder, and any loss in excess of such amount will be treated as capital loss. Amounts treated as ordinary
income will not be eligible for the favorable tax rates applicable to qualified dividend income or long-term capital gains.
A mark-to-market election
will not apply to our ordinary shares held by a U.S. Holder for any taxable year during which we are not a PFIC, but will remain in effect
with respect to any subsequent taxable year in which we become a PFIC. Such election will not apply to any PFIC subsidiary that we own.
Generally, stock will be considered
marketable stock if it is "regularly traded" on a "qualified exchange" within the meaning of applicable Treasury
Regulations. A class of stock is regularly traded on an exchange during any calendar year during which such class of stock is traded,
other than in de minimis quantities, on at least 15 days during each calendar quarter. To be marketable stock, our ordinary shares must
be regularly traded on a qualifying exchange (i) in the United States that is registered with the SEC or a national market system established
pursuant to the Exchange Act or (ii) outside the United States that is properly regulated and meets certain trading, listing, financial
disclosure and other requirements. Since our ordinary shares are quoted only on the OTC Pink, they may not currently qualify as marketable
stock for purposes of the election and therefore the election may not be available to a U.S. Holder. U.S. Holders should consult their
own tax advisors regarding the availability and tax consequences of a mark-to-market election in respect to our ordinary shares under
their particular circumstances.
Each U.S. Holder should consult
its own tax adviser with respect to the applicability of the "net investment income tax" (discussed below) where a mark-to-market
election is in effect.
83
Default PFIC Rules
.
A U.S. Holder who does not make a timely QEF election (we do not currently intend to prepare or provide the information that would enable
a U.S. Holder to make a QEF election) or a mark-to-market election, referred to in this summary as a "Non-Electing U.S. Holder,"
will be subject to special rules with respect to (i) any "excess distribution" (generally, the portion of any distributions
received by the Non-Electing U.S. Holder on the ordinary shares in a taxable year in excess of 125% of the average annual distributions
received by the Non-Electing U.S. Holder in the three preceding taxable years, or, if shorter, the Non-Electing U.S. Holder's holding
period for the ordinary shares), and (ii) any gain realized on the sale or other disposition of such ordinary shares. Under these rules:
●
the excess distribution or gain would be allocated ratably over the Non-Electing U.S. Holder's holding period for such ordinary shares;
●
the amount allocated to the current taxable year and any year prior to us becoming a PFIC would be taxed as ordinary income; and
●
the amount allocated to each of the other taxable years would be subject to tax at the highest rate of tax in effect for the applicable class of taxpayer for that year, and an interest charge for the deemed deferral benefit would be imposed with respect to the resulting tax attributable to each such other taxable year.
If a Non-Electing U.S. Holder
who is an individual dies while owning our ordinary shares, the Non-Electing U.S. Holder's successor would be ineligible to receive
a step-up in tax basis of such ordinary shares. Non-Electing U.S. Holders should consult their tax advisors regarding the application
of the "net investment income tax" (described below) to their specific situation.
To the extent a distribution
on our ordinary shares does not constitute an excess distribution to a Non-Electing U.S. Holder, such Non-Electing U.S. Holder generally
will be required to include the amount of such distribution in gross income as a dividend to the extent of our current or accumulated
earnings and profits (as determined for U.S. federal income tax purposes) that are not allocated to excess distributions. Each U.S. Holder
is encouraged to consult its own tax advisor with respect to the appropriate U.S. federal income tax treatment of any distribution on
our ordinary shares.
If we are treated as a PFIC
for any taxable year during the holding period of a Non-Electing U.S. Holder, we will continue to be treated as a PFIC for all succeeding
years during which the Non-Electing U.S. Holder is treated as a direct or indirect Non-Electing U.S. Holder even if we are not a PFIC
for such years. A U.S. Holder is encouraged to consult its tax advisor with respect to any available elections that may be applicable
in such a situation, including the "deemed sale" election of Code Section 1298(b)(1) (which will be taxed under the adverse
tax rules described above).
We may invest in the equity
of foreign corporations that are PFICs or may own subsidiaries that own PFICs. If we are classified as a PFIC, under attribution rules,
U.S. Holders will be subject to the PFIC rules with respect to their indirect ownership interests in such PFICs, such that a disposition
of the ordinary shares of the PFIC or receipt by us of a distribution from the PFIC generally will be treated as a deemed disposition
of such ordinary shares or the deemed receipt of such distribution by the U.S. Holder, subject to taxation under the PFIC rules. There
can be no assurance that a U.S. Holder will be able to make a QEF election, and a U.S. Holder may not make a mark-to-market election,
with respect to PFICs in which we invest. Each U.S. Holder is encouraged to consult its own tax advisor with respect to tax consequences
of an investment by us in a corporation that is a PFIC.
In addition, U.S. Holders
should consult their tax advisors regarding the IRS information reporting and filing obligations that may arise as a result of the ownership
of ordinary shares in a PFIC, including IRS Form 8621, Information Return by a Shareholder of a Passive Foreign Investment Company or
Qualified Electing Fund.
The U.S. federal income
tax rules relating to PFICs elections are complex. U.S. Holders are urged to consult their own tax advisors with respect to the purchase,
ownership and disposition of our ordinary shares, any elections available with respect to such ordinary shares and the IRS information
reporting obligations with respect to the purchase, ownership and disposition of our ordinary shares.
84
Certain Reporting Requirements
Certain U.S. Investors are
required to file IRS Form 926, Return by U.S. Transferor of Property to a Foreign Corporation, and certain U.S. Investors may be required
to file IRS Form 5471, Information Return of U.S. Persons With Respect to Certain Foreign Corporations, reporting transfers of cash or
other property to us and information relating to the U.S. Investor and us. Substantial penalties may be imposed upon a U.S. Investor that
fails to comply.
In addition, certain U.S.
Investors are required to report information on IRS Form 8938 with respect to their investments in certain "foreign financial assets,"
which would include an investment in our ordinary shares, to the IRS.
Investors who fail to report
required information could become subject to substantial civil and criminal penalties. U.S. Investors should consult their tax advisors
regarding the possible implications of these reporting requirements and any other applicable reporting requirement with respect to their
investment in and ownership of our ordinary shares.
Disclosure of Reportable Transactions
If a U.S. Investor sells or
disposes of the ordinary shares at a loss or otherwise incurs certain losses that meet certain thresholds, such U.S. Investor may be required
to file a disclosure statement with the IRS. Failure to comply with these and other reporting requirements could result in the imposition
of significant penalties.
Backup Withholding Tax and Information Reporting
Requirements
U.S.
backup withholding tax and information reporting requirements may apply to certain payments to certain holders of stock. Information reporting
generally will apply to payments of dividends on, and to proceeds from the sale, exchange or redemption of, our ordinary shares made within
the United States, or by a United States payor or United States middleman, to a holder of our ordinary shares, other than an exempt recipient
(including a payee that is not a United States person that provides an appropriate certification and certain other persons). Payments
made (and sales or other dispositions effected at an office) outside the U.S. will be subject to information reporting in limited circumstances.
A payor will be required to withhold backup withholding tax from any payments of dividends on, or the proceeds from the sale or redemption
of, ordinary shares within the United States, or by a United States payor or United States middleman, to a holder, other than an exempt
recipient, if such holder fails to furnish its correct taxpayer identification number or otherwise fails to comply with, or establish
an exemption from, such backup withholding tax requirements, or to report dividends required to be shown on the holder's U.S. federal
income tax returns. Back up withholding is not an additional tax. Any amounts withheld under the backup withholding rules will be allowed
as a credit against the beneficial owner's U.S. federal income tax liability, if any, and any excess amounts withheld under the
backup withholding rules may be refunded, provided that the required information is timely furnished to the IRS.
Medicare Tax on Investment Income
Certain U.S. persons, including
individuals, estates and trusts, will be subject to an additional 3.8% Medicare tax, or "net investment income tax," on unearned
income. For individuals, the additional net investment income tax applies to the lesser of (i) "net investment income" or
(ii) the excess of "modified adjusted gross income" over $200,000 ($250,000 if married and filing jointly or $125,000 if married
and filing separately). "Net investment income" generally equals the taxpayer's gross investment income reduced by the
deductions that are allocable to such income. Investment income generally includes passive income such as interest, dividends, annuities,
royalties, rents, and capital gains. U.S. Investors are urged to consult their own tax advisors regarding the implications of the additional
net investment income tax resulting from their ownership and disposition of our ordinary shares.
THIS SUMMARY OF MATERIAL
U.S. FEDERAL INCOME TAX CONSEQUENCES IS NOT TAX ADVICE. THE DETERMINATION OF THE ACTUAL TAX CONSEQUENCES FOR A U.S. HOLDER WILL DEPEND
ON THE U.S. HOLDER'S SPECIFIC SITUATION. U.S. HOLDERS OF ORDINARY SHARES SHOULD CONSULT THEIR OWN TAX ADVISORS AS TO THE TAX CONSEQUENCES
OF ACQUIRING, OWNING AND DISPOSING OF OUR ORDINARY SHARES, INCLUDING THE APPLICABILITY AND EFFECT OF THE ALTERNATIVE MINIMUM TAX AND ANY
STATE, LOCAL, FOREIGN OR OTHER TAX LAWS AND OF CHANGES IN THOSE LAWS.
85
F. Dividends and Paying Agents.
Not applicable.
G. Statements by Experts.
Not applicable.
H. Documents on Display.
We are subject to the informational
requirements of the Exchange Act. Accordingly, we are required to file reports and other information with the SEC, including annual reports
on Form 20-F and reports on Form 6-K. As a foreign private issuer, we are exempt from the rules under the Exchange Act related to 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 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. In addition, we are not required under the
Exchange Act to file annual or other reports and consolidated financial statements with the SEC as frequently or as promptly as U.S. companies
whose securities are registered under the Exchange Act. Instead, we must file with the SEC, within 120 days after the end of each fiscal
year, or such other applicable time as required by the SEC, an annual report on Form 20-F containing consolidated financial statements
audited by an independent registered public accounting firm. The SEC maintains a website at www.sec.gov that contains reports, proxy and
information statements and other information regarding registrants like us that file electronically with the SEC. You can also inspect
this annual report on such website.
We maintain a corporate website
at www.pvnanocell.com. Information contained on, or that can be accessed through, our website does not constitute a part of
this annual report on Form 20-F. We have included our website address in this annual report on Form 20-F solely as an inactive textual
reference.
I. Subsidiary Information.
Not applicable.
J. Annual Report to Security Holders.
Not applicable.
ITEM 11. Quantitative
and Qualitative Disclosures about Market Risk.
Quantitative and Qualitative Disclosure
about Market Risk
We are exposed to market risks
in the ordinary course of our business. Market risk represents the risk of loss that may impact our financial position, results of operations
or cash flows due to adverse changes in financial market prices and rates, including interest rates and foreign exchange rates, of financial
instruments.
Foreign Currency Exchange Risk
Our foreign currency exposures
give rise to market risk associated with exchange rate movements of the NIS mainly against the U.S. dollar because a large portion of
our expenses are denominated in NIS. Our NIS expenses consist principally of payments made to employees, sub-contractors, professional
services, other research and development activities and general and administrative activities. We anticipate that a large portion of our
expenses will continue to be denominated in currencies other than the U.S. dollar. Our financial position, results of operations and cash
flow are, therefore, subject to fluctuations due to changes in foreign currency exchange rates and may be adversely affected in the future
due to changes in foreign exchange rates. The majority of our expenses are denominated in NIS. In addition, we may incur operating expenses
denominated in Euros, and therefore, our operating results may also be subject to fluctuations due to changes in the U.S. dollar/Euro
exchange rate. We cannot predict any future trends in the rate of inflation in Israel or the rate of depreciation (if any) of the NIS,
the Euro and other foreign currencies against the U.S. dollar. Given our general lack of currency hedging arrangements to protect us from
fluctuations in the exchange rates of the NIS and Euro and other foreign currencies in relation to the U.S. dollar (and/or from inflation
of such foreign currencies), we may be exposed to adverse effects from such movements. The rate of inflation in Israel or Europe or in
currency exchange rates may materially change and we might not be able to effectively mitigate these risks.
86
To date, we have not engaged
in hedging our foreign currency exchange risk. In the future, we may enter into formal currency hedging transactions to decrease the risk
of financial exposure from fluctuations in the exchange rates of our principal operating currencies. These measures, however, may not
adequately protect us from the material adverse effects of such fluctuations.
Interest Rate Risk
Our exposure to interest rate
risk for changes in interest rates relates primarily to the interest income generated by excess cash invested in bank deposits. We have
not used any derivative financial instruments in our investment portfolio or for cash management purposes. Interest-earning instruments
carry a degree of interest rate risk. We have not been exposed nor do we anticipate being exposed to material risks due to changes in
interest rates. However, our future interest income may fall short of expectations due to changes in interest rates.
ITEM 12. Description of Securities Other Than
Equity Securities
A. Debt Securities.
Not applicable.
B. Warrants and Rights.
Not applicable.
C. Other Securities.
Not applicable.
D. American Depositary Shares.
Not applicable.
87
PART II
ITEM 13. Defaults, Dividend Arrearages and
Delinquencies.
Certain convertible loans
that we received from certain lenders during 2017 and onwards matured in accordance with their respective terms and such lenders did not
exercise their conversion rights in full prior to their maturity date and therefore, such loans became repayable by us in cash at such
time. We did not timely repay such loans due to financial difficulties and therefore, we are currently in default under those convertible
loan agreements. As of December 31, 2022, we have recorded a liability in the amount of approximately $1.5 million (including principal
and interest) with respect to such convertible loans. For additional information, see Note 8 to the audited consolidated financial statements
for the year ended December 31, 2022 included elsewhere in this annual report on Form 20-F.
ITEM 14. Material Modifications to the Rights
of Security Holders and Use of Proceeds.
Not applicable.
ITEM 15. Controls and Procedures
(a)
Disclosure
Controls and Procedures
. Our disclosure controls and procedures are designed to provide reasonable assurance that information
required to be disclosed by us in the reports that we file or submit under the Exchange Act is accumulated and communicated to our management,
including our principal executive officer and principal financial officer, as appropriate, to allow for timely decisions regarding required
disclosure, and that such information is recorded, processed, summarized and reported, within the time periods specified in the SEC's
rules and forms.
Our management, under the
supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of
our disclosure controls and procedures as of December 31, 2022, pursuant to Rule 13a-15 under the Exchange Act. Based upon this evaluation,
our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were not effective as of
December 31, 2022 as a result of the material weaknesses identified in our internal control over financial reporting. These material weaknesses
are discussed in "Report of Management on Internal Control over Financial Reporting" below. Our management considers our internal
control over financial reporting to be an integral part of our disclosure controls and procedures.
(b)
Report of Management
on Internal Control over Financial Reporting
. Our management is responsible for establishing and maintaining adequate internal
control over our financial reporting. Our management assessed the effectiveness of our internal control over financial reporting as of
December 31, 2022. In making our assessment, our management used the criteria established in Internal Control—Integrated Framework
(2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). A material weakness, as defined by SEC rules,
is a control deficiency, or combination of control deficiencies, such that there is a reasonable possibility that a material misstatement
of the annual or interim financial statements will not be prevented or detected on a timely basis.
Based on such assessment,
management has concluded that, as of December 31, 2022, our internal control over financial reporting is ineffective due to
(among
other things)
the following material weaknesses : (i) significant parts of entity level controls are missing, (ii) lack of segregation
of duties, (iii) controls' effectiveness testing was predominantly not performed, among other things due to nonperformance of controls
or absence of evidence for controls' performance, and (iv) non-remediation of material weaknesses identified in prior years.
Due to lack of resources,
during 2022, as in previous years, we were unable to implement in any material respect our remediation plans for the material weaknesses
identified in prior years. We intend to take appropriate and reasonable steps to make the necessary improvements to remediate these deficiencies,
provided that we have the resources to implement them.
