NASDAQ: QXL

On
January 17, 2018, the Company formed a new wholly-owned subsidiary under the laws of the State of Israel, Virtual Crypto Technologies
Ltd. (the “VCT Israel”), to develop and market software and hardware products facilitating and supporting the purchase and/or
sale of cryptocurrencies through ATMs, tablets, personal computers (“PCs”) and/or mobile devices. On February 22, 2018, the
Company’s name was changed from Emerald Medical Applications Corp. to Virtual Crypto Technologies, Inc. to reflect its new operations
and business focus. On January 27, 2020, VCT Israel was sold to a third party for NIS 50,000 ($14,459).

On
February 7, 2019, the Company entered into a share exchange agreement (the “Recapitalization Transaction”) with Gix Internet
Ltd. (formerly known as Algomizer Ltd.), a company organized under the laws of the State of Israel (“Gix Internet” or “parent
company”), pursuant to which, Gix Internet assigned, transferred and delivered 99.83% of its holdings in Viewbix Ltd., a company
organized under the laws of the State of Israel (“Viewbix Israel”), to the Company in exchange for shares of restricted common
stock of the Company, which resulted in Viewbix Israel becoming a subsidiary of the Company. In connection with the Recapitalization
Transaction, effective as of July 26, 2019, the Company’s name was changed from Virtual Crypto Technologies, Inc. to Viewbix Inc.

On
March 24, 2025, we entered into a securities exchange agreement with Metagramm and all of the shareholders of Metagramm (the “Metagramm
Shareholders”) pursuant to which we issued to the Metagramm Shareholders an aggregate of 19.99% of our issued and outstanding capital
stock on a pro rata and post-closing basis, equal to 1,323,000 shares of our common stock in exchange for 100% of Metagramm’s issued
and outstanding share capital on a fully diluted and post-closing basis, equal to 718,520 Metagramm ordinary shares. The transaction
closed on March 24, 2025 and resulted in Metagramm becoming a wholly-owned subsidiary of Viewbix.

On
November 9, 2025, Gix Media, Cortex Media Group Ltd. (“Cortex”), and certain founders of Cortex (the “Founders”)
entered into a Share Purchase Agreement (the “Cortex Purchase Agreement”) with Pro Sportority (Israel) Ltd. (the “Pro
Sportority”), a subsidiary of Minute Media Inc. (the “Minute Media”). Pursuant to the Cortex Purchase Agreement, Pro
Sportority acquired from Gix Media all of the issued and outstanding share capital of Cortex held by Gix Media, constituting 80% of Cortex’s
issued and outstanding share capital, and, together with similar agreements entered into with the other shareholders of Cortex and the
cancellation of all outstanding options, warrants, and other convertible securities of the Cortex, which resulted in Pro Sportority owning
100% of Cortex’s issued and outstanding share capital on a fully diluted basis (the “Cortex Sale”). The Cortex Sale
was signed and closed on November 9, 2025. As a result, Cortex became a wholly-owned subsidiary of Pro Sportority and Cortex ceased being
a majority-owned direct subsidiary of Gix Media and an indirect subsidiary of Viewbix.

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On
December 15, 2025, we entered into a securities exchange agreement with Quantum and certain of the shareholders of Quantum (the “Quantum
Shareholders”) pursuant to which we agreed to issue to the Quantum Shareholders an aggregate of up to 40.0% of our issued and outstanding
capital stock as of December 15, 2025, inclusive of the 800,000 shares of our common stock issuable by us in a private placement offering
that we entered into in November 2025 (the “Private Placement Shares”), consisting of (i) up to 2,666,000 shares of our common
stock, representing 19.99% of our issued and outstanding capital stock (the “Viewbix Exchange Shares”), inclusive of the
Private Placement Shares, and (ii) pre-funded warrants to purchase up to 4,447,595 shares of our common stock, representing the balance
of up to the 40.0%, as of December 15, 2025, less the Viewbix Exchange Shares, in exchange for up to 100%, but not less than 85%, of
Quantum’s issued and outstanding share capital on a fully diluted and post-closing basis, equal to an amount up to 589,319 of Quantum’s
ordinary shares. The transaction closed on March 4, 2026 and resulted in us acquiring 100% of Quantum’s issued and outstanding
share capital on a fully diluted and post-closing basis and Quantum becoming a majority-owned subsidiary of Viewbix.

Business
Overview

Viewbix
Inc. (the “Registrant”, “Viewbix” or the “Company”) and its subsidiaries are focused on digital advertising,
quantum technology and computing and enterprise artificial intelligence (AI) solutions.

Our
primary business focus is a digital advertising platform that develops and markets a variety of technological platforms that automate,
optimize and monetize digital online campaigns. Viewbix’s operations were previously focused on analysis of the video marketing
performance of its clients as well as the effectiveness of their messaging (“Video Advertising Platform”). With the Video
Advertising Platform, Viewbix allowed its clients with digital video properties the ability to use its platforms in a way that allows
viewers to engage and interact with the video. The Video Advertising Platform measures when a viewer performs a specific action while
watching a video and collects and reports the results to the client. However, due to the Company’s failure to meet predetermined
sales targets which were set pursuant to the recapitalization transaction with Gix Internet Ltd. in January 2020, the Company determined
to reduce its operations and the size of its sales and R&D team in the Digital Advertising Platform.

The
Company, through its subsidiary, Gix Media Ltd. (“Gix Media”), is focused on digital advertising operations for ad search
(the “Search Platform”). Gix Media develops and markets a variety of technological software solutions that automate, optimize
and monetize online campaigns. These technological tools enable advertisers and website owners to earn more from their advertising campaigns
and generate additional profits from their sites. Through the Search Platform, the Company provides services to leading search engines
worldwide (“Search Engines”) by developing, marketing and distributing software products to internet users. The operations
and activity on this platform are powered by Gix Media.

As
of November 2025, in addition to Gix Media’s Search Platform, the Company, through a previous majority-owned subsidiary of Gix
Media, Cortex, operated a digital content platform, which produced engaging content and marketing material in various languages to
various target audiences, in order to generate revenues from advertisements displayed together with the content, which are posted on
digital content, marketing and advertising platforms. Following the Cortex Sale (as defined below), the Company only operates the
Search Platform and Cortex is presented as discontinued operations in the Company’s audited consolidated financial statements
for the years ended December 31, 2025 and 2024. For additional information, see “Item 7. Management’s Discussion and Analysis of Financial Condition
and Results of Operations—Recent Developments—Sale of Cortex”.

