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Epitomi Medical
Ltd. First interim report for 2022

Until January 1, 2022, the company was a "small corporation" in accordance with the Securities Acts (Periodic and

Immediate Reports), 1970 (1970) Acts"), when on November 29, 2021, the company's board of directors approved the full

adoption of the exemptions that a small corporation may To adopt, as detailed below: (a) the cancellation of the obligation

to publish a report on the fiduciary control and an accountant's report on the fiduciary control; (b) raising the materiality

threshold in connection with the addition of valuations to 20%); c) raising the threshold for the addition of material

included company reports to the reports Baim to 40%); d) Repo

On January 1, 2022, the company updated its compliance with the "small corporation" cells for that date, and determined that

it no longer complies with the aforementioned cells and ceased to be a small corporation. However, and in accordance with

Section 5e(c) of the Tax Code, the company announced that it will continue to report according to Section 5d of the Tax Code

while applying the reliefs for "small corporations", up to and including the company's quarterly report for the quarter ending

on September 30, 2022. For details and thresholds, see also an immediate report of The company dated 1.3.2022) Referen

It should be noted that as of this date, the company included in the Tel Aviv Tech-Elite index and adopted all the tax reliefs in

. securities portfolios (corporation reports whose names are included in the Tel Aviv Tech-Elite index), 2016-2016
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Board of Directors' report on the state of affairs of the company for the period ended on June 30, 2022

The Board of Directors of Epitomi Medical Ltd. ("the Company") is honored to submit the report of the Board of Directors on the state of affairs

of the company and the financial results of the company for the period of six months that ended on July 30, 2022

("Report Period"), in accordance with the Securities Acts (Periodic and Immediate Reports), 1970-1970") Acts").

This board of directors' report has made it clear that according to the reader there is a description of the company's business, as included in

the company's periodic report for December 31, 2021, published by the company on March 24, 2022) reference no.: -2022 034636-01") (the

periodic report").

As stated in the periodic report, on January 3, 2022, the company announced that as of January 1, 2022, the company ceased to be a "small

corporation", while the company also announced that in accordance with Section 5(c) of Sections, it will continue to report according to

Section 5d of Sections while applying all the reliefs to " A small corporation ", up to and including the company's quarterly report for the

quarter ending on September 30, 2022 (the "transition period"). For details and thresholds, see an immediate report published by the company on

(2022-01-001339: Reference tax (3.1.2022

On 2021.12.27, the company announced that the Tel Aviv Stock Exchange Ltd. ("the Stock Exchange") informed it that as part of the "unique

fast track" for the addition of Miut Technology and Biomed News to the Tel Aviv Tech-Ilit Index ("Tech Ilit Index"), it will be added The company's

registration to the Elite Tech Index at the end of trading on March 3, 2022. For details and thresholds, see the company's immediate report

dated December 27, 2021) Reference No.: 185634-01-2021. (Corporate reports whose names are included in the Tel Aviv Tech-Elite index),

2016-2016, including the relief that allows the company to report semi-semi-shit metals for a period of 5 shims. Therefore, the company will

continue to report semi-semi-shit metals as mentioned even after the

the transition period.

Part I - The board's explanations of the company's business situation

1. A concise description of the company and its business environment

The company operates in the field of development, production and commercialization of medical platforms that include medical

devices packaged in capsules and for ingestion, and intended for patients for self-use, under a doctor's prescription. For details

about the description of the company's activity, the business environment and its effect on the company's activity, see chapter A

of the periodic report.

2. Financial situation

Below will be presented the sections of the report on the financial situation, according to the financial statements and the

explanations for the main adjustments that applied to them (in thousands of US dollars):

, Below are the main points from the company's financial statements on the financial situation, as of June 30, 2022: (US dollars in

thousands (December 31, 2021 and June 30, 2021

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for the 31st day for the 30th day

for the 30th of June
In December Bio

The board's explanations section

2021 2021 2022

(thousands of dollars) (thousands of dollars) (thousands of dollars)

The amount of money in the balance 64,310 8,750 53,324

of the increase and the value of money

in relation to the median corresponding

to the amount of capital raised as part

of an initial public offering on the Tel

Aviv Stock Exchange and the repayment

of short-term deposits.

The decrease compared to the two is due Cash and cash equivalents
to current activity and exchange rate

differences on the foreign exchange balances.

The company's cash balances, divided

into currencies, rise in line with the

company's expected future expenses

in these currencies.

- -

The decrease between the halves is 051,9

due to the disturbance of the payments Short-term deposits

for a short time.

Increase as a result of the 36 34 93

Limited deposits

addition of a deposit for rent Used

An increase between the halves as a 483 101 477

result of advances to suppliers Accounts receivable and payable balances

and expenses in advance.