(c)
Changes in
Internal Control over Financial Reporting
. There were no changes in our internal control over financial reporting that occurred
during the year ended December 31, 2022 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 has determined that
Ms. Orly Solomon, who serves as the chair of our audit committee, is an audit committee financial expert, as defined by the SEC rules, and
has the requisite financial sophistication as defined by the Nasdaq Listing Rules. Ms. Solomon is an independent director as such
term is defined in Rule 10A-3(b)(1) under the Exchange Act and under the Nasdaq Listing Rules. For Ms. Solomon's
relevant experience, see "Item 6 A. — Directors and Senior Management".
88
ITEM 16B. Code of Ethics.
We have adopted a Code of
Business Conduct and Ethics applicable to all of our directors and employees, including our Chief Executive Officer, Chief Technology
Officer, Chief Financial Officer, controller or principal accounting officer or other persons performing similar functions, which is a
"code of ethics" as defined in Item 16B of Form 20-F promulgated by the SEC. Section 406(c) of the Sarbanes-Oxley Act provides
that a "code of ethics" means such standards as are reasonably necessary to promote (i) honest and ethical conduct, including
the ethical handling of actual or apparent conflicts of interest between personal and professional relationships; (ii) full, fair, accurate,
timely and understandable disclosure in the periodic reports required to be filed by the issuer; and (iii) compliance with applicable
governmental rules and regulation.
The full text of the Code
of Business Conduct and Ethics is posted on our website at www.pvnanocell.com. Information contained on, or that can be accessed through,
our website does not constitute a part of this annual report on Form 20-F and is not incorporated by reference herein. We will provide
a copy of such Code of Business Conduct and Ethics without charge upon request by mail or by telephone. If we make any amendment to the
Code of Business Conduct and Ethics or grant any waivers, including any implicit waiver, from a provision of the Code of Business Conduct
and Ethics, we will disclose the nature of such amendment or waiver on our website to the extent required by the rules and regulations
of the SEC.
ITEM 16C. Principal Accountant Fees and Services.
On April 7, 2022, our shareholders
approved the appointment of Ilanit Halperin, CPA ("Halperin") as our independent registered public accountants for the fiscal
years ended December 31, 2020 and 2021. On April 14, 2023, our shareholders approved the appointment of Ziv Haft (BDO Member Firm) ("BDO")
as our independent registered public accounting firm for the year ended December 31, 2022.
The following table presents
the aggregate fees by categories specified below for professional services rendered by Halperin as our independent registered public accountants
for the year ended December 31, 2021 and by BDO as our independent registered public accounting firm for the year ended December 31, 2022.
Year ended
December 31,
2022
2021
Audit Fees
$
135,000
$
95,000
Tax fees
20,000
20,000
Total
$
155,000
$
115,000
Audit fees
. Consist
of aggregate fees for the audit of our annual consolidated financial statements. This category also includes services that the independent
accountant generally provides, such as consents, assistance with, and review of documents filed with the SEC (as applicable).
Tax fees
. Consist of
aggregate fees for professional services to be rendered by our independent registered public accounting firm for tax compliance and tax
advice on actual or contemplated transactions.
Audit Committee Pre-Approval Policies and Procedures
Our audit committee provides
assistance to our board of directors in fulfilling its legal and fiduciary obligations in matters involving our accounting, auditing,
financial reporting, internal control and legal compliance functions by pre-approving the services performed by our independent accountants
and reviewing their reports regarding our accounting practices and systems of internal control over financial reporting. Our audit committee
also oversees the audit efforts of our independent accountants and takes those actions that it deems necessary to satisfy itself that
the accountants are independent of management. Our audit committee authorized all auditing and non-auditing services provided by Halperin
during 2021 and BDO during 2022 and the fees for such services.
ITEM 16D. Exemptions from the Listing Standards
for Audit Committees.
Not applicable.
89
ITEM 16E. Purchases of Equity Securities by
the Issuer and Affiliated Purchasers.
Not applicable.
ITEM 16F. Change in Registrant's Certifying
Accountant.
At the Company's annual
general meeting of the shareholders held on April 7, 2022, the Company's auditor, Halperin, was appointed to serve as the Company's
independent auditor with respect to the audit of the Company's financial statements for the years ended December 31, 2021 and 2020.
In February 2023, each of
our Audit Committee and Board of Directors approved the appointment of BDO as the Company's independent auditors to audit our consolidated
financial statements for the year ended December 31, 2022 and for such additional period until the annual general meeting of shareholders
to be held on or prior to December 31, 2023. The approval of the appointment of BDO by our Audit Committee and Board of Directors was
made after an evaluation process and consideration by the Company. The Company's decision to make this change was not the result
of any disagreement between the Company and Halperin on any matter of accounting principles or practices, financial statement disclosure,
or auditing scope or procedure. On April 14, 2023, the Company's shareholders ratified and approved the appointment of BDO as the
Company's independent auditors for the audit of our consolidated financial statements for the year ended December 31, 2022 and for
such additional period until the next annual general meeting of shareholders.
The reports of Halperin on
our consolidated financial statements as of and for the years ended December 31, 2021, and 2020 did not contain an adverse opinion or
a disclaimer of opinion, and were not qualified or modified as to uncertainty, audit scope or accounting principles, except that the audit
report on the consolidated financial statements of the Company for the years ended December 31, 2021 and 2020 contained an uncertainty
about the Company's ability to continue as a going concern.
During the years ended December
31, 2021, and 2020, there were no disagreements with Halperin on any matter of accounting principles or practices, financial statement
disclosure, or auditing scope or procedure, which disagreements, if not resolved to Halperin satisfaction, would have caused Halperin
make reference to the subject matter thereof in connection with its reports for such years.
We provided Halperin with
a copy of this annual report and requested a letter addressed to the SEC indicating whether or not it agrees with the above disclosures.
A copy of Halperin CPA's letter dated May 15, 2023 is attached as Exhibit
4.18 to this annual
report
.
During the two fiscal years
ended December 31, 2021 and 2020, and through the subsequent interim period to April 14, 2023, neither the Company nor anyone on its behalf
consulted BDO with respect to either (i) the application of accounting principles to a specified transaction, either completed or proposed;
or the type of audit opinion that might be rendered on the Company's consolidated financial statements, and neither a written report
nor oral advice was provided to the Company that BDO concluded was an important factor considered by the Company in reaching a decision
as to any accounting, auditing or financial reporting issue; or (ii) any matter that was either the subject of a disagreement with Halperin
(as described in Item 16F(a)(1)(iv) of Form 20-F and the related instructions to Item 16F) or a reportable event (as described in Item
16F(a)(1)(v) of Form 20-F).
ITEM 16G. Corporate Governance.
Not applicable.
ITEM 16H. Mine Safety Disclosure.
Not applicable.
ITEM 16I. Disclosure Regarding Foreign Jurisdictions
That Prevent Inspections.
Not applicable.
ITEM 16J. Insider Trading Policy.
Not applicable.
90
PART III
ITEM 17. Financial Statements
Not Applicable.
ITEM 18. Financial Statements.
Please refer to the consolidated
financial statements beginning on page F-1. The following consolidated financial statements, its schedules and related notes are filed
as part of this annual report on Form 20-F.
91
P.V. NANO CELL LTD. AND ITS SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2022
IN U.S. DOLLARS
INDEX
Page
Report of Independent Registered Public Accounting Firm  (PCAOB ID#1185)
F-2
Report of Independent Registered Public Accounting Firm  (PCAOB ID#650100001)
F-3
Consolidated Balance Sheets
F-4
Consolidated Statements of Comprehensive loss
F-5
Consolidated Statements of Shareholders' Deficit
F-6
Consolidated Statements of Cash Flows
F-7
Notes to Consolidated Financial Statements
F-8
- - - - - - - - - - - - - -
F-
1
REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
Shareholders and Board of Directors
P.V. Nano Cell Ltd,
Migdal Ha'Emek, Israel.
Opinion on the Consolidated Financial Statements
We have
audited the accompanying consolidated balance sheet of P.V. Nano Cell Ltd. (the "Group") as of December 31, 2022 and the related
consolidated statements of comprehensive loss, stockholders' deficit, and cash flows for the year ended December 31, 2022 and 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, 2022 and the results of its operations
and its cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America
.
Substantial Doubt About the Group's Ability
to Continue as a Going Concern
The
accompanying consolidated financial statements have been prepared assuming that the Group will continue as a going concern. As
described in Note 1.b to the consolidated financial statements, the Group has suffered recurring losses, negative cash flows from
operations since inception and is in default in repayments of its convertible notes and does not have sufficient capital to repay
such obligations which are currently due. These factors raise substantial doubt about the Company's ability to continue as a
going concern. Management's evaluation of the events and conditions and management's plans regarding these matters are
also described in Note 1.b. The consolidated financial statements do not include any adjustments that might result from the outcome
of this uncertainty. Our opinion is not modified with respect to this matter.
Basis for Opinion
These consolidated financial
statements are the responsibility of the Group's management. Our responsibility is to express an opinion on the Group's consolidated
financial statements based on our audits. We are a public accounting firm registered with the Public Group 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 audit
in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Group is not
required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit, we
are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion
on the effectiveness of the Group's internal control over financial reporting. Accordingly, we express no such opinion.
Our audit 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 audit 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 audit
provides a reasonable basis for our opinion.
Critical Audit Matters
Critical
audit matters are matters arising from the current period audit of the consolidated financial statements that were communicated or required
to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the consolidated financial
statements and (2) involved our especially challenging, subjective, or complex judgments. We determined that there are no critical audit
matters.
/s/ Ziv Haft
Certified Public Accountants (Isr.)
We have served as the Group's auditor since 2023
PCAOB ID 1185
Tel Aviv, Israel
May 15, 2023
F-
2
REPORT OF INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders
and the Board of Directors of
P.V. NANO CELL LTD.
Opinion on the Financial Statements
We have
audited the accompanying consolidated balance sheet of P.V. Nano Cell Ltd. and its subsidiaries (the Company) as of December 31, 2021,
the related consolidated statements of comprehensive loss, shareholders' equity (deficit), and cash flows, for each of the two years
in the period ended December 31, 2021, and 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
at December 31, 2021, and the results of its operations and its cash flows for each of the two years in the period ended December 31,
2021, in conformity with U.S. generally accepted accounting principle
s.
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.b. to the financial statements, the Company has suffered recurring losses from operations, has a working capital deficiency, and has
stated that substantial doubt exists about the Company's ability to continue as a going concern. Management's evaluation of
the events and conditions and management's plans regarding these matters are also described in Note 1.b. The consolidated financial
statements do not include any adjustments that might result from the outcome of this uncertainty
.
Basis for Opinion
These financial statements
are the responsibility of the
Company
's management. Our responsibility is to express
an opinion on the
Company
's 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
in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement, whether due to error or fraud. The
Company
is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits
we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion
on the effectiveness of the
Company
's internal control over financial reporting. Accordingly,
we express no such opinion.
Our audits
included performing procedures to assess the risks of material misstatement of the 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 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 financial statements. We believe that our audits provide a reasonable
basis for our opinion.
/s/
Halperin Ilanit
.
Certified Public Accountants (Isr.)
PCAOB number
650100001
Tel Aviv, Israel
June 21, 2022
We have served as the
Company
's
auditor since 2022 to 2023
F-
3
P.V. NANO CELL LTD. AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
U.S. dollars
December 31,
2022
2021
ASSETS
CURRENT ASSETS:
Cash
$
362,609
$
19,437
Restricted cash
4,984
5,627
Accounts receivable, net
110,687
46,613
Other current assets
230,319
252,790
Inventory, net
38,730
68,421
Total current assets
747,329
392,888
NON-CURRENT ASSETS:
Property and equipment, net
125,548
91,658
Intangible asset, net
—
2,536,548
Goodwill
3,026,036
3,026,036
Right of use asset
135,107
—
Total non-current assets
3,286,691
5,654,242
Total assets
4,034,020
6,047,130
LIABILITIES AND SHAREHOLDERS' DEFICIT
CURRENT LIABILITIES:
Short term bank credit
—
69,877
Short term loans
—
234,004
Trade payables
508,716
626,271
Employees and payroll accruals
694,709
1,184,185
Accrued expenses and other current liabilities
2,577,711
2,782,888
Convertible loans
1,470,213
1,637,577
Warrants presented at fair value
—
17,296
Current maturity of lease liability
60,071
—
Total current liabilities
5,311,420
6,552,098
NON-CURRENT LIABILITIES:
Capital note
40,000
40,000
Warrants presented at fair value
15,459
89,679
Israel Innovation Authority
—
381,216
Lease liability, net of current maturity
75,036
—
Total non-current liabilities
130,495
510,895
Total liabilities
5,441,915
7,062,993
Commitment and Contingencies (Note 9)
SHAREHOLDERS' DEFICIT:
Ordinary shares of NIS
0.01
par value - Authorized:
1,200,000,000
as of December 31, 2022 and 2021, respectively; Issued and outstanding:
147,134,792
and
90,205,191
ordinary shares as of December 31, 2022 and 2021, respectively
441,590
270,750
Additional paid in capital
38,856,908
34,910,233
Treasury stocks
(
122,482
)
(
122,482
)
Accumulated deficit
(
40,583,911
)
(
36,074,364
)
Total shareholders' deficit
(
1,407,895
)
(
1,015,863
)
Total liabilities and shareholders' deficit
$
4,034,020
$
6,047,130
The accompanying notes are an integral part
of the consolidated financial statements.
F-
4
P.V. NANO CELL LTD. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE
LOSS
U.S. dollars
Year ended December 31,
2022
2021
2020
Revenues
$
603,359
$
568,704
$
761,319
Cost of revenues
375,877
271,817
307,713
Amortization of intangible assets
428,431
428,431
428,434
Gross loss (profit)
200,949
131,544
(
25,172
)
Operating expenses:
Research and development
705,646
783,665
926,697
Less - research and development grants
(
437,045
)
(
315,967
)
(
525,838
)
Research and development, net
268,601
467,698
400,859
Sales and marketing
566,896
625,031
673,986
General and administrative
1,893,179
1,345,495
1,414,370
Goodwill impairment
—
—
265,089
Intangible asset impairment
2,108,117
—
—
Total operating
    expenses
4,836,793
2,438,224
2,754,304
Operating loss
5,037,742
2,569,768
2,729,132
Financial expenses (income), net (Note 14)
(
528,195
)
(
50,904
)
9,814,605
Net loss
$
4,509,547
$
2,518,864
$
12,543,737
Net loss per ordinary share:
Basic and diluted net loss per ordinary share
$
0.03
$
0.06
$
0.49
Weighted average number of ordinary shares used in computing basic and diluted net loss per ordinary share
129,144,562
44,453,153
25,581,000
The accompanying notes are an integral part
of the consolidated financial statements.
F-
5
P.V. NANO CELL LTD. AND ITS SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF SHAREHOLDERS' DEFICIT
U.S. dollars
Ordinary shares
Number of
ordinary
shares
Amount
Additional
paid-in
Capital
Treasury
stocks
Accumulated
deficit
Total
Balance as of January 1, 2020
24,393,218
$
65,842
$
19,951,632
$
—
$
(
21,011,763
)
$
(
994,289
)
Issuance of ordinary shares in connection with conversion of convertible loans
386,735
1,111
64,634
—
—
65,745
Issuance of ordinary shares in connection with Professional service rendered
206,250
602
33,443
—
—
34,045
Issuance of Ordinary Shares as a consideration for the Jet CU purchase
2,000,000
5,848
218,352
—
—
224,200
Treasury stocks
—
—
—
(
122,482
)
—
(
122,482
)
Stock based compensation
—
—
464,773
—
—
464,773
Net loss
—
—
—
—
(
12,543,737
)
(
12,543,737
)
Balance as of December 31, 2020
26,986,203
$
73,403
$
20,732,834
$
(
122,482
)
$
(
33,555,500
)
$
(
12,871,745
)
Issuance of ordinary shares in connection with conversion of convertible loans
57,790,416
180,399
12,897,067
—
—
13,077,466
Issuance of additional ordinary shares to former Jet CU shareholders in return for forfeiting their related warrants
5,428,572
16,948
471,959
—
—
488,907
Advance payment on the account of issuing ordinary shares
—
—
350,000
—
—
350,000
Stock based compensation
—
—
458,373
—
—
458,373
Net loss
—
—
—
—
(
2,518,864
)
(
2,518,864
)
Balance as of December 31, 2021
90,205,191
$
270,750
$
34,910,233
$
(
122,482
)
$
(
36,074,364
)
$
(
1,015,863
)
Issuance of ordinary shares in connection with Professional service rendered
75,000
229
6,521
—
—
6,750
Issuance of Ordinary Shares
56,854,601
170,611
3,459,212
—
—
3,629,823
Stock based compensation
—
—
480,942
—
—
480,941
Net loss
—
—
—
—
(
4,509,547
)
(
4,509,547
)
Balance as of December 31, 2022
147,134,792
441,590
38,856,908
(
122,482
)
(
40,583,911
)
(
1,407,895
)
The accompanying notes are an integral part
of the consolidated financial statements.