The
Company, through its wholly-owned subsidiary, Quantum, is focused on developing and promoting quantum algorithms for the transportation,
drug discovery and security segments as well as developing quantum-based GPS replacement and quantum atom accuracy solutions. Quantum
currently owns and operates six portfolio-companies, each dealing with a different quantum segment and challenge. Quantum’s proprietary
intellectual property portfolio, including an innovative patent in quantum error correction, sub-licensed in collaboration with Ramot,
the technology transfer company of Tel Aviv University, addresses critical challenges in noisy intermediate-scale quantum devices by
enabling efficient, real-time decoding of surface code errors—reducing computational overhead by up to 50% compared to traditional
methods and supporting scalable fault-tolerant quantum computing.

6

The
Company, through its wholly-owned subsidiary, Metagramm, is focused on AI and natural language processing (NLP) communication-based solutions.
Metagramm specializes in developing advanced writing assistance tools that leverage artificial intelligence, machine learning and natural
language processing technologies. Metagramm’s main product, “Bubbl” is a writing tool designed to provide personalized
and customized text tailored to the user’s unique expression and can translate various languages into English. Metagramm licenses
its products on a subscription basis to businesses and individual customers.

Digital
Advertising - Viewbix

Search
Platform

Gix
Media’s Search Platform allows for the referral of user traffic (i.e., searches that are performed by internet users) to Search
Engines, such as Yahoo and Bing, where the Search Engines display the ads of their customers. The Search Engines pay Gix Media for the
searches that were referred by it, based on the amount of consideration that the Search Engine receives from the advertisers for the
user traffic generated, less a certain percentage from the revenues attributed to the Search Engine. Since the customers of Gix Media
are the Search Engines, and not the advertisers, Gix Media recognizes revenues for the actual amount received from the Search Engines,
and not from the advertisement revenue itself.

The
referral of user traffic by Gix Media to the Search Engines is possible after users download Gix Media’s products, which are browser
add-ons, usually from the browser stores (mostly Google Chrome browsers) and by downloading desktop software products, free of charge,
for the Apple operating system (for Mac computers) and for the Microsoft operating system (for PC computers). When downloading Gix Media’s
products, the users grant permission to Gix Media to refer the searches performed while using Gix Media’s products to the Search
Engines.

Gix
Media also provides traffic referral services to Search Engines through the referral of traffic of users who engage search ads generated
by Gix Media, or the “Search to Search” model. These ads are displayed on SERP’s Search Engines’ result pages
(SERP) that are purchased by the Company from other Search Engines (such as Yahoo! Bing / Microsoft Ads and Google). When such user clicks
on these search ads, Gix Media refers the user to a paid offering from a Search Engine which contains ads that are related to the initial
ad made by Gix Media (the Company buys ad space from Search Engines and sell them to other search ads while profiting from the price
difference).

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Business
Model

The
Search Platform is operated through two models, direct and indirect:

Direct
Model

Gix
Media operates its Search Platform using a direct model whereby it refers searches that are conducted by users of its products, which
are thereafter distributed to Search Engines directly by Gix Media.

Additionally,
through the direct model Gix Media operates its Search to Search model and provides traffic referral services to the Search Engines through
the referral of traffic of users who engage search ads generated by Gix Media.

The
revenues generated by Gix Media from the Search Platform applying this model, constituted approximately 98% and 64% of the total revenues
of Gix Media for the fiscal year-ended December 31, 2025 and December 31, 2024, respectively.

For
the year ended December 31, 2025, through the date of the Cortex Sale, revenues generated by Cortex from the Content Platform are entirely
from the direct model.

Indirect
Model

Gix
Media also operates its Search Platform using an indirect model, whereby it refers searches that are conducted by users of products developed
by third party strategic partners (in contrast to users of its own products as conducted through the direct model), which are thereafter
distributed to Search Engines by Gix Media. Gix Media engages with strategic partners who have similar products and allow these strategic
partners to integrate Gix Media’s technological tools into their own products in order to refer searches conducted by resulting
users to the customers of Gix Media. Using this model, Gix Media shares revenues received from Search Engines with its strategic partners.

The
revenues generated by Gix Media from the Search Platform applying this model, constituted approximately 2% and 37% of the total revenues
of Gix Media for the fiscal year-ended December 31, 2025 and December 31, 2024, respectively.

Growth
Strategy

●
Growth
through Mergers and Acquisitions. We continue to identify attractive opportunities, such as our acquisition of Quantum, and examine
different options to perform additional acquisitions. We will focus on companies that operate in emerging industries and which present
considerable commercial potential. We believe that we can expand our footprint in our industry through mergers and acquisitions,
which will also lead to the recruitment of additional human capital thereby supporting existing and new customer needs.

●
Expansion
of Product Range, Search Platform. In 2026, we intend to focus on the expansion of our product range by the development and distribution
of new products in attractive yet related sectors. In particular we intend to focus on new products for the Search to Search model
and Indirect Model.

●
Expansion
of Quantum Business Unit. We are expanding, and intend to continue to expand, our quantum computing initiatives by advancing
the development and commercialization of our quantum technologies and related applications. We plan to increase investment in research
and development, enhance our technical infrastructure, and broaden our engagement with enterprise, academic and governmental partners
to accelerate adoption across targeted industries and verticals. In addition, we expect to pursue strategic collaborations and platform
integrations designed to expand market reach, support product deployment and drive technological innovation within the evolving quantum
ecosystem.

8

Products
and Services

Search
Platform

●
Add-ons
to internet browser (referral of searches directly and indirectly). Internet users download free browser add-ons, usually from
browser stores. These browser add-ons enhance browser capabilities when activated by the user, and offer users services such as file
converters, video players, radio players, games, safe internet usage, different designs of backgrounds, different calculators and
more. In addition, these add-ons allow us to refer the searches of these users to the customers of the Search Engines.

●
Desktop
and mobile apps (referral of searches directly and indirectly). Free software products for Apple and PC computers provide users
services similar to the add-ons of the internet browsers. After the users download these software products, they grant permission
to us to refer the searches performed on these products to the Search Engines.

●
Searches
to Search (referral of searches directly). The process of referring searches to Search Engines starts with the purchase of search
results ads on Search Engines’ result pages (such as Yahoo!, Bing, Microsoft Ads and Google). The ad will offer the user a link
to receive information or content on a certain subject. Users who click these ads will be directed to the result page of the Search Engine
that displays relevant content from the Search Engines, based on the search terms related to the search result ad. This process involves
acquiring search result ads that appear on Search Engines’ results pages in response to relevant user queries. The monetization
process of the “Search to Search” activities of Gix Media occurs through advertising on Search Engines, where the generated
user traffic is directed to search result ads on other Search Engines’ result pages, creating a cycle of buying and selling search-based
advertisements. of ad buying and selling.