64,829 17,936 53,894 They wash their wallets

64 12 50
An increase between the halves as a
Limited deposits
result of headquarters due to the addition of
Used
rent

511 309 438

The differences between the

comparable periods are

Right of use cases, 10
mainly due to additions of rental areas

Deducting current depreciation

620 289 184,1

The main increase between the periods is

from the purchase of equipment with fixed assets, tu

depreciation offset
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1,195 610 1,672 Total covers no

washing

140,1 99 253
An increase between the halves as a
result of an increase in the company's

current activity.
Obligations to suppliers and
The decrease compared to the two service providers
was mainly due to a decrease in

expenses to pay both for the production

and due to cut payments.

301 178 261

An increase between the halves as a
result of the addition of leased areas. Current liabilities of lease

Keton against the two mainly obligations

as a result of gate differences.

1,006 535 1,235

And at the intersection between

an increase mainly due to expenses

to pay and eligible employees as

a result of an increase in the

Entitled and remaining rights
company's current activity.

Keeton against the two and

mainly from Keeton in the

commitment to a former director

2,447 812 1,749 Total liabilities

current

279 174 180

And Ba'im and Yishashi the main

part of the furrows and the horses of Shear

Obligation for lease
in offsetting additions for
rents

-
10,000 10,000 10,000 Reject it

- -
The convertible loan was converted in 640,6

December 2021 to limo Conversion loan

the company

Median compared to the main decrease 10,279 16,814 10,180

in 2021 and mainly from the Total liabilities no

conversion of the converted loan to the liquidation current

the company

298,53 920 637,43

Growth between the halves mainly
Total capital
as a result of raising capital in the offset
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current losses.

A decrease compared to both and

mainly from a loss for the period.

3. The results of the operations

1.3. Below will be presented a profit and loss statement in accordance with the company's financial statements and the explanations for the balances

The main ones that affected them (in thousands of US dollars):

Lesha for the period ended

that ended on the 30th of June

The board's explanations on the 31st section

2021 2022
In December

(thousands of dollars) (thousands of dollars)

2021

Compensation for increased expenses, mainly due to the increase 6,179 2,453 3,849

in cash, as well as an increase in salary expenses due to hiring Research and development expenses

and salary updates.

An increase in employee recruitment and an increase in digital 170 45 120

Marketing and sales expenses
marketing costs.

425,2 440 449,1

An increase in salary expenses as a result of expenses for

employee options as well as salary updates, in addition to an Emergency and general expenses

increase in professional services after production

An increase mainly due to the hiring of employees, salary updates, 774,8 938,2 418,5

expenses for employee options and an increase in the company's operating loss

current activity

-
(65) (48) (73)
Financing coverage

809,2 307 106,5

An increase mainly due to exchange rate differences on cash and

the value of cash held in foreign currency following the

strengthening of the dollar at the end of the first half of 2022. Financial expenses

In 2021, the majority of the expenditure is from financing expenses

for the conversion loan.

An increase between the halves mainly due to exchange rate 518,11 197,3 451,10

differences on cash balances and cash value, hiring employees,

updating wages, expenses for employee options, and an increase Key loss
in the company's current activity
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Lesha for the period ended

that ended on the 30th of June

The board's explanations on the 31st section

2021 2022
In December

(thousands of dollars) (thousands of dollars)

2021

518,11 see above. 197,3 451,10 Total total loss

Zillat 4

For June 30,

The board's explanations 2021 2022 thousands the section

of dollars

(062.5) (490.2) (The main value is from the loss for the period in the differential troll The cash flow used for
Gate. current activity

(633 (524.6) The main increase is due to the release of short-term deposits in the first half of 2021 The flow of the Mazums

compared to an increase in investments in equipment in the first half of 2022. Sheva (that was
used) from (to)

investment activity
-
(103) (160) The flow of funds used
for financing activities

As a result of the strengthening of the dollar at the end of the first half of 2022. (6) (5,131) Effect of fluctuations

in the Begin exchange rate

Cash balances held

in foreign currency
(986.10 (925.3) The main decrease in funds in the period and in the current loss and exchange rate
increase (decrease)
differences and against the increase in funds in the corresponding period last year due to the release of
in cash during the period
a deposit to ZAK

5. Funding sources

The company finances its activities mainly from capital raising, and funds that you will receive from Stella Global as part of

the license agreement (as defined in Chapter A of the company's periodic report), as well as funds that you will receive from

Stella as a convertible loan (CLA).

In December 2021, the company completed an initial public offering of its securities ("the issuance") on the stock exchange,

according to a prospectus for completion published by the company on December 9, 2021) reference no.:-2021 178326-01")

(the prospectus for completion") and a supplementary notice published by the company on 2021.12.12
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(Reference No.: 178908-01-2021") (the supplementary announcement", and together with the supplemental prospectus:

"the prospectus") and thus the company became a public company.