F-
6
P.V. NANO CELL LTD. AND ITS SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF CASH FLOWS
U.S. dollars
Year ended December 31,
2022
2021
2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss
$
(
4,509,547
)
$
(
2,518,864
)
$
(
12,543,737
)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation
59,278
55,076
63,095
Amortization
428,431
428,431
428,434
Financial expenses in connection with convertible loans
(
167,364
)
7,892,632
2,597,476
Interest in connection with short term loans
819
4,004
—
Share-based compensation
480,942
458,373
464,773
Restricted shares issued for services
6,750
—
34,045
Goodwill impairment
—
—
265,089
Intangible asset impairment
2,108,117
—
—
Capital loss
—
—
43,216
Change in fair value of warrants and capital note
(
91,516
)
(
8,112,118
)
7,011,437
Change in operating assets and liabilities:
Change in accounts receivable, net
(
64,074
)
152,754
(
112,873
)
Change in other current assets
22,471
(
162,681
)
156,041
Change in inventory, net
29,691
16,822
17,539
Change in trade payables
(
117,555
)
14,142
(
171,463
)
Change in employees and payroll accruals
(
489,476
)
433,313
70,582
Change in accrued expenses and other current liabilities
(
586,393
)
484,690
882,589
Net cash used in operating activities
(
2,889,426
)
(
853,426
)
(
793,757
)
CASH FLOWS FROM INVESTING ACTIVITIES:
Net cash acquired in acquisition of Jet CU (see also Note 3)
—
—
811,773
Purchase of property and equipment
(
93,168
)
(
1,869
)
(
2,860
)
Net cash provided by (used in) investing activities
(
93,168
)
(
1,869
)
808,913
CASH FLOWS FROM FINANCING ACTIVITIES:
Change in in short term bank credit
(
69,877
)
14,032
(
36,385
)
Proceeds in connection with issuance of ordinary shares
3,395,000
—
—
Change in in short term loans
—
230,000
—
Proceeds from convertible loans and related warrants
—
255,000
16,748
Advance payment on the account of issuing ordinary shares
—
350,000
—
Proceeds (repayment) of short-tern bank loan
—
—
(
14,489
)
Net cash provided by (used in) financing activities
3,325,123
849,032
(
34,126
)
Decrease in cash and restricted cash
342,529
(
6,263
)
(
18,970
)
CASH AND RESTRICTED CASH AT THE BEGINNING OF THE YEAR
25,064
31,327
50,297
CASH AND RESTRICTED CASH AT THE END OF THE YEAR
$
367,593
$
25,064
$
31,327
SUPPLEMENTAL INFORMATION AND DISCLOSURE OF NON-CASH FINANCING ACTIVITIES
Issuance of ordinary shares and warrants in connection with acquisition (see also Note 3)
$
—
$
—
$
411,781
Conversion of convertible loans including interest to ordinary shares
$
—
$
13,077,466
$
65,745
Conversion of short term loans including interest to ordinary shares
234,823
—
—
Right of use asset recognized with corresponding lease liabilities
135,107
—
—
Allocation of the 8,000,000 warrants FV granted to former Jet CU shareholders to the consolidated statement of shareholders' equity (deficit) as of September 23, 2021 in exchange for 5,428,572 additional ordinary shares
$
—
$
488,907
$
—
December 31,
2022
2021
2020
Cash
$
362,609
$
19,437
$
31,327
Restricted cash
4,984
5,627
—
$
367,593
$
25,064
$
31,327
The accompanying notes are an integral part
of the consolidated financial statements.
F-
7
P.V. NANO CELL LTD. AND ITS SUBSIDIARIES
NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars
NOTE 1:
GENERAL
a.
P.V. Nano Cell Ltd. (the "Company") was incorporated in
June 2009 under the laws of Israel. The Company along with its three fully owned Israeli subsidiaries: Nano Size Ltd. ("Nano Size"),
Digiflex Ltd. ("Digiflex") and JET CU P.C.B. Ltd. ("Jet CU"), and Digiflex's fully owned US subsidiary Digiflex
Inc ("Inc"), are mainly engaged in developing, manufacturing, marketing and commercializing conductive inks for digital inkjet
conductive printing applications and manufacturing printing machines, which offer solutions for inkjet print-quality technologies. See
Note 3 for additional information regarding the acquisition of Jet CU on July 26, 2020. The Company, Nano Size, Digiflex, Jet CU and Inc
are jointly defined as the "Group".
b.
Since its inception, the Group has incurred operating losses,
negative
cash flows from operations since inception and is in default in repayments of its convertible notes and does not have sufficient capital
to repay such obligations which are currently due
. During the year ended December 31, 2022, the Group used cash in operating activities
of approximately $
2.9
million, incurred a net loss of approximately $
4.5
million and had a total accumulated deficit of approximately
$
40.6
million as of December 31, 2022. The Group requires additional financing in order to continue to fund its current operations and
to pay existing and future liabilities.
The Group intends to finance operating
costs over the next twelve (12) months through issuance of equity securities or debt and by increasing its inflow from revenue. The Group
is currently negotiating with third parties in an attempt to obtain additional sources of funds. The satisfactory completion of these
negotiations is essential to provide sufficient cash flow to meet current operating requirements. However, the Group cannot give any assurance
that it will be able to achieve a level of profitability from the sale of its products to sustain its operations in the future. These
conditions raise substantial doubt about the Group's ability to continue as a going concern.
The accompanying consolidated financial
statements do not include any adjustments to reflect the possible future effects on recoverability and reclassification of assets or the
amounts and classification of liabilities that may result from the outcome of this uncertainty.
NOTE 2:
SIGNIFICANT ACCOUNTING POLICIES
a.
Basis of presentation:
The consolidated financial statements
are prepared according to United States generally accepted accounting principles ("U.S. GAAP").
b.
Use of estimates:
The preparation of the consolidated
financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the reported
amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements
and the reported amounts of revenues and expenses during the period. The Group's management believes that the estimates, judgments
and assumptions used are reasonable based upon information available at the time they are made. Actual results could differ from those
estimates.
On an ongoing basis, the Group's
management evaluates estimates, including those related to fair values of stock-based awards, warrants to purchase the Group's ordinary
shares and capital note. Such estimates are based on historical experience and on various other assumptions that are believed to be reasonable,
the results of which form the basis for making judgments about the carrying values of assets and liabilities.
F-
8
P.V. NANO CELL LTD. AND ITS SUBSIDIARIES
NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars
NOTE 2:
SIGNIFICANT ACCOUNTING POLICIES (Cont.)
c.
Consolidated financial statements in U.S. dollars:
The accompanying consolidated financial
statements have been prepared in U.S. dollars ("dollar" or "dollars").
A substantial portion of the Group's costs are incurred in New
Israeli Shekels ("NIS"). However, the Group finances its operations mainly in dollars and a majority of the Group's
revenues are denominated in dollars. As such, the Group's management believes that the dollar is the currency of the primary economic
environment in which the Group operates. Thus, the functional and reporting currency of the Group is the dollar.
Transactions and balances that are
denominated in dollars are presented at their original amounts. Non-dollar transactions and balances have been re-measured to dollars
in accordance with Accounting Standards Codification ("ASC") No. 830, "Foreign Currency Matters". All foreign
currency transaction gains and losses are reflected in the consolidated statements of operations as financial income or expenses, as appropriate.
d.
Principles of consolidation:
The consolidated financial statements
include the accounts of the Company and its subsidiaries, and intercompany transactions and balances have been eliminated upon consolidation.
e.
Inventory, net:
Inventories are stated at the lower
of cost or net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably
predictable costs of completion, disposal, and transportation. Inventory write-offs are provided to cover risks arising from slow-moving
items, excess inventories, discontinued products, new products introduction and for market prices lower than cost. Any write-off is recognized
in the consolidated statements of comprehensive loss as cost of revenues.
f.
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
15
–
33
Equipment
7
–
33
Office furniture
7
–
15
Leasehold improvements
(*)
(*)
Leasehold improvements are
amortized on a straight-line basis over the shorter of the lease term (including the extension option held by the Group and intended
to be exercised) and the expected life of the improvement.
F-
9
P.V. NANO CELL LTD. AND ITS SUBSIDIARIES
NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars
NOTE 2:
SIGNIFICANT ACCOUNTING POLICIES (Cont.)
f.
Property and equipment (cont.):
Long-lived assets of the Group are
reviewed for impairment in accordance with ASC No. 360, "Property, Plant and Equipment", whenever events or changes in circumstances
indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison
of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the assets. If such assets are considered
to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair
value of the assets. The Group did not record any impairment losses during the years ended December 31, 2022, 2021 and 2020.
g.
Goodwill:
Goodwill reflects the excess of the
consideration transferred plus the fair value of any non-controlling interest in the acquiree at the business combination date over the
fair values of the identifiable net assets acquired. Goodwill is not amortized but rather is tested for impairment annually at the reporting
unit level, or whenever events or circumstances present an indication of impairment. Goodwill is an asset representing the future economic
benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.
The primary items that generate goodwill
include the value of the synergies between the acquired companies and the Company and the acquired assembled workforce, neither of which
qualifies for recognition as an intangible asset.
Goodwill is tested for impairment on
an annual basis in the fourth quarter and whenever indicators of potential impairment require an interim goodwill impairment analysis.
The Group may first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit
is less than its carrying amount. If the Group performs a qualitative assessment and concludes that it is more likely than not that the
fair value of a reporting unit exceeds its carrying value, goodwill is not considered impaired and the quantitative impairment test is
not required. However, if the Group concludes otherwise, it is then required to perform a quantitative assessment for goodwill impairment.
The Group performs its quantitative
goodwill impairment test by comparing the fair value of its reporting unit with its carrying value. If the reporting unit's carrying
value is determined to be greater than its fair value, an impairment charge is recognized for the amount by which the carrying value exceeds
the reporting unit's fair value. If the fair value of the reporting unit is determined to be greater than its carrying amount, the
applicable goodwill is not impaired and no further testing is required.
The evaluation of goodwill impairment
requires the Group to make assumptions associated with its reporting unit fair value. These assumptions require significant judgment and
actual results may differ from assumed and estimated amounts.
As of December 31, 2019 and onwards, the Group has early adopted the
ASU 2017-04 FASB revised guidance of goodwill impairment. Under this guidance, entities that have reporting units with zero or negative
carrying amount are no longer required to perform the qualitative assessment. The results of such test as of December 31, 2022, 2021 and
2020, were that the fair value was greater than the reporting unit's negative carrying value and therefore no goodwill impairment
was recorded as of this date.
As a result of the Jet CU purchase
on July 26, 2020, the Company recorded a goodwill impairment of $
265,089
.
See Note 3 for additional information.
F-
10
P.V. NANO CELL LTD. AND ITS SUBSIDIARIES
NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars
NOTE 2:
SIGNIFICANT ACCOUNTING POLICIES (Cont.)
h.
Intangible assets:
Intangible
assets and their useful lives are as follows:
Estimated
useful life
Technology
Ten (10) years
Backlog
One (1) year
Intangible
assets represent acquired technology and backlog. Definite life intangible assets are amortized using the straight-line method over their
estimated period of useful life, which is determined by identifying the period over which most of the cash flows are expected to be generated.
For definite life intangible assets,
the Group reviews the carrying amounts for potential impairment when events or changes in circumstances indicate that the carrying amount
of an asset may not be recoverable. In evaluating recoverability, the Group groups assets and liabilities at the lowest level such that
the identifiable cash flows relating to the group are largely independent of the cash flows of other assets and liabilities. The Group
then compares the carrying amounts of the asset or asset groups with their respective estimated undiscounted future cash flows. If the
definite life intangible asset or asset group are determined to be impaired, an impairment charge is recorded at the amount by which the
carrying amount of the asset or asset group exceeds their fair value.
As of December 31, 2022, the Group
recorded an impairment charge of $
2,108,117
, which is equal to the technology, net amount that the Group recorded as part of the Digiflex
purchase in 2017. The Group has ceased the marketing activities associated with this technology and expect a negative cash-flow throughout
its life, which led to such impairment charge of the remaining asset, net as of December 31, 2022.
The Group
did not record any intangible assets impairment during the years ended December 31, 2021 and 2020.
i.
Revenue Recognition:
The Group generated its revenues primarily
from sales of inks and pastes and recognizes the revenue primarily at a point in time.
Effective January 1, 2020, the Group
adopted a new accounting standard related to the recognition of revenue in contracts with customers. The Group did not have any material
cumulative-effect adjustment as a result of the adoption of ASC 606. In addition, the adoption of ASC 606 did not have any material impact
on the Group consolidated financial statement line items in the year of adoption.
The Group determines revenue recognition
through the following steps:
●
Identification of the contract, or contracts, with a customer.
●
Determination of the transaction price.
●
Determination of the transaction price.
●
Allocation of the transaction price to the performance obligations in the contract.
●
Recognition of revenue when, or as, the Group satisfies a performance obligation.
As a general point, the Group applies
the five-step model to contracts when it is probable that it will collect the consideration it is entitled to in exchange for the goods
or services it transfers to the customer.  At contract inception, once the contract is determined to be within the scope of
ASC 606, the Group assesses the goods or services promised within each contract and determines those that are performance obligations
and assesses whether each promised good or service is distinct.  The Group then recognizes as revenue the amount of the transaction
price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied.
j.
Research and development, net:
Research and development expenses are
charged to the consolidated statements of operations as incurred, net of grants received, as described in section k. below.
F-
11
P.V. NANO CELL LTD. AND ITS SUBSIDIARIES
NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars
NOTE 2:
SIGNIFICANT ACCOUNTING POLICIES (Cont.)
k.
Government grants:
The Group has received research and
development funds and grants from the government of Israel and European grants. These amounts are recognized on an accrual basis as a
reduction of research and development costs as such costs are incurred.
l.
Income taxes:
The Group accounts for income taxes
in accordance with ASC No. 740, "Income Taxes". This Statement prescribes the use of the liability method whereby deferred
tax assets 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 Group provides a valuation allowance, if necessary, to reduce deferred tax assets to amounts that more likely than not to be realized.
ASC 740 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.
m.
Accounting for stock-based compensation:
The Group accounts for share-based
compensation in accordance with ASC No. 718, "Compensation – Stock Compensation," which requires companies to estimate
the fair value of equity-based payment awards on the date of grant using an option-pricing model. The Group recognizes compensation expenses
for the value of its awards granted based on the straight-line attribution method over the requisite service period of each of the awards.
The Group recognizes forfeitures of awards as they occur.
The Group selected the Black-Scholes
option pricing model as the most appropriate fair value method for its stock-options awards. The Black-Scholes option-pricing model requires
a number of assumptions, of which the most significant are the expected stock volatility and the expected option term. Expected volatility
was calculated based upon similar traded companies' historical stock price movements. The Group uses the simplified method until
such time as there is sufficient historical exercise data to allow the Group to make and rely upon assumptions as to the expected life
of outstanding options. The risk-free interest rate is based on the yield from U.S. treasury bonds with an equivalent term to the expected
life of the options. Historically, the Group has not paid dividends and in addition has no foreseeable plans to pay dividends, and therefore
uses an expected dividend yield of zero in the option pricing model.
