QUANTUM X LABS INC. 10-Q

ITEM 1. FINANCIAL STATEMENTS QUANTUM X LABS INC. (formerly known as Viewbix Inc.) INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) March 31, 2026 CONTENTS Page Interim Condensed Consolidated Balance Sheets (unaudited) 4 - 5 Interim Condensed Consolidated Statements of Operations (unaudited) 6 Interim Condensed Consolidated Statements of Changes in Shareholders’ Equity (unaudited) 7 Interim Condensed Consolidated Statements of Cash Flows (unaudited) 8 - 10 Notes to the Interim Condensed Consolidated Financial Statements (unaudited) 11 - 42 - 3 - QUANTUM X LABS INC. (formerly known as Viewbix Inc.) INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) U.S. dollars in thousands (except share data) As of March 31 As of December 31 Note 2026 2025 ASSETS CURRENT ASSETS Cash and cash equivalents 1,793 1,018 Restricted deposits 45 20 Accounts receivable 355 315 Related parties 324 - Other current assets 377 299 Total current assets 2,894 1,652 NON-CURRENT ASSETS Deferred taxes 9 12 Property and equipment, net 44 56 Financial assets measured at cost method 600 600 Intangible assets, net 5 3,442 2,045 Goodwill 5 20,718 6,392 Total non-current assets 24,813 9,105 Total assets 27,707 10,757 The accompanying notes are an integral part of these Interim Condensed Consolidated financial statements. - 4 - QUANTUM X LABS INC. (formerly known as Viewbix Inc.) INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Cont.) U.S. dollars in thousands (except share data) As of March 31 As of December 31 Note 2026 2025 LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES Accounts payable 1,111 1,204 Government authorities 391 355 Earn-out payable 6,8 268 201 Short-term loans 7 267 260 Current maturities of long-term loans 7 781 781 Short-term convertible loans 7 867 867 Related parties 58 - Other payables 500 395 Total current liabilities 4,243 4,063 NON-CURRENT LIABILITIES Long-term loans, net of current maturities 7 390 586 Deferred taxes 663 326 Earn-out liability 6,8 726 793 Total non-current liabilities 1,779 1,705 Commitments and Contingencies 9 - - SHAREHOLDERS’ EQUITY Common stock of $ 0.0001 par value - Authorized: 490,000,000 shares; Issued and outstanding: 13,336,392 and 10,670,392 shares as of March 31, 2026, and December 31, 2025, respectively. 4 4 Additional paid-in capital 68,254 51,032 Accumulated deficit ( 46,652 ) ( 46,047 ) Equity attributed to shareholders of Quantum X Labs Inc. 21,606 4,989 Non-controlling interests 79 - Total equity 21,685 4,989 Total liabilities and shareholders’ equity 27,707 10,757 The accompanying notes are an integral part of these Interim Condensed Consolidated financial statements. - 5 - QUANTUM X LABS INC. (formerly known as Viewbix Inc.) INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) U.S. dollars in thousands (except share data) 2026 2025 For the three months ended March 31, 2026 2025 Revenues 353 529 Costs and Expenses: Traffic-acquisition and related costs 132 134 Research and development - 16 Selling and marketing 25 20 General and administrative 500 197 Depreciation and amortization 224 173 Other expenses, net 22 44 Operating loss 550 55 Financial expense, net 71 2,867 Loss from continuing operations, before taxes 621 2,922 Income tax expense (benefit) ( 16 ) 42 Net loss from continuing operations 605 2,964 Net loss from discontinued operations - 880 Net loss 605 3,844 Less: net loss attributable to non-controlling interests - 176 Net loss attributable to shareholders of Quantum X Labs Inc. 605 3,668 Net loss from continuing operations attributable to: Shareholders of Quantum X Labs Inc. 605 2,964 Non-controlling interests - - Net loss from continuing operations 605 2,964 Net loss from discontinued operations attributable to: Shareholders of Quantum X Labs Inc. - 704 Non-controlling interests - 176 Net loss from discontinued operations - 880 Net loss per share from continuing operations – Basic and diluted attributed to shareholders: 0.05 0.55 Net loss per share from discontinued operations – Basic and diluted attributed to shareholders: - 0.13 Total net loss per share – Basic and diluted attributed to shareholders: 0.05 0.68 Weighted average number of shares – Basic and diluted (*): 11,499,814 5,414,548 (*) (*) Share and per share data in these financial statements for periods preceding the Reverse Stock Split have been retrospectively adjusted to reflect a number of shares that is equivalent to the number of shares of the Company post the Reverse Stock Split (see note 10.F). The accompanying notes are an integral part of these Interim Condensed Consolidated financial statements. - 6 - QUANTUM X LABS INC. (formerly known as Viewbix Inc.) INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited) U.S. dollars in thousands (except share data) Number Amount (**) capital Deficit Shareholders Interests Equity Common stock Additional paid-in Accumulated Total Attributed to the company’s Non- Controlling Total Number Amount capital Deficit Shareholders Interests Equity Balance as of January 1, 2026 10,670,392 4 51,032 ( 46,047 ) 4,989 - 4,989 Net loss - - - ( 605 ) ( 605 ) - ( 605 ) Issuance of shares and warrants in connection with a private placement (see note 10.D) 800,000 - (* ) 1,330 - 1,330 - 1,330 Issuance of shares in connection with acquisition of a subsidiary (see note 6.C) 1,866,000 - (* ) 15,892 - 15,892 79 15,971 Balance as of March 31, 2026 13,336,392 4 68,254 ( 46,652 ) 21,606 79 21,685 Number Amount (**) capital Deficit Shareholders Interests Equity Common stock (**) Additional paid-in Accumulated Total Attributed to the company’s Non- Controlling Total Number Amount capital Deficit Shareholders Interests Equity Balance as of January 1, 2025 5,296,945 3 28,482 ( 22,714 ) 5,771 1,736 7,507 Balance 5,296,945 3 28,482 ( 22,714 ) 5,771 1,736 7,507 Net loss - - - ( 3,668 ) ( 3,668 ) ( 176 ) ( 3,844 ) Shares issued in connection with the Reverse Stock Split (see note 10.F) 14 - (*) - - - - - Issuance of shares in connection with acquisition of a subsidiary (see note 6.B) 1,323,000 - (*) 5,159 - 5,159 - 5,159 Share-based compensation - - - - - 3 3 Balance as of March 31, 2025 6,619,959 3 33,641 ( 26,382 ) 7,262 1,563 8,825 Balance 6,619,959 3 33,641 ( 26,382 ) 7,262 1,563 8,825 (*) Represents an amount less than $1. (**) Share and per share data in these financial statements for periods preceding the Reverse Stock Split have been retrospectively adjusted to reflect a number of shares that is equivalent to the number of shares of the Company post the Reverse Stock Split (see note 10.F). The accompanying notes are an integral part of these Interim Condensed Consolidated financial statements. - 7 - QUANTUM X LABS INC. (formerly known as Viewbix Inc.) INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) U.S. dollars in thousands (except share data) 2026 2025 For the three months ended March 31, 2026 2025 Cash flows from Operating Activities of Continuing Operations Net loss 605 3,844 Less: net loss from discontinued operations - 880 Net loss from continuing operations 605 2,964 Adjustments to reconcile net loss from continuing operations to net cash provided by operating activities: Depreciation and amortizations 224 173 Share-based compensation - - Deferred taxes ( 28 ) ( 8 ) Accrued interest, net 25 ( 19 ) Interest income - ( 38 ) Amortization of loan discounts - 22 Change in the fair value of financial liabilities at fair value through profit or loss (see note 8) - 2,723 Amortization of deferred debt issuance costs (see notes 7.D, 7.E, 7.F) 4 68 Changes in assets and liabilities items: Decrease (increase) in accounts receivable ( 40 ) 121 Increase in other current assets ( 36 ) ( 53 ) Decrease in accounts payable ( 194 ) ( 111 ) Increase in other payables 46 277 Net cash provided by (used in) operating activities from continuing operations ( 604 ) 191 The accompanying notes are an integral part of these Interim Condensed Consolidated financial statements. - 8 - QUANTUM X LABS INC. (formerly known as Viewbix Inc.) INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Cont.) U.S. dollars in thousands (except share data) For the three months ended March 31, 2026 2025 Cash flows from Investing Activities of Continuing Operations Net cash from acquisition of subsidiaries (see appendix A and note 6.B) 193 12 Net cash used in investing activities from continuing operations 193 12 Cash flows from Financing Activities of Continuing Operations Receipt of short-term bank loans 7 2,029 Repayment of short-term bank loans - ( 1,565 ) Repayment of long-term bank loans ( 196 ) ( 658 ) Change in loan to former parent company - 6 Proceeds from issuance of shares and warrants in connection with the 2026 Private Placement (see note 10.D) 1,400 - Net cash provided by (used in) financing activities from continuing operations 1,211 ( 188 ) Cash flows of Discontinued Operations Net cash used in operating activities from discontinued operations - ( 600 ) Net cash used in investing activities from discontinued operations - - Net cash provided by financing activities from discontinued operations - 143 Net cash used in discontinued operations - ( 457 ) Increase in cash and cash equivalents and restricted cash 800 15 Cash and cash equivalents and restricted cash at beginning of period 1,038 54 Cash and cash equivalents and restricted cash at end of period 1,838 69 Supplemental Disclosure of Cash Flow Activities: Cash paid during the period Taxes paid 2 1 Interest paid 34 120 Total Cash paid during the period 36 121 Substantial non-cash activities: Issuance costs payable in connection with the 2026 Private Placement (see note 10.D) 70 - Issuance of warrants in connection with the 2026 Private Placement (see note 10.D) 34 - Classification of Earn-out liability to Earn-out payable (see note 8) 67 - The accompanying notes are an integral part of these Interim Condensed Consolidated financial statements. - 9 - QUANTUM X LABS INC. (formerly known as Viewbix Inc.) INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Cont.) U.S. dollars in thousands (except share data) Appendix A : As of March 4, 2026 Consolidation of Quantum Israel (see note 6.C): Net working capital other than cash and restricted deposits 211 Property and equipment 9 Goodwill 14,326 In-process research and development, net of deferred taxes 1,232 Non-controlling interests ( 79 ) Total consideration ( 15,892 ) Balance as of March 4, 2026 ( 193 ) The accompanying notes are an integral part of these Interim Condensed Consolidated financial statements. - 10 - QUANTUM X LABS INC. (formerly known as Viewbix Inc.) NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) U.S. dollars in thousands (except share data) NOTE 1: GENERAL A. Organizational Background Quantum X Labs Inc. (formerly known as Viewbix Inc.) (the “Company”) was incorporated in the State of Delaware on August 16, 1985, under a predecessor name, The InFerGene Company (“InFerGene Company”). On August 25, 1995, a wholly owned subsidiary of InFerGene Company merged with Zaxis