The gross proceeds raised by the company as part of the production amounted to a total of approximately NIS 163

million, is used by the company as its main source of financing as of the date of the report, and will continue to be used

by the company as its main source of financing in the near future. For details and thresholds, see an immediate report

on results Production published by the company on December 13, 2021) Reference No.: 179064-01-2021.

Part B - Disclosure instructions in connection with the company's physical reporting

6. Material events in the company's activity during the report period and after

For details regarding events during and after the report period, see below:

1.6. The impact of the Korva crisis

As of this date, the company assesses that the Korva merger does not have a material impact on its operations

of the company and on its physical signaling, its cheapness or its ability to meet its obligations

compare

For details and thresholds about the Korva GIF, as well as its effect on the company (in all areas of its

activity), see section 2 of part B of the periodic report.

It will be clarified that the full impact and consequences of the resulting crisis have not yet been clarified

From the outbreak of Gif Corva. Therefore, the information affects the impact of the crisis on the state of the company

and its business, is mainly forward-looking information, as defined in the Securities Law, 2018-

.1968

2.6. Russia-Ukraine war

In the course of 2021, Russia will increase its military forces on the border of Ukraine, against the background

of tensions between the two media. In February 2022, the Russian army invaded Ukraine and at the time of

publication of this report, fierce fighting is raging between the Medes in the territory of Ukraine, leading,

among other things, to a humanitarian crisis. This fighting also has wide-ranging effects on the global

economy. Since the beginning of the fighting, the prices of linen and goods in the world have risen. In

addition, the continuation of the fighting causes prices to drop and high volatility in the capital markets in

Israel and around the world. The main risk scenarios for the global economy focus on the risk of an increase in

The level of inflation and the fear of a slowdown in growth.

It should be noted that the company is substantially exposed in its business activities to the Russian market.

At the same time, depending on the geopolitical developments, the booming trade in the international markets

or the worsening of the sanctions imposed on Russia, there will be similar consequences for the company's

activities, which at the time of the report are not yet known.
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It will be clarified that as of this date, the company is unable to assess how the fighting in Ukraine will

develop and when it will come to an end, and its impact on the company's activities.

3.6. The rise in inflation and the rise in interest

Starting in 2021, there will be an increase in inflation rates in Israel and around the world. In 2021, the

consumer price index in Israel rose by about 8.2% and the increase in the price index for the month of

July 2022 reflected a double increase of about 4.4%. Inflation in the other months in the US reflects a

double increase at a rate of about 1.9% and the expected inflation for 2022, according to a report The

International Monetary Fund, which was published after it, stands at a rate of about 6.6% in developed
1
economies and 5.9% in developing economies.

Along with the global price increases, central banks in the world decided to raise interest rates in order

to curb the price increases. For example, in the last two interest rate hikes in the US, the interest rate in

the US was raised to a rate of about 25.2%-5.2% and the Federal Reserve predicts that starting in April

2022, the Reserve Bank has decided to continue

to raise
raising
theinterest
interestrates
rate in the
Israel,
upcoming
from a zero
decisions.
rate to Israel
a

level of about 25.1% and according to the forecasts of the research department of Beck Israel until the

sixth quarter of 2023 the interest rate should reach a rate of about 75.2%.
3

inflation

As of the date of the report, the company was an R&D company and had begun commercial production

of its products, which are at this time in the appropriate stages of development, and therefore the

amount of raw materials purchased by the company at this date is high. In light of the above, at this

date the company believes that the increase in the rate of inflation in Israel and in the world There is no material effect on its activity.

It should be noted that what is said in this section, regarding the potential effects of the increase in the

inflation rate on the company, constitutes forward-looking information within the meaning of the

Securities Law, 1968, which is based, among other things, on the information available in the company

at the date of this report and its comments. Therefore, there is no Certainty that the above will indeed

be realized, or will be realized in a manner similar to that described above, and the actual results may be substantially equal to

the results estimated or implied by this information

interest

1
https://www.imf.org/en/Publications/WEO/Issues/2022/07/26/world-economic-outlook-update-july-2022

2
https://www.federalreserve.gov/newsevents/pressreleases/monetary20220727a.htm

3
https://www.boi.org.il/he/NewsAndPublications/PressReleases/Pages/18-07-22.aspx
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As of the date of the report, the company has no pending loans and the company's financing was mainly

from the revolving fund. In light of the above, the increase in the interest rate has no material effect on financing

the company

4.6. The company ceased to be a "small corporation"

For details and thresholds, see the introduction to this board report.