Stage
A: Search result ads purchased by Gix Media are displayed on a Search Engine’s result page.

9

○
Stage
B: Search results are displayed to the user after the user clicked the ad content.

When
purchasing these search result ads, we receive assistance from Search Ads, a system that we developed for the purpose of managing the
purchase process. These self-designed systems will then find an optimal combination designed to yield maximum profits at a given time
in relation to specified variables, such as: the costs of the ad space, the payment that we will receive as a result of user traffic
that was referred by our content ads on this ad space, the amount of available user traffic for the different search terms and the click
percentage of each such search. In addition, our self-designed system can also stop a purchase and change prices for the purpose of maximizing
performance.

Search
Systems:

The
technological backbones of our Search Platform involve the following key systems:

●
Online
campaign management. This system runs various platforms and includes modules for measurement of campaign performance, Business
Intelligence (“BI”) tools, and general management of campaigns for different customers. The system enables optimization
and automation of internet campaigns by data and recommendations provided by the BI system. These systems are based on predictive
models that were developed by Gix Media.

●
Optimization
systems. Gix Media developed systems which are used for the optimization of the appearance of the content displayed to users,
including landing pages and the creation of landing pages. This system periodically analyzes and assesses the effectiveness of the
content displayed to users. These systems extract and analyze data from our intelligence and fraud detection systems and automatically
recommend the most effective and efficient content in real- time.

●
Fraud
detection system. This system detects, through the use of an algorithm, fraud attempts to flood our systems with misinformation,
including, for example, misinformation regarding the installation attempts of browser add-ons.

●
Proprietary
BI system. This system was developed by Gix Media and includes three layers:

(i)
Infrastructure.
This layer allows transmission of statistical data regarding various events according to certain criteria and/or requirements set
by us, including: performance of online searches, performance of any action on ads, performance of an installation, etc. The infrastructure
collects a wide variety of background data on any event and dozens of parameters that are registered and collected (while complying
with privacy protection laws that apply to our operations), which allows the performance of business and technical optimizations.

(ii)
Data
processing and storage. This layer allows us to process the big-data we gather on our platforms and to divide such data into interim
tables based on different parameters. This stage is performed daily, by a tool that was developed by Gix Media. Vast amount of data
is accumulated on a daily basis, which requires a secure, easy to access storage that can be cost-effectively analyzed thereafter.
For this purpose, Gix Media uses a combination of in-house technology and external tools of leading companies, such as Microsoft
and Google.

(iii)
Data
presentation. This layer presents the data to Gix Media’s customers in an easy, fast, and convenient manner, while combining
other layers of information and integrating statistical models that were developed by Gix Media. The presentation tool that we use
is Sisense, a popular BI platform, which is a tool used by leading companies in the industry around the world and ranked highly by
the Gartner Company.

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The
BI system allows us to have real time control over critical events occurring on our systems by sending alerts directly to our employees
with the relevant information, including assistance to customers in purchasing media, reports about malfunctions and the discovery of
any irregular online behavior. In addition, the BI system also sends automated reports to us and to our different partners (providers/customers),
which present data on a weekly/quarterly/monthly or on a cumulative basis to be used by management and finance departments.

●
Data
matching with external platforms. This layer receives data from external partners – mainly costumers while combining other
layers of information from media suppliers and integrating statistical models that were developed by Gix Media. Later on, these enriched
data sets are sent back to our suppliers to optimize and accurate or media buying goals so we can lower media cost and increase sale
value of purchased ads. This feature is mainly used for the Search to Search model.

●
Website
Management System. The free software, such as the desktop apps, mobile apps and browser add-ons owned by Gix Media, are marketed
in some cases through dedicated websites. This system enables two main functions:

●
Management
and design of websites, including choosing the types of websites, defining texts, designing, and selecting images.

●
Adoption
of the website according to the functionality of each free software or browser add-on.

●
Landing
Page and Companion Information Management System. This system allows for adjustments between a variety of landing pages and companion
information for each of Gix Media’s products. The adjustments generated by the system vary according to the type of product,
regulatory requirements, operating systems, and type of browser. The system supports landing pages for the distribution of browser
add-ons and free software for Apple operating systems and for Microsoft operating systems.

This
system consists of two main modules:

●
A
system for managing and defining various landing pages for different products. In this module, a wide selection of landing page types
can be defined, along with defining texts, design, and selecting images. The system includes a collection of logical commands that
allow for quick action.

●
A
landing page submission system which presents the landing page and the relevant companion information with the appropriate functionality
for each free software or browser add-on.

●
Distribution
Management System. This system is an automated management interface based on a collection of logical commands that distributes
the traffic routes from internet users to various Search Engines. This system predefines the desired country and the desired portion
of traffic to be routed to that country.

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Customers

Search
Platform

As
of the date of this Annual Report, the customers of Gix Media in the Search Platform are Search Engines. These Search Engines engage
with their customers who are different advertisers, in advertising and promotion agreements.

Gix
Media engages with Search Engines according to customary industry conditions, through either the direct business model or indirect business
model. The average distribution of the revenue sharing between Gix Media and Search Engines is between 70% -80% (in favor of Gix Media).

As
of December 31, 2025, Gix Media has one major customer, a reputable international Search Engine (“Gix Major Customer”). Gix
Media has generated revenues of approximately $1.2 million from the Gix Major Customer, constituting approximately 81% of the total revenues
of Gix Media during the year ended December 31, 2025. Our relationship with this Gix Major Customer originated in 2013 upon the signing
of an exclusive cooperation agreement, which is extended from time to time. In March 2020, an extension of the foregoing agreement was
signed, whereby the term of the agreement was extended until October 26, 2023, was automatically renewed for an additional one year period
until October 26, 2024, and will continue to be automatically renewed for additional one year periods, unless either party gives notice
of non-renewal 90 days in advance.

Marketing
and Distribution

We
have a wide variety of products, and each product requires specific, tailor-made marketing and distribution models. We have advanced
BI systems that improve constantly, which assist in distributing different products online, with a goal of maximum customization of the
product to the end user. These BI systems were developed in-house by Gix Media.

Gix
Media also designs and implements an advanced self-service marketing and launch campaigns which market its products directly across the
internet, in various languages and countries.

To
support our sales force, our team participates at industry conferences, invests in public relations, utilizes existing commercial relationships
in order to build brand awareness and acquire new customers and creates meetings online and in-person with key industry players.