International, Inc., an Ohio corporation, which following such merger, the surviving entity, InFerGene Company, changed its name to Zaxis International, Inc. In 2015, the Company changed its name to Emerald Medical Applications Corp., subsequent to which the Company, through its subsidiary, was engaged in the development of technology for use in detection of skin cancer. On January 29, 2018, the Company ceased its business operations in this field. On January 17, 2018, the Company formed a new wholly owned subsidiary under the laws of the State of Israel, Virtual Crypto Technologies Ltd. (“VCT Israel”), to develop and market software and hardware products facilitating and supporting the purchase and/or sale of cryptocurrencies. Effective as of March 7, 2018, the Company’s name was changed from Emerald Medical Applications Corp. to Virtual Crypto Technologies, Inc. VCT Israel ceased its business operation in 2019 and prior to consummation of the Recapitalization Transaction. On January 27, 2020, VCT Israel was sold to a third party for NIS 50 thousand (approximately $ 13 ). On February 7, 2019, the Company entered into a share exchange agreement (the “Share Exchange Agreement” or the “Recapitalization Transaction”) with Gix Internet Ltd., a company organized under the laws of the State of Israel (“Gix” or “Former Parent Company”), pursuant to which, Gix assigned, transferred and delivered its 99.83 % 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 the Company, which resulted in Viewbix Israel becoming a subsidiary of the Company. In connection with the Share Exchange Agreement, effective as of August 7, 2019, the Company’s name was changed from Virtual Crypto Technologies, Inc. to Viewbix Inc. Effective April 30, 2026, the Company. changed its name to Quantum X Labs Inc. B. Reorganization Transaction On December 5, 2021, the Company entered into a certain Agreement and Plan of Merger with Gix Media Ltd. (“Gix Media”), an Israeli company and the majority-owned ( 77.92 %) subsidiary of Gix, the Former Parent Company and Vmedia Merger Sub Ltd., an Israeli company and wholly-owned subsidiary of the Company (“Merger Sub”), pursuant to which, Merger Sub merged with and into Gix Media, with Gix Media being the surviving entity and a wholly-owned subsidiary of the Company (the “Reorganization Transaction”). On September 19, 2022, the Reorganization Transaction was consummated and as a result, all outstanding ordinary shares of Gix Media, having no par value (the “Gix Media Shares”) were delivered to the Company in exchange for the Company’s shares of common stock, par value $ 0.0001 per share (“Common Stock”). As a result of the Reorganization Transaction, the former holders of Gix Media Shares, who previously held approximately 68% of the Company’s Common Stock, hold approximately 97% of the Company’s Common Stock, and Gix Media became a wholly owned subsidiary of the Company. - 11 - QUANTUM X LABS INC. (formerly known as Viewbix Inc.) NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) U.S. dollars in thousands (except share data) NOTE 1: GENERAL (Cont.) B. Reorganization Transaction (Cont.) In connection with the closing of the Reorganization Transaction, the Company filed an Amended and Restated Certificate of Incorporation (the “Amended COI”) with the Secretary of State of Delaware, effective as of August 31, 2022, pursuant to which, concurrently with the effectiveness of the Amended COI, the Company, among other things, effected a reverse stock split of its common stock at a ratio of 1-for-28 . As the Company and Gix Media were consolidated both by the Former Parent Company and Xylo Technologies Ltd. (formerly known as Medigus Ltd.) (the “Ultimate Parent”), before and after the Reorganization Transaction, the Reorganization Transaction was accounted for as a transaction between entities under common control. Accordingly, the financial information of the Company and Gix Media is presented in these financial statements, for all periods presented, reflecting the historical cost of the Company and Gix Media, as it is reflected in the consolidated financial statements of the Former Parent Company, for all periods preceding March 1, 2022, the date the Ultimate Parent obtained a controlling interest in the Former Parent Company and as it is reflected in the consolidated financial statements of the Ultimate Parent for all periods subsequent to March 1, 2022. C. Business Overview The Company and its subsidiaries (the “Group”) are focused on quantum technology, digital advertising and computing and enterprise artificial intelligence (AI) solutions. The Company, through its subsidiaries Gix Media and the former majority-owned subsidiary of Gix Media, Cortex Media Group Ltd. (“Cortex”), operates in the field of digital advertising. As of November 2025, the Company had two main activities which were reported as separate operating segments: the search segment and the digital content segment. On November 9, 2025, Gix Media sold all of its holdings in Cortex (see note 6.A). Subsequently, the Company ceased its operations in the digital content segment. The search segment develops a variety of technological software solutions, which perform automation, optimization, and monetization of internet campaigns, for the purposes of obtaining and routing internet user traffic to its customers. The search segment activity is conducted by Gix Media. The digital content segment was engaged in the creation and editing of content, in different languages, for different target audiences, for the purposes of generating revenues from leading advertising platforms, by utilizing such content to obtain and route internet user traffic for its customers. The digital content segment activity was conducted by Cortex until November 9, 2025 (see note 6.A). On March 24, 2025, the Company entered into a securities exchange agreement with Metagramm Software Ltd. (“Metagramm”) and all of the shareholders of Metagramm, pursuant to which the Company acquired 100 % of Metagramm’s share capital in exchange for consideration equal to $ 5,159 . The consideration was paid to Metagramm’s shareholders in the form of 1,323,000 shares of common stock of the Company, representing 19.99 % of the Company’s issued and outstanding share capital (see note 6.B). - 12 - QUANTUM X LABS INC. (formerly known as Viewbix Inc.) NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) U.S. dollars in thousands (except share data) NOTE 1: GENERAL (Cont.) C. Business Overview (Cont.) 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. On March 4, 2026, the Company completed the acquisition of Quantum X Labs Ltd. (“Quantum Israel”), a private company that operates as a multi-disciplinary quantum technology hub, pursuant to a definitive share purchase agreement dated December 15, 2025 (the “Agreement Date”). Following the acquisition, Quantum Israel became a wholly owned subsidiary of the Company. In consideration for the acquisition, the Company issued common stock and pre-funded warrants representing approximately 40 % of its capital stock as of the Agreement Date, with potential additional consideration of up to 12,702,847 shares of the Company’s common stock or pre-funded warrants upon the achievement of specified post-closing milestones (see note 6.C). Quantum Israel 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. 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 Israel combines deep academic research with practical engineering to create deployable quantum solutions. D. Impact of the War in Israel On October 7, 2023, Hamas launched a series of attacks on civilian and military targets in Southern Israel and Central Israel, to which the Israel Defense Forces responded. In addition, Iran, Hezbollah and the Houthi movement attacked military and civilian targets in Israel, to which Israel responded, including through increased air and/or ground operations in Lebanon, Syria, Yemen and Iran. Following years of conflict in the region, on October 9, 2025, Israel, Hamas, the United States and other countries in the region agreed to a framework for a ceasefire in Gaza between Israel and Hamas. On February 28, 2026, the United States and Israel launched joint combat operations in Iran to which Iran and Hezbollah responded with ballistic missile and drone attacks on Israel as well as other countries and U.S. military bases in the region. On April 8, 2026, the United States and Iran agreed to a two-week ceasefire. How long and how severe the current conflicts in Gaza, Northern Israel, Lebanon, Iran or the broader region last and become is unknown at this time and any continued clash among Israel, Hamas, Hezbollah, Iran or other countries or militant groups in the region may escalate in the future into a greater regional conflict. The intensity and duration of the security situation in Israel have been difficult to predict, as are the economic implications on the Company’s business and operations and on Israel’s economy in general As the Group’s customers are mainly in the U.S. and Europe, its operations, revenues, and profitability are not directly affected by the security situation in Israel. However, this is an ongoing event and there is uncertainty regarding its duration, nature, and scope, management is unable to reasonably estimate the extent of the impact at this time. - 13 - QUANTUM X LABS INC. (formerly known as Viewbix Inc.) NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) U.S. dollars in thousands (except share data) NOTE 1: GENERAL (Cont.) E. Cortex Adverse Effect In April 2024, the Company was informed by Cortex that a significant customer of Cortex recently notified Cortex it will stop advertising on Cortex’s sites, as part of its policy decision to cease advertising on Made for Advertising (“MFA”) sites (the “Cortex Adverse Effect”). The Cortex Adverse Effect, which has materially affected Cortex’s business and operations, has occurred following certain recent developments relating to publishers that are categorized by a number of on-line advertisers as MFA, including decisions made by leading media on-line advertisers to prioritize different media categories and implement publishing restrictions in connection with MFA. Due to the Cortex Adverse Effect and additional circumstances as explained in note 3, the Company recorded impairments in the goodwill and intangible assets related to the digital content segment of $ 5,525 as of December 31, 2025. On November 9, 2025, Gix Media sold all of its holdings in Cortex (see notes 3 and 6.A). F. Filing of Insolvency Petition Against Gix Media On March 27, 2025, a petition (the “Petition”) was filed with the District Court of Tel Aviv-Jaffa (the “Court”) for a court order to commence insolvency proceedings against Gix Media. The Petition was filed by a primary service provider of Gix Media (the “Service Provider”) alleging that Gix Media owes it approximately $ 260 (excluding linkage differentials and interest) and that Gix Media is unable to repay its debts to