5.6. Appointing the Chief Financial Officer

On January 20, 2022, the company announced the appointment of Ms. Maya Gabrieli, the company's accountant

until that date, as the company's new financial officer. For details and thresholds, see the company's immediate

report dated January 20, 2022) reference no.: 009883-01- 2022. (For details about

Regarding the tenure and employment of Ms. Maya Gabrieli as the company's financial officer, see note 21 to

chapter four of the company's periodic report.

6.6 Directors' compensation

On February 8, 2022, the company's board of directors confirmed that all external and independent directors

of the company, as well as any director who is a member of the compensation committee, who is appointed

and who will serve in the company from time to time (with the exception of directors who receive a salary/

management fee from the company for their position), will be entitled to receive two remuneration and

participation remuneration In the amount of the "maximum amount" in accordance with the rank of the

company as it may be from time to time, as detailed in the sixth and third supplement to the company's

pensions (rules regarding compensation and expenses for external directors), 2000 (the "remuneration

pensions"), linked to the consumer price index as detailed in section 8 of the remuneration pensions. For details and thresholds, see the company's immediate r

.(016327

7.6. Second and special general meeting of the owners of the company

On March 15, 2022, the company held a special general meeting of the company's shareholders, in which the

following decisions were approved: (a) Approval of the appointment of Ms. Royat Koren as an external director

of the company for a term of 3 years; (b) Approval of Ms. Ester Ledas Barak as an external director in the

company for a term of 3 years. For details and thresholds, see the report summoning a general meeting

published by the company on February 8, 2022 and an immediate report regarding the results of a general

meeting published by the company on March 16, 2022) references no.

(respectively, 2022-01-030862 - and 2022-01-016426

8.6. Notice on the appointment of external directorates

Further to what was stated in section 7.6 above, on March 16, 2022, the company announced the appointment

of H. Royat Koren and Esther Ledes Barak as external directors in the company. For details and thresholds see
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10

Immediate reports of the company from March 16, 2022) References No.: 030865-01-2022 and

(respectively, 030868-01 -2022

9.6. Beginning the establishment of a production line for the main raw material used by the company

On 2/14/2022, the company announced that, further to what was stated in section 2.20.10 of part A of the

company's periodic report, it began the establishment of a production line for the main raw material used

by the company for the development of the slimming capsule device, and in this context, the company

rented a new space in the size of About 350 square meters, which will house the matzoh in particular for

the production of the raw materials for the slimming capsule, and matzohs and couches that were

assembled in Germia and which subsequently arrived in Israel. For details and thresholds, see the immediate report of the company dated February 14, 2

(2022-01-018040: 'reference tax'

10.6. Mayo visits Pim

On March 23, 2022, the company announced the appointment of Mr. Doron Roseblom as the company's

auditor. For details and thresholds, see an immediate report published by the company on March 23,

2022) Reference No.: 033673-01-2022. (For details and thresholds about Mr. Doron Roseblom, see section

10 of the board of directors' report included in the company's periodic report.

11.6 Approval for patent registration in Europe

On April 11, 2022, the company reported that the Patent Office of the European Union approved a patent

application submitted by the company for a device for introducing drugs through the wall of the digestive tract. for details

(2022-01-046228: Reference tax (11.4.2022 from the date of reporting see and thresholds

12.6. Private production of 914,58 options for the company's business development representative

On May 17, 2022, the company published an immaterial private offer report of 914,58 non-tradable

options, exercisable for 914,58 ordinary shares worth 1.0 NIS. each, of the company, without consideration,

to Ms. Sefi Ladskrour, who died in May 2022 as the company's business development representative,

and all in accordance with the cells detailed in the aforementioned allocation report. For details and

thresholds, see an immediate report published by the company on May 17, 2022 and a supplementary report

2022-01-092791 and 2022-01-059749: Reference tax (July 20, 2022

respectively).

13.6. Successful results for the Besoy Kelley company in the USA for the treatment of overweight

On July 11, 2022, the company reported on the interim analysis of the results of the clinical trial

conducted in the USA, for the purposes of approval of the diet pill developed by the company by the

FDA4 . As part of the report, the company reported that the results of the clinical trial indicate that

4
.
U.S. Food and Drug Administration
Machine Translated by Google

11

, that the likelihood of successfully completing the trial and achieving the goals necessary to obtain

FDA approval is significantly increased. For details and thresholds, see report dated July 11, 2022)

Reference No.: (2022-01-087283

14.6 Completion of the construction of the production line of the main raw material used by the company

On August 8, 2022, the company announced that, further to what was stated in section 9.6 above, the company

completed the construction of the production line for the main raw material used by the company for the

development of its products. The company also announced that it rented an area of approximately 500,1 square

meters near the completed production line, for the purpose of establishing the assembly line of the slimming

capsule and building a facility that will be used for R&D and quality activities. For details and thresholds, see the company's immediate report dated August 8, 202

(2022-01-099874: 'reference tax'

15.6. Holdings of Baali Ayan

For details regarding the holdings of owners in the company, see the statement of owners published

by the company on July 7, 2022) Reference No. 086449-01-2022.

immediately published by the company on July 26, 2022) reference no.: 095434-01-2022.