The Group accounts for non-employee share-based awards pursuant to
ASC 505-50, "Equity-Based Payments to Non-Employees." ASC 505-50 requires the costs of goods and services received in exchange
for an award of equity instruments to be recognized using the fair value of the goods and services or the fair value of the equity award,
whichever is more reliably measurable. The fair value of the equity award is determined on the measurement date, which is the earlier
of the date that a performance commitment is reached or the date that performance is complete. Generally, our awards do not entail performance
commitments. When an award vests over time such that performance occurs over multiple reporting periods, we estimate the fair value of
the award as of the end of each reporting period and recognize an appropriate portion of the cost based on the fair value on that date.
When the award vests, we adjust the cost previously recognized so that the cost ultimately recognized is equivalent to the fair value
on the date the performance is complete.
The fair value for options granted
is estimated at the date of grant using the Black-Scholes option-pricing model with the following assumptions:
Year ended December 31,
2022
2021
2020
Dividend yield
0
%
0
%
0
%
Expected volatility
80
%
80
%
80
%
Risk-free interest
3.00
%
0.81
%
0.36
%-
1.62
%
Expected life (in years)
5
5
5
F-
12
P.V. NANO CELL LTD. AND ITS SUBSIDIARIES
NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars
NOTE 2:
SIGNIFICANT ACCOUNTING POLICIES (Cont.)
n.
Concentrations of credit risks:
Financial instruments that potentially
subject the Group to concentrations of credit risk consist principally of cash and cash equivalents and accounts receivables. The Group's
cash and cash equivalents balances are managed in major banks in Israel.
The majority of the Group's cash
and cash equivalents are deposited in major banks in Israel. Deposits in Israel are not insured. Generally, these deposits may be withdrawn
upon demand and therefore bear low risk.
The Group's accounts receivables
are derived from sales mainly in Israel, Europe and the US. Concentration of credit risk with respect to accounts receivables is limited
by ongoing credit evaluation and account monitoring procedures. The Group performs ongoing credit evaluations and establishes an allowance
for doubtful accounts based on factors that may affect a customers' ability to pay, such as known disputes, age of the receivable
balance and past experience. There was no allowance for doubtful accounts as of December 31, 2022 and 2021. The Group writes off receivables
when they are deemed uncollectible, having exhausted all collection efforts. Actual collection experience may not meet expectations and
may result in increased bad debt expense.
o.
Severance pay:
Pursuant to Section 14 of Israel's
Severance Pay Law, 5723-1963 ("Section 14"), the Group's Israeli employees, covered by this section, are entitled only
to monthly deposits, at a rate of
8.33
% of their monthly salary, made on their behalf by the Group to an Israeli insurance company. Payments
in accordance with Section 14 release the Group from any future severance liabilities in respect of those employees. Neither severance
pay liability nor severance pay fund under Section 14 for such employees is recorded on the Group's consolidated balance sheets.
Severance expenses for the years ended
December 31, 2022, 2021 and 2020 amounted to $
51,554
, $
53,389
and $
59,087
, respectively.
F-
13
P.V. NANO CELL LTD. AND ITS SUBSIDIARIES
NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars
NOTE 2:
SIGNIFICANT ACCOUNTING POLICIES (Cont.)
p.
Fair value of financial instruments:
The Group applies ASC 820, "Fair
Value Measurements and Disclosures" ("ASC No. 820") with respect to fair value measurements of all financial assets
and liabilities. Under this standard, fair value is defined as the price that would be received to sell an asset or paid to transfer a
liability (i.e., the "exit price") in an orderly transaction between market participants at the measurement date.
In determining fair value, the Group
uses various valuation approaches. ASC 820 establishes a hierarchy 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 market participants would use in pricing the asset or liability developed based on market data obtained from sources independent
from the Group. Unobservable inputs are inputs that reflect the Group's assumptions about the assumptions market participants would
use in pricing the asset or liability developed based on the best information available in the circumstances.
The following methods and assumptions were used by the Group in estimating
the fair value of their financial instruments:
The carrying values of cash and cash
equivalents, short-term bank deposits, trade receivables, prepaid expenses and other current assets, trade payables, employees and payroll
accruals and accrued expenses and other current liabilities approximate their fair values due to the short-term maturities of these instruments.
The hierarchy is broken down into three
(3) levels based on the inputs as follows:
Level 1
Valuations based on quoted prices in active markets for identical assets or liabilities that the Group has the ability to access at the measurement date.
Level 2
Valuations based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.
Level 3
Valuations based on inputs that are unobservable and significant to the overall fair value measurement.
The Group measures its warrants to purchase the Company's ordinary
shares classified as liability and the capital note at fair value. The carrying amounts of cash and cash equivalents, accounts receivable,
other current assets, trade payables and other accounts liabilities approximate their fair value due to the short-term maturity of such
instruments.
The following table presents liabilities
measured at fair value on a recurring basis as of December 31, 2022:
Fair value measurements using input type
Level 1
Level 2
Level 3
Total
Warrants
—
—
$
15,459
$
15,459
Capital note
—
—
40,000
40,000
Total financial liabilities
—
—
$
55,459
$
55,459
The following table presents liabilities
measured at fair value on a recurring basis as of December 31, 2021:
Fair value measurements using input type
Level 1
Level 2
Level 3
Total
Warrants
—
—
$
106,975
$
106,975
Capital note
—
—
40,000
40,000
Total financial liabilities
—
—
$
146,975
$
146,975
F-
14
P.V. NANO CELL LTD. AND ITS SUBSIDIARIES
NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars
NOTE 2:
SIGNIFICANT ACCOUNTING POLICIES (Cont.)
p.
Fair value of financial instruments (cont.):
The following table presents reconciliations
for the Company's liabilities measured and recorded at fair value on a recurring basis, using significant unobservable inputs (Level
3):
Level 3
Balance as of January 1, 2020
$
1,544,112
Fair value of warrants issued
192,451
Changes in Fair value of warrants and capital note
7,011,437
Balance as of December 31, 2020
8,748,000
Allocation of the
8,000,000
warrants FV granted to former Jet CU shareholders to the consolidated statement of shareholders' equity (deficit) as of September 23, 2021 in exchange for
5,428,572
additional ordinary shares
(
488,907
)
Changes in Fair value of warrants and capital note
(
8,112,118
)
Balance as of December 31, 2021
146,975
Changes in Fair value of warrants and capital note
(
91,516
)
Balance as of December 31, 2022
55,459
q.
Basic and diluted net loss per ordinary share:
Basic net loss per ordinary share is
computed based on the weighted average number of ordinary shares outstanding during each year.
The total number of ordinary shares
related to the outstanding stock options, warrants and conversion of the outstanding convertible loans as of December 31, 2022, aggregated
to
23,783,274
,
30,611,525
and
14,710,663
, respectively, were excluded from the calculations of diluted loss per ordinary share, since
it would have an anti-dilutive effect.
r.
Contingencies:
The Group has been involved in legal
proceedings and assessments and inquiries of the Israeli tax authorities from time to time. The Group records accruals for these types
of contingencies to the extent that the Group concludes their occurrence is probable and that the related liabilities are estimable. When
accruing these costs, the Group will recognize an accrual in the amount within a range of loss that is the best estimate within the range.
When no amount within the range is a better estimate than any other amount, the Group accrues for the minimum amount within the range.
The Group records anticipated recoveries under existing insurance contracts that are virtually certain of occurring at the gross amount
that is expected to be collected. Legal costs are expensed as incurred.
F-
15
P.V. NANO CELL LTD. AND ITS SUBSIDIARIES
NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars
NOTE 2:
SIGNIFICANT ACCOUNTING POLICIES (Cont.)
s.
Leases:
The Group adopted the new accounting standard ASC 842 "Leases"
and all the related amendments on January 1, 2020 and used the effective date as the Group's date of initial application. The Group
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 Group classifies the lease as a finance lease. Otherwise, the Group classifies the lease as an operating
lease. When determining lease classification, the Group's approach in assessing two of the mentioned criteria: (i) generally, 75%
or more of the remaining economic life of the underlying asset is a major part of the remaining economic life of that underlying asset;
and (ii) generally, 90% or more of the fair value of the underlying asset comprises substantially all of the fair value of the underlying
asset.
t.
Segments:
The Group operates in one reportable
segment.
u.
Recently issued accounting standards:
Not yet adopted in the current year:
1.
In August 2020, the FASB issued ASU No. 2020-06, Debt - Debt with Conversion
    and Other Options (Subtopic 470-20) and Derivatives and Hedging Contracts in Entity s Own Equity (Subtopic 815-40): Accounting for Convertible
    Instruments and Contracts in an Entity s Own Equity. ASU 2020-06 will simplify the accounting for convertible instruments by reducing
    the number of accounting models for convertible debt instruments and convertible preferred stock. Limiting the accounting models results
    in fewer embedded conversion features being separately recognized from the host contract as compared with current GAAP. Convertible instruments
    that continue to be subject to separation models are (1) those with embedded conversion features that are not clearly and closely related
    to the host contract, that meet the definition of a derivative, and that do not qualify for a scope exception from derivative accounting
    and (2) convertible debt instruments issued with substantial premiums for which the premiums are recorded as paid-in capital. ASU 2020-06
    also amends the guidance for the derivatives scope exception for contracts in an entity's own equity to reduce form-over-substance-based
    accounting conclusions. ASU 2020-06 will be effective for public companies for fiscal years beginning after December 15, 2023, including
    interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15,
    2020, including interim periods within those fiscal years.
The Group is currently evaluating the impact that the adoption of ASU
2020-06 will have on the Group's consolidated financial statement presentation or disclosures.
2.
In June 2022, the FASB issued Accounting Standards Update
("ASU") 2022-03, Fair Value Measurement (Topic 820), Fair Value Measurement of Equity Securities Subject to Contractual Sale
Restrictions: to clarify that a contractual restriction on the sale of an equity security is not considered part of a unit of account
of the equity security, and, therefore, is not considered in measuring fair value. The amendments also clarify that an entity cannot,
as a separate unit of account, recognize and measure a contractual sale restriction. The amendments also require the following disclosures
for equity securities subject to the contractual sale restrictions:
●
The fair value of equity securities subject to the contractual sale restrictions
reflected on the balance sheet.
●
The nature and remaining duration of the restriction(s).
●
The circumstances that could cause a lapse in the restriction(s).
This guidance is effective for fiscal years beginning after December
15, 2023, and interim periods within those financial years. The Group does not expect the adoption of ASU 2022-03 to have a significant
impact on its consolidated financial statements.
3.
With the exception of the new standards discussed above, there have
been no other recent accounting pronouncements or changes in accounting pronouncements during the year ended December 31, 2022, that are
of significance or potential significance to the Group.
F-
16
P.V. NANO CELL LTD. AND ITS SUBSIDIARIES
NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars
NOTE 3:
ACQUISITION
On July 26, 2020, the Company consummated
the acquisition of
100
% of the shares of Jet CU, a company that was incorporated in Israel in May 2014 and was inactive on the purchase
date since its operational assets were sold few years before. The main balance sheet items as of the purchase date were cash and a liability
to the Israel Innovation Authority ("IIA") of approximately $
0.8
million and approximately $
1.0
million, respectively. The
Company issued
2,000,000
ordinary shares and warrants to purchase
8,000,000
ordinary shares, at an exercise price of $
0.26
per share,
as consideration for the purchase. The warrants were exercisable until the date which is the earlier of (i) 24 months following the purchase
date and (ii) a merger or acquisition transaction or an initial public offering.
The purchase price (as mentioned above)
aggregated to $
411,781
as follows:
$
224,200
attributed to the
2,000,000
ordinary shares issued, based on the stock price as of July 26, 2020, and $
187,581
to the
8,000,000
warrants (the Company used the following
assumptions:
0
% dividend yield,
80.0
% expected volatility,
0.14
% risk free rate and
2
expected life in years) issued, and such warrants
were classified as liability at the issuance date. The fair value of the warrants as of December 31, 2020 aggregated to $
691,473
.
The allocation
of the purchase price to assets acquired and liabilities assumed is as follows:
Cash and cash equivalents
$
811,773
Prepaid expenses and other current assets
1,977
Balance with the Company (*)
50,000
Investment in the Company's shares (**)
122,482
CLA provided to the Company (*)
167,188
Liability to Israel Innovation Authority
(
1,006,605
)
Accrued expenses and other current liabilities
(
123
)
Goodwill (***)
265,089
Total purchase price
$
411,781
(*)
Such amount was eliminated at the consolidated
level.
(**)
Such amount was recorded as treasury stock within the consolidated statements of shareholders' equity (deficit) for the year ended December 31, 2020.
(***)
Such amount was impaired following the purchase date since Jet CU has no activity and was recorded within the consolidated statements of comprehensive loss for the year ended December 31, 2020.
In
September 2021, the Company issued an additional
5,428,572
ordinary shares to the Jet CU former shareholders as an additional consideration
upon their agreement to forfeit the
8,000,000
warrants that were granted to them on the purchase date.
NOTE 4:
OTHER CURRENT ASSETS
December 31,
2022
2021
Prepaid expenses (primarily insurance policies)*
$
108,250
$
149,349
Government authorities
122,069
103,354
Other*
—
87
$
230,319
$
252,790
*
Reclassified
F-
17
P.V. NANO CELL LTD. AND ITS SUBSIDIARIES
NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars
NOTE 5:
PROPERTY AND EQUIPMENT, NET
December 31,
2022
2021
Cost:
Equipment
$
446,189
$
390,573
Computers
4,949
965
Office furniture
11,949
11,069
Leasehold improvements
22,000
23,461
485,087
426,068
Accumulated depreciation:
359,539
334,410
Property and equipment, net
$
125,548
$
91,658
Depreciation expenses for the years ended
December 31, 2022, 2021 and 2020 were $
59,278
, $
55,076
and $
63,095
, respectively.
NOTE 6:
INTANGIBLE ASSETS, NET
December 31,
2022
2021
Cost:
Technology
$
4,284,315
$
4,284,315
Backlog
45,996
45,996
4,330,311
4,330,311
Accumulated amortization and impairment:
Accumulated amortization
2,222,194
1,793,763
Intangible asset impairment
2,108,117
—
4,330,311
1,793,763
Intangible assets, net
$
—
$
2,536,548
Amortization expenses for the years ended
December 31, 2022, 2021 and 2020 were $
428,431
, $
428,431
and $
428,434
, respectively. Furthermore, as of December 31, 2022, the Group recorded
an impairment charge of $
2,108,117
, which equals to the remaining technology net amount. See Note 2.h. for further information.
NOTE 7:
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
December 31,
2022
2021
Provision for professional fees
$
959,654
$
1,169,156
Government authorities*
1,211,885
921,726
Grants received in advance
243,956
526,578
Provision for legal claims
43,477
49,195
Other
118,739
116,233
$
2,577,711
$
2,782,888
*
Such amount for both December 31, 2022 and 2021 contains primarily liability to the IIA. See Note 3 for additional information. The remainder of the liability towards the IIA as of December 31, 2021 is presented in a separate line item within the non-current liabilities according to the related settlement. See Note 9.a.1. for additional information.
F-
18
P.V. NANO CELL LTD. AND ITS SUBSIDIARIES
NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars
NOTE 8:
LOANS AND CONVERTIBLE BRIDGE FINANCING
a.
In August 2017, the Company entered into several Securities Purchase
Agreements with new investors and additional existing shareholders (collectively, the "CLA August 2017"), pursuant to which
the Company issued and sold to such holders senior secured convertible notes in an aggregate principal amount of $
905,555
in consideration
for an aggregate subscription amount of $
774,400
net of issuance costs of $
40,600
.