the Service Provider. On July 16, 2025, the Court approved a settlement agreement entered into between Gix Media, the Service Provider and other creditors of Gix Media that joined the Petition (collectively, the “Service Providers”) with respect to the debts owed by Gix Media to the Service Providers. In connection with the settlement agreement, the Company agreed to provide a guarantee for the debts owed by Gix Media to the Service Providers. On July 22, 2025, pursuant to the terms of the settlement agreement, Gix Media paid approximately $ 1.13 million to the Service Providers as payment in full of the debts owed to the Service Providers. As a result of such payment in full by Gix Media to the Service Providers, the Petition was dismissed. G. Nasdaq Uplisting On June 4, 2025, the Company’s shares of common stock were approved for listing on The Nasdaq Capital Market (“Nasdaq”). The Company’s shares began trading under the symbol “VBIX” on the Nasdaq on June 5, 2025 (the “Uplist Date”). The Company’s shares were previously quoted on the OTC Markets, Pink Tier under the symbol “VBIX”, and ceased to be quoted on the OTC Markets, Pink Tier at the close of business on June 4, 2025 (the “Uplist”). As a result of the Uplist, the Company received during June and July 2025, aggregate gross proceeds of $ 2,852 in connection with a private placement and three facility agreements, consisting of $ 630 from the receipt of additional loans and $ 2,222 from the exercise of warrants (see notes 7.D, 7.E, 7.F and 10.B). Effective April 30, 2026, the Company changed its name from “Viewbix Inc.” to “Quantum X Labs Inc.” and its trading symbol on the Nasdaq from “VBIX” to “QXL.” - 14 - QUANTUM X LABS INC. (formerly known as Viewbix Inc.) NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) U.S. dollars in thousands (except share data) NOTE 1: GENERAL (Cont.) H. Going Concern During the years ended December 31, 2024, and 2025 and the three months ended March 31, 2026, the Company experienced a decrease in its revenues from the digital content as a result of the Cortex Adverse Effect (see note 1.E). The Company also experienced a decrease in its revenues from the search segment, as a result of a decrease in user traffic acquired from third party advertising platforms, an industry-wide decrease in advertising budget, changes and updates to internet browsers’ technology, which adversely impacted the Company’s ability to acquire traffic in the search segment and a decrease in revenues from routing of traffic acquired from third-party strategic partners in the search segment, following the lack of availability of suppliers credit from such third party strategic partners. As a result of the foregoing, during the three months ended March 31, 2026, the Company recorded an operating loss from continuing operations of $ 550 compared to $ 55 during the three months ended March 31, 2025. Additionally, the Company recorded a net loss of $ 605 during the three months ended March 31, 2026, compared to $ 3,844 during the three months ended March 31, 2025. As of March 31, 2026, the Company had cash and cash equivalents of $ 1,793 , bank loans of $ 1,438 and accumulated deficit of $ 46,652 . The decline in revenues and other circumstances described above raise substantial doubts about the Company’s ability to continue as a going concern during the 12-month period following the issuance date of these financial statements. Management’s response to these conditions included reduction of salaries and related expenses and reduction of professional services in the research and development and selling and marketing functions, reduction of other operational expenses, such as lease costs and overheads, as well as creation of new partnerships and other new income sources. In addition, the Company raised funds during 2025, increasing its cash balance, as follows: (1) pursuant to the consummation of the Uplist (as described in note 1.G above), the Company received during June and July 2025, aggregate gross proceeds of $ 2,852 in connection with a private placement (see note 10.B) and three facility agreements (see notes 7.D, 7.E, 7.F), consisting of $ 630 from the receipt of additional loans and $ 2,222 from the exercise of warrants and (2) on July 14, 2025, the Company closed an additional private placement transaction with certain accredited investors, pursuant to which the Company received gross proceeds of $ 4.5 million (see note 10.C). Moreover, on March 4, 2026, the Company closed a private placement transaction with certain accredited investors, pursuant to which the Company received gross proceeds of $ 1.4 million (see note 10.D). Notwithstanding the foregoing, there remains uncertainty as to whether the Company will be able to secure additional funding when needed. Such conditions raise substantial doubts about the Company’s ability to continue as a going concern for at least a year after the issuance date of the accompanying financial statements. These financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. - 15 - QUANTUM X LABS INC. (formerly known as Viewbix Inc.) NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) U.S. dollars in thousands (except share data) NOTE 2: SIGNIFICANT ACCOUNTING POLICIES A. Unaudited Interim Financial Statements The accompanying unaudited interim condensed financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of U.S. Securities and Exchange Commission Regulation S-X. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included (consisting only of normal recurring adjustments except as otherwise discussed). For further information, reference is made to the consolidated financial statements and footnotes thereto included in the Group’s Annual Report on Form 10-K for the year ended December 31, 2025. B. Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. C. Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. The Company evaluates on an ongoing basis its assumptions, including those related to contingencies, deferred taxes, inventory impairment, stock-based compensation, as well as in estimates used in applying the revenue recognition policy. Actual results may differ from those estimates. D. Derivative Financial Instruments The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives in accordance with ASC Topic 815, “Derivatives and Hedging”. Derivative instruments are initially recorded at fair value on the grant date and re-valued at each reporting date, with changes in the fair value reported in the unaudited condensed statements of operations. E. Fair Value of Financial Instruments Fair value is defined as the price that would be received for sale of an asset or paid to transfer of a liability, in an orderly transaction between market participants at the measurement date. US GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). These tiers include: ● Level 1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments in active markets. ● Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and ● Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. - 16 - QUANTUM X LABS INC. (formerly known as Viewbix Inc.) NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) U.S. dollars in thousands (except share data) NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Cont.) F. Significant Accounting Policies The significant accounting policies followed in the preparation of these unaudited interim condensed consolidated financial statements are identical to those applied in the preparation of the latest annual financial statements other than the significant accounting policies of derivative financial instruments and fair value of financial instruments (see notes 2.D and 2.E above). G. Recent Accounting Pronouncements Management does not believe that any recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the Group’s interim condensed consolidated financial statements. NOTE 3: DISCONTINUED OPERATIONS On November 9, 2025, Gix Media sold all of its holdings in Cortex (see note 6.A), following which the Group ceased its operations in the digital content segment activity. The Company has determined that the sale of Cortex has a major effect on the Company’s operations and financial results. In this respect, the results of operations and cash flows of the digital content segment, as well as its assets and liabilities, are reported as discontinued operations. The comparative figures in these consolidated financial statements have been adjusted on the basis of presenting separately the discontinued operations’ figures. SCHEDULE OF DISCONTINUED OPERATIONS The components of the loss from discontinued operations for the three months ended March 31, 2025, in the consolidated statements of income consisted of the following: For the three months ended March 31, 2025 Revenues 2,204 Costs and Expenses: Traffic-acquisition and related costs 2,189 Research and development 131 Selling and marketing 196 General and administrative 56 Depreciation and amortization 546 Operating loss 914 Financial expense, net 36 Loss from discontinued operations before taxes 950 Income tax benefit ( 70 ) Net loss from discontinued operations 880 - 17 - QUANTUM X LABS INC. (formerly known as Viewbix Inc.) NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) U.S. dollars in thousands (except share data) N OTE 4: LOAN TO FORMER PARENT COMPANY On March 22, 2020, Gix Media entered into a loan agreement with the Former Parent Company. The loan bore interest at a rate determined from time to time in accordance with Section 3(j) of the Income Tax Ordinance, new version, and the Income Tax Regulations (Determination of Interest Rate for the purposes of Section 3(j), 1986). On April 10, 2025, the Company’s board of directors approved the redemption of the loan between Gix Media and the Former Parent Company. As a result, Gix Media and the Former Parent Company entered into a redemption agreement, effective as of May 27, 2025, pursuant to which the outstanding loan was redeemed in consideration for the transfer to Gix Media of all of the Former Parent Company’s intangible assets, including, inter alia, intellectual property rights, trademarks, software, algorithms, domains, technological know-how and any other intangible asset (the “Redemption”). Since this transaction is between entities under common control, the intangible assets received from the Former Parent Company were recorded at their historical carrying amount as they were recorded at the Former Parent Company’s financial statements which is $ 0 . As a result, the outstanding loan amount including accrued interest, totaling $ 4,048 , was redeemed in full. The Redemption was recorded as an increase to the accumulated deficit in the Company’s statement of changes in shareholders equity for the year ended December 31, 2025. For the three months ended March 31, 2025, Gix Media recognized interest income in the amount of $ 38 . NOTE 5: GOODWILL AND INTANGIBLE ASSETS, NET A. Composition: SCHEDULE OF GOODWILL AND INTANGIBLE ASSETS In-process