7. List of liabilities according to maturity dates

A report on the state of the company's liabilities is published in a separate report form at the same time as this report

is published, and what is stated in it is presented by reference.

signature role the names of the signatories

__________ Chairman of the Board Shimon Ekhuiz

__________ tank Dan Shamshui

18.8.2022: date
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Epitomi Medical Ltd

Concise financial statements
for June 30, 2022

(uncontrolled)
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Epitomi Medical Ltd

Concise financial statements

for June 30, 2022

(uncontrolled)

Table of Contents

Page

1
Review report of the auditors

Concise financial statements (unaudited):

2 Concise reports on the financial situation

3 Concise reports on the total loss

4 Concise reports on the changes in the capital deficit

6-5 Concise cash flow reports

9-7 Notes to the Condensed Financial Statements

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Review report of the auditing accountant to the shareholders of Epitomi

Medical Ltd

introduction

We have reviewed the attached financial information of Epitomi Medical Ltd. (hereinafter - the "Company") which includes the summary report on the financial position as
of June 30, 2022 and the summary reports on the total loss, the changes in the capital deficit and the cash flows for the six-month period that ended on that date The board
of directors and management are responsible for editing and presenting financial information for this interim period in accordance with accounting standard IAS 34
"Financial reporting for an interim period", and they are also responsible for editing financial information for this interim period according to Chapter D of the Securities

Regulations (periodic and immediate reports), 2015 1970 - Our responsibility is to express a conclusion on financial information for this interim period based on our review.

Scope of the review

We conducted our review in accordance with Review Standard (Israel) 2410 of the Israel Institute of Certified Public Accountants "Review of financial information for
interim periods conducted by the auditor of the entity". A review of financial information for an interim period consists of inquiries, mainly with persons responsible for
financial and accounting matters, and the application of analytical and other review procedures. A review is considerably more limited in scope than an audit conducted
in accordance with auditing standards accepted in Israel and therefore does not allow us to obtain assurance that we will know all the significant matters that could have
been identified in the audit. Accordingly, we do not experience an audit opinion.

conclusion

Based on our review, nothing has come to our attention that causes us to believe that the above financial information is not prepared, in all material respects, in
accordance with International Accounting Standard 34 IAS.

In addition to what was stated in the previous paragraph, based on our review, nothing has come to our attention that causes us to believe that the aforementioned
financial information does not follow the disclosure instructions according to Chapter D of the Securities Regulations (Periodicmaterial
and Immediate
, respectsFinancial
1970 . Statements) in all

Britman Almagor Zohar & Co.

Accountants
A Firm in the Deloitte Global Network

Nazareth, August 18, 2022

1
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Epitomi Medical Ltd

Concise reports on the financial situation

for for
December 31, June 30,

2021 2021 2022

thousands of thousands of dollars thousands of

dollars (checked) dollars (unaudited)

property

Current assets
64,310 8,750 53,324 Cash and cash equivalents
-
051,9 -
Short-term deposits
36 34 93 Deposits are limited in use
483 101 477 Accounts receivable and payable balances

64,829 17,936 53,894 liquid assets as

Non-current assets
64 12 50 deposits are limited in use
511 309 438 Right-of-use assets, net
620 289 1,184 Net, fixed assets,
195,1 610 672,1 total non-current assets

66,024 18,546 55,566 Total assets

liabilities and equity

current liabilities

140,1 99 253 Suppliers and other service providers

301 178 261 current liabilities of lease obligations
1,006 535 1,235 Right and eligible balances

2,447 812 1,749 Current liabilities as a whole

non-current liabilities
279 174 180 Lease obligations
10,000 10,000 10,000 Revenues are deferred
- -
640,6 Conversion loan

10,279 16,814 10,180 Current non-committal liabilities

89,970 29,638 89,971 Capital and premium

377 377 377 Shares Capital fund Capital from currency translation

1,434 1,067 2,223 differences Presentation of shares based on payment Fund capital

(38,483) (30,162) (48,934) balance loss

53,298 920 43,637 Total capital

66,024 18,546 55,566 and total liability capital

2022, on August 18

Chief Financial Officer CEO Chairman of the Board Date of approval of the financial statements
Maya Gabrieli Dan Shamshoni of Directors Shimon Ekhuiz

The notes to the condensed financial statements are an integral part of them.