As part of the CLA August 2017, the Company also issued to the lenders
five-year warrants to purchase an aggregate
905,555
ordinary shares, at an exercise price of $
1.20
per ordinary share. The Company classified
the warrants as liabilities due to their nature in the amount of $
492,034
(the Company used the following assumptions:
0
% dividend yield,
69
% expected volatility,
2.16
% risk free rate and
4.64
expected life in years). As of December 31, 2021, the fair value of the warrants
amounted to $
5,841
. The warrants were forfeited during 2022.
The notes include a
10
% original issue
discount on the consideration paid and bear interest at
6
% per annum. The notes mature after 14-24 months and may be converted into ordinary
shares, subject to the terms of such notes. The initial conversion price of the notes was $
1.00
, but it was adjusted in January 2018 to
$
0.50
, in October 2018 to $
0.17
and further adjusted in September 2021 to $
0.07
. The Company accounted for the convertible loans in accordance
with ASC 470-20, "Debt with conversion and other Options." According to ASC 470-20-30-8, since the intrinsic value of the
beneficial conversion feature ("BCF") exceeds the entire proceeds of the convertible loan, the Company allocated the entire
proceeds to the BCF as additional paid in capital. During 2022 and 2021, $
0
and $
84,758
of the convertible notes were converted into
0
and
498,758
ordinary shares, respectively. The Company may require mandatory conversion of the notes in certain circumstances and pay
the convertible note in cash upon event of fundamental transaction and change of control transaction as described in the convertible note
agreement.
In connection with the convertible
loan agreement signed in October 2018 as described in section c. below, the lenders in the CLA August 2017 agreed to extend the original
maturity date for an additional 24 months. In addition, the Company issued to certain participants in the CLA August 2017 additional four-year
warrants to purchase in the aggregate
1,659,971
ordinary shares at an exercise price of $
0.17
. The Company classified the warrants as
liabilities in the amount of $
42,591
. As of December 31, 2021, the fair value of the warrants amounted to $
11,359
. The warrants were forfeited
during 2022.
The CLA August 2017 was required to
be repaid by October 2020. The majority of the lenders did not exercise their conversion right under the convertible loans prior to the
repayment date and therefore, the outstanding amounts (principal and interest) became repayable in cash at such time. The Company did
not timely repay such loan amounts due to financial difficulties and therefore, the Company is in default under those agreements.
F-
19
P.V. NANO CELL LTD. AND ITS SUBSIDIARIES
NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars
NOTE 8:
LOANS AND CONVERTIBLE BRIDGE FINANCING (Cont.)
b.
On May 8, 2018, the Company entered into a Share
Purchase Agreement with an existing shareholder (collectively, the "CLA May 2018"), pursuant to which the shareholder provided
the Company with an 18-month convertible loan in an aggregate principal amount of $
170,000
and received from the Company warrants to purchase
170,000
ordinary shares at an exercise price of $
0.50
per ordinary share. The loan amount is convertible into ordinary shares at a conversion
price of $
1.00
per ordinary share. The loan includes a
10
% original issue discount and bears interest of
6
% per annum. In accordance with
the accounting guidance on convertible instruments, the BCF of $
15,300
was recognized in additional paid in capital. The warrants may
be exercised, in whole or in part, for a period of five (5) years. Such warrants were classified as equity due to their nature, their
fair value upon issuance date amounted to $
65,718
(the Company used the following assumptions:
0
% dividend yield,
59.69
% expected volatility,
2.80
% risk free rate and
5
expected life in years).
The CLA May 2018 was required to be repaid by November 2019. This lender
did not exercise its conversion right under the convertible loans prior to the repayment date and therefore, the outstanding amount (principal
and interest) became repayable in cash as such time. The Company did not timely repay such loan due to financial difficulties and therefore,
the Company is in default under this agreement.
c.
On October 10, 2018,
the Company entered into a Convertible Loan Agreement with an existing investor who invested relatively low amounts previously (the "CLA
October 2018"). Pursuant to this agreement, the investor provided the Company a convertible loan in an aggregate principal amount
of $
1,000,000
at an exercise price as defined in the convertible loan agreement but no less than $
0.17
. The convertible loan bears an
interest rate at Israeli prime plus
4
% per annum. Under the terms of the CLA October 2018, the investor was granted an option to lend
the Company an additional amount up to $
2,000,000
(the "Additional Loan Amount") and the Company also issued to the investor
a warrant to purchase ordinary shares for an aggregate purchase price of $
5,000,000
, and undertook to issue an additional warrant conditioned
upon the investment of the Additional Loan Amount to purchase ordinary shares for an aggregate purchase price of up to $
5,000,000
calculated
pro-rata to the amount out of the Additional Loan Amount actually provided.
In March, April, August and December 2019 such
investor provided to the Company additional amounts of $
500,000
, $
500,000
, $
100,000
and $
150,000
, respectively on account of the Additional
Loan Amount (the "CLA March-December 2019").
The Company determined that the $100,000 received in August 2019 contained a
BCF of $21,445 and recorded such BCF in the additional paid in capital in the year ended December 31, 2019. The Company also issued to
the investor for the aggregate $1,250,000 Additional Loan Amount a warrant to purchase ordinary shares for an aggregate purchase price
of $3,125,000. Such convertible loans bears same terms as the CLA October 2018.
In July 2020, this investor provided to the Company
an additional $
16,748
on account of the Additional Loan Amount (the "CLA July 2020") and the Company granted the investor
a warrant to purchase ordinary shares for an aggregate purchase price of $
83,740
. The terms of that convertible loan and the associated
warrants are the same as those of the CLA October 2018.
The CLA October 2018,
CLA March-December 2019 and CLA July 2020 were required to be repaid by the Company in October 2020. This lender did not exercise its
conversion right under such convertible loans prior to their repayment date and therefore, they became repayable in cash as such time.
The Company did not timely repay such loans due to financial difficulties and therefore, the Company is in default under those agreements.
On September 23, 2021, all those CLAs (principal plus the accrued
interest as of that date) were converted into ordinary shares and all the related warrants were cancelled. See Note 11.b.5. for additional
information.
F-
20
P.V. NANO CELL LTD. AND ITS SUBSIDIARIES
NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars
NOTE 8:
LOANS AND CONVERTIBLE BRIDGE FINANCING (Cont.)
d.
On November 10, 2018, the Company entered into
several convertible loan agreements with existing shareholders (collectively, the "CLA November 2018"), pursuant to which
they provided the Company with convertible loans in an aggregate principal amount of $
225,000
. The convertible loans bear an interest
rate at Israeli prime plus
4
% per annum. Under those agreements, the Company issued to the lenders warrants to purchase ordinary shares
for an aggregate purchase price of $
1,125,000
. The conversion price for both the loan amount and the warrants is defined in the convertible
loan agreement but no less than $
0.17
.
The granted warrants were classified as a liability
at the issuance date, their fair value aggregated to $
79,227
(the Company used the following assumptions:
0
% dividend yield,
59.69
% expected
volatility,
2.87
% risk free rate and
2
expected life in years). As of December 31, 2019, the fair value of the warrants amounted to $
50,510
.
The warrants were forfeited during 2020.
The CLA November 2018 was required to be repaid
by November 2020. The lenders did not exercise their conversion right under the convertible loans prior to the repayment date and therefore,
the outstanding amount (principal and interest) became repayable in cash as such time. The Company did not timely repay the loans due
to financial difficulties and therefore, the Company is in default under these agreements.
On September 23, 2021, $
25,000
of the amounts outstanding under the
CLA November 2018 (principal plus the accrued interest as of that date) was converted into ordinary shares and all the related warrants
were cancelled. See Note 11.b.5. for additional information. The remainder of that the amounts outstanding under the CLA November 2018
were not converted and are referred to as the 'CLA November 2018' from that date onwards.
e.
On December 29, 2018, the Company entered into
a convertible loan agreement with a new investor (the "CLA December 2018"), pursuant to which it provided the Company with
a convertible loan in an aggregate principal loan amount of $
400,000
. The convertible loan bears an interest rate at Israeli prime plus
4
% per annum. Under this agreement, the Company issued to the lender warrants to purchase ordinary shares for an aggregate purchase price
of $
2,000,000
.
As part of the CLA December 2018, the Company
paid a finder's fee of $
40,000
and issued to the finder a five-year warrant, commencing February 2019, to purchase ordinary shares
for an aggregate purchase price of $
240,000
. The conversion price for both the loan amount and the warrants is defined in the CLA December
2018 agreement but no less than $
0.17
.
The warrants issued to the new investor were classified
as a liability. At the issuance date their fair value aggregated to $
180,281
(the Company used the following assumptions:
0
% dividend
yield,
59.69
% expected volatility,
2.48
% risk free rate and
2
expected life in years). As of December 31, 2019, the fair value of the
warrants amounted to $
107,602
. The warrants were forfeited during 2020.
The warrants issued as part of the finder's
fee compensation were classified as a liability. At the issuance date their fair value aggregated to $
45,327
(the Company used the following
assumptions:
0
% dividend yield,
59.69
% expected volatility,
2.51
% risk free rate and
5
expected life in years). As of December 31, 2022
and 2021, the fair value of the warrants amounted to $
673
and $
34,948
, respectively.
The CLA December 2018 was required to be repaid
by December 2020. This lender did not exercise its conversion right under the convertible loan prior to the repayment date and therefore,
the outstanding amount (principal and interest) became repayable in cash as such time. The Company did not timely repay such loan due
to financial difficulties and therefore, the Company was in default under this agreement.
On September 23, 2021, all of the amount understanding under the CLA
December 2018 (principal plus the accrued interest as of that date) was converted into ordinary shares and all the related warrants were
cancelled. See Note 11.b.5. for additional information.
F-
21
P.V. NANO CELL LTD. AND ITS SUBSIDIARIES
NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars
NOTE 8:
LOANS AND CONVERTIBLE BRIDGE FINANCING (Cont.)
f.
In January, February and April 2019, the Company
entered into several convertible loan agreements with existing shareholders (collectively, the "CLA January-April 2019"),
pursuant to which they provided the Company with convertible loans in an aggregate principal amount of $
200,000
. The convertible loans
bear interest at Israeli prime plus
4
% per annum. Under those agreements, the Company issued to the lenders warrants to purchase ordinary
shares for an aggregate purchase price of $
1,000,000
. The conversion price for all the loan amount and the warrants is defined in the
convertible loan agreement but no less than $
0.17
.
The CLA January-April 2019 were required to be
repaid between January-April 2021. The lenders did not exercise their conversion right under the convertible loans prior to the repayment
date and therefore, the outstanding amount (principal and interest) became repayable in cash as such time. The Company did not timely
repay such loans due to financial difficulties and therefore, the Company was in default under those agreements.
On September 23, 2021, all the amounts outstanding under the CLA January-April
2019 (principal plus the accrued interest as of that date) were converted into ordinary shares and all the related warrants were cancelled.
See Note 11.b.5. for additional information.
g.
In August, September and December 2019, the Company
entered into several convertible loan agreements with a new investor and existing shareholders (collectively, the "CLA August-December
2019"), pursuant to which they provided the Company with convertible loans in an aggregate principal amount of $
475,000
. The convertible
loans bear an interest rate at Israeli prime plus
4
% per annum. Under those agreements, the Company issued the lenders warrants to purchase
ordinary shares for an aggregate purchase price of $
2,375,000
. The conversion price for all the loan amount and the warrants is defined
in the convertible loan agreement but no less than $
0.17
.
The granted warrants were classified as liability
at the issuance date, their fair value aggregated to $
409,668
(the Company used the following assumptions:
0
% dividend yield,
54.50
% expected
volatility,
1.60
% risk free rate and
2
expected life in years). As of December 31, 2020,the fair value of the warrants amounted to $
1,334,255
.
The warrants were forfeited during 2021.
On September 23, 2021, $
375,000
out of amounts outstanding under the
CLA August-December 2019 (principal plus the accrued interest as of that date) was converted into ordinary shares and all the related
warrants were cancelled. See Note 11.b.5. for additional information. The remainder of the amounts outstanding under the CLA August-December
2019 were not converted and are referred to as the 'CLA August 2019' from that date onwards.
h.
In March and June 2021, the Company entered into
several convertible loan agreements with new investors (collectively, the "CLA March-June 2021"), pursuant to which they provided
the Company with convertible loans in an aggregate principal amount of $
255,000
. The convertible loans bear an interest rate at Israeli
prime plus 4% per annum. Under those agreements, the Company issued to the lenders warrants to purchase ordinary shares for an aggregate
purchase price of $
985,000
. The conversion price for all the loan amount and the warrants is defined in the convertible loan agreement
but no less than $
0.17
.
On September 23, 2021, all of the amounts outstanding under the CLA
March-June 2021 (principal plus the accrued interest as of that date) were converted into ordinary shares and all the related warrants
were cancelled. See Note 11.b.5. for additional information.
i.
The fair value of the warrants issued as part of the convertible loan
agreements ("CLAs") along with warrant issued as finder's fees were bifurcated out of the principal loans. Commencing
with the grant dates, the Company calculates the accretion back to the principal amount during the CLAs' period along with the related
interest and record them financial expenses in connection with convertible loans as part of the financial expenses (income), net line
item within the statement of operations.
F-
22
P.V. NANO CELL LTD. AND ITS SUBSIDIARIES
NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars
NOTE 8:
LOANS AND CONVERTIBLE BRIDGE FINANCING (Cont.)
The Company's CLAs presented as part of its current liabilities
as of December 31, 2022 as follows:
Type of CLA
Original
principal
loans
amounts
Additional
principal
loans
provided
Loans
already
converted
Remaining
principal
loans
amount
Converted
through
Loans
presented
as of
December 31,
2022
CLA August 2017(*)
$
905,555
$
22,322
$
(
276,211
)
$
651,666
2020
$
861,764
See  Note 8.a.
CLA May 2018(*)
170,000
—
—
170,000
2019
241,557
See Note 8.b.
CLA November 2018(*)
225,000
—
(
25,000
)
200,000
2020
(**)
247,629
See Note 8.d.
CLA August 2019(*)
475,000
—
(
375,000
)
100,000
2021
(**)
119,263
See Note 8.g.
$
1,775,555
$
22,322
$
(
676,211
)
$
1,121,666
$
1,470,213
(*)
Those CLAs were not repaid on time and therefore were in default as
of December 31, 2022. Due to such default, the Company presented those CLAs in their fair value which was equaled to the principal loan
plus its accrued interest as of that date.
(**)
Structured as a 24-month convertible loan or less in case of a public
offering event.
The Company's CLAs presented as part of its current liabilities
as of December 31, 2021 as follows:
Type of CLA
Original
principal
loans
amounts
Additional
principal
loans
provided
Loans
already
converted
Remaining
principal
loans
amount
Converted
through
Loans
presented
as of
December 31,
2021
CLA August 2017(*)
$
905,555
$
22,322
$
(
276,211
)
$
651,666
2020
$
1,057,711
See Note 8.a.
CLA May 2018(*)
170,000
—
—
170,000
2019
230,224
See Note 8.b.
CLA November 2018(*)
225,000
—
(
25,000
)
200,000
2020
(**)
236,129
See Note 8.d.
CLA August 2019(*)
475,000
—
(
375,000
)
100,000
2021
(**)
113,513
See Note 8.g.
$
1,775,555
$
22,322
$
(
676,211
)
$
1,121,666
$
1,637,577
(*)
Those CLA's were not repaid on time and therefore were in default as of December 31, 2021. Due to such default, the Company presented those CLA's in their fair value.
(**)
Structured
                                    as a 24-month convertible loan or less in case of a public offering event.
F-
23
P.V. NANO CELL LTD. AND ITS SUBSIDIARIES
NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars
NOTE 9:
COMMITMENTS AND CONTINGENT LIABILITIES
a.
Royalties commitments:
1.
The Company has received grants for research and development programs
from the IIA. The Company is committed to pay royalties to the IIA at the rate of
3.0
% of sales of products and services resulting from
know-how financed by the IIA. The amount shall not exceed the grant amount received, linked to the dollar, including accrued interest
at the LIBOR rate (subject to certain exceptions under certain circumstances). The obligation to pay these royalties is contingent on
actual sales of the products and in the absence of such sales, no payment is required.