research and development Internal-use Software Customer Relations Technology Goodwill Total Cost: Balance as of January 1, 2026 - 465 1,260 3,073 6,392 11,190 Consolidation of Quantum Israel (note 6.C) 1,600 - - - 14,326 15,926 Balance as of March 31, 2026 1,600 465 1,260 3,073 20,718 27,116 Accumulated amortization: Balance as of January 1, 2026 - 465 592 1,696 - 2,753 Amortization recognized during the period - - 70 133 - 203 Balance as of March 31, 2026 - 465 662 1,829 - 2,956 Amortized cost: As of March 31, 2026 1,600 - 598 1,244 20,718 24,160 Internal-use Software Customer Relations Technology Goodwill Total Cost: Balance as of January 1, 2025 465 870 2,523 1,083 4,941 Consolidation of Metagramm (note 6.B) - 390 550 5,309 6,249 Balance as of December 31, 2025 465 1,260 3,073 6,392 11,190 Accumulated amortization: Balance as of January 1, 2025 429 351 1,192 - 1,972 Amortization recognized during the period 36 241 504 - 781 Balance as of December 31, 2025 465 592 1,696 - 2,753 Amortized cost: As of December 31, 2025 - 668 1,377 6,392 8,437 - 18 - QUANTUM X LABS INC. (formerly known as Viewbix Inc.) NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) U.S. dollars in thousands (except share data) NOTE 5: GOODWILL AND INTANGIBLE ASSETS, NET (Cont.) B. Impairment of intangible assets and goodwill: As of December 31, 2025, the Company performed a quantitative impairment test of the search reporting unit. The Company did not recognize impairment losses regarding this reporting unit for the year ended December 31, 2025. NOTE 6: BUSINESS COMBINATION A. Cortex Acquisition and Sale On October 13, 2021, Gix Media acquired 70% (on a fully diluted basis) of the shares of Cortex (the “Cortex Transaction”), a private company operating in the field of online media and advertising. In consideration for the Cortex Transaction, Gix Media paid NIS 35 million in cash (approximately $11 million). The Cortex Transaction was financed by Gix Media’s existing cash balances and substantially by debt through a bank financing in the aggregate amount of $ 9.5 million, that consists of a line of credit of up to $ 3.5 million and a long-term loan of $ 6 million (see note 7.B). On January 23, 2023, Gix Media acquired an additional 10 % of Cortex, increasing its holdings to 80 % of the share capital of Cortex in consideration for $ 2.6 million. On November 9, 2025 (the “Cortex Closing Date”), Gix Media, Cortex, and certain founders of Cortex entered into a share purchase agreement (the “Cortex Sale Agreement”) with Pro Sportority (Israel) Ltd. (the “Purchaser”), a subsidiary of Minute Media Inc. (the “Parent”). Pursuant to the Cortex Sale Agreement, the Purchaser acquired from Gix Media all of its holdings in Cortex, representing 80 % of Cortex’s issued and outstanding share capital. The aggregate consideration paid to Gix Media was $ 800 , consisting of (i) $ 200 in cash, and (ii) $ 600 in the form of 5,161 newly issued Preferred J Shares of the Parent (the “Parent Shares”), the most senior class of preferred shares of the Parent. The Parent retains a call option to repurchase the Parent Shares from Gix Media under certain conditions, including insolvency or a change of control of Gix Media. In addition, Gix Media is subject to a two-year non-compete and non-solicitation covenant following the Cortex Closing Date. B. Metagramm Acquisition: On March 24, 2025 (the “Closing Date”), the Company entered into a securities exchange agreement with Metagramm and all of the shareholders of Metagramm (the “2025 SEA”). Pursuant to the 2025 SEA, the Company acquired 100 % of Metagramm’s shares in exchange for consideration of $ 5,159 . The consideration was paid to Metagramm’s shareholders in the form of 1,323,000 shares of common stock of the Company, representing 19.99 % of the Company’s issued and outstanding share capital immediately following the acquisition (the “Metagramm Acquisition”). In addition, the Company agreed to pay Metagramm’s shareholders cash earn-out payments on a pro rata basis of up to a cumulative sum of $ 2.0 million, contingent on achieving certain financing and revenue milestones within 3 years following the Closing Date (see notes 10.C, 10.D). - 19 - QUANTUM X LABS INC. (formerly known as Viewbix Inc.) NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) U.S. dollars in thousands (except share data) NOTE 6: BUSINESS COMBINATION (Cont.) B. Metagramm Acquisition: (Cont.) Fair Value of Metagramm’s Identifiable Assets and Liabilities: SCHEDULE OF FAIR VALUE OF ASSETS AND LIABILITIES Cash and cash equivalents 12 Other current assets 18 Property and equipment 106 Goodwill arising from the acquisition 5,309 Technology, net of deferred taxes 424 Customer Relations, net of deferred taxes 300 Total cost of the acquisition 6,169 Earn-out liability arising from the acquisition 1,010 Total liabilities 1,010 Consideration paid in Company’s shares 5,159 The total consideration has been allocated between assets acquired and liabilities assumed based on estimated fair values, with the residual of the total consideration recorded as goodwill. The goodwill that arose from the acquisition consists of synergies expected from the activities of the Company and Metagramm. The estimation of the fair value of these intangible assets was determined using the income approach, which is based on the present value of the future cash flows attributable to each identifiable intangible asset. The estimation of the fair value of the earn-out liability was calculated based on Monte Carlo method. Other current assets were estimated to have fair values that approximate their carrying values due to the short-term maturities of these instruments. The estimated useful lives for the acquired technology and customer relations of Metagramm Acquisition are 5 years and 2.5 years, respectively. The goodwill will not be deductible for income tax purposes. C. Quantum Israel Acquisition: On December 15, 2025, the Company entered into a securities exchange agreement (the “Quantum Exchange Agreement”) with Quantum Israel and certain shareholders of Quantum Israel (the “Quantum Israel Shareholders”) pursuant to which the Company agreed to issue to the Quantum Israel Shareholders an aggregate amount of up to 40.0 % of the Company’s issued and outstanding capital stock as of December 15, 2025, inclusive of 800,000 shares of the Company’s common stock issuable by the Company in a private placement offering (the “Private Placement Shares”) that the Company entered into in January 2026 (see also note 10.D), consisting of (i) up to 2,666,000 shares of the Company’s common stock, representing 19.99 % of the Company’s issued and outstanding capital stock (the “Exchange Shares”), inclusive of the Private Placement Shares, and (ii) pre-funded warrants to purchase up to 4,447,595 shares of the Company’s common stock, representing the balance of up to the 40.0 %, as of December 15, 2025, less the Exchange Shares, in exchange for up to 100 %, but not less than 85 %, of Quantum Israel’s issued and outstanding share capital on a fully diluted and post-closing basis, equal to an amount up to 589,319 of Quantum Israel’s ordinary shares (the “Quantum Israel Acquisition”). - 20 - QUANTUM X LABS INC. (formerly known as Viewbix Inc.) NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) U.S. dollars in thousands (except share data) NOTE 6: BUSINESS COMBINATION (Cont.) C. Quantum Israel Acquisition: (Cont.) In addition, pursuant to the Quantum Exchange Agreement, the Company may issue to the Quantum Israel Shareholders up to 12,702,847 additional shares of the Company’s common stock or pre-funded warrants to purchase shares of the Company’s common stock ( collectively, the “Earn-Out Securities”) , only following the 12-month anniversary of the closing date of the Quantum Israel Acquisition and upon the achievement of specified post-closing milestones as defined in the Quantum Exchange Agreement. On March 4, 2026, the Company closed the Quantum Israel Acquisition (the “Quantum Closing Date”), pursuant to which the Company acquired 100 % of Quantum Israel’s issued and outstanding share capital on a fully diluted, post-closing basis and Quantum Israel became a wholly owned subsidiary of the Company. On the Quantum Closing Date, the Company issued to the Quantum Israel Shareholders 1,866,000 shares of its common stock and pre-funded warrants to purchase 4,447,595 shares of its common stock. The pre-funded warrants were exercisable upon issuance at an exercise price of $ 0.0001 per share and will not expire until exercised in full. Fair Value of Quantum Israel’s Identifiable Assets and Liabilities: SCHEDULE OF FAIR VALUE OF ASSETS AND LIABILITIES Cash and cash equivalents and restricted deposits 193 Net working capital other than cash and restricted deposits 210 Property and equipment 9 Goodwill arising from the acquisition 14,326 In-process research and development, net of deferred taxes 1,232 Non-controlling interests ( 79 ) Total cost of the acquisition 15,892 Consideration paid in Company’s shares and pre-funded warrants 10,670 Contingent consideration to be paid in Earn-Out Securities 5,222 Total Consideration 15,892 The total consideration was allocated to the fair value of assets acquired and liabilities assumed as of the Quantum Closing Date, with the excess purchase price recorded as goodwill. The goodwill will not be deductible for income tax purposes. Management’s estimate of the fair value of the acquired in-process research and development and the contingent consideration to be paid upon achieving certain milestones assumed as of the Quantum Closing Date is preliminary and subject to change and is based on established and accepted valuation techniques performed with the assistance of third-party valuation specialists. Changes to amounts will be recorded as adjustments to the provisional amounts recognized as of the Quantum Closing Date and may result in a corresponding adjustment to goodwill during the remainder of the measurement period, which will not exceed twelve months from the Quantum Closing Date. The estimation of the fair value of in-process research and development was determined using the income approach, which is based on the present value of the future cash flows attributable to the identifiable intangible asset. The contingent consideration of $ 5,222 represents the estimated fair value of the contingent consideration to be paid in Earn-Out Securities to the Quantum Israel Shareholders upon the achievement of certain milestones during the 12-month anniversary of the Quantum Closing Date. - 21 - QUANTUM X LABS INC. (formerly known as Viewbix Inc.) NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) U.S. dollars in thousands (except share data) NOTE 7: LOANS A. Composition of long-term loans, short-term loans, and credit lines of the Group: The following is the composition of the balance of the Group’s loans according to their nominal value: SCHEDULE OF COMPOSITION OF BALANCE OF GROUP’S LOANS Interest rate