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Competition

The
competition in the digital advertising market is fierce. There are many players in all areas of the market: both a large number of advertisers
and content owners, a large number of software products and algorithms, many advertising platforms and technologies. New players appear
frequently in all of these areas. We compete with many companies that offer solutions for advertisers and website owners, including in
the pillar of ad search, and with tools that allow internet users to change the default search settings on their browsers. There is a
large number of ad search companies that offer services that are similar to those provided by us. Our products compete on limited budgets
of advertisers and on an inventory of ad spaces from website owners. Some of our competitors are companies that are considerably bigger
than the Company with considerably higher budgets, such as Google, Meta, and Microsoft. Since a major part of the Company’s revenues
is generated from a supply of searches, the Company also competes with the providers of the Search Engines themselves, such as Google,
Microsoft, IAC and Verizon Media. Many of the present and potential competitors of the Company have financial, R&D, analytical systems,
production resources and sales and marketing systems that are significantly larger in scope than those of the Company.

Search
Platform

As
of the date of this Annual Report, there are companies that develop different types of software products which enable, in a partial manner,
the performance of some of the actions performed by Gix Media’s Search Platform. There is intense competition in the digital advertising
market, and Gix Media has many competitors from various fields. As of the date of this Annual Report, the Company cannot estimate its
size and positioning compared to its other competitors and its size in the ad search market. Our main competitors in this market include:
Ironsource, Perion, FireArc, Spigot, IAC and AOL.

Competition
Management

We
focus our competition management on developing advanced technological tools and receive updates from time to time regarding new technologies
that can be used to gain an advantage against our competitors. We also maintain high-quality and professional human capital with many
years of experience in order to maintain a competitive advantage.

We
act continuously to improve the user experience and improve our distribution methods so that we can reach a higher number of users and
continue to keep a critical mass of customers that will allow us to continue and promote its products and tools, and all in conformance
to the requirements and the existing and future platforms in the market.

Industry
Trends and Seasonality

The
digital advertising market is generally not materially affected by seasonality. Nevertheless, there is a seasonality trend reflected
during the fourth quarter of each fiscal year that is characterized by a higher volume of activity compared to the average, while the
first quarter is characterized by a lower volume of activity compared to the average. In general, advertising campaigns are performed
throughout the year in high intensity, and therefore the phenomenon of seasonality is not material in this market.

This
seasonality stems, among others, from changes in the major advertising budgets, usually towards the end of each quarter, and even more
so towards the end of each year. In addition, the last quarter of the year includes many events and dates that lead to an increase in
the advertisement budgets and in the volume of online traffic.

Intellectual
Property and Other Proprietary Rights

Our
commercial success depends, in part, on obtaining and maintaining patent and other intellectual property protection, in the United States
and internationally, for the technologies used in our products. We cannot be sure that any of our patents will be commercially useful
in protecting our technology. Our commercial success also depends in part on our non-infringement of the patents or proprietary rights
of third parties. The patent positions can be highly uncertain and involve complex and evolving legal and factual questions.

13

We
also protect our proprietary technology and processes, in part, by confidentiality and invention assignment agreements with our employees,
consultants, scientific advisors and other contractors. These agreements may be breached, and we may not have adequate remedies for any
breach. We also rely on trade secrets to protect our product candidates. However, our trade secrets may otherwise become known or be
independently discovered by competitors. To the extent that our employees, consultants, scientific advisors or other contractors use
intellectual property owned by others in their work for us, disputes may arise as to the rights in related or resulting know-how and
inventions.

Product
Development

Gix
Media focuses its R&D efforts in the Search Platform on improving existing products and their technologies, and on continuing the
development and optimization of the inter-organizational systems used in its activity.

During
the years ended December 31, 2025 and December 31, 2024, the total R&D expenses of the Company in the Search Platform, through Gix
Media, were $0.1 million and $0.8 million, respectively.

We
estimate that during the twelve months following the date of this Annual Report, we will invest a total amount of approximately $4.3
million in R&D expenses in the Quantum business unit, primarily to enhance technologies in this unit as well as our existing services
on the Search Platform.

Government
Regulation

Our
ability, and the ability of other marketing technology companies, to collect, augment, analyze, use, process and share data relies upon
the ability to uniquely identify devices across websites and applications, and to collect data about user interactions with those devices
for purposes such as serving relevant ads and measuring the effectiveness of ads. The processes used to identify devices are governed
by U.S. and foreign laws and regulations and are dependent upon their implementation within the industry ecosystem. Such laws, regulations,
and industry standards change frequently, including those relating to the level of consumer notice, consent and/or choice required when
a company uses data for certain purposes, including advertising, or employs cookies or other electronic tools to collect data about interactions
with users online. Legislators and Regulators around the world have adopted or proposed requirements regarding the collection, use, transfer,
security, storage, destruction, and other processing of personal data, and regarding the use of analytic tools, tracking technologies
and cookies

We
may be subject to a number of U.S. federal and state laws and foreign laws and regulations that affect companies conducting business
on the internet. The manner in which existing laws and regulations will be applied to the internet in general, and how they will relate
to our business in particular remain unclear and subject to change. Accordingly, we cannot be certain how existing laws will be interpreted
or how they will evolve in areas such as user privacy, data protection, content, use of “cookies,” access changes, “net
neutrality,” pricing, advertising, distribution of “spam,” intellectual property, distribution, protection of minors,
consumer protection, taxation and online payment services.

For
example, in the United States various federal laws have been passed, imposing obligations regarding the processing of personal data.
This trend began with the California Consumer Privacy Act (“CCPA”) which came into force on 1 January 2020. Since then, several
US states have passed similar privacy laws regulating the processing of personal data. The most recent data privacy legislation includes
the Delaware Personal Data Privacy Act (“DPDPA”), the Iowa Consumer Data Protection Act (“ICDPA”), the Nebraska
Consumer Data Privacy Act (“NCDPA”), the New Hampshire Privacy Act (NHPA”) and the New Jersey Data Privacy Act (“NJDPA”),
all of which came into effect on January 1, 2025. This laws and others like them create numerous obligations for the businesses and service
providers as well as rights for data subjects and individuals. The Digital Millennium Copyright Act (the “DMCA”), which aims
to reduce the liability of online service providers in certain situations if their users engage in copyright infringement, and other
federal laws, for example Children’s Online Privacy Protection Rule that restrict online service providers’ collection of
user data on minors as well as distribution of materials deemed harmful to minors. In many respects, these state laws focus on advertising
activities, mandating that businesses that engage in certain advertising uses of consumer personal data to offer and honor an opt-out
of such activities, including, in some states, through browser or device-based preference signals. These state privacy laws also provide
consumers other rights, such as to access, correct or delete their personal data (subject to certain limitations), opt out of certain
processing of their personal data, and impose special rules on the collection of data from minors, as well as transparency and data governance
obligations. Additionally, various states have in recent years passed laws containing registration and transparency requirements for
data brokers and other requirements. Such a wide range of obligations under privacy and related legislation and regulation could increase
our potential liability and adversely affect our business. Furthermore, there are also a number of legislative proposals pending before
the U.S. Congress and various state legislative bodies concerning various data protection topics, including, privacy, children data,
data brokers, which could affect us. Several federal laws such as the Controlling the Assault of Non-Solicited Pornography and Marketing
(“CAN-SPAM”) Act, the Children’s Online Privacy Protection Act (“COPPA”) or the Federal Trade Commission
(“FTC”) Act could also be applicable to some of our activities.