2
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Epitomi Medical Ltd

Concise reports on the total loss

For
the year that ended For the six-month period that
on December 31, ended on June 30, 2020 1 2 0 2 2
2021 thousands thousands of dollars thousands
of dollars
of dollars (unaudited)

(audited)

6,179 2,453 3,849 and development of research

170 45 120 on sales and marketing

2,425 440 1,449 expenses and general management expenses

8,774 2,938 5,418 normal from loss operations

2,809 307 5,106 financing expenses

(65) (48) (73) Revenue financing

2,744 259 5,033 net, financing expenses

11,518 3,197 10,451 Total loss for the period

11,518 3,197 10,451 Including total loss

55.6 14
Loss per one ordinary share (in dollars) worth NIS 1.0 basic and diluted 355.0

Weighted average of the share capital used in the calculation of the loss per
1,758,394 228,502 29,456,840 share and basic diluted

The notes to the condensed financial statements are an integral part of them.

3
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Epitomi Medical Ltd.

concise reports on the changes in capital

capital
fund
Begin Capital Fund
for payment
differential
transactions
Currency
balance Based Ordinary
translation stock
Total loss presentation
stock premiere premium share capital

thousands of dollars

for the period of six months that

ended on June 30, 2022 (unaudited)

53,298 (38,483) 377 1,434

-
89,164 806 2022 January 1 for the remaining day

*
- - Exercising share-
( 1 * 1) - 790
790 - - - - - based payment options
- - - - -
(10,451) (10,451) for the loss period

43,637 (48,934) 377 2,223 - 89,165 806 2022 June 30 for the total capital day

*Amount less than one thousand dollars.

for the period of six months that

ended on June 30, 2021 (unaudited)

3,977 (26,965) 377 933 549 29,078 5 2021 January 1 for the remaining day

3
- -
(3)
-
6 * Share-based

137 - -
137
- - - payment exercise options
- - -
(3,197) 920 (3,197)
- -
for the loss period

(30,162)
377 1,067 549 29,084 5 2021 June 30 for capital day

*Amount less than one thousand dollars.

for the year ended December 31,

2021) audited)

2021 January 1 for the remaining day

3,977 (26,965) 377 933 549 29,078 5

- - - -
320,50 111,50 209 Issuance of shares minus issuance expenses,
8,998
- - - -
8,963 35 conversion, conversion
- - - -
loan (549 conversion of preferred shares to ordinary shares 549) - payment-based shares
- - - - -
1,509 12 1,509
- -
(1,008)
-
1,012 8 Exercise options

(11,518) (11,518)
- - - - - for the loss

53,298 (38,483) 377 1,434 - 89,164 806 year 2021 on December 31 for the total capital day

The notes to the condensed financial statements are an integral part of them.

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Epitomi Medical Ltd

Concise cash flow reports

For
the year that For the period of six months that
ended on December ended on June 30, 2021 2 0 2 2
31, 2021 thousand dollars (unaudited)
thousands of

dollars (audited)

Cash flows from current activities for the

(11,518) (3,197) (10,451) period of loss
Adjustments necessary to present cash flows
(*) 5,853 (*) 707 5,389 (Appendix A) (current to current
(5,665) (2,490) (5,062) activities to net cash activities

Cash flows from investment activity

-
583,15 566,6 (43 (3) 51 ( (590) Decrease in short-term
(45) (402 ( 130,15 (633 (524,6 deposit Decrease (increase) in restricted
deposits in use
Investment in fixed assets Net cash from activity (to activity) Investment

Cash flows from financing activities

- -
320,50 Proceeds from the issuance of shares, less issuance
*
12 3 expenses Proceeds from the exercise of options

(160) (106) (219 ( (160) (103 (113,50 Repayment of a liability for a net
cash lease from (to) financing activity

578,59 (855,5 (931,3 Net increase (decrease) in cash and cash equivalents

Effect of changes in the exchange rate in respect of cash balances held in foreign currency (131.5) (6) (*) (93(*) (

4,825 4,825 64,310 The period for beginning cash and cash equivalents

64,310 8,750 53,324 The period to the end of cash and cash equivalents

(*) Reclassified

*Amount less than one thousand dollars.

The notes to the condensed financial statements are an integral part of them.