As of March 31, 2026 As of December 31, 2025 Short-term bank loans – Gix Media SOFR + 4.60 % 267 260 Short-term bank loans SOFR + 4.60 % 267 260 Long-term bank loan, including current maturity – Gix Media (received on July 10, 2025) SOFR + 4.92 % 1,171 1,367 Long-term loan SOFR + 4.92 % 1,171 1,367 Short-term convertible loans – June 2024 Facility Agreement – Quantum X Labs Inc. 12 % 867 867 Bank Loan 2,305 2,494 B. Gix Media’s Financing Agreement and short-term loans: On October 13, 2021, Gix Media entered into a financing agreement with Bank Leumi Le Israel Ltd (“Leumi”), an Israeli bank, for the provision of a line of credit in the total amount of up to $ 3,500 , which will be determined on a monthly basis at 80 % of Gix Media’s accounts receivable balance (the “Gix Media Credit Line”) and a long-term loan totaling $ 6,000 , which Gix Media used to finance the acquisition of Cortex (the “Financing Agreement”) (see note 6.A). On February 4, 2025, Gix Media and Leumi entered into a fifth addendum to the Financing Agreement, which was effective as of January 29, 2025, according to which, inter alia: (i) the Gix Media Credit Line was extended to March 31, 2025; (ii) the repayment the outstanding principal amounts of the long term bank loans of Gix Media under the Financing Agreement, was deferred until the actual deposit by the Company in Gix Media’s account of an investment account equal to the amounts of the deferred long term bank loans owned by Gix Media (the “Investment Amount”), which in any event shall be no later than March 31, 2025 (the “Deposit Date”); (iii) upon such Deposit Date, all deferred payments will be immediately repaid using the deposited amounts and any remaining amounts from any other sources; (iv) all remaining future due payments will be repaid as scheduled until the end of the updated terms of each long term bank loan. On March 30, 2025, Gix Media and Leumi entered into a sixth additional addendum to the Financing Agreement, which extended the Deposit Date until May 20, 2025. On June 18, 2025, Gix Media received a short-term loan of $ 1,722 , bearing an annual interest rate of SOFR + 4.65% , which was repaid in a single payment on July 3, 2025. On July 3, 2025, Gix Media received a short-term loan of $ 1,948 , bearing an annual interest rate of SOFR + 4.65% , which was repaid in a single payment on August 4, 2025. On July 8, 2025, Gix Media and Leumi entered into an agreement in respect of the Financing Agreement, (the “July 2025 Repayment and Financing Agreement”) according to which, inter alia: (i) the Deposit Date was extended until October 1, 2025 (ii) Gix Media agreed to repay $ 2.4 million to Leumi by October 1, 2025, and (iii) subject to the full repayment of the $ 2.4 million, Leumi would provide a new loan equal to the then outstanding balance of the debt. The loan will be repaid in up to 24 monthly payments at an annual interest rate of Leumi’s applicable rate at the time of the granting of the loan. - 22 - QUANTUM X LABS INC. (formerly known as Viewbix Inc.) NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) U.S. dollars in thousands (except share data) NOTE 7: LOANS (Cont.) B. Gix Media’s Financing Agreement and short-term loans: (Cont.) In July 2025, Gix Media repaid a total of $ 2.4 million to Leumi in accordance with the July 2025 Repayment and Financing Agreement. As a result, the outstanding balance of the existing short-term loan of $ 1,948 and the long-term loans under the Financing Agreement were extinguished on July 10, 2025. On the same date, Gix Media received a new loan in the amount of $ 1,562 to be repaid in 24 consecutive monthly payments beginning in October 2025, at an annual interest rate of SOFR + 4.92 %. As of March 31, 2026, Gix Media has drawn $ 267 of the Gix Media Credit Line. C. Long term loan and issuance of warrants: On November 15, 2023, Viewbix Israel entered into a loan agreement with certain lenders, pursuant to which Viewbix Israel received aggregate loans of $ 480 (the “2023 Loan”). In connection with the 2023 Loan, the Company issued to each lender a warrant to purchase shares of common stock (the “2023 Warrants”). The 2023 Warrants are exercisable to 120,000 shares of common stock, at an exercise price of $ 2.00 per share and will expire on December 31, 2025 . The Company recorded the 2023 Warrants as an equity instrument. The terms of the 2023 Loan were substantially amended on June 18, 2024, by the June 2024 Facility Agreement (see note 7.D). These amendments represented a substantial modification in accordance with ASC Topic 470. Accordingly, the terms modification was accounted for as an extinguishment of the original financial liability and the initial recognition of new financial instruments issued at their fair value as of the effective date of the June 2024 Facility Agreement. On December 31, 2025, all 2023 Warrants were expired. D. June 2024 Facility Agreement: On June 18, 2024, the Company entered into a credit facility agreement with a group of lenders including a lead lender (the “June 2024 Lead Lender”, and collectively, the “June 2024 Lenders”) for an amount of up to $ 1.0 million which was amended and restated on July 22, 2024 (the “June 2024 Facility Agreement”). The June 2024 Facility Agreement also includes $ 531 of outstanding debt owed by the Company to the lenders of the 2023 Loan (see note 7.C), such that the total amount of the credit line reached $ 1.53 million (the “Total Credit Facility Amount”). The Total Credit Facility Amount will be due for repayment following 12 months from the date of the June 2024 Facility Agreement (the “Initial Maturity Date”) or alternatively, in the event the completion of the Uplist (as defined in note 1.G) prior to the Initial Maturity Date, then the Total Credit Facility Amount will be due for repayment following 12 months from the Uplist Date. The Total Credit Facility Amount will be available for use as follows: (a) $350 upon the date of the June 2024 Facility Agreement, (b) $150 upon submitting a prospectus for the registration of shares to be issued to the June 2024 Lenders, and (c) $500 upon the completion of the Uplist. The Total Credit Facility Amount will accrue interest at a rate of 12 % per annum, to be paid in advance. - 23 - QUANTUM X LABS INC. (formerly known as Viewbix Inc.) NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) U.S. dollars in thousands (except share data) NOTE 7: LOANS (Cont.) D. June 2024 Facility Agreement (Cont.): The interest for the first year of the June 2024 Facility Agreement, which was equal to $ 184 , was paid by the Company in advance in: (a) 183,679 shares of the Company’s common stock, reflecting a value of $ 1.00 per share for each dollar of interest accrued on the Total Credit Facility Amount, and (b) 183,679 warrants to purchase 183,679 shares of the Company’s common stock at an exercise price of $ 1.00 per share. The warrants will be exercisable for a 3 three-year period from the date of the June 2024 Facility Agreement. Immediately following the effectiveness of the Uplist, $ 663 of the Total Credit Facility Amount will be automatically converted into units, which will include shares of common stock at a conversion rate of $ 1.00 per share, equal to an aggregate of 662,957 shares of common stock and the same amount of warrants to purchase common stock of the Company with an exercise price of $ 1.00 per share. The warrants will be exercisable for a three-year period from the Uplist Date. During the term of the June 2024 Facility Agreement, some of the June 2024 Lenders whose portion of the Total Credit Facility Amount is not automatically converted as part of the Uplist will have the right to convert their portion of the Total Credit Facility Amount within 12 months from the Uplist Date into units, which will include shares of common stock of the Company at a conversion rate of $ 1.00 per share, equal to an aggregate of up to 362,004 shares of common stock and the same amount of warrants to purchase common stock of the Company with an exercise price of $ 1.00 per share. The warrants will be exercisable for a three-year period from the issuance date. In addition, the Company paid to the June 2024 Lead Lender a commission consisting of: (a) 50,000 shares of common stock of the Company, (b) 50,000 warrants to purchase 50,000 shares of common stock of the Company at an exercise price of $ 1.00 per share (c) 625,000 warrants for the purchase of 625,000 shares of common stock with an exercise price of $ 4.00 per share (“June 2024 Lead Lender Fee Warrants”). The June 2024 Lead Lender Fee Warrants are exercisable for a three-year period from the date of the June 2024 Facility Agreement. The June 2024 Lead Lender Fee Warrants, which were exercisable immediately after the closing of the June 2024 Facility Agreement, were allocated subject to certain ownership restrictions, adjustments, and anti-dilution protections. In July 2024, following the closing of the 2024 Private Placement (as defined in note 10.B), the exercise price of the June 2024 Lead Lender Fee Warrants was adjusted to $ 0.472 , which is equal to the effective price per share of common stock in the 2024 Private Placement, and the number of shares of common stock issuable upon the exercise of the June 2024 Lead Lender Fee Warrants was also adjusted to a total of 5,296,610 shares, such that the adjusted exercise price and number of warrants issued is equal to an aggregate amount of $ 2.5 million. The conversion related features of the June 2024 Facility Agreement were bifurcated from their host debt contract and recognized as liabilities measured at fair value at each balance sheet date. Loans received in connection with the June 2024 Facility Agreement were initially recorded at their fair value and subsequently measured at cost. The shares and warrants issued as prepayment of interest and as commission to the June 2024 Lead Lender were initially recognized at fair value and classified in equity. - 24 - QUANTUM X LABS INC. (formerly known as Viewbix Inc.) NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) U.S. dollars in thousands (except share data) NOTE 7: LOANS (Cont.) D. June 2024 Facility Agreement (Cont.): In connection with the June 2024 Facility Agreement, the Company incurred deferred debt issuance costs of $ 60 , consisting of an annual advance interest payment. The deferred debt issuance costs were recorded in other current assets in the Company’s balance sheet and are amortized as financial expense over the term of the June 2024 Facility Agreement. The June 2024 Lead Lender Fee Warrants were initially recognized in fair value at the amount of $ 1,833 and classified as a liability measured at fair value at each balance sheet date. Following the closing of the 2024 Private Placement (see note 10.B) and the adjustments made to the number of shares in the June 2024 Lead Lender Fee Warrants as part of the June 2024 Facility Agreement, the June 2024 Lead Lender Fee Warrants were reclassified to equity. On June 