During the years ended December 31,
2022, 2021 and 2020, the Company accrued royalties in respect to the IIA grants in the amount of $
16,854
, $
11,562
and $
19,486
, respectively,
and the liability to the IIA as of December 31, 2022 aggregated to $
47,902
, which is recorded within the accrued expenses and other current
liabilities line item.
The total grants received by the Company
and Nano Size as of December 31, 2022 aggregated to $
1,445,622
. The Company's total contingent liability (including interest) as
of December 31, 2022, with respect to the IIA grants received, net of royalties paid to the IIA, amounted to $
2,048,160
.
As of December 31, 2022 and 2021, Digiflex had received grants for
research and development programs from the IIA in an aggregate amount of approximately $
2.2
million, out of which an amount of approximately
$
1.1
million had been repaid to the IIA by Jet CU as a result of its sale of IIA funded technology and know-how to a foreign company in
January 2018, which sale was authorized by the IIA . The remaining liability at such time (after additional payments) was reduced to approximately
$
1.0
million and recorded in Jet CU, and as of December 31, 2022, increased to approximately $
1.1
million due to accrued interest and
change in the NIS vs. USD exchange rate. See Note 3 for additional information.
2.
On December 15, 2011, the Company entered into a research and development
agreement with the Israeli Ministry of Energy ("Ministry"). Pursuant to the agreement, the Ministry agreed to fund up to
62.5
%
of the Company's expenses related to an approved program up to a maximum amount of NIS
625,000
($
180,063
based on the exchange rate
of $
1.00
/ NIS
3.471
in effect as of December 31, 2013), out of which the Company received NIS
585,119
($
168,574
based on the exchange
rate of $
1.00
/ NIS 3.471 in effect as of December 31, 2013) as of December 31, 2022, in exchange for the Company's agreement to
pay royalties of
5
% plus interest, as detailed in the agreement, of any revenues generated from the intellectual property generated under
the program. The Company does not expect to receive further funding under this agreement.
During the years ended December 31,
2022, 2021 and 2020, the Company accrued royalties with respect to the grant from the Ministry in the amount of $
6,026
, $
814
and $
384
,
respectively, and the liability to the Ministry as of December 31, 2022, aggregated to $
6,026
and was recorded within the accrued expenses
and other current liabilities line item.
As of December 31, 2022, the aggregate
contingent liability to the Ministry (including interest), following the payment of royalties up to that date, amounted to NIS
576,773
($
163,903
based on the exchange rate of $
1.00
/ NIS
3.519
in effect as of December 31, 2022).
3.
In October 2010, the Company entered into a Convertible Bridge Financing Agreement with Israel Electric Corporation ("IEC") and, as part of the agreement, the Company committed to pay IEC royalties equal to 2% of the total net sales of the Company's products and service revenues from the product developed and manufactured through this agreement, up to a cap of NIS
8,000,000
($
2,273,373
based on the exchange rate of $
1.00
/ NIS
3.519
in effect as of December 31, 2022).
During the years ended December 31,
2022, 2021 and 2020, the Company accrued royalties in the amount of $
11,236
, $
7,708
and $
12,991
, respectively, and the liability as of
December 31, 2022 aggregated to $
46,911
, which was recorded within the accrued expenses and other current liabilities line item.
4.
In connection with the acquisition of Nano Size,
the Company is obligated to pay
3
% from future sales and
10
% of sublicense fees derived from Nano Size's intellectual property,
until the aggregate consideration amounts to $
1,400,000
. The consideration included a minimum consideration of $
180,000
which was paid
during 2011 and will be offset against future royalty payments which will be payable by the Company from sales of products and services.
During the years ended December 31, 2022, 2021
and 2020, the Company accrued royalties in the amount of $
18,100
, $
17,061
and $
22,839
, respectively, and the liability as of December
31, 2022 aggregated to $
94,317
, which was recorded within the accrued expenses and other current liabilities line item.
F-
24
P.V. NANO CELL LTD. AND ITS SUBSIDIARIES
NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars
NOTE 9:
COMMITMENTS AND CONTINGENT LIABILITIES (Cont.)
a.
Royalties commitments (cont.):
5.
In September 2012, the Company entered into a Know-How License Agreement with Fraunhofer Institute for Ceramic Technologies and Systems IKTS ("IKTS"), pursuant to which the Company purchased from IKTS certain additives (the agreement is still active). The Company has the right to receive the production file and knowhow to its chosen manufacturer, in consideration for payment to IKTS of royalties of €
25
($
27
based on the exchange rate of $
1.00
/ €
0.94
in effect as of December 31, 2022) per kilogram of the ingredients not manufactured by IKTS. In addition, as of December 31, 2022, the Company is obligated to pay IKTS a minimum annual royalty of €
2,000
($
2,127
based on the exchange rate of $
1.00
/ €
0.94
in effect as of December 31, 2022) deductible against royalties.
During the year ended December 31, 2022, 2021 and 2020, the Company
recorded royalty expenses in the amount of $
2,127
, $
2,272
and $
2,453
, respectively and the liability as of December 31, 2022 aggregated
to $
4,265
, which is recorded within the trade payables line item.
b.
Legal proceedings:
On May 16, 2019, a lawsuit was filed
by Yaskawa Europe Technology Ltd. against the Company and Digiflex in the Magistrate Court in Kfar Saba in Israel. On January 19, 2020,
the Group settled this claim for a total of NIS 152,997 ($43,477 based on the exchange rate of $1.00 / NIS 3.519 in effect as of December
31, 2022) plus Value Added Tax ("VAT") but failed to pay such settlement due to financial difficulties.
As such, the liability
is recorded as a provision for legal claims within the accrued expenses and other current liabilities as of December 31, 2022 and 2021.
c.
Lease commitments:
The Group has the following lease
agreements:
1.
The Company currently leases, through Nano Size, approximately 7,300 square feet of space in Migdal Ha'Emek, Israel for its principal offices and manufacturing facilities at a monthly cost of approximately NIS 18,000 (approximately $5,115 based on the exchange rate of $1.00 / NIS 3.519 in effect as of December 31, 2022).
This lease agreement expires on June 30, 2025, and the agreement contains an option of the Company to extend the lease for an additional three (3) years.
2.
Digiflex currently leases approximately 1,200 square feet of space in Migdal Ha'Emek, Israel for its principal office and laboratory at a monthly cost of approximately NIS 5,000 (approximately $1,420 based on the exchange rate of $1.00 / NIS 3.519 in effect as of December 31, 2022). This lease was scheduled to expire on March 14, 2023, and was renewed in February 2023 for an additional one year and the Company has an option to extend the lease for another year.
Under ASC 842, all leases with durations
greater than 12 months, including non-cancellable operating leases, are recognized on the balance sheet. The aggregated present value
of lease agreements is recorded as a long-term asset titled right-of-use assets. The corresponding lease liabilities are split between
Lease current liability and Lease non-current liability.
Future minimum lease payments under
non-cancellable operating leases as of December 31, 2022, are as follows (as of December 31, 2021, the Group's lease agreements
were for short periods with relatively low rent expenses and therefore, the Group did not apply the lease guidance as of that date):
December 31,
2022
(U.S. dollars)
Future minimum lease payments:
2023
$
67,497
2024
63,926
2025
31,963
Total Future payments
$
163,386
Less imputed interest
(
28,279
)
Net present value of future minimum lease payments
$
135,107
Lease liabilities:
Current lease liabilities
$
60,071
Non-current lease liabilities
75,036
Net present value of future minimum lease payments
$
135,107
Incremental Borrowing Rate
10.00
%
F-
25
P.V. NANO CELL LTD. AND ITS SUBSIDIARIES
NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars
NOTE 10:
TAXES ON INCOME
a.
Corporate Tax rates:
The Israeli corporate tax rate applicable
to the Company, Nano Size and Digiflex commencing 2020 and thereafter is
23
%.
Non-Israeli subsidiaries are taxed
according to the tax laws in their respective countries of residence.
b.
Net operating losses carryforwards:
As of December 31, 2022, the Company
and its Israeli subsidiaries have accumulated losses for tax purposes in the amount of $
46.0
million which may be carried forward and
offset against taxable income for an indefinite period.
c.
Accounting for uncertainty in income taxes:
For the years ended December 31, 2022,
2021 and 2020, the Company did not have any unrecognized tax benefits and no interest and penalties related to unrecognized tax benefits
had been accrued. The Company does not expect that the amount of unrecognized tax benefits will change significantly within the next 12
months.
d.
Tax assessments:
Tax reports filed by the Company and
its Israeli subsidiaries through the year ended December 31, 2016 are considered final.
e.
Deferred taxes on income:
Significant components of the Group's deferred tax assets are
as follows:
December 31,
2022
2021
Deferred tax assets
Operating loss carry forward
$
10,579,957
$
10,204,294
Temporary differences
189,099
126,150
10,769,056
10,330,444
Deferred tax liability
Beneficial conversion feature
(
99,790
)
(
99,790
)
Total deferred tax, net
10,669,266
10,230,654
Valuation allowance
(
10,669,266
)
(
10,230,654
)
Net deferred tax assets
$
—
$
—
The net change in the total valuation
allowance for the year ended December 31, 2022 related primarily to an increase in deferred taxes calculated on the operating loss carry
forward. In assessing the likelihood that deferred tax assets will be realized, management considers whether it is more likely than not
that some or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets depends on the generation
of future taxable income during the periods in which those temporary differences and tax loss carry forwards are deductible.
F-
26
P.V. NANO CELL LTD. AND ITS SUBSIDIARIES
NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars
NOTE 10:
TAXES ON INCOME (Cont.)
f.
Reconciliation of the theoretical tax benefit and the actual tax expense:
Year ended December 31,
2022
2021
2020
Loss before tax benefit
$
(
4,509,547
)
$
(
2,518,864
)
$
(
12,543,737
)
Statutory tax rate
23
%
23
%
23
%
Income tax benefit
1,037,196
579,339
2,885,060
Effect of:
Losses and timing differences for which valuation allowance was provided, net
(
438,612
)
(
463,784
)
(
329,578
)
Non-deductible expenses and other permanent differences
(
624,299
)
(
196,980
)
(
2,526,808
)
Other
25,715
81,425
(
28,674
)
Income tax expense recognized in profit or loss
$
—
$
—
$
—
NOTE 11:
SHARE CAPITAL
a.
Ordinary shares:
The share capital as of December 31,
2022 and 2021 is comprised of ordinary shares of NIS 0.01 ($0.003 based on the exchange rate of $1.00 / NIS 3.519 in effect as of December
31, 2022) par value as follows:
Number of ordinary
shares
Number of ordinary
shares
Authorized
Issued and
outstanding
Authorized
Issued and
outstanding
December 31, 2022
December 31, 2021
Ordinary shares
1,200,000,000
147,134,792
1,200,000,000
90,205,191
On December 28, 2020, as part of the
Company's annual general meeting of the shareholders', the authorized share capital was increased from NIS
2,000,000
to NIS
12,000,000
, divided into
1,200,000,000
ordinary shares of NIS
0.01
($
0.003
based on the exchange rate of $
1.00
/ NIS
3.519
in effect as
of December 31, 2022) par value.
F-
27
P.V. NANO CELL LTD. AND ITS SUBSIDIARIES
NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars
NOTE 11:
SHARE CAPITAL (Cont.)
b.
Issuance of ordinary shares:
1.
During 2020, the Company issued
386,735
ordinary shares in connection
with the conversion of convertible loans.
2.
During 2020, the Company issued
206,250
ordinary shares to a few of the Company's service providers. The Company recorded an expense of $
34,045
during the year ended December 31, 2020 in connection with the issuance of those restricted ordinary shares.
3.
During 2020, the Company issued
2,000,000
ordinary shares in connection
with the Jet CU purchase.  See Note 3 for additional information.
4.
During 2021, the Company issued
498,578
ordinary shares in connection
with the conversion of convertible loans.  See Note 8.a. for additional information.
5.
At the annual shareholders' meeting held on September 19,
2021, the shareholders approved
(i) a capital raise at a per share purchase price of $0.07 for the Company's Ordinary Shares, NIS
0.01 ($0.003 based on the exchange rate of $1.00 / NIS 3.519 in effect as of December 31, 2022) par value and (ii) an adjustment to the
conversion price of the Company's outstanding CLAs from $0.17 to $0.07 per Ordinary Share, subject to the holders' agreement
to cancel the outstanding related warrants that were issued in connection with the CLAs.
As a result, on September 23, 2021, the Company entered into agreements
with the holders of approximately $
3,521,748
in principal amount and accrued interest of CLAs for the conversion of the Company's
indebtedness under such agreements into an aggregate of
57,291,838
ordinary shares. Furthermore, in connection therewith, all
the warrants that were previously issued in connection with those CLAs were cancelled and no longer have any force or effect.
Most of those converted CLAs had previously matured and had not been
not repaid on time and therefore, were in default as of September 23, 2021. Due to such default, the Company presented those CLAs at their
fair value just before the conversion occurred, which aggregated to $
12,992,708
. Such amount was allocated to the Consolidated Statement
of Changes in Stockholders' Equity (Deficit) as of that date.
6.
In September 2021, the Company issued an additional
5,428,572
Ordinary Shares to the Jet CU former shareholders. See Note 3 for additional information.
7.
Commencing July 2021 and through 2022, the Company and seven (7) existing
Company shareholders entered into definitive agreements relating to a private placement (the "Private Placement") of the Company's
Ordinary Shares for aggregate gross proceeds to the Company of $
3.0
million. During 2022, the Company issued an aggregate of
42,926,031
Ordinary Shares in connection with such investment. The shares were issued at a price of $
0.07
per ordinary share. $
350,000
out of the
$
3.0
million was received during 2021 and was recorded as an advance payment on the account of issuing ordinary shares within the Consolidated
Statement of Shareholders' Equity for the year ended December 31, 2021.
Under an agreement entered into in connection with the Private Placement,
certain of the Private Placement investors have the right to nominate three members to the Company's board of directors.
8.
In June 2022, the Company issued
75,000
ordinary shares to one of the
Company's service providers. The Company recorded an expense of $
6,750
for the year ended December 31, 2022 in connection with the
issuance of those restricted ordinary shares.
9.
As of December 31, 2022 the Company
completed $
975,000
part of an internal round and as a result issued
13,928,570
Ordinary Shares and warrants to purchase
27,857,140
Ordinary
Shares. Such amount was part of a $
2.8
million internal round.
See
Note 17 for further information.
c.
Rights of ordinary shares:
Ordinary shares confer upon their holders
the rights to elect directors of the Company, to participate and vote in the general meetings of the Company, to receive dividends, if
and when declared, subject to the payment in full of all preferential dividends to which the holders of the Preferred Shares (if any)
are entitled under the Company's articles of association and to participate in the distribution of the surplus assets and funds
of the Company in the event of liquidation, subject to the liquidation preference of the Preferred Shares (if any). Each ordinary share
entitles its holder to one vote on all matters submitted to a vote of the Company's shareholders.
F-
28
P.V. NANO CELL LTD. AND ITS SUBSIDIARIES
NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars
NOTE 11:
SHARE CAPITAL (Cont.)
d.
Stock option plan:
Under the Company's 2010 Option
Plan, options may be granted to officers, directors, employees, consultants and service providers of the Company.
The vesting terms of the options are
determined by the Board and can vary from grant to grant. Options vest over a period of zero to four years from date of grant. Any options
that are cancelled or forfeited before expiration become available for future grants. The options may be exercised for a period of seven
years from grant.
1.
On January 7, 2020, the Company's Board of Directors increased
the options pool by an additional
15,607,995
ordinary shares, such that
18,783,274
ordinary shares were available for issuance under the
plan following such increase. On the same date, the Company also granted
13,739,570
options to employees and service providers with three
(3) years vesting and an exercise price of $
0.068
per share. The fair value of those options on their grant date aggregated to $
1,097,955
.
2.
On June 22, 2020, the Company granted
939,164
options to its Active
Chairman with three (3) years vesting and an exercise price of $
0.068
per share. The fair value of those options on their grant date aggregated
to $
107,683
.