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The
interpretation of data protection laws and related laws and regulations, and their application to the internet, is unclear and in a state
of flux. There is a risk that these laws may be interpreted and applied in conflicting ways and in a manner that is not consistent with
our current data protection or business practices.

These
complex laws may be implemented, interpreted, or enforced in a non-uniform or inconsistent way across jurisdictions, and we may not be
aware of every development that impacts our business. These laws may also require us to make additional changes to our services in order
for us or our customers to comply with such legal requirements. It may also increase our potential liability as a result of higher potential
penalties for non-compliance and could reduce our ability to gather personal data used in the context of our services. As a consequence
of these new laws, our customers could require us to take on more onerous obligations in our contracts and restrict our ability to store,
transfer and process personal data. In some cases, it may impact our ability, or our customers’ ability to, offer our services
in certain locations, to deploy our solutions, to reach current and prospective customers, or to derive insights from data globally.

Foreign
data protection, privacy and other laws and regulations may affect our business, and such laws can be more restrictive than those in
the United States. For example, in Israel, the Protection of Privacy Law, 5741-1981 (and the regulations thereunder, together, the “Israeli
Privacy Protection Law”) impose obligations regarding processing, transferring and securing of personal data, such as the requirement
to properly notify data subjects, prior to collecting their personal data, regarding the nature and purposes of the collection and use
of their personal data and whether the provision of such data is a legal requirement or subject to their free will and consent; the requirement
to obtain valid informed consent from data subjects prior to collecting and using their personal data; conditions with respect to transfer
of personal data outside Israeli borders; conditions and restrictions regarding the use of any personal data for direct mailing; obligations
to meet certain data subject rights (such as access, rectification and deletion right; as well as data security obligations under Privacy
Protection Regulations (Data Security) 2017. In addition, in 2023, the Privacy Protection Regulations (Provisions Regarding Information
Transferred to Israel from the European Economic Area), 2023 (“EU Regulations”) were enacted and consequently provide, in
certain cases, additional rights to data subjects from the EEA and Israel.

Lack
of compliance with the Israeli Privacy Protection Law could result in enforcement actions, litigation (including class actions), fines
and penalties. Material amendment to the Israeli Privacy Protection Law was approved by the Israeli Parliament in August 2024 and will
take effect on August 14, 2025 (“Amendment 13”). Among other things, Amendment 13 expands the Privacy Protection Authority
investigation authority and the monetary sanctions that can be imposed for breach of the Israeli Privacy Protection Law, to substantial
amounts that may reach in certain cases millions of NIS.

In
the European Union, similar data protection rules exist, as well as privacy legislation restricting the use of cookies and similar technologies
(for example, the ePrivacy Directive discussed below). According to the General Data Protection Regulation (“GDPR”), of personal
data is only allowed on condition that the data subject has given his or her informed consent, or that a different legal basis for such
processing or collection exists and justifies the processing of the personal data in question. Moreover, the GDPR, has a wide territorial
scope, as well as a broad definition of personal data which may include geolocation data and online identifiers, the collection and processing
of which imposes more stringent legal requirements. Further, the GDPR includes stringent operational, legal and administrative requirements
for companies that process personal data and contains significant penalties for non-compliance. These laws and regulations generally
define personal data to include location data and online identifiers, which are commonly used and collected parameters in digital advertising
and, among other things, impose stringent user consent requirements and permit data subjects to request we discontinue using certain
data. In addition, some countries are considering or have enacted legislation requiring local storage and processing of data that could
increase the cost and complexity of delivering our services. In addition, new European initiatives have been announced by the European
legislators and regulators relating to, or that could impact cybersecurity, e-commerce, non-personal data, copyright, artificial intelligence
or cookies and tracking technologies. Notable recent initiatives include the Digital Operational Resilience Act (“DORA”)
applicable as of 17 January 2025 or the Data Act, whose obligations will mostly be applicable from September 2025 onwards.

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Additionally,
in the EU, the EU Directive 2002/58/EC (as amended by Directive 2009/136/EC), commonly referred to as the ePrivacy or Cookie Directive,
directs EU member states to ensure that accessing data on an internet user’s computer, such as through a cookie and other similar
technologies, is allowed only if the internet user has been informed about such access, and provided consent. A replacement for the ePrivacy
Directive is currently under discussion by EU member states to complement and bring electronic communication services in line with the
GDPR and force a harmonized approach across EU member states. Although it remains under debate, the proposed ePrivacy Regulation may
further raise the bar for the use of cookies, and the fines and penalties for breach may be significant and could affect our services,
business and revenues. We cannot yet determine the impact such future laws, regulations and standards may have on our business.

In
addition, the U.K.’s General Data Protection Regulation (the “UK GDPR”), imposes robust obligations for the collection,
control, use, sharing, disclosure and other processing of personal data and contains documentation and accountability requirements for
data protection compliance, as well as similar requirements and obligations as those included in the EU GDPR. Both the EU GDPR and the
UK GDPR expose us to similar fines and may subject us to increased compliance risk based on differing, and potentially inconsistent or
conflicting interpretation and enforcement by regulators and authorities (particularly, if the laws are amended in the future in divergent
ways). Failure to comply with these obligations can result in significant fines and other liability under applicable law. In particular,
under the GDPR, fines of up to EUR 20 million (or GBP 17.5 million under the UK GDPR) or up to 4% of the annual global revenue of the
noncompliant company, whichever is greater, could be imposed for violations of certain of the GDPR’s requirements. The GDPR requirements
apply not only to third-party transactions, but also to transfers of data between us and our subsidiaries, including employee data and
other forms of company data such as marketing data, CRM data, or candidate data.