5, 2025, upon completion of the Uplist, the Company drew additional $ 500 of the Total Credit Facility Amount (the “Additional Amount”). The Additional Amount was provided by the June 2024 Lead Lender, which has the right to convert the Additional Amount within 12 months from the Uplist Date into units, which will include shares of common stock of the Company at a conversion rate of $ 1.00 per share, equal to an aggregate of up to 500,000 shares of common stock and the same amount of warrants to purchase shares of common stock of the Company with an exercise price of $ 1.00 per share. The warrants will be exercisable for a three-year period from the issuance date. The Additional Amount was recorded as a short-term convertible loan. In addition, immediately following the Uplist, $ 663 of the Total Credit Facility Amount was converted into units, which included 662,957 shares of common stock and the same amount of warrants, each warrant is exercisable into one share of common stock of the Company at an exercise price of $ 1.00 per share for a three-year period from the Uplist Date. The warrants were recorded at fair value and were classified as equity. During June and July 2025, out of 896,636 warrants granted under the June 2024 Facility Agreement, 722,495 warrants were exercised into 722,495 shares of common stock. The Company received total proceeds of $ 722 upon exercise of the warrants. E. First July 2024 Facility Agreement On July 4, 2024, the Company entered into a credit line agreement with a certain lender (the “First July 2024 Facility Agreement”). Under the First July 2024 Facility Agreement and amendments from July 22, 2024, and July 25, 2024, the lender will provide a total credit line of $ 2.5 million (the “First July 2024 Facility Loan Amount”), which will be available for use as follows: (a) $50 upon the date of the First July 2024 Facility Agreement, (b) $50 upon the Uplist, and (c) after the Uplist, $200 will be available for use on a quarterly basis until the total amount reaches $ 2.5 million. The First July 2024 Facility Agreement will remain available until the earliest of: (a)(1) full utilization of the First July 2024 Facility Loan Amount, (a)(2) after 36 months from the date of the First July 2024 Facility Agreement, and (b) upon such date that the Company completes a $ 2.0 million financing transaction (the “First July 2024 Facility Term”). In the event the First July 2024 Facility Term lapses, the First July 2024 Facility Loan Amount will be repaid to the lender immediately (see note 10.C). - 25 - QUANTUM X LABS INC. (formerly known as Viewbix Inc.) NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) U.S. dollars in thousands (except share data) NOTE 7: LOANS (Cont.) E. First July 2024 Facility Agreement (Cont.) The First July 2024 Facility Agreement Amount accrued interest at a rate of 12 % per annum. The interest for the first year was paid in advance in: (a) 300,000 shares of the Company’s common stock at a conversion rate of $ 1.00 for each dollar of interest accrued on the total amount, and (b) 300,000 warrants to purchase 300,000 shares of the Company’s common stock an exercise price of $1.00 per share. The warrants are exercisable upon issuance at an exercise price of $ 1.00 per share of common stock and will be exercisable for a three-year 3 period from the date of the First July 2024 Facility Agreement. Immediately after the Uplist, $ 100 from the First July 2024 Facility Loan Amount will be automatically converted into common stock of the Company at an exercise price of $ 1.00 per share. Additionally, the Company will issue an identical number of warrants to purchase common stock of the Company at an exercise price of $ 1.00 per share. Furthermore, the Company paid the lender of the First July 2024 Facility Agreement a one-time fee consisting of: (a) 125,000 shares of common stock of the Company, which representing a fee of five percent ( 5 %) of the First July 2024 Facility Loan Amount, at a share price of $ 1.00 per share, and (b) 250,000 warrants to purchase 250,000 shares of common stock of the Company at an exercise price of $ 1.00 per share. The warrants are exercisable for three years 3 from the date of the First July 2024 Facility Agreement. The conversion related features of the First July 2024 Facility Agreement were bifurcated from their host debt contract and recognized as liabilities measured at fair value at each balance sheet date. In connection with the First July 2024 Facility Agreement, the Company incurred deferred debt issuance costs of $ 375 , which consisted of a one-time fee to the lender of the First July 2024 Facility Agreement, an annual advance interest payment and other additional direct costs. The deferred debt issuance costs were recorded in other current assets in the Company’s balance sheet and were amortized as financial expense over the term of the First July 2024 Facility Agreement. Deferred debt issuance costs amounted to $ 315 as of December 31, 2024, and were fully amortized during year ended December 31, 2025, following the termination of the First July 2024 Facility Agreement (see note 10.C). Under the terms of the First July 2024 Facility Agreement, the Company received in July 2024 a loan of $ 50 and on the Uplist Date the Company drew additional $ 50 of the First July 2024 Facility Loan Amount. These loans were recorded as short-term convertible loans and their fair value was substantially the same as the amount received. In addition, On the Uplist Date, $ 100 of the First July 2024 Facility Loan Amount was converted into units, which included 100,000 shares of common stock and the same amount of warrants, each warrant is exercisable into one share of common stock of the Company at an exercise price of $ 1.00 per share for a three-year period from the Uplist Date. The warrants were recorded at fair value and were classified as equity. During June 2025, all 650,000 warrants granted under the First July 2024 Facility Agreement were exercised into 650,000 shares of common stock. The Company received total proceeds of $ 650 upon exercise of the warrants. On July 14, 2025, following the closing of the July 2025 Private Placement and the proceeds received by the Company (see note 10.C), the First July 2024 Facility Agreement was terminated. - 26 - QUANTUM X LABS INC. (formerly known as Viewbix Inc.) NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) U.S. dollars in thousands (except share data) NOTE 7: LOANS (Cont.) F. Second July 2024 Facility Agreement On July 28, 2024, the Company entered into a credit line agreement with certain lenders (the “Second July 2024 Facility Agreement”) for a total amount of $ 3.0 million (the “Second July 2024 Facility Loan Amount”). The Second July 2024 Facility Loan Amount will remain available until the earliest of: (a) (1) full utilization of the Second July 2024 Facility Loan Amount, (a)(2) after 40 months from the date of Second July 2024 Facility Agreement, and (b) upon such date that the Company completes a $ 2.5 million financing transaction. The Second July 2024 Facility Loan Amount accrued interest at a rate of 12 % per annum. The interest for the first year was paid in advance in: (a) 360,000 shares of the Company’s common stock, reflecting a share price of $ 1.00 per share for each dollar of interest accrued on the total amount, and (b) 360,000 warrants to purchase 360,000 shares of common stock of the Company at an exercise price of $ 1.00 per share. The warrants are exercisable for three years from the date of the Second July 2024 Facility Agreement. Starting from the second year of the Second July 2024 Facility Agreement, the interest will be paid in cash to the lenders. Immediately after the Uplist, $ 160 out of the Second July 2024 Facility Loan Amount will be automatically converted into common stock of the Company at an exercise price of $ 1.00 per share. Additionally, the Company will issue an identical number of warrants to purchase common stock of the Company at an exercise price of $ 1.00 per share. Furthermore, the Company paid the lenders of the Second July 2024 Facility Agreement a one-time fee consisting of 150,000 shares of common stock of the Company, which represents a fee of five percent ( 5 %) of the Second July 2024 Facility Loan Amount at a share price of $ 1.00 per share. The conversion related features of the Second July 2024 Facility Agreement were bifurcated from their host debt contract and recognized as liabilities measured at fair value at each balance sheet date. In connection with the Second July 2024 Facility Agreement, the Company incurred deferred debt issuance costs of $ 355 , which consisted of a one-time fee to the lenders of the Second July 2024 Facility Agreement, an annual advance interest payment and other additional direct costs. The deferred debt issuance costs were recorded in other current assets in the Company’s balance sheet and were amortized as financial expense over the term of the Second July 2024 Facility Agreement. Deferred debt issuance costs amounted to $ 302 as of December 31, 2024, and were fully amortized during the year ended December 31, 2025, following the termination of the Second July 2024 Facility Agreement (see note 10.C). - 27 - QUANTUM X LABS INC. (formerly known as Viewbix Inc.) NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) U.S. dollars in thousands (except share data) NOTE 7: LOANS (Cont.) F. Second July 2024 Facility Agreement (Cont.) Under the terms of the Second July 2024 Facility Agreement, the Company received in July 2024 a loan of $ 80 and on the Uplist Date the Company drew additional $ 80 of the Second July 2024 Facility Loan Amount. These loans were recorded as short-term convertible loans and their fair value was substantially the same as the amount received. In addition, On the Uplist Date, $ 160 of the Second July 2024 Facility Loan Amount was converted into units, which included 160,000 shares of common stock and the same amount of warrants, each warrant is exercisable into one share of common stock of the Company at an exercise price of $ 1.00 per share for a three-year period from the Uplist Date. The warrants were recorded at fair value and were classified as equity. During June 2025, all 520,000 warrants granted under the Second July 2024 Facility Agreement were exercised into 520,000 shares of common stock. The Company received total proceeds of $ 520 upon exercise of the warrants. On July 14, 2025, following the closing of the July 2025 Private Placement and the proceeds received by the Company (see note 10.C), the Second July 2024 Facility Agreement was terminated. NOTE 8: FINANCIAL INSTRUMENTS AT FAIR VALUE Financial instruments: The Company has level 3 financial instruments that were recognized at fair value upon initial recognition of each financial instrument and subsequently measured at fair value at each balance sheet date, consisting of: (i) the earn-out liability arising from the Metagramm Acquisition (see note 6.B); and (ii) embedded derivatives arising from the June 2024 Facility Agreement, the First July 2024 Facility Agreement and the Second July 2024 Facility Agreement (see notes 7.D, 7.E, 7.F). On June 5, 2025, following the Uplist, the Company converted all embedded derivatives into equity. Prior to the conversion, and as of the Uplist Date, these embedded derivatives were measured at their intrinsic value through profit or loss. The following table presents the financial instruments that were measured at fair value through profit or loss: SCHEDULE OF FINANCIAL INSTRUMENTS Earn-out liability Balance as of January 1, 2026 793 Earn-out liability recorded in connection with Metagramm Acquisition (see note 6.B) Net changes at fair value recognized through profit or loss Embedded derivatives converted to equity Earn-out payable amounts upon achieving financing milestone in connection with Metagramm Acquisition (see note 6.B) ( 67 ) Balance as of March 31, 2026 726 Embedded derivatives Earn-out liability Balance as of January 1, 2025 29 - Earn-out liability recorded in connection with Metagramm Acquisition (see note 6.B) - 1,010 Earn-out payable amounts upon achieving financing milestone in connection with Metagramm Acquisition (see note 6.B) - ( 201 ) Net changes at fair value recognized through profit or loss 10,121 ( 16 ) Embedded derivatives converted to equity ( 10,150 ) - Balance as of December 31, 2025 - 793 - 28 - QUANTUM X LABS INC. (formerly known as Viewbix Inc.) NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) U.S. dollars in thousands (except share data) NOTE 9: COMMITMENTS AND CONTINGENCIES Liens: On September 19, 2022, as part of the Reorganization Transaction terms, the Company has provided several liens under Gix Media’s Financing Agreement with Leumi in connection with the Cortex Transaction, as follows: (1) a guarantee to Leumi of all of Gix Media’s obligations and undertakings to Leumi unlimited in amount; (2) a subordination letter signed by the Company to Leumi; (3) A first ranking all asset charge over all of the assets of the Company; and (4) a Deposit Account Control Agreement over the Company’s bank accounts. In connection with the Cortex Transaction, Gix Media has provided several liens under the Financing Agreement with Leumi, as follows: (1) a floating lien on Gix Media’s assets; (2) a lien on Gix Media’s bank account in Leumi; (3) a lien on Gix Media’s rights under the Cortex Transaction; (4) a fixed lien on Gix Media’s intellectual property; and (5) a lien on Gix Media’s full holdings in Cortex. On November 9, 2025, under the Cortex Sale Agreement (see note 6.A), Gix Media provided Leumi a lien on the consideration received in the form of shares and Leumi released its lien on the shares of Cortex sold by Gix Media. Gix Media and Quantum Israel’s restricted deposits, in the amounts of $ 22 and $ 23 , respectively, as of March 31, 2026, are held as security in respect of credit cards and rented offices. NOTE 10: SHAREHOLDERS’ EQUITY A. Shares of Common Stock: Shares of Common Stock confer the rights to: (i) participate in the general meetings, to one vote per share for any purpose, to an equal part, on share basis, (ii) in distribution of dividends and (iii) to equally participate, on share basis, in distribution of excess of assets and funds from the Company and will not confer other privileges. On March 24, 2025, the Company entered into the 2025 SEA with Metagramm and all of the shareholders of Metagramm, pursuant to which the Company issued to Metagramm’s shareholders 1,323,000 of the Company’s shares representing 19.99 % of its issued and outstanding share capital in exchange for 100 % of Metagramm’s issued and outstanding share capital (see note 6.B). On June 5, 2025, following the Uplist and as part of the June 2024 Facility Agreement, $ 663 of the Total Credit Facility Amount was converted into an aggregate of 662,957 shares of common stock of the Company and the same amount of warrants, each warrant is exercisable into one share of common stock of the Company at an exercise price of $ 1.00 per share. In addition, during June and July 2025, out of 896,636 warrants granted under the June 2024 Facility Agreement, 722,495 warrants were exercised into 722,495 shares of common stock (see note 7.D). On June 5, 2025, following the Uplist and as part of the First July 2024 Facility Agreement, $ 100 of the First July 2024 Facility Loan Amount was converted into an aggregate of 100,000 shares of common stock of the Company and the same amount of warrants, each warrant is exercisable into one share of common stock of the Company at an exercise price of $ 1.00 per share. In addition, during June 2025, all 650,000 warrants granted under the First July 2024 Facility Agreement were exercised into 650,000 shares of common stock (see note 7.E). - 29 - QUANTUM X LABS INC. (formerly known as Viewbix Inc.) NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) U.S. dollars in thousands (except share data) NOTE 10: SHAREHOLDERS’ EQUITY (Cont.) A. Shares of Common Stock: (Cont.) On June 5, 2025, following the Uplist and as part of the Second July 2024 Facility Agreement, $ 160 of the Second July 2024 Facility Loan Amount was converted into an aggregate of 160,000 shares of common stock of the Company and the same amount of warrants, each warrant is exercisable into one share of common stock of the Company at an exercise price of $ 1.00 per share. In addition, during June 2025, all 520,000 warrants granted under the Second July 2024 Facility Agreement were exercised into 520,000 shares of common stock (see note 7.F). On June 15, 2025, the Company issued 37,500 shares of common stock to a consultant as consideration for services provided in connection with the Uplist. The Company recognized $ 75 of share-based compensation expense, recorded in other expenses, net, during the year ended December 31, 2025. B. 2024 Private Placement On July 3, 2024, the Company entered into a definitive securities purchase agreement with a certain investor (the “Lead Investor”) for the purchase and sale in a private placement (the “2024 Private Placement”) of units consisting of (i) 256,875 shares of the Company’s common stock at a purchase price of $ 1.00 per share and (ii) 385,332 warrants to purchase 385,332 shares of the Company’s common stock (the “PIPE Warrants”) to the Lead Investor and other investors acceptable to the Lead Investor and the Company. The PIPE Warrants are exercisable upon issuance at an exercise price of $ 1.00 per share and have a 3 three-year term from the issuance date. Upon the closing of the 2024 Private Placement, the Company paid the Lead Investor: (1) $ 10 for actual and documented fees and expenses incurred and, (2) a commission consisting of (i) a cash fee of $ 13 and (ii) 12,844 shares of the Company’s common stock. The aggregate gross proceeds received by the Company from the 2024 Private Placement were $ 257 . Following the Uplist Date, out of 385,332 warrants granted under the 2024 Private Placement, 328,142 warrants were exercised during June and July 2025 into 328,142 shares of common stock. The Company received total proceeds of $ 328 upon exercise of the warrants. C. July 2025 Private Placement On July 11, 2025, the Company entered into a securities purchase agreement with certain accredited investors pursuant to which the Company issued and sold in a private placement, (the “July 2025 Private Placement”) an aggregate of 848,763 shares of common stock, pre-funded warrants to purchase up to 77,160 shares of common stock and common warrants to purchase up to an aggregate of 925,923 shares of common stock, at an offering price of $ 4.86 per share of common stock and associated common warrant and an offering price of $ 4.8599 per pre-funded warrant and associated common warrant. The pre-funded warrants were immediately exercisable upon issuance at an exercise price of $ 0.0001 per share and will not expire until exercised in full. The common warrants were immediately exercisable upon issuance at an exercise price of $ 4.74 per share, subject to adjustment as set forth therein, and will expire five and a half years from the issuance date. The common warrants may be exercised on a cashless basis if there is no effective registration statement registering the shares of common stock underlying the common warrants. In connection with the July 2025 Private Placement, the Company also entered into a letter agreement with a placement agent on July 11, 2025, according to which the Company paid a cash placement fee equal to 7.0 % of the gross proceeds and $ 50 for reasonable legal fees and disbursements. The July 2025 Private Placement closed on July 14, 2025. The aggregate gross proceeds received by the Company on the closing date were $ 4,500 . The Company incurred share issuance costs of $ 477 which were recognized as a reduction of additional paid-in capital. - 30 - QUANTUM X LABS INC. (formerly known as Viewbix Inc.) NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) U.S. dollars in thousands (except share data) NOTE 10: SHAREHOLDERS’ EQUITY (Cont.) C. July 2025 Private Placement (Cont.) In connection with the closing of the July 2025 Private Placement and the related proceeds, the First July 2024 Facility Agreement and the Second July 2024 Facility Agreement were terminated. In addition, the shareholders of Metagramm became entitled to partial earn-out payments on a pro rata basis pursuant to the 2025 SEA (see note 6.B). On September 5, 2025, 20,576 pre-funded warrants were exercised into 20,576 shares of common stock. D. 2026 Private Placement On January 1, 2026, the Company entered into an amended and restated securities purchase agreement with certain accredited investors pursuant to which the Company agreed to sell and issue in a private placement, an aggregate amount of 800,000 shares of common stock (the “2026 Private Placement”) and common warrants to purchase up to an aggregate amount of 640,000 shares of common stock (the “2026 PIPE Warrants”), at an offering price of $ 1.75 per share of common stock and associated common warrant. The 2026 PIPE Warrants are exercisable upon issuance at an exercise price of $ 2.625 per share and will expire five years from the issuance date. In connection with the 2026 Private Placement, the Company also entered into an advisory agreement, as amended, with L.I.A. Pure Capital Ltd. (“the Advisor”) pursuant to which the Company agreed to pay the Advisor a commission consisting of (i) a cash fee of $ 70 (the “Fee”) and (ii) a warrant to purchase 32,000 shares of the Company’s common stock on the same terms as the 2026 PIPE Warrants. Payment of the commission is conditioned upon the closing of the 2026 Private Placement. In addition, in connection with the closing of the 2026 Private Placement, the Company agreed to repay $ 200 of the outstanding loan amount owed to the Advisor (the “Loan Repayment”) pursuant to the June 2024 Facility Agreement (see note 7.D). The 2026 Private Placement closed on