3.
On June 1, 2021, the Company granted
2,003,436
options to
its former Chief Executive Officer with three (3) years vesting and an exercise price of $
0.17
per share. The fair
value of those options on their grant date aggregated to $
403,725
. Such exercise price was modified to $
0.07
on April 28, 2022. This
Chief Executive Officer notified the Company on July 1, 2022 of his resignation from his role.
4.
On July 19, 2021, the Company's Board of Directors increased
the options pool by additional
5,000,000
ordinary shares, such that
23,783,274
ordinary shares were reserved for issuance under the plan
following such increase.
5.
In May 2022, the Company granted an aggregate
2,600,000
options to
two new directors with four (4) years vesting and an exercise price of $
0.07
per share. One of those directors resigned from his role
on January 1, 2023. The fair value of the options for the director who remained within the Company on their grant date aggregated to $
3
.
6.
During 2022, the Company granted
5,249,758
options to its new Chief
Executive Officer. The fair value of those options on their grant date aggregated to $
155,845
. See Note 13.e. for additional information.
7.
The total number of ordinary shares available for future grants under
the Company's 2010 Option Plan as of December 31, 2022 and 2021 was
1,515,516
and
5,460,052
, respectively.
F-
29
P.V. NANO CELL LTD. AND ITS SUBSIDIARIES
NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars
NOTE 11:
SHARE CAPITAL (Cont.)
d.
Stock option plan (cont.):
8.
A summary of the Company's option activities and related information
for the year ended December 31, 2022, is as follows:
Number of
options
Weighted
average
exercise
price
Weighted
average
remaining
contractual
life (years)
Aggregate
intrinsic-
value
Outstanding as of January 1, 2021
18,323,222
$
0.12
Granted*
6,600,000
0.07
Forfeited
(
2,655,464
)
0.10
Outstanding as of December 31, 2021
22,267,758
$
0.11
4.66
$
—
Exercisable as of December 31, 2021
15,999,078
$
0.12
4.00
$
—
*
1,249,758
options approved for grant to the Company's new Chief
Executive Officer were not issued since the number of reserved shares under the Company's 2010 Option Plan was not sufficient to
support such grant in its totality (and therefore not presented within the Granted line item above). See Note 13.e. for additional information.
9.
A summary of the Company's option activities and related information
for the year ended December 31, 2021, is as follows:
Number of
options
Weighted
average
exercise
price
Weighted
average
remaining
contractual
life (years)
Aggregate
intrinsic-
value
Outstanding as of January 1, 2021
16,319,786
$
0.12
Granted
2,003,436
0.17
Outstanding as of December 31, 2021
18,323,222
$
0.12
4.97
$
342,452
Exercisable as of December 31, 2021
11,332,153
$
0.08
4.68
$
233,086
F-
30
P.V. NANO CELL LTD. AND ITS SUBSIDIARIES
NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars
NOTE 11:
SHARE CAPITAL (Cont.)
d.
Stock option plan (cont.):
10.
The options granted to officers, directors, employees, consultants and service providers of the Company which were outstanding as of December 31, 2022 have been classified into exercise prices as follows:
Outstanding
Exercisable
Exercise price
Number of
options
Weighted average
remaining
contractual life
(years)
Number of
options
Weighted average
remaining
contractual life
(years)
$
0.03
4,451
1.8
4,451
1.8
0.068
13,728,037
4.0
13,649,773
4.0
0.07
5,300,000
(*)
6.5
—
—
0.17
2,003,436
5.4
1,113,020
5.4
0.27
739,000
3.0
739,000
3.0
0.34
8,020
0.9
8,020
0.9
0.92
455,501
1.5
455,501
1.5
$
5.73
29,313
0.9
29,313
0.9
22,267,758
15,999,078
*
1,249,758
options approved for grant to the Company's new Chief
Executive Officer were not issued since the number of reserved shares under the Company's 2010 Option Plan was not sufficient to
support such grant in its totality (and therefore not presented within the related line item above). See Note 13.e. for additional information.
As of December 31, 2022, the total
compensation cost related to options granted to employees, consultants and service providers, not yet recognized, amounted to $
143,176
and is expected to be recognized over a weighted average period of
1.29
years.
11.
The options granted to officers, directors, employees, consultants and service providers of the Company which were outstanding as of December 31, 2021 have been classified into exercise prices as follows:
Outstanding
Exercisable
Exercise price
Number of
options
Weighted average
remaining
contractual life
(years)
Number of
options
Weighted average
remaining
contractual life
(years)
(*
)
230,425
—
230,425
—
$
0.03
19,288
2.8
19,288
2.8
0.068
14,678,734
5.0
9.507,559
5.0
0.17
2,003,436
6.4
—
—
0.27
809,000
4.0
792,542
4.0
0.34
8,020
1.9
8,020
1.9
0.92
540,501
2.4
540,501
2.4
4.72
1,068
0.2
1,068
0.2
5.05
2,769
0.2
2,769
0.2
$
5.73
29,981
1.8
29,981
1.8
18,323,222
11,332,153
(*)
Represents an amount lower than $
0.01
.
As of December 31, 2021, the total
compensation cost related to options granted to employees, consultants and service providers, not yet recognized, amounted to $
770,396
and is expected to be recognized over a weighted average period of
0.92
years.
F-
31
P.V. NANO CELL LTD. AND ITS SUBSIDIARIES
NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars
NOTE 11:
SHARE CAPITAL (Cont.)
e.
Stock based compensation were recorded as follows:
Year Ended December 31,
2022
2021
2020
Research and Development
$
130,637
$
147,696
$
167,328
Sales and Marketing
30,804
47,031
48,671
General and Administrative
319,501
263,646
248,774
$
480,942
$
458,373
$
464,773
f.
The Company's outstanding warrants classified as equity
The Company's outstanding warrants
classified as equity as of December 31, 2022 are as follows:
Outstanding
Issuance
year
Exercise
price
Exercisable through
117,209
2009
$
(*
)
Exit event
(**)
59,384
2013
0.92
2023
(**)
170,000
2018
0.50
2023
See Note 8.b.
200,001
2018
0.50
2023
(**)
27,857,140
2022
$
0.07
2024(***)
See Note 11.b.9 and 17
28,403,734
(*)
Represents an amount lower than $
0.01
.
(**)
Issued in connection with the 2018, 2013 and 2009 arrangements.
(***)
The earlier of (i) the closing of a subsequent offering of Company securities by the Company to qualified investors with an effective price per Ordinary Share of at least $
0.20
and (ii) the second anniversary of the issuance of such warrant.
The Company's outstanding warrants
classified as equity as of December 31, 2021 are as follows:
Outstanding
Issuance
year
Exercise
price
Exercisable through
117,209
2009
$
(*
)
Exit event
(**)
59,384
2013
0.92
2023
(**)
170,000
2018
0.50
2023
See Note 8.b.
200,001
2018
$
0.50
2023
(**)
546,594
(*)
Represents an amount lower than $
0.01
.
(**)
Issued in connection with the 2018, 2013 and 2009 arrangements.
All warrants are exercisable to ordinary
shares. The exercise price of the warrants and the number of ordinary shares issuable thereunder is subject to standard anti-dilution
features, including dividends, stock splits, combinations and reclassifications of the Company's capital stock. In accordance with
ASC 815, "Derivatives and Hedging", the warrants were classified as equity instruments.
F-
32
P.V. NANO CELL LTD. AND ITS SUBSIDIARIES
NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars
NOTE 12:
Warrants presented at fair value
The Company's outstanding warrants
classified as a liability as of December 31, 2022 are as follows:
Outstanding
Exercise
price
Issuance
year
Exercisable
through
Fair value
120,000
$
0.92
(*)
2014
(***
)
$
1
(****)
675,926
(**
)
2017
2024
14,785
(****)
1,411,765
0.17
2019
2024
673
See Note 8.e.
2,207,691
$
15,459
(*****)
(*)
Subject to changes as describe in the agreement.
(**)
Less than $0.01.
(***)
M&A or qualified public offering as described in the agreement.
(****)
Issued in connection with the 2014 through 2017 financing rounds.
(*****)
Contains warrants presented at fair value within non-current liabilities.
The Company's outstanding
warrants classified as a liability as of December 31, 2021 are as follows:
Outstanding
Exercise
price
Issuance
year
Exercisable
through
Fair value
120,000
$
0.92
(*)
2014
(***
)
$
94
(****)
905,555
0.17
2017
2022
5,841
See Note 8.a.
436,666
1.50
2017
2022
2
(****)
33,332
1.20
2017
2022
—
(****)
33,332
1.00
2017
2022
—
(****)
675,926
(**
)
2017
2024
54,731
(****)
11,111
1.20
2017
2022
—
(****)
1,659,971
0.17
2018
2022
11,359
See Note 8.a.
1,411,765
0.17
2019
2024
34,948
See Note 8.e.
5,287,658
$
106,975
(*****)
(*)
Subject to changes as described in the agreement.
(**)
Less than $0.01.
(***)
M&A or qualified public offering as described in the agreement.
(****)
Issued in connection with the 2014 through 2017 financing rounds.
(*****)
Contains warrants presented at fair value
within current liabilities of $
17,296
and within non-current liabilities of $
89,679
.
F-
33
P.V. NANO CELL LTD. AND ITS SUBSIDIARIES
NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars
NOTE 13:
RELATED PARTIES
a.
Employment or Service Agreements with Dr. Fernando de la Vega, the Company's Chief Executive Officer:
On September 9, 2009, the Company entered
into a services agreement, as amended in November 2018 ("DBG Services Agreement"), with
Dr. de la Vega's wholly-owned
service company, Dolev Bar-Guy Consulting and Management Ltd. ("DBG"), pursuant to which Dr. de la Vega provided us management
services as the Company's chief executive officer through June 1, 2021, at which time he resigned from such position and assumed
the position as Chief Technology Officer, under the same terms and conditions according to the DBG Services Agreement. Pursuant to the
terms of the DBG Services Agreement, Dr. de la Vega is currently entitled to a monthly consultancy fee in the amount of NIS 65,000 ($18,471based
on the exchange rate of $1.00 / NIS 3.519 in effect as of December 31, 2022) plus VAT and car allowance in the amount of NIS 2,500 ($710
based on the exchange rate of $1.00 / NIS 3.519 in effect as of December 31, 2022) plus VAT per month plus reimbursement for fuel expenses
and tolls. . The liability towards DBG as of December 31, 2022 and 2021 aggregated to NIS 1,838,300 ($522,392 based on the exchange rate
of $1.00 / NIS 3.519 in effect as of December 31, 2022) plus VAT and NIS 1,774,957 ($570,725 based on the exchange rate of $1.00 / NIS
3.11 in effect as of December 31, 2021) plus VAT, respectively, and was recorded as part of the Employees and payroll accruals line item
within the current liabilities. Dr. de la Vega may terminate the DBG Services Agreement at any time for any reason upon a three (3) months'
prior written notice. If the Company wishes to terminate the DBG Services Agreement, other than as a result of Dr. de la Vega's
breach of his terms of office, the Company shall be required to provide a six (6) months' prior written notice (provided that if
the termination is up to 12 months following an exit event, 24 months' prior written notice is required; between 12 and up to 24
months following an exit event, 12 months' prior written notice is required and between 24 months and up to 36 months following
an exit event, 6 months' prior written notice is required).
In addition, Dr. de la Vega is entitled
to receive (none of which were received so far):
1.
An annual cash bonus in an amount equivalent to up to four (4) times his monthly service fee, plus VAT, based on achievement of certain performance targets which are determined by our compensation committee and the board of directors on an annual basis.
2.
A special one-time bonus in an amount equivalent to six times his monthly
service fee, plus VAT upon the occurrence of an Exit Event (as described below), provided that the Company's pre-money valuation
shall be at least $50,000,000 at the closing of such transaction or within 12 months following such closing.
3.
An equity-based award upon the occurrence of an Exit Event, in accordance
with the following calculation:
(i)
0.5% of the Company's share capital on a fully diluted basis, if the Company's pre-money valuation shall be equal to or
higher than $30,000,000 but less than $40,000,000;
(ii)
1.25% of the Company's share capital on a fully diluted basis,
if the Company's pre-money valuation shall be equal to or higher than $40,000,000 but less than $50,000,000;
(iii)
2.0% of the Company's share capital on a fully diluted basis,
if the Company's pre-money valuation shall be equal to or higher than $50,000,000.
An 'Exit Event' is defined
as: (i) the consummation of an initial public offering of ordinary shares of the Company on a recognized stock exchange; or (ii) a sale
of all or substantially all of the share capital of the Company to any individual, firm, corporation, partnership, trust, incorporated
or unincorporated association, joint venture, joint stock company, governmental authority or other entity of any kind, and shall include
any successor (by merger or otherwise) of such entity (a "Person"); (iii) a sale, lease, conveyance or disposition of all
or substantially all of the assets of the Company; (iv) a merger of the Company with or into another entity in which the shareholders
of the Company immediately prior to such merger do not hold a majority of the share capital and voting rights of the surviving entity
held by them by virtue of their holdings in the Company prior to the consummation of the transaction or a transaction or series of transactions
in which a Person or group of Persons acquire more than
50
% of the issued and outstanding share capital of the Company (other than an
acquisition of such share capital from the Company); or (v) an up-listing to a higher exchange.
To date, the Company did not pay or
record any bonus to DBG.
F-
34
P.V. NANO CELL LTD. AND ITS SUBSIDIARIES
NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars
NOTE 13:
RELATED PARTIES (Cont.)
b.
Consultancy Agreement with Ram Zeevi:
On May 15, 2018, the Company entered
into a consultancy agreement with RINC Green Ltd. ("RINC Green"), as amended on April 30, 2019 (the "Ram Zeevi Consultancy
Agreement"), pursuant to which Mr. Zeevi provides the Company with services in the field of business development in accordance with
pre-approved monthly work plans, which include introduction of potential business partners and investors as well as assistance in negotiations
of business and investment terms. Pursuant to the terms of the Ram Zeevi Consultancy Agreement, RINC Green is currently entitled to a
gross monthly fee in the amount of $
5,000
(25 hours per month at $200 per hour rate) plus VAT and to reimbursement of out-of-pocket expenses
related directly to the provision of the consultancy services subject to prior written approval of the chief executive officer, to reimbursement
of travel international travel and board expenses at the same standard as our chief executive officer and to an additional per-day fee
equivalent to four hours per day abroad plus VAT. Either the Company or RINC Green may terminate the agreement at any time for any reason
by providing a 30-day prior written notice. RINC Green ceased providing the above monthly service in January 2019.
In addition to the foregoing, RINC
Green is entitled to receive (none of which were received so far):
1.
A one-time payment in the amount of $25,000 (plus VAT) upon an equity investment exceeding $500,000 by an investor that was introduced to the Company by Mr. Zeevi;
2.
$150,000 in cash (plus VAT) and options to purchase the Company's ordinary shares upon an equity investment or execution of business contract resulting in at least  $2,000,000 in proceeds (or revenues) by an entity introduced to the Company by Mr. Zeevi, whereby the number of options will be calculated by dividing $150,000 by the average ordinary share price during the period of 90 days prior to the date upon which the investment is actually made with an exercise price per share of NIS 0.01 ($0.003 based on the exchange rate of $1.00 / NIS 3.519 in effect as of December 31, 2022); and
3.
An equity based award to be granted upon of an Exit Event, in accordance with the following calculation:(i) 0.4% of the Company's share capital on a fully diluted basis, if the Company's pre-money valuation shall be equal to or higher than $30,000,000 but less than $50,000,000, or (ii) 1.0% of the Company's share capital on a fully diluted basis, if the Company's pre-money valuation shall be equal to or higher than $50,000,000.
In the event that the Company terminate the Ram Zeevi Consultancy Agreement other than for Cause, and the Exit Event occurs within a period of six (6) months of said termination, RINC Green will be entitled to the foregoing equity-based award. An 'Exit Event' is defined the same as mentioned in section a. above.