Data
privacy legislation restricts the cross-border transfer of personal data. Specifically, the GDPR, and the U.K. GDPR, generally prohibit
the transfer of personal data from the Europe and U.K., to third countries unless the transfer is to an entity established in a country
deemed to provide adequate protection (such as Israel or the U.K.) or the parties to the transfer have implemented specific safeguards
to protect the transferred personal data, such as the EU or UK Standard Contractual Clauses (“SCCs”) or a certification under
the EU-US Data Privacy Framework (“DPF”). The European Data Protection Board (“EDPB”) released a comment on the
supplementary measures that companies may use to ensure an ‘EU level’ of data protection - such as conducting impact assessment
for data transfers, which assess the use of SCCs on a case-by-case basis, taking into account the legal regime applicable in the destination
country, and in particular applicable surveillance laws and rights of individuals as well as considering additional technical and organizational
measures and/or contractual provisions that may be needed to be put in place. On June 4, 2021, the European Commission issued a new set
of SCCs under the GDPR for data transfers. These modernized SCCs replace the three sets of SCCs that were adopted under the previous
Data Protection Directive 95/46. In addition, on February 2, 2022, the Secretary of State of the U.K. laid before the Parliament the
international data transfer agreement (IDTA) and the international data transfer addendum to the European Commission’s standard
contractual clauses for international data transfers (Addendum), which came into force on March 21, 2022, following Parliamentary approval.
Contracts involving data processing which are based on the old EU SCCs and concluded on or before September 21, 2022, continued to provide
appropriate safeguards under the U.K. GDPR until March 21, 2024. In some jurisdictions like the EU, UK and Israel, the law and guidance
on data transfers is rapidly developing and recent developments will require us to review and may require us to amend or supplement the
legal mechanisms by which we make and/or receive personal data transfers.

On
November 1, 2022, the Digital Markets Act, (the “DMA”), entered into force and on November 16, 2022, the Digital Services
Act (the “DSA”), followed. For the DSA, most provisions became applicable on February 17, 2024. The DSA and the DMA focus
on creating a safer digital space, protecting fundamental rights of all users of digital services, and establishing a level playing field
for businesses and consumers with regards to online platforms. As further guidance is issued and interpretation of both the DSA and the
DMA evolves, it is difficult to assess the impact of the DSA and DMA on our business or operations, but, to the extent applicable, it
may require us to modify our practices and policies and we could incur substantial costs as a result.

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Because
our services are accessible worldwide, certain foreign jurisdictions may claim that we are required to comply with their laws, including
in jurisdictions where we have no local entity, employees or infrastructure.

Furthermore,
new laws and regulations (including privacy and AI) pose additional and new risks, including, without limitation, data privacy and security
risks. Threats could include potential data leaks, social engineering attacks, and decision-making based on manipulated information.
Growing regulatory requirements for information security and data protection add to the challenge (whether related to privacy or data
protection or not, such as those related to AI, data, or digital services). Moreover, attackers may leverage AI and exploit vulnerabilities
in AI systems.

These
laws and regulations result in significant compliance costs and could result in restricting the growth and profitability of the Company’s
business by impeding the development of new services. The cost of complying with existing or new data privacy or data protection laws
and regulations may limit our ability to gather the personal data needed to provide our services. It could negatively impact the use
or adoption of our services, reduce overall demand for our services, make it more difficult for us to meet expectations from or commitments
to our clients, lead to significant fines, penalties, or liabilities for noncompliance, or impact our reputation, any of which could
harm our business.

We
may incur substantial fines if we violate any laws or regulations relating to the collection or use of personal data. Our actual or alleged
failure to comply with applicable privacy or data protection laws, regulations, and policies, or to protect personal data, could result
in enforcement actions and significant penalties against us, which could result in negative publicity and costs, subject us to claims
or other remedies, and have a material adverse effect on our business, financial condition, and results of operations. See “Item
1.A Risk Factors - Risks Related to Data Protection Regulation,” for further information.

Quantum
Technology - Quantum X Labs

Overview

Quantum
X Labs is an Israeli multidisciplinary quantum technology hub and IP-centric lab focused on developing foundational and applied innovations
across quantum computing, sensing, navigation, and security. Its mission is to research, develop, and own quantum technology intellectual
property that addresses major challenges emerging as the quantum revolution scales into commercial and industrial use. Quantum X Labs
combines deep academic research with practical engineering to create deployable quantum solutions.

Quantum
X Labs maintains a portfolio of five dedicated operating subsidiaries, each targeting distinct applications in quantum technology —
a structure that allows for focused research and development, faster innovation cycles, and clearer path to potential commercialization
across markets that range from defense navigation to biomedical computing. Through its multi-subsidiary structure, it simultaneously
tackles multiple markets while retaining shared intellectual property and research advantages with an aim to bridge cutting-edge research
with real-world impact.

Quantum
technology generally comprises three principal areas: quantum computing, quantum communication, and quantum sensing. Quantum computing
applies principles of quantum mechanics to perform certain computational tasks more efficiently than classical systems and to address
problems that are not practically solvable using conventional computing. Quantum communication focuses on the transmission of information
using quantum methods and is designed to enhance the security of data exchange. Quantum sensing involves the use of quantum-based systems
to measure physical phenomena, such as electromagnetic fields, gravity, and time, with significantly greater sensitivity than traditional
sensors.

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Quantum
X Labs benefits from strong ties to leading Israeli academic institutions, which support a multidisciplinary approach combining advanced
theoretical research with applied engineering. Members of its team and management have academic backgrounds and research affiliations
with institutions, such as Tel Aviv University, Hebrew University of Jerusalem, Technion – Israel Institute of Technology, and
the Weizmann Institute of Science. These academic connections contribute to its ability to integrate research across mathematics, physics,
and computer science, and to translate foundational quantum concepts into practical algorithms, intellectual property, and technology
development relevant to next-generation quantum computing platforms.

Strategy

Quantum
X Labs’ model of distinct subsidiaries under one umbrella is designed to:

●
Isolate
technical risk: Each quantum domain has unique challenges and development cycles. The portfolio approach mitigates risk by diversifying
across applications rather than concentrating in a single technology stack.

●
Improve
potential commercialization velocity: Dedicated operating companies can focus on tailored product roadmaps, partnerships, and
market entry strategies, accelerating potential path to market for each line.

●
Build
reusable IP: Core innovations, such as quantum error correction cores, quantum algorithms, and foundational processing toolchains,
can be shared across subsidiaries, creating cross-domain synergies.