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Epitomi Medical Ltd

Concise cash flow reports

for the
year ended
On For the period of six months that
December 31, ended on June 30, 2020 1 2 0 2
2021 2 thousand dollars (unaudited)
thousands of

dollars (audited)

Appendix A - Adjustments needed to present the cash flows for current

activities

Income and expenses that do not involve cash flows:

235 112 165 and depreciation reductions

- -
(2 Capital gain from impairment of a

651,2
( ( (28)293
(34 -(45 (7 51 (*) 93 (*) 6 5,159 lease arrangement Interest income from
509,1 137 790 4,537 521 6,041 -
short-term deposits Change in fair value
of the converted loan Expenses (income) Financing for a lease obligation
Net, financing
expenses expenses for share-based payment

Changes in property and liability items:

6 142) 240 ( (887) (27 (014,1 71 229 Decrease (increase) in debtors and liability

balances Increase (decrease) in suppliers and other

542 service providers Increase (decrease) in beneficiaries and right balances and related parties

1,316 186 (652)

5,853 707 5,389

(*) reclassified

The notes to the condensed financial statements are an integral part of them.

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Epitomi Medical Ltd

Notes to the Condensed Financial Statements

- General Explanation 1

Company description: A.

Epitomi Medical Ltd. (formerly Tulip Medical Ltd.) (hereinafter - the company) was incorporated on August 15, 2005 and began its business operations in

August 2005. The company is engaged in the development of a pill that causes a feeling of satiety, and as of January 2021, the company began developing

a medical device for the introduction of biological drugs .

These concise reports should be reviewed in connection with the company's annual financial statements for December 31, 2021 and for the year that

ended on that date, and the accompanying notes.

B. The company's business status:

Since its establishment, the company has incurred continuous losses from its business activities, and it has generated negative cash flows from activities
current

As of June 30, 2022 and December 31, 2021, the company has a loss balance of 934,48 thousand dollars and 483,38 thousand dollars, respectively. The

company faces a

number of risk factors, including uncertainty regarding the continued development and marketing of its products, uncertainty involved in obtaining

regulatory approvals required to market these products, the impact of technological changes, in addition to other factors beyond the company's control.

Also, the company is exposed to risk factors related to its ability to grow and its dependence on raising funds from existing and/or new investors to

finance the continuation of its activities. The company financed its

activities until the date of the initial public offering, on December 12, 2021, mainly through the convertible loan and receipts from the license agreement.

During August 2020 private issues of ordinary shares, preferred shares, the company signed
according
,a license
to which
agreement
the company
with the global
will receive
Nestléa company,
total of up to 115

million dollars, subject to meeting the benchmarks established in the agreement. During 2020, the company received the first payment in the amount of 10

million dollars as a non-refundable advance. In addition to the license agreement, the company signed a conversion loan agreement in the total amount of

9 million dollars, of which a total of 7 million dollars were received in 2020, which were converted into ordinary shares at the time of completion of the first

public offering. On December 12, 2021, the company raised through an initial public offering a total of 320,50 thousand dollars net of offering expenses.

As of June 30, 2022, the company has a cash balance and

cash equivalent of 324,53 thousand dollars.

In the assessment of the company's board of directors and management, in light of the funding sources detailed above, the company has sufficient

sources, including a reasonable forecast of future cash flows, to continue its operations as a going concern and to meet its obligations in the foreseeable future.

In these financial statements: third.

-
Epitomi Medical Ltd. (formerly Tulip Medical Ltd.). the company

- as defined in IAS 24 (amended). Related Parties

Interested parties and controlling parties - as defined in the securities regulations (annual financial statements), 2010-5777.

Note 2 - Principles of accounting policy

Basis for preparing the financial statements:

The condensed financial statements (hereinafter - "Interim Financial Statements") of the company prepared in accordance with International Accounting Standard

34 "IAS, Financial Reporting for Interim Periods" (hereinafter - "IAS 34."

In preparing these financial statements, the company applied an accounting policy, presentation rules and calculation method identical to those applied in preparing

the financial statements for December 31, 2021, and for the year that ended on that date.

The condensed financial reports were prepared in accordance with the disclosure instructions in Chapter D of the Securities Regulations (Periodic and Immediate
Reports), 1970.

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Epitomi Medical Ltd

Notes to the Condensed Financial Statements

Note 3 - Share-based payment

During the reporting period, the company's board of directors approved the granting of options to employees as detailed below: A.

fair value
implicit benefit option A number

cost on time price written

(1 ) (in a grant of The award expiration date ripening conditions realization option Award date

thousands of dollars is a dollar dollar

118 2.0113 The grant is dated 10 years One year after 25% of the options mature, the rest 6.39 58,914 2022, on May 16

of the options mature in equal parts over 12

quarters

(1) The cost of the benefit embodied in the option letters granted, based on the fair value on the day they were granted, is credited to profit and loss over a period
the ripening

Below are the parameters that were used in calculating the cost of the benefit:

Price per ordinary share in dollars - 4.5

Standard deviation - 32.44%

Risk free interest rate - 47.0%

During the reporting period, the company recorded expenses for a share-based payment in the amount of 790 thousand dollars - 107 thousand dollars in research and development

expenses, 673 thousand dollars in administrative and general expenses and 10 thousand dollars in sales and marketing expenses.