March 4, 2026, pursuant to which the Company issued 800,000 shares of its common stock and warrants to purchase 640,000 shares of its common stock. The aggregate gross proceeds received by the Company were $ 1,400 . The Company incurred issuance costs of $ 70 which were recognized as a reduction of additional paid-in capital. In connection with the closing of the 2026 Private Placement and the related proceeds, the shareholders of Metagramm became entitled to partial earn-out payments on a pro rata basis pursuant to the 2025 SEA (see note 6.B). In April 2026, subsequent to the balance sheet date, the Company paid the Advisor the Fee and repaid the Loan Repayment. - 31 - QUANTUM X LABS INC. (formerly known as Viewbix Inc.) NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) U.S. dollars in thousands (except share data) NOTE 10: SHAREHOLDERS’ EQUITY (Cont.) E. Warrants: The following table summarizes information of outstanding warrants as of March 31, 2026: SCHEDULE OF OUTSTANDING WARRANTS Warrants Warrant Term Exercise Price Exercisable Class J Warrants 32,584 July 2029 53.76 32,584 Class K Warrants 32,584 July 2029 89.60 32,584 June 2024 Facility Agreement Warrants (note 7.D) 174,141 June 2027 1.00 174,141 June 2024 Lead Lender Fee Warrants (note 7.D) 5,296,610 June 2027 0.472 5,296,610 2024 PIPE Warrants (note 10.B) 57,190 July 2027 1.00 57,190 2025 July Private Placement - pre-funded warrants (note 10.C) 56,584 Until exercised in full 0.00 56,584 2025 July Private Placement – common warrants (note 10.C) 925,923 January 2031 4.74 925,923 2026 Private Placement - common warrants (note 10.D) (*) 672,000 March 2031 2.625 672,000 Quantum Israel Acquisition - pre-funded warrants (note 10.D) (*) 4,447,595 Until exercised in full 0.00 4,447,595 Total 11,695,211 11,695,211 No warrants were exercised during the three months ended March 31, 2026. (*) Warrants were granted on March 4, 2026. F. Reverse Stock Split: On July 15, 2024, the Company filed an amendment to its Amended COI to effect a 1-for-4 reverse stock split of the Company’s Common Stock (the “Reverse Stock Split”). The Reverse Stock Split became effective on March 14, 2025. As a result of the Reverse Stock Split, every 4 outstanding shares of the Company’s common stock were converted into 1 share of the Company’s common stock. The Reverse Stock Split did not change the par value of the Company’s common stock or the number of its authorized shares. Share and per share data in these financial statements have been retrospectively adjusted to reflect the Reverse Stock Split for periods presented prior to the Reverse Stock Split. - 32 - QUANTUM X LABS INC. (formerly known as Viewbix Inc.) NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) U.S. dollars in thousands (except share data) NOTE 10: SHAREHOLDERS’ EQUITY (Cont.) G. Share option plan : On March 2, 2023, the Board approved the adoption of the 2023 Stock Incentive Plan (the “2023 Plan”). The 2023 Plan permits the issuance of up to (i) 625,000 shares of Common Stock, plus (ii) an annual increase equal to the lesser of (A) 5 % of the Company’s outstanding capital stock on the last day of the immediately preceding calendar year; and (B) such smaller amount as determined by the Board, provided that no more than 625,000 shares of Common Stock may be issued upon the exercise of Incentive Stock Options. If any outstanding awards expire, are canceled or are forfeited, the underlying shares would be available for future grants under the 2023 Plan. The 2023 Plan provides for the grant of stock options, restricted stock, restricted stock units, stock or other stock-based awards, under various tax regimes, including, without limitation, in compliance with Section 102 and Section 3(i) of the Israeli Income Tax Ordinance (New Version) 5271-1961, and for awards granted to United States employees or service providers, including those who are deemed to be residents of the United States for tax purposes, Section 422 and Section 409A of the United States Internal Revenue Code of 1986. In connection with the adoption of the 2023 Plan, on March 7, 2023, the Company entered into certain intercompany reimbursement agreements with two of its subsidiaries, Viewbix Israel and Gix Media (the “Recharge Agreements”). The Recharge Agreements provide for the offer of awards under the 2023 Plan to employees or service providers of Viewbix Israel and Gix Media (the “Affiliates”) under the 2023 Plan. Under the Recharge Agreements, the Affiliates will each bear the costs of awards granted to its employees or its service providers under the 2023 Plan and will reimburse the Company upon the issuance of shares of Common Stock pursuant to an award, for the costs of shares issued, but in any event not prior to the vesting of an award. The reimbursement amount will be equal to the lower of (a) the book expense for such award as recorded on the financial statements of one of the respective Affiliates, determined and calculated according to U.S. GAAP, or any other financial reporting standard that may be applicable in the future, or (b) the fair value of the shares of Common Stock at the time of exercise of an option or at the time of vesting of an RSU, as applicable. On July 11, 2025, in accordance with the terms of the 2023 Plan, the Company’s board of directors approved an increase in the number of shares of common stock reserved for issuance under the 2023 Plan by up to 2,713,613 shares. NOTE 11: SEGMENT REPORTING The Group operates in such a way that each company in the Group represents 2 a separate business segment. These business segments currently do not include Metagramm’s operations as they do not meet the segment definition criteria. Search segment - the search segment develops a variety of technological software solutions, which perform automation, optimization and monetization of internet campaigns, for the purposes of obtaining and routing internet user traffic to its customers. The search segment activity is conducted by Gix Media. Digital content segment - the digital content segment was engaged in the creation and editing of content, in different languages, for different target audiences, for the purposes of generating revenues from leading advertising platforms, including Google, Facebook, Yahoo and Apple, by utilizing such content to obtain internet user traffic for its customers. The digital content segment activity was conducted by Cortex until November 9, 2025 (see note 6.A), after which the Group ceased operations in this segment and continued to operate solely in the search segment (see note 3). - 33 - QUANTUM X LABS INC. (formerly known as Viewbix Inc.) NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) U.S. dollars in thousands (except share data) NOTE 11: SEGMENT REPORTING (Cont.) The segments’ results include items that directly serve and/or are used by the segment’s business activity and are directly allocated to the segment. As such they do not include depreciation and amortization expenses for intangible assets created at the time of the purchase of those companies and financing expenses incurred on loans taken for the purpose of purchasing those companies. Therefore, these items are not allocated to the various segments. The chief executive officer, who is the Company’s chief operating decision maker (“CODM”), assesses performance for these segments and decides how to allocate resources based the segments’ operating income or loss and income or loss before tax. Segments’ assets and liabilities are not reviewed by the CODM and therefore were not reflected in the segment reporting. The significant expense categories comprising segments profit and loss regularly reviewed by the CODM for the three months ended March 31, 2026 and 2025 are set forth in the table below. The substantial amount of non-current assets is derived from Israel and the substantial amount of revenues is derived from United States. Segments revenues and operating results: SCHEDULE OF SEGMENTS REVENUES AND OPERATING RESULTS Search Segment Adjustments and eliminations (See below) Total For the three months ended March 31, 2026 Search Segment Adjustments and eliminations (See below) Total Revenues from external customers 343 10 353 Traffic-acquisition and related costs 132 - 132 Research and development expenses - - - Sales and marketing expenses 25 - 25 General and administrative expenses 53 447 500 Depreciation and amortization - 224 224 Other expenses, net 6 16 22 Segment operating income (loss) 127 ( 677 ) ( 550 ) Financial expenses, net ( 4 ) ( 67 ) ( 71 ) Segment income (loss), before income taxes 123 ( 744 ) ( 621 ) Search Segment Adjustments and eliminations (See below) Total For the three months ended March 31, 2025 Search Segment Adjustments and eliminations (See below) Total Revenues from external customers 529 - 529 Traffic-acquisition and related costs 134 - 134 Research and development expenses 16 - 16 Sales and marketing expenses 20 - 20 General and administrative expenses 75 122 197 Depreciation and amortization - 173 173 Other expenses, net - 44 44 Segment operating income (loss) 284 ( 339 ) ( 55 ) Financial expenses, net ( 5 ) ( 2,862 ) (*) ( 2,867 ) Segment income (loss), before income taxes 279 ( 3,201 ) ( 2,922 ) (*) Mainly consist of financial expenses arising from changes in the fair value of financial assets measured at fair value through profit or loss (see note 8). - 34 - QUANTUM X LABS INC. (formerly known as Viewbix Inc.) NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) U.S. dollars in thousands (except share data) NOTE 11: SEGMENT REPORTING (Cont.) The “adjustments and eliminations” column for segment operating income includes unallocated selling, general, and administrative expenses and certain items which management excludes from segment results when evaluating segment performance, as follows: SCHEDULE OF RECONCILIATION BETWEEN SEGMENTS OPERATING RESULTS For the three months ended March 31, 2026 For the three months ended March 31, 2025 Depreciation and amortization expenses not attributable to segments (**) ( 224 ) ( 173 ) Revenues, research and development expenses, sales and marketing expenses, general and administrative expenses and other expenses, net not attributable to the segments (***) ( 453 ) ( 166 ) ( 677 ) ( 339 ) (*) Mainly consist of financial expenses arising from changes in the fair value of financial assets measured at fair value through profit or loss (see note 8). (**) Mainly consist of technology and customer relations amortization costs from business combinations. (***) Mainly consist of general and administrative expenses such as salaries and related expenses and professional services. NOTE 12: SUBSEQUENT EVENTS The Company has evaluated subsequent events from March 31, 2026, through May 14, 2026, the date of issuance of these financial statements: A. Effective April 30, 2026, the Company changed its name from “Viewbix Inc.” to “Quantum X Labs Inc.” and its trading symbol on the Nasdaq Capital Market from “VBIX” to “QXL.” - 35 -