●
Enable
strategic partnerships: Structuring teams as independent operating entities facilitates collaborations with academic institutions,
government labs, and industry partners across different verticals.

Portfolio
Companies and Segments

●
Quantum
Transportation

Focus:
quantum error correction and decoding infrastructure for quantum hardware.

Quantum
Transportation, a 30%-owned subsidiary of Quantum X Labs, develops tools that help quantum hardware teams accelerate research and choose
efficient quantum error correction schemes tailored to their systems. The subsidiary supports labs and smaller companies that lack in-house
quantum error correction expertise. Its platform includes simulators and research environments that improve error tolerance and robustness
in quantum processors.

●
CliniQuantum

Focus:
quantum-enhanced algorithmic platforms for biomedical research and clinical trials.

CliniQuantum,
a 46%-owned subsidiary of Quantum X Labs, is developing quantum-accelerated computing methods, including a provisional patent filed for
quantum-enhanced Markov Chain Monte Carlo (MCMC) sampling to improve complex probability sampling in clinical research. This technology
aims to reveal hidden structures in biological and patient data, enabling faster and more efficient clinical trial modeling, personalization
of treatment response, and broader insights across high-dimensional biological datasets

●
Quantum
Gyro

Focus: quantum inertial navigation systems and gyroscope technologies.

Quantum
Gyro, a 40%-owned subsidiary of Quantum X Labs, focuses on developing chip-scale nuclear magnetic resonance (NMR) gyroscope sensors that
detect rotation based on shifts in quantum precession frequencies. These systems aim for ultra-low drift and high stability, crucial
for navigation where GPS signals are unavailable or jammed (e.g., subterranean, underwater, or defense environments).

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●
QuantumQ
Security

Focus:
next-generation quantum-based cyber and communication security.

QuantumQ
Security, a wholly-owned subsidiary of Quantum Gyro, builds quantum-native security technologies that leverage quantum principles to
enhance protections for communications, data systems, and critical infrastructure. The subsidiary operates from a foundation of Quantum
X Labs’ error correction IP and broader quantum algorithm knowledge, aiming to strengthen cybersecurity against both classical
and future quantum threats.

●
Quantum
Atom Accuracy

Focus:
high-precision quantum timing and sensing systems.

Quantum
Atom Accuracy, a wholly-owned subsidiary of Nuclear Quantum, concentrates on quantum-level measurement and timing technologies —
platforms that push beyond classical limits in precision and stability. While details on products are emerging, this unit contributes
to timing, synchronization, and high-resolution measurement capabilities that can be applied in communications, sensing systems, and
advanced research

●
Nuclear
Quantum

Focus:
quantum centric supercomputing for advanced nuclear engineering.

Nuclear
Quantum, a 40%-owned subsidiary of Quantum X Labs, integrates quantum algorithms into established nuclear engineering workflows to overcome
the computational bottlenecks that slow reactor design, licensing, and long term operation. Nuclear Quantum develops quantum ready algorithms
and hybrid frameworks that accelerate the core numerical problems inside nuclear simulation and optimization.

Industry
Overview and Market Opportunity

According
to Markets and Markets, the quantum computing market was valued at $1.3 billion in 2024 and is anticipated to be $ 5.3 billion by 2029,
growing at a CAGR of 32.7% from 2024 to 2029. The growth of the quantum computing market is driven by several key factors, most notably
the transformative potential of quantum computers to significantly outperform classical systems in specific applications, particularly
in computationally intensive tasks such as large-number factorization and accurate simulation of quantum systems. This enhanced capability
is driving demand across industries seeking more powerful solutions to complex problems.

According
to a June 2025 report by McKinsey & Co. titled The Year of Quantum: From concept to reality in 2025, the three principal areas
of quantum technology—quantum computing, quantum communication, and quantum sensing— could together generate up to $97 billion
in revenue worldwide by 2035, with quantum computing having the potential to be worth $28 billion to $72 billion, quantum communication
having the potential to be worth $11 billion to $15 billion, and quantum sensing having the potential to be worth $7 billion to $10 billion.
McKinsey further predicts that by 2040, the total quantum technology market could reach $198 billion.

According
to a July 2024 report by Boston Consulting Group titled Quantum Computing On Track to Create Up to $850 Billion of Economic Value
By 2040, quantum computing will create $450 billion to $850 billion of economic value globally, sustaining a $90 billion to $170
billion market for hardware and software providers by 2040. Further, despite a 50% drop in overall tech investments, quantum computing
attracted $1.2 billion from venture capitalists in 2023, underscoring continued investor confidence in its future. Governments around
the world are also making big investments in the technology, envisioning a future in which quantum computing plays a central role in
national security and economic growth.

Quantum
computing has potential applications across a range of industries are increasingly viewed by governments and industry participants as
strategic national assets, comparable in importance to artificial intelligence, semiconductors and space systems. Several governments
have made significant long-term public investments to support the development and deployment of quantum technologies, including a £2.5
billion, 10-year National Quantum Strategy announced by the United Kingdom in 2024, the European Union’s €1 billion Quantum
Flagship program, and multi-billion-dollar national quantum initiatives in the United States, China, Japan and Canada. These initiatives
reflect a broad policy view that leadership in quantum technologies is important for national security, secure communications and strategic
technological independence.

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In
optimization, quantum algorithms may enable more efficient solutions to complex problems, including supply chain management, financial
modeling, and manufacturing processes. In simulation, quantum systems can be used to model molecular and material behavior, which may
support research in areas such as drug discovery and materials science. In machine learning, quantum-based techniques may enhance data
analysis, pattern recognition, and predictive modeling across sectors including finance, healthcare, and autonomous systems.

The
quantum computing market is expected to develop over time as a result of continued investment in research and development, collaboration
between established technology companies and emerging providers, and ongoing advancements in quantum hardware and software. As the technology
matures, quantum computing may enable new computational approaches that are not achievable with classical systems and may support innovation
across multiple industries.

Key
Application Areas

Quantum
technologies are expected to impact multiple industry verticals, although many applications remain at early stages of commercialization.

●Cybersecurity.
Large-scale quantum computers may in the future be capable of breaking widely used public-key
encryption systems. As a result, data intercepted today could potentially be decrypted in
the future (“store now, decrypt later”). Governments and enterprises are therefore
beginning to transition toward post-quantum cryptography (“PQC”). The U.S. government
has established a target of migrating federal systems to PQC by 2035, which is driving near-term
demand for quantum-resistant security solutions, independent of the timeline for practical
large-scale quantum computers.

●Navigation
and sensing in contested environments. Quantum sensing and inertial navigation technologies
enable positioning, navigation and timing without reliance on GPS and may operate in environments
subject to jamming or spoofing. These capabilities are viewed as strategically important
for defense, space, maritime and critical infrastructure applications, where system resilience
and operational continuity are required.

●Chemistry,
materials and energy. Classical computers face limitations in accurately simulating complex
quantum systems at scale. Quantum computing has the potential to enable faster discovery
of new materials and catalysts, improve battery and energy storage design and reduce research
and development timelines and costs. These applications are widely considered among the largest
long-term commercial opportunities for quantum computing.

●Life
sciences and pharmaceuticals. Quantum-enhanced computation may improve molecular simulation,
accelerate drug discovery and enable more accurate modeling of biological systems. While
these applications remain largely experimental, pharmaceutical companies and research institutions
are actively exploring pilot use cases.

●Manufacturing,
transportation and supply chains. Optimization problems in logistics, scheduling and
production planning can become computationally intensive for classical systems as scale increases.
Quantum-based approaches seek to improve efficiency, reduce operational and energy costs
and support real-time decision-making in complex systems.

Despite
increasing investment and research activity, many quantum technologies remain at an early stage of technical maturity, and the timing
and extent of their commercial adoption remain uncertain.

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Intellectual
Property

Quantum
X Labs’ ability to protect its intellectual property is paramount to our business. Quantum X Labs relies upon a combination of
protections afforded to owners of patents, designs, copyrights, trade secrets, and trademarks, along with employee and third-party nondisclosure
agreements and other contractual restrictions to establish and protect Quantum X Labs’ intellectual property rights. In addition,
industry know-how and unpatented trade secrets in the fields of research, development and engineering are an important aspect of its
business by ensuring that its technology and strategic business assets remain confidential. Quantum X Labs pursues patent protection
when it develops a patentable invention and the benefits of obtaining a patent outweigh the risks of making the invention public through
patent filings.

Quantum’s
Quantum X Labs’ proprietary intellectual property portfolio includes an innovative patent in quantum error correction, sub-licensed
in collaboration with Ramot, the technology transfer company of Tel Aviv University.

Competition

The
quantum technology and computing market is highly competitive and rapidly evolving, with participants ranging from large, well-capitalized
multinational technology companies, such as IBM, Google, Microsoft, Amazon, and Intel, to emerging startups and academic spin-offs, such
as IonQ, Rigetti Computing, D-Wave, PsiQuantum, and Quantinuum. We compete with organizations developing quantum computing hardware,
quantum software platforms, and quantum-enabled services, many of which have substantially greater financial, technical, and personnel
resources than we do. Competition is primarily based on technological performance, scalability, reliability, intellectual property, ecosystem
partnerships, and the ability to attract and retain specialized talent. We also face competition from classical computing solutions that
continue to improve and may address certain use cases targeted by quantum technologies.

Government
Regulation

Our
operations are subject to a variety of laws and regulations in Israel and in other jurisdictions in which we operate or conduct business,
including those relating to export controls, data protection and privacy, cybersecurity, intellectual property, employment, and government
funding and procurement. In particular, certain quantum technologies may be subject to Israeli export control and defense regulations,
as well as U.S. and other foreign export control regimes, which could restrict our ability to collaborate with international partners,
share technical information, or commercialize our products in certain markets. We may also be subject to regulations applicable to cryptographic
technologies, cloud-based services, and government-sponsored research and development programs. Compliance with these regulatory frameworks
may increase our operating costs, require modifications to our business practices, and limit certain commercial opportunities.

Enterprise
AI - Metagramm

Metagramm
is a specializes in developing advanced writing assistance tools that leverage artificial intelligence, machine learning, and natural
language processing technologies. Their flagship product, Bubbl, is an innovative writing tool designed to provide personalized and customized
text tailored to the user’s unique expression. Unlike common AI writing tools that often produce machine-like results, Bubbl offers
a more human-like writing experience. It supports various modes, including an interactive re-write floating window mode, interactive
inline mode, and a grammar-only mode. Additionally, Bubbl caters to different writing needs with specialized profiles for business, medical,
academic, and blogging, each incorporating tailored assistance tools to facilitate the writing process.

Human
Capital Management

As
of March 26, 2026, we (either directly through Viewbix, or through Gix Media, Metagramm or Quantum) employ 21 full-time employees,
part-time employees and consultants. Of these employees or consultants, 2 are employed or engaged by Gix Media, 2 are employed or engaged
by Metagramm and 14 are employed or engaged by Quantum, and 3 primarily perform general administrative, business development and financial
consulting tasks for Viewbix, Gix Media, Metagramm or Quantum. None of our employees are members of a union or subject to the terms of
a collective bargaining agreement.

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We
believe that our future success will depend, in part, on our continued ability to attract, hire and retain qualified personnel. In particular,
we depend on the skills, experience and performance of our senior management and customer service and research personnel. We compete
for qualified personnel with other ad-tech companies.

The
success of our business is fundamentally connected to the well-being of our people. Accordingly, we are committed to the environmental,
health and safety of our employees (EHS). The keys to our EHS success are a workforce that is engaged and a management team who supports
and invests in employees’ wellbeing.

We
consider our employees to be a key factor to our success and we are focused on attracting and retaining the best employees at all levels
of our business. We employ people based on relevant qualifications, demonstrated skills, performance and other job-related factors. We
do not tolerate unlawful discrimination related to employment, and strive to ensure that employment decisions related to recruitment,
selection, evaluation, compensation, and development, among others, are not influenced by race, color, religion, gender, age, ethnic
origin, nationality, sexual orientation, marital status, or disability. We are committed to creating a trusting environment where all
ideas are welcomed and employees feel comfortable and empowered to draw on their unique experiences and backgrounds.

We
consider our relations with our employees to be good.

Employment
Agreements

Our
non-executive employees are employed under written employment agreements, based on global monthly salary or on an hourly basis. Some
employees receive base salaries and commissions contingent on targets based on the position they fill. The terms of employment generally
include senior employees’ insurance or a pension fund, study fund, loss of working capacity insurance, vacation days and recuperation
pay. The Company may participate in employees’ car and mobile phone expenses, under the conditions set out in their individual
employment agreements, and also reimburses certain business expenses. The employment agreements are generally for an unlimited period
of time and each side is entitled to terminate the agreement with advance notice. Our employment agreements also include an undertaking
of confidentiality and non-competition by our employees.

The
Company’s employees’ employment terms are generally subject to the terms and conditions of the compensation policy of Gix
Internet, our parent company.

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