Note 4 - Segment reporting

Operational sectors are identified based on the internal reports about the company's components, which are regularly reviewed by the company's main operational

decision maker for the purpose of allocating resources and evaluating the performance of the operational sectors. The reporting system that is transferred to the

company's main operational decision maker, for the purpose of allocating resources and evaluating the performance of the operational sectors, is based on product

lines that are under development:

A. The field of medical devices for weight loss and overweight - development of a medical device that is packaged in a capsule and taken by swallowing, which causes a feeling of

satiating and aids in weight loss. (hereinafter "Sector A")

B. As of January 1, 2021, a medical device for the introduction of biological drugs - the development of medical devices packed in capsules and taken by swallowing

which are intended for the introduction of biological drugs. (hereinafter "Sector B")

For the year that ended on For the six months that ended on For the six months that ended on

December 31, 2021 Sector B June 30, 2021 Sector B Sector June 30, 2022 Sector B Sector

Sector A A A

thousands of dollars

- - - - - -
Sector revenues

(540) (8,234) (259) (2,679) (773) (4,645) Results sector

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Epitomi Medical Ltd

Notes to the Condensed Financial Statements

Note 5 - Financing expenses during the reporting period

Financing expenses during the reporting period totaled $1.5 million and reflect exchange rate differences for the cash balances held in shekels and euros
as a result of the strengthening of the dollar against these currencies.

Note 6 - The impact of the Corona crisis

As of this date, the company estimates that the corona virus has no material effect on the company's activities and its financial soundness, liquidity or
ability to meet its various obligations.

Note 7 - Events after the balance sheet date

A. Successful interim results for the company in the US clinical trial for the treatment of excess weight

On July 11, 2022, the company received the analysis of the interim results of the clinical trial conducted in the USA, for the purposes of approval of
the diet pill developed by the company by the FDA. The recommendation formulated as part of the interim results is to complete the trial with a

number of patients in the lower threshold of The range established in the planning stages of the experiment, that is, the recommendation indicates
very good results in the sense of being close to the statistical significance needed for clinical success.

B. Signing a rental agreement

On July 7, 2022, the company signed a lease agreement for a new building with an area of 498.1 square meters in Caesarea. The building will be
used by the company for the establishment of the slimming capsule assembly line and for the construction of a facility that will be used for R&D
and quality activities. The lease agreement is for a period of approximately 64 months which will be automatically extended for two additional periods of 60 months each.

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Epitomi Medical Ltd

First midterm report for the month of 2022 | Phrasal statements

1.1. General Assembly statement

The HM, Dr. Dan Shamshui, hereby declares that:

1.1.1. I reviewed the interim report of Epitomi Medical Ltd. ("the corporation") for the first semester of 2021

(the "Reports");

2.1.1. To the best of my knowledge, the reports do not include any misrepresentation of a material fact and they do not lack a presentation

of a material fact other than so that the presentations included in them, in light of the reasons they included those presentations, would not

be misleading with reference to the period of the reports;

3.1.1. To the best of my knowledge, the financial statements and other financial information contained in the reports accurately reflect,

without any material errors, the financial situation, the results of the operations and the cash flows of the corporation for the dates and

periods to which the reports refer;

4.1.1. I disclosed to the company's auditor, the board of directors and the corporation's audit committee any fraud, whether material or not,

involving the general manager or those directly subordinate to him or involving other employees who have a significant role in financial

reporting and disclosure;

The above does not detract from my responsibility or the responsibility of any other person, according to any law.

Date: 2022.08.18 Dr. Dan Shamshoui, M.K.L

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2.1. Statement of the Commissioner of Finance

The HM, Maya Gabrieli, hereby declares that: 1.2.1 I

have reviewed the interim report of Epitomi Medical Ltd. ("the Corporation") for the first half of 2021

(the "Reports");

2.2.1. To the best of my knowledge, the financial statements and the other financial information contained in the IM reports include any

misrepresentation of a material fact and they do not lack a representation of a material fact other than so that the presentations included in

them, in light of the reasons they included those presentations, would not be misleading with reference to the period of the reports;

3.2.1. To the best of my knowledge, the financial statements and other financial information included in the reports accurately reflect,

without any material errors, the company's financial position, results of operations and cash flows for the dates and periods to which the

reports refer;

4.2.1. I disclosed to the company's auditor, the board of directors and the committee for auditing the financial statements and the audit

committee of the corporation any fraud, whether material or not, in which the general manager or those directly subordinate to him are

involved or other employees who have a significant role in the financial control of the report are involved financial and disclosure;

The above does not detract from my responsibility or the responsibility of any other person, according to any law.

18.08.2022 : date Maya Gabrieli, General Manager

money