To date, the Company has not paid or
recorded any bonus to RINC Green.
On October 2, 2018, the Company granted
to RINC Green options to purchase up to
120,000
of the Company's ordinary shares, at an exercise price per share of $
0.27
. The options
vested over a period of three (3) years, with one third of the options vesting on September 30, 2019, and the remaining two thirds of
the options vesting on a quarterly basis over the remaining two (2) years.
Ram Zeevi is the son of Gadi Zeevi,
who is the controlling shareholder of GTRIMG Investments Ltd., the Company's controlling shareholder.
F-
35
P.V. NANO CELL LTD. AND ITS SUBSIDIARIES
NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars
NOTE 13:
RELATED PARTIES (Cont.)
c.
Consultancy Agreement with Dov Farkash, the Company's Active Chairman:
On April 19, 2020, an Active Chairman
Agreement (the "Chairman Agreement") with Exoro Ltd. ("Exoro"), a company wholly owned by Mr. Dov Farkash. The
Chairman Agreement provides that Exoro, through Mr. Farkash is to provide certain services to us as active chairman, focusing on go-to-market
strategy. The Company agreed to enter into an indemnification agreement with Mr. Farkash and to include him in the Company's directors'
and officers' liability insurance. Mr. Farkash has agreed not to provide any services that would conflict with or complete with
the Company. The Company agreed to pay a monthly service fee of NIS
40,000
($
11,366
based on the exchange rate of $
1.00
/ NIS
3.519
in
effect as of December 31, 2022) plus VAT to Exoro. The Company granted to Mr. Farkash options to purchase 939,164 ordinary shares under
our 2010 Option Plan, in accordance with our director compensation plan, at an exercise price of $
0.068
per share, vesting over
three
(3)
years
from April 19, 2020, with one-third vesting after one year and the remainder monthly over a 24-month period. Exoro was entitled
to reimbursement of expenses in connection with the provision of the services and was provided a budget of $
10,000
/month for travel. The
term of the Chairman Agreement was for four (4) months, and the Company has a right to renew the agreement for an additional nine months,
which was utilized. Either party could terminate upon 45 days prior written notice. The Chairman Agreement could also be terminated by
the Company for Cause (as defined in the Chairman Agreement). Notwithstanding the expiration of the Chairman Agreement, Mr. Farkash has
continued to serve as Active Chairman in accordance with the terms thereof, and the Company intends to present such continued engagement
to the approval of the shareholders at the next general meeting of shareholders.
d.
Consultancy Agreement with Ran Eisenberg, the Company's former Chief Executive Officer:
On June 1, 2021, the Company entered
into a consultancy agreement with Mr. Ran Eisenberg to serve as the Company's Chief Executive Officer during the term of the agreement.
Pursuant to the terms of the agreement, Mr. Eisenberg was entitled to a monthly fee of NIS
40,000
($
12,861
based on the exchange rate
of $
1.00
/ NIS
3.11
in effect as of December 31, 2021) plus VAT, which was increased to
60,000
NIS ($
19,292
based on the exchange rate
of $
1.00
/ NIS 3.11 in effect as of December 31, 2021) plus VAT four (4) months from his commencement date. In addition, Mr. Eisenberg
was awarded options to purchase up to
2,003,346
of the Company's shares at a per share exercise price of $
0.17
, which was reduced
to $
0.07
. Vesting of the options is over
three
(3)
years
from June 1, 2021, with one-third vesting after one year and the remainder monthly
over a 24-month period. The options accelerate upon an Exit Event (as defined in section a. above). See Note 11.d. regarding Mr. Eisenberg
resignation.
e.
Consultancy Agreement with Avi Magid, the Company's new Chief Executive Officer:
On July 19, 2022,
the
Company announced the
appointment of Mr. Avi Magid as the Company's Chief Executive Officer.
In
connection with being named as the Company's Chief Executive Officer, on November 7, 2022, the Company and Mr. Magid executed an
employment agreement with the Company which continued in effect through the close of business on the day of the annual general meeting
of shareholders of the Company which occurred on December 19, 2022 ("Annual Meeting"). The principal component of such agreement
was a
gross monthly salary with an aggregate monthly cost to the Company of NIS
60,000
($
17,050
based on the exchange rate of $
1.00
/ NIS
3.519
in effect as of December 31, 2022), retroactive to August 1, 2022
. Under the terms of
the new employment agreement, as approved at the Annual Meeting, Mr. Magid
is entitled to a gross monthly salary of NIS
60,000
($
17,050
based on the exchange rate of $
1.00
/ NIS
3.519
in effect as of December 31, 2022). At Mr. Magid's option, the Company
leases a vehicle for Mr. Magid or, alternatively, may add an amount equal to the vehicle costs as additional salary to Mr. Magid, provided
that the total payroll will be in accordance with the limitation of the Compensation Policy. Mr. Magid was also awarded options under
the Company's 2010 Option Plan for an aggregate of 5,249,758 Ordinary Shares, exercisable at a per share exercise price of $0.07
and scheduled to vest as follows: one third (1/3) on August 1, 2023, the first anniversary of the employment start date, and the balance
thereafter in equal monthly instalments at the end of each month, subject to his continued employment with the Company; provided,
that as the number of reserved shares under the Company's 2010 Option Plan was not sufficient to support the grant in its totality
at the time of the Annual Meeting, options for only
4,000,000
shares were awarded and the balance of the grant (i.e.,
1,249,758
options)
shall be completed at such time as the number shares available for issuance under the Company's option plan shall have been increased,
and such remaining options, once granted, will vest according to the vesting schedule referenced above.
Under
the agreement, Mr. Magid is also entitled to the following:
(i) manager's insurance under Israeli law to which the Company contributes
amounts equal to (a) 8.33% for severance payments, and 6.5%, or up to 7.5% (including disability insurance) designated for premium payment
(and Mr. Magid contributes an additional 6%) of each monthly salary payment, and (b) 7.5% of his salary (with Mr. Magid contributing an
additional 2.5%) to an education fund, a form of deferred compensation program established under Israeli law.
The employment
agreement contains (i) customary confidentiality obligations which are not limited by the term of the agreement, (ii) certain non-compete
provisions during the term of the agreement and twelve (12) months thereafter and (iii) certain non-solicitation provisions during the
term of the agreement and for one year thereafter.
Either party may terminate the employment
agreement at any time upon one month's prior notice
.
f.
See Notes 8.c., 11.b.7., 11.b.9., 11.d.4. and 17 for additional related
party transactions.
F-
36
P.V. NANO CELL LTD. AND ITS SUBSIDIARIES
NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars
NOTE 14:
FINANCIAL EXPENSES (INCOME), NET
Year ended December 31,
2022
2021
2020
Financial (income):
Change in fair value of warrants and capital note presented at fair value
$
(
91,516
)
$
(
8,112,118
)
$
—
Interest and change in fair value in connection with convertible loans
(
167,364
)
—
—
Foreign exchange income, net
(
354,725
)
—
—
Financial expenses:
Change in fair value of warrants and capital note presented at fair value
—
—
7,011,437
Interest, accretion back and change in fair value in connection with convertible loans
—
7,892,632
2,597,476
Foreign exchange loss, net
—
44,270
175,877
Other
85,410
124,312
29,815
$
(
528,195
)
$
(
50,904
)
$
9,814,605
NOTE 15:
DISAGGREGATED REVENUES
Geographic information:
Revenues reported in the consolidated
financial statements derived from the Company's country of domicile (Israel) and foreign countries based on the location of the
customers, are as follows:
Year ended December 31,
2022
2021
2020
Spain
$
355,274
$
78,960
$
106,376
Israel
145,472
129,976
281,174
United states
43,614
194,489
264,739
Germany
8,548
83,317
55,131
Holland
384
3,752
9,676
Austria
839
6,144
4,775
Other
49,408
72,066
39,448
$
603,359
$
568,704
$
761,319
NOTE 16:
CONCENTRATION RISK
Major
customers are defined as those from whom the Group derives at least
10
% of its consolidated revenues consolidated accounts receivable.
During the years ended December 31,
2022, 2021 and 2020, consolidated revenues from the major customers reflected
77
% (two customers),
45
% (three customers) and
27
% (one
customer) of the total consolidated revenues, respectively.
As of December 31, 2022 and 2021, consolidated
accounts receivable from the major customers reflected
71
% (two customers) and
13
% (one customer), respectively.
F-
37
P.V. NANO CELL LTD. AND ITS SUBSIDIARIES
NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars
NOTE 17:
SUBSEQUENT EVENT
The
Company announced that it entered into definitive agreements with certain existing Company shareholders (the "Investors")
relating to a private placement of the Company's
ordinary shares, par value NIS
0.01
per share
in
February 2023, for maximum aggregate proceeds to the Company of $
2.8
million, under the following terms:
o
The Company offered,
issued and sold
to the Investors units of its securities for aggregate gross proceeds to the Company of $
1.0
million (the "Initial Offering"), each unit comprised of (each, a "Unit" and, collectively, the "Units") (i) one (1) Ordinary Share, and (ii) a warrant to purchase an additional two (2) Ordinary Shares, exercisable through the earlier of (i) the closing of a subsequent offering of Company securities by the Company to qualified investors with an effective price per Ordinary Share of at least $
0.20
and (ii) the second anniversary of the issuance of such warrant, in each case at a per share exercise price of $
0.07
, subject to adjustment (the "Warrant"), at a per Unit purchase price of $
0.07
(the "Purchase Price").
o
The Company
undertook to offer,
issue and sell to the Investors,
following the closing of the Initial Offering,
additional Ordinary Shares for aggregate gross proceeds to the Company of up to an additional $
1.0
million (the "Follow on Offering"), at a price per share equal to the Purchase Price, which offering was subject to the achievement by the Company of certain pre-defined milestones on or before December 31, 2022, subject to a further extension at the discretion of the Company, to a date on or before February 28, 2023.
Following the partial fulfillment of the milestones, the Company initially raised from certain of the Investors $
705,000
in the Follow-on Offering. In April 2023, pursuant to the terms of the subscription agreement, an additional Investor joined the Follow-on Offering, as extended, in the amount of $
295,000
, resulting in aggregate proceeds to the Company of $
1.0
million in the Follow-on Offering, which completed the Follow-on Offering.
o
Following the closing of the Follow on Offering, the Company
undertook to
offer, issue and sell to the Investors
, following the initial closing of the Follow on Offering,
additional Ordinary Shares for aggregate gross proceeds to the Company of up to an additional $
800,000
(the "Final Offering"), at a price per share equal to the Purchase Price, which offering was subject to the achievement by the Company of a certain additional milestone
set forth in the subscription agreement and any additional milestones to be agreed upon in good faith negotiations
(the "Second Level Milestones"). The Final Offering shall be closed by no later than the close of business on the 30th business day after the delivery of notice by the Company to the Investors that the Second Level Milestones have been achieved.
Two of the Investors undertook to invest $
300,000
each in the Final Offering ($
600,000
in total), if the Second Level Milestones are achieved. Notwithstanding that the Second Level Milestones have not yet been fulfilled, an Investor waived such condition and pursuant to the terms of the agreement, invested in this round in the amount of $
105,000
, resulting in aggregate proceeds to the Company of $
105,000
in the Final Offering to date.
The Company expects to issue to the
Investors an aggregate of
14,285,712
Ordinary Shares and warrants to purchase an aggregate
28,
571
,425
Ordinary Shares in the Initial Offering in respect of the $
1.0
million raised, an additional aggregate
14,285,713
Ordinary Shares to the
Investors that participated in the Follow on Offering in respect of the $
1.0
million raised, and an additional
1,500,000
Ordinary Shares
to an Investor in respect of the $
105,000
raised to date in the Final Offering. If the Second Level Milestones are achieved and an
additional $
695,000
will be fully raised in the Final Offering, the Company would issue an additional aggregate
9,928,571
Ordinary
Shares to such Investors participating in the Final Offering.
F-
38
ITEM 19. Exhibits
Exhibit No.
Exhibit
    Description
1.1
Articles of Association of P.V. Nano Cell Ltd.
2.1
Description of Securities
4.1
(1)
Agreement,
    dated December 15, 2011, by and between P.V. Nano Cell Ltd. and the Ministry of National Infrastructures, Energy and Water Resources.
4.2
(1)
Share
    Purchase Agreement, effective November 29, 2009, by and among the shareholders of Nano Size Ltd. and P.V. Nano Cell Ltd.
4.3
(1)
Capital
    Note of IP Bank International (Suzhou) Co., Ltd., dated November 26, 2014
4.4
(1)
Agreement,
    dated September 9, 2009, by and between P.V. Nano Cell Ltd. and Dolev Bar-Guy Consulting and Management Ltd.
4.5
(1)
First
    Addendum to the Consultancy Agreement, dated April 9, 2013, by and between P.V. Nano Cell Ltd. and Dolev Bar-Guy Consulting and Management
    Ltd.
4.6
(1)
Second
    Addendum to the Consultancy Agreement, dated May 23, 2013, by and between P.V. Nano Cell Ltd. and Dolev Bar-Guy Consulting and Management
    Ltd.
4.7
(2)
P.V.
    Nano Cell Ltd. 2010 Option Plan (unofficial English translation from Hebrew original)
4.8
(3)
Securities
    Purchase Agreement, dated August 16, 2017, by and between P.V. Nano Cell Ltd. and Alpha Capital Anstalt
4.9
(3)
Warrant
    executed in favor of Amnon Mendelbaum and Steven Zadka
4.10
(3)
Share
    Purchase Agreement, dated May 8, 2018, by and between P.V. Nano Cell Ltd. and Slobel NV
4.11
(3)
Consultancy
    Agreement, dated November 12, 2017, by and between P.V. Nano Cell Ltd. and Evyatar Cohen
4.12
(4)
Amendment
    No. 1 to P.V. Nano Cell Ltd. 2010 Option Plan (unofficial English translation from Hebrew original)
4.13
(5)
Form
    of Loan Conversion and Warrant Cancellation Agreement between P.V. Nano Cell Ltd. and certain Investors
4.14
(5)
Form
    of Subscription Agreement, by and between P.V Nano Cell Ltd. and certain Investors ($3.0 million private placement)
4.15
(5)
Active
    Chairman Agreement dated April 19, .2020 between P.V. Nano Cell Ltd. and Exoro Ltd.
4.16
(6)
Letter
    of Engagement dated May 18, 2022, between P.V. Nano Cell Ltd and Ofer Greenberger.
4.17
Form of Subscription Agreement, by and between P.V Nano Cell Ltd. and certain Investors ($2.8 million private placement)
4.18
Letter from Ilanit Halperin, CPA, dated May 15, 2023
4.19
Compensation Policy for Executive Officers and Directors
8.1
(6)
List
    of Subsidiaries
12.1
Certification
    of Principal Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a), promulgated under the Securities Exchange Act of 1934,
    as amended
12.2
Certification
    of Principal Financial Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a), promulgated under the Securities Exchange Act of 1934,
    as amended
13.1
Certifications
    pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS
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 Label 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).
(1)
Filed as part of our Registration Statement on Form F-1 filed with the Securities and Exchange Commission on September 2, 2015 (File No. 333-206723).
(2)
Filed as part of our annual report on Form 20-F for the 2018 fiscal year filed with the Securities and Exchange Commission on May 15, 2019.
(3)
Filed as part of our annual report on Form 20-F for the 2017 fiscal year filed with the Securities and Exchange Commission on May 15, 2018.
(4)
Filed as part of our annual report on Form 20-F for the 2019 fiscal year filed with the Securities and Exchange Commission on April 29, 2021.
(5)
Filed as part of our annual report on Form 20-F for the 2020 fiscal year filed with the Securities and Exchange Commission on May 16, 2022.
(6)
Filed as part of our annual report on Form 20-F for the 2021 fiscal year filed with the Securities and Exchange Commission on June 21, 2022.
92
SIGNATURES
The registrant 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 Form 20-F on its behalf.
P.V. Nano Cell Ltd.
By:
/s/ Avi Magid
Avi Magid
Chief Executive Officer
Date: